Direct Marketing Update for June 30, 2009

If your marketing doesn’t measure up to these response-boosting formulas, you’re losing leads and sales. If you’d like me to help you get better results, email me at craig@cdmginc.com or call me at 310-212-5727.

Stay tuned for more formulas in our next full issue of Direct Marketing Update.

Recession survival tip: Build real value into your loyalty program

This recession has launched price wars in some industries (like the airlines, for example). Many other businesses are suffering from dramatic cuts in consumer spending. Many more struggle with declining brand loyalty to others.

But there are some smart marketers out there who are still finding ways to compete.

Loyalty programs have been one of the most successful tactics. For example, although Talbots Inc. has faced trouble with some brands in this economy, its Talbots Classic Awards program could be a bright spot.

The program helped significantly increase spending on the store’s branded credit card. In 2000, it was responsible for 28% of total sales—a number that grew as the program took off, reaching 46% by 2008. Now, the company is launching a new tiered program to increase customer engagement and gather more data on its members.

U.S. households have an average of 14.1 loyalty memberships but are only active in about half of those. This proves that you have to do more than get a sign-up—you have to offer rewards that are actually valuable and somewhat attainable to your customer.

If you don’t have a clue about how to start a loyalty program, the first step is to decide how many dollars must be spent to receive a percentage-off coupon or a flat discount. You can simplify the bookkeeping by awarding 1 point per dollar spent.

Learn more about loyalty programs (and what you can learn from your program’s members) in my next issue of Direct Response newsletter. Not a subscriber? Click here to sign up now.

Web strategy: The world’s easiest upsell strategy—that actually works

If you want to boost your average ticket sale—and, really, who doesn’t—you need to use this easy upsell strategy on your shopping cart.

The easiest upsell strategy you’ll ever find is this…Structure your offer into three parts: Best Deal, Great Deal and Good Deal.

Take a look at this example:

Another easy fix is to add the word “Recommended” next to your Best Deal or paired with other products that you want to highlight. My testing has shown that people respond to this one powerful word.

Take a look at this next example on the right, which is from a website for motorcycle enthusiasts. This screen shot was taken from the women’s apparel page, where shoppers will see a sidebar of recommended products like this.

So much of your online sales success is dictated by the shopping cart. If you’re a regular Direct Marketing Update reader, you probably already know that streamlining your checkout process will give you a significant sales boost.

But if your checkout takes more than one or two clicks, you’ll want to read my series on web mistakes right away. It includes detailed instructions on improving your online results.

Here are the links you need:

Copy tip: “Woman without her man is nothing”

I’ll bet this headline got your attention. It’s a prime example of how punctuation can change everything about your copy…so you should take special care to do it right.

Take another look at the headline:

Woman without her man is nothing

How would you punctuate this? Can you figure out how a simple change in punctuation would dramatically change its meaning? You’ll find the solution by following this rule…

Punctuation Rule #1: Use commas, colons and semicolons appropriately.

Because commas create a pause in your copy, they are used sparingly in direct response marketing. Leaving out commas keeps the copy flowing and pulls the reader along.

At times, however, a long sentence without commas can feel exhausting. In these cases, it’s wise to use commas or break the text up into short, punchy sentences.

So back to our headline. Are you stumped? Here’s the solution:

Woman, without her man, is nothing.

Woman: without her, man is nothing!

Now there is undeniable proof that punctuation can change everything. Stay tuned for more punctuation rules in the next issue of Direct Marketing Update.

Testing corner: Which thank-you email worked best?

Keeping in touch with your customers and expressing your appreciation should be at the top of your to-do list, now that this down economy has sparked such fierce competition.

Many marketers accomplish this by offering a discount for future purchases in their thank-you emails.

Here’s how a large florist with an online presence decided to test their approach:

Subject line A: Thank You for Making Us Your Florist of Choice

Subject line B: 15% Off—Our Way of Saying Thank You!

The results might surprise you. The opening rate for subject line A was 25% higher than B’s…even though the offer wasn’t mentioned. But that’s not all you need to know.

When it came to click-through rates and sales, subject line B outperformed A quite well. Here’s a breakdown:

	Subject line A	Subject line B	Relative Difference
Unique click-throughs:	10.11%	16.21%	60.34%
Sales amount	$4,717	$7,637	56.18%

Why do you think B beat A? Email your thoughts to craig@cdmginc.com. I’ll share some reader responses in the next issue.

(Be sure to check out the sidebar for reader responses to our last Testing corner!)

Action Items

Email me if you’ll be in Las Vegas on July 9–11. I look forward to meeting DMU readers when I’m out on the road, and this time I’ll be speaking at FreedomFest in Vegas. I’ll also be visiting the Natural Marketplace convention, taking place at the same time. If you’ll be in the area and would like to meet up, email me at craig@cdmginc.com or call 310-212-5727.
Click here to check out my Essential Direct Response Booklist. You’ll find my old favorites as well as some newly published materials.
Examine the results of your last marketing campaign. Are you experiencing a loss of leads or sales? I can help you with your direct mail, TV or radio, website, email, banner ads—your entire marketing campaign. Contact me at craig@cdmginc.com.

Yours for direct marketing success,

Craig A. Huey signature
Craig A. Huey
President
Creative Direct Marketing Group, Inc.
email: craig@cdmginc.com
phone: 310-212-5727
http://www.cdmginc.com/

Click here to visit the Direct Response Library. You’ll find numerous articles from past issues of my Direct Response newsletters that provide even more valuable direct marketing help.

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