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Dear [contact-First_Name],
Welcome to The Scoop, Kaleidoscope’s
monthly newsletter.
In this issue, we will examine the top three
factors that determine customer response in
direct marketing campaigns and how JetBlue
Airlines used direct marketing and new media
to retain customer loyalty and successfully
avoid a public relations nightmare.
We always love to hear from you, so please
feel free to drop us a line at:
TheScoop@KaleidoscopeResults.com.
How [contact-Company] Can Leverage
RELEVANT MARKETING Through Personalization
Up until recently, the largest challenge in
direct marketing was how to get your direct
mail piece to break through the clutter and
stand out in the pile. Nowadays, the
ever-increasing volume of direct mail
combined with new additions to PIPEDA (The
Personal Information Protection and
Electronic Documents Act), have created new
challenges for marketers. An astounding 56%
of consumers “disregard all direct mail
because they find it irrelevant, excessive
or needlessly time-consuming.” (Vertis
Communications, 2007) So... how to break
through?
Consumers are beginning to drive the way we
marketers actually market to them and
different market segments require different
strategies in order to form successful
consumer experiences. Regardless of new
trends aimed at trendily-named consumer
groups, (please see below) the three main
factors in determining customer response
continue to be timing, relevance
and personalization. In both B2C and
B2B marketing, audiences expect relevant
messages that address their current needs,
wants and desires - not to mention their
correct contact information!
We will discuss each factor below:
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Timing
The timing of when a consumer receives
an offer is almost as important as the
offer itself. The increasing
availability of Customer Relationship
Management tools means that it is
possible for even small and mid-sized
companies to track and leverage consumer
data and predict behaviour. Determining
factors for consumer behaviour can
include the time of year, the consumers’
age or stage of life, political events,
or a recent experience with or
introduction to a brand.
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Relevance
People react to offers that respond
to, or anticipate their needs and relate
to their current attitudes. For example,
in response to new trends in e-finance,
Scotiabank created “The Vault”, a free
monthly e-newsletter designed to educate
consumers on how to get ahead
financially. By giving its customers the
opportunity to receive The Vault,
(“opt-in” marketing) rather than using
the more common “opt out” option,
Scotiabank has created an elite group of
educated consumers, who are more likely
to continue banking with them and to
take advantage of the other services
that they have to offer.
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Personalization
Personalization is the single most
effective way to grab people’s
attention, and will result in increased
response rates as well as improved brand
confidence over generic messaging.
However, because of the sheer volume of
messages that contain “simple
personalization”, (name and address with
salutation) it is more important than
ever before to tailor messages to
specific individuals. Consumers expect
to be presented with meaningful messages
that indicate their needs are known.
Then, the understanding of those needs,
with viable solutions, must be
communicated clearly.
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Our phones are quieter, but our
mailboxes are fuller – new
restrictions on telemarketing have
caused an increase in advertising
mail volume, resulting in a 3.5%
increase from 2005 to 2006.**
76% of consumers earning $100,000 or
more per annum have reported
responding to “buy one get one free”
direct mail offers, compared to 72%
of consumers earning $30,000 per
year who responded to the same
offer.*
An astounding 70% of Generation Y
(the cohort born between 1981 and
1995) consumers surveyed indicate
that they have responded to discount
coupons received in the mail,
compared to 61% of Baby Boomers and
63% of adults overall.*
Analysts are predicting that total
advertising spending in the US alone
will total $298.8 billion in 2007,
up 4.8% from 2006.**
* Vertis Communications,
Vertis Customer Focus® DM,
2007
** Robert J. Cohen, Insider’s
Report on Advertising Expenditure.
Universal McCann, June 2006.
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Remember when air travel was glamorous?
On February 15, JetBlue Airways encountered
a customer service nightmare. As a snowstorm
pounded New York, passengers on the discount
airline experienced delays of epic
proportions due to congestion, frozen
equipment and mechanical failures. As a
result, ten planes were stranded on the
runway, some for as long as 11 hours.
Passengers quickly let their voices be heard
and soon tales of the delays were flying all
over the news and the web. |
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For this edition of the Good, the Bad and
the Ugly, Kate and Yvette will discuss the
communications campaign that JetBlue used to
handle the “snowstorm” of negative publicity
across North America. JetBlue’s two-tiered
campaign consisted of an email to their
customers and a videotaped apology
distributed on their home page and on
YouTube. Their website became their
announcement – loud and clear. The campaign
will be rated according to the following
system.
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The Good - |
Salmon Wellington* and
Little Miss Sunshine |
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The Bad -
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Sesame Crisps and Airplane 2 |
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The Ugly - |
Stale coffee and Snakes on a
Plane |
* Editor’s note – Kate has officially
verified that she was served Salmon
Wellington on British Airways.
Kate’s Rating:
Good
Yvette’s Rating:
Good
Click here
to view full article. |
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“Over the past 4 years, I have traveled
the world on behalf of Microsoft speaking
about compliance-related issues. Recently, I
attended one of the best events I have
participated in. Developed by Kaleidoscope
Marketing for the Microsoft Enterprise
Telecom team in Canada, it combined my
presentation with a gourmet cooking class
and wine pairing. The attendees were all
senior-level decision makers who had the
opportunity to mingle with the sales team
and discuss their specific compliance
challenges in an intimate and relaxing
environment.”
Jeff Jinnett, JD, CISSP
Managing Director, Compliance
Financial Services Group
Swingtide, Inc.
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Shifting demographics and accelerated
technologies have created new markets for
products and services, and therefore, new
market segments. Here is a sampling of some
of the new groups:
Prosumers are extremely knowledgeable
consumers who are interested in professional
grade products or services, regardless of
whether they are professionals themselves.
Evidence of this group is everywhere, from
specialty shops such as Whole Foods to lower
price points for digital cameras.
Transumers are consumers who are
primarily motivated through experiences and
are driven by entertainment or discovery.
They are characterized by a more transient
lifestyle and the ongoing desire to collect
as many unique and interesting experiences
as possible.
Trysumers are daring consumers
characterized by a desire to try new things.
Immune to most forms of advertising, this
group enjoys full access to information and
reviews and is willing to try new things
without hesitation or a fear of
disappointment. |
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WE NEED YOUR INPUT
Kaleidoscope is developing an innovative program
designed specifically for advisors to assist with
your marketing requirements. Working with corporate
organizations, we will help you differentiate
yourself with a unique brand while maintaining the
brand standards required by your organizations.
This program will help you build your book of
business and deliver relevant marketing to your
target audience through marketing collateral,
newsletters, and seminars.
We are looking to create an advisory group to assist
in ensuring this delivers superior value. If you are
interested in participating in a brief focus group,
please contact Yvette at
YGauthier@KaleidoscopeResults.com. |
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