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Results Driven Marketing in a Down Economy… Name Title Event U.S. Postal Service Today’s Conversation The Landscape Recession Spending in Action: A Look Back in History Survival Guidelines Direct Mail: The Marketing Workhorse Where to Turn Today’s Economic Landscape GDP growth turns negative Job losses accelerate Housing market stalls Families feel the pressure Wages still up due to low inflation Source: Economic Snapshot, Center for American Progress, April 2009 Consumer Attitudes Economic downturns instill anxiety Energy and food prices are on the rise Frugality is standard operating procedure Pragmatism and escapism are not mutually exclusive Consumers are saving more, spending less! Source: Tuning Into The Recession Mind-Set, Forbes, February 2008 “Marketers from various industries are feeling the pinch of belt-tightening with their budgets.” Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008 The Marketing Snapshot 69% are reducing advertising budgets 63% are reducing production budgets 63% are being challenged to reduce expenses and cut costs 61% eliminating or delaying new projects 63% restricting travel Source: Economic Conditions Forcing Marketers To Reduce Advertising Budgets, ANA Survey, 2008 “In fact, SPENDING MORE during tough times when competitors may be scaling back is a good way to STRATEGICALLY BOOST MARKET SHARE… Source: Bob Liodice, President and CEO of the ANA A Look Back in History The Great Depression Many companies benefited from aggressive marketing Consumers looked for better deals When spending picked up, loyalty was established Source: How Brands Thrived During the Great Depression, Strategic Marketing Concepts, February 2009 Depression Spending in Action Chart: P&G: New and Improved How A.G. Lafley is Revolutionizing A Bastion Of Corporate Conservatism, Business Week 2003 Depression Spending in Action Depression Spending in Action Depression Spending in Action Survival Guidelines for Businesses Examine Your Costs Make Strategic Cuts Stay Close to Your Customer Explore New Opportunities Think Like a Marketer Monitor the Competition If they’re cutting back, it’s the opportunity to consider increasing your marketing budget Avoid Gimmicks Your customers need messages that center on the benefits and advantages of your product or service. Source: Facts On The Value Of Marketing During An Economic Downturn/Recession Stress Benefits and ROI What’s In It For Me Source: Facts On The Value Of Marketing During An Economic Downturn/Recession Focus on Metrics Test Know the behavior of your segments Adjust Watch spending Source: Facts On The Value Of Marketing During An Economic Downturn/Recession Re-examine the Marketing Mix Source: Facts On The Value Of Marketing During An Economic Downturn/Recession Use Direct-Response Techniques Hard-hitting copy and a strong call to action Source: Facts On The Value Of Marketing During An Economic Downturn/Recession Direct Mail The Marketing Workhorse PERSONAL Use the customer’s name Provide relevant information 55% of customers “look forward” to receiving their mail TARGETED Focuses on a specific group Strong ROI FLEXIBLE Choose from a variety of formats Include special offers, samples or coupons TANGIBLE/ CREATIVE Places your message in their hands Makes an unforgettable impression Your piece can be passed along Direct Mail The Marketing Workhorse MEASURABLE Easy to track the results Allows you to adjust mailings based on success Calculate price per lead GREEN Post-consumer content Consider paper weight Alternative materials Chemical-free processes Experiment with formats Results Driven Marketing The Reason Components Components Components Case Studies The Challenges Generate reservations for opening of 135 luxury guest rooms and offer discount Cut spending on mass advertising media Attempt to gain market share when sales are down Advertise to promote iconic brands otherwise risk losing customers David Rawle Chairman, Rawle Murphy Advertising, Marketing, and Public Relations Agency Wild Dunes Challenge: Launching a luxury product during a recession Solution: Combine product and incentive offer using a multi-channel marketing campaign AT&T Challenge: Increase cross-selling among customers despite high turnover Solution: Integrated plan led with Direct Mail kits John Klemets Marketing Manager, Dell Consumer Division Dell Challenge: Grow market share despite shrinking budgets and current economy Solution: Integrated plan with multiple Direct Mail executions Jeff Meyer Sr. VP, Marketing & Sales - Feld Entertainment FELD Entertainment Challenge: Continue to advertise to promote iconic brands otherwise risk losing customers Solution: Direct Mail lead the way for decisionmaking of destinations for events and inventory The Results In total, 3,000% ROI from the campaign. Length of stay increased by 10% from prior years, online revenues increased by 40%, call-in revenues increased by 20% Mailing more next year based on the positive ROI generated from this year’s mailing campaign Early access to a sale’s event generated a 200% ROI Positive RIO is the indicator for each given market around the country Summary Listen to the market Invest in your customers Offer value and demand greater value Increase communication Step up your advertising Make smart decisions Resources People Postal Customer Councils USPS Sales Force USPS BSN Places Brains on Fire Brand Channel Duct Tape Marketing Things Deliver and www.delivermagazine.com Any Questions?? Thank you for your time!