Direct Marketing: Overlooked, Underappreciated, and Unstoppable. Can Media Coverage Build An Online Business? You Bet It Can!.
Every business needs customers, but more importantly every business needs to maintain those customers while constantly retaining new ones. The only successful way of doing this is by learning everything about your customers, including who they are? What do they have in common? Do they share a hobby, an age range, a life stage, or a geographic community? Can you break them down into groups? The answers to these questions hold a wealth of information for you. Although direct marketing can be overlooked by many businesses, here are statistics proving the effectiveness of direct mail campaigns over the years.
According to the DMA (Direct Marketing Association) 2005 Postal and Email Marketing Report:
* For postal mailings, 43% of direct marketers indicated that their up-front gross response has increased from 2003 to 2002.
* As with postal mailings, when asked about 2004, respondents showed more optimism in their up-front email response rates, with 51% projecting an increase and 32% stable response rates.
* For postal mailers, the top list techniques used to improve 2003 front-end response were enhancements to internal housefile databases (50%), demographic segmentation (50%), and prior mail history analysis (46%). Most list techniques had a success rate of 80% or greater.
According to the DMA 2004 E-Commerce Report:
* The portion of companies having an in-house email marketing list has increased from 74% to 85%
* 43% of Web and email investment is allocated towards marketing, compared to 35% in 2002
The direct marketing industry employs the top minds of our world to analyze and build databases and marketing campaigns to address only the concerns and needs of a selected audience, which history has proven to be accurate 70% of the time. Typically, budgets are based more on analyzing the product, service and/or the consumer rather than playing an ROI guessing game.
Case Study of a Client
Here is a case study of a client that used direct marketing to increase their bottom line:
Allied Home Mortgage Capital Corporation (AHMCC), the largest U.S. privately held mortgage banker/mortgage broker initiated a more sophisticated form of direct mail marketing in 2003, which included the use of opt-in email files and multi-level marketing to reach new customers. The results were that AHMCC increased their revenues by 100% and increased their closing ratio by 15% by using email alone. Customer loyalty went up and referrals hit the roof. AHMCC now has 700 offices in 49 states, Guam and the Virgin Islands!
As the marketplace continues to evolve and change due the economic landscape and the need to offset expensive ad campaigns, direct marketing continues to play a major role for the success of any sized business. Regardless of the negative connotations that the public has on direct marketing, the truth of the matter is that corporations are vehicles that satisfy the needs of people and marketing is the channel that helps facilitate this process.
Ultimately, in order to be successful, companies must learn to maintain the loyalty of their customers and get in front of new ones by practicing 1 simple rule: Providing good product and service to the right people, at the right time, in the right place and in the right way.
Brian Rice is the Co-Founder and CEO of Red Clay Media, a data compiler and direct mail company. Red Clay provides customized, targeted mailing lists to business owners, list brokers, and professionals in the mortgage and insurance industry. Visit http://www.redclaymedia.com or email brice @redclaymedia.com.
Article Source: http://EzineArticles.com/
As someone with expertise in media relations, I've been asked if media coverage and publicity can build an online business.
The real question is whether what happens offline really matters online. And the answer is unquestionably, "Yes!"Here are ten reasons why media coverage can help your online business grow:
- Every one of us, even if we spend four to eight hours a day in front of a computer screen in our underwear, still lives in the real world. Our opinions, desires, priorities, and decisions are heavily influenced by television, radio, books, magazines, and newspapers. Every business, online or offline, can benefit from positive media exposure.
- Almost no business can afford to be absent from the Internet these days; even a local real estate agent gains a competitive edge from having a web site. By the same token, an online business gains a strong advantage by having an offline presence. Online and offline marketing of all types support each other.
- Search engines won't bring most web site owners business. I just did a Google search for "books", and found about 85.2 million entries. Ninety-five percent of searchers will likely click on the first two (Amazon.com and BarnesAndNoble.com), most of the others will never get to the second page of the searches. This means that 85,199,990 web site book sellers cannot rely on search engines. How about searching for the word bookstore? Still almost seven million entries, and guess who the top two are?
- You can't cheat the search engines. Try a search for books and carpentry. The odds are much better, with only 106,000 entries. That still means 105,990 web site book sellers will rarely be found. How about books and promotion? Almost two million entries. If a million carpentry book sellers are reading this article, five are smiling. The rest will only smile with an offline presence, such as a great article in their local newspaper or a call-in show on a radio station half way across the world.
- The media can create interest in your product or service if they feature you as part of an interesting story. Online or offline, that's what media coverage does. A good story is gold.
- The media is just starting now to wake up to the exciting things happening online. Timing is everything and this is the time.
- The media are now working increasingly online. The online and offline worlds are converging more than ever before. Articles that appear in local papers, industry magazines and even commentary on radio broadcasts find themselves on the Internet. That can often mean powerful links to your web site. Publicity offline means promotion online.
- If you are running a contest, placing a new interactive program on your site, winning an award, taking donations for a charity or doing anything noteworthy online, it is of interest in the offline world. The media can act as a funnel for people who spend less time than you and I do in front of a computer screen.
- In the mainstream media, you are trustworthy. If they see it on TV or in the newspaper, people believe it. (Funny, they SAY they don't trust the media, but their actions speak louder.) Since web marketing is about relationships and trust (That is your strategy, right?), you can build that relationship with people who are only now getting online or who may not even be online for another couple years. By the time they are ready to buy from you, the relationship has already begun because they have carried your offline credibility (that's the biggest value of media coverage) with them onto the Internet.
- In the mainstream media, you are real. I know many people who still don't buy anything online. They simply do not trust someone they cannot see. Sure, you might be honest, but how do they know? You could disappear into the ether tomorrow. While bricks-and-mortar stores can close just as fast, there is an impression that they are more real and more permanent. You can increase your realness and permanence through a media presence, and thereby increase your customer base.
Media relations is not always easy and not everyone can make it. You have to have something interesting to tell and have a creative way to make it newsworthy. But it is a low-cost way to drive traffic to your web site. And you may not need to get onto the front page of USA Today to succeed. You may simply want a mention in a few niche magazines where your targeted traffic can be found.
So if you don't like the idea of being a million entries down on a web search, or even 60 entries down, consider a low-cost, effective alternative - the media. With the right angle, media relations and publicity can expand your engine faster than search engines.
About The Author
After a decade and a half as one of Canada's top consumer advocates, often conducting over 600 media interviews each year, David Leonhardt is sharing his knowledge with others. Pick up a copy of his special report "Get In The News!" at http://www.TheHappyGuy.com/publicity-self-promotion-report.html
Article Source: http://EzineArticles.com/
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