Seven Habits for Winning at Direct Marketing With Credit to Steven Covey
Seven Habits 1.Be Proactive 2.Begin with the End in Mind 3.Put First Things First 4.Think Win-Win 5.Understand, Then Be Understood 6.Synergize 7.Sharpen The Saw
Habit 1 : Be Proactive A campaign should never be just a repeat of the last cycle. Even if results were on target last time. Every cycle represents an opportunity to test and produce more positive results. Don’t just focus on small opportunities. Put effort into potential breakthroughs.
Test Offers
51% Of Successful Direct Marketing Is In The Offer Test your offers, drill down, know what works.
The Elevator Message 15 minutes to save 15% Around for decades Life Insurance for a Dollar a Week Veterans Life
Test Lists
51% of Successful Direct Marketing Is In The List Test lists, drill down, know what works.
It’s The List Was – direct mail buyers, hotlines, affinity groups Seemed like magic Now –segmentation, analytics, database marketing Seems like using information Test lists, drill down, know what works.
51% Of Successful Direct Marketing Is In The Creative Test creative, drill down, know what works.
It’s The Creative In house team –tested 30 direct mail HIP packages over a few years #31 ?? New writer changed the equation. Testing the same approach over and over gets the same results over and over Test creative, drill down, know what works.
Habit 2: Begin with the End in Mind A strategy focuses your testing on what you want your business to be and do. If you don't visualize what you want, you leave it to competitors, circumstances and your winning offers to shape your business by default.
Vision Matters (So Does Execution)
Think Big and Figure Out How to Get the Money to Do It. Vanguard and Fidelity Your father bought mutual funds from a commissioned salesman. Your kids will never see one. Buying direct is mainstream GEICO and Progressive Made themselves the #1 household names Made buying direct mainstream Invested $5 - $10 Billion since 2000
Thinking Big
Execution Matters Vince Lombardi and John Naioti Blocking and Tackling Answer the phone Close the sale Follow up on underwriting and policy issue “Bocci Balls”
Habit 3: Put First Things First Say “no” when necessary to focus on your highest priorities. Recognize that not doing everything that comes along is okay.
Prioritize
Make Time for Big Opportunities.
Follow the Money “Deep Throat” famously told Woodward and Bernstein, at least in the movie version, to “Follow the Money”.
High Life Time Value Customers High Premiums Good Persistency Cross Sell Opportunities Leading Examples USAA AMICA Medicare Products
High Life Time Value Customers.
Build a Better Mousetrap The biggest direct marketing businesses are “Take Away” sales Auto, Medicare, etc. Competitiveness matters. Price and benefits Know why you will win your share of comparisons.
Habit 4: Think Win-Win Three vital character traits: Integrity: sticking with values and commitments Maturity: consideration for the ideas of others Abundance Mentality: there is plenty for everyone
Win-Win
But Some of My Best Friends Are Actuaries You can’t afford silos!
Habit 5: First Understand, Then Be Understood Most people first seek to be understood Because you have a point you want to get across. And in doing so, you may fail to connect with your audience. You filter everything through your life experiences, your autobiography. There can be a role for consumer research in direct marketing. Not a substitute for live testing.
Understanding through Market Research.
Marketing Language = Customers Language
Habit 6: Synergize Synergize is creative cooperation. It's a process, and through that process, people bring all their personal expertise to the table. When people interact together, and are open, they gain new insight. Valuing differences drives synergy.
Spreadsheets Meet the “Arts”.
Habit 7: Sharpen the Saw Sharpen the Saw means having a program for growth and self-renewal. Insert Plug for Next JCG Conference.