Today's issue contains insights into direct marketing for the guerilla marketer, why to use frequency marketing to boost your sales and an important explanation of firewalls.
This issue's Quick Tip: CentraView business management software.
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-John Libonati, Editor
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CentraView
Every once in a while a business tool comes along that makes us say Wow! This time it is CentraView , an "out of the box" business management software package that integrates all a business's functions in one location.
Back in January, we received a call from a new local start up software firm who wanted to show us their product. We agreed to meet with them to see the program in action. Frankly, we were skeptical. After all, we get approached by people with "better mousetraps" all the time.
Only 10 minutes into their presentation and we were hooked.
Basically, CentraView synchronizes all a company's databases in one place to allow management to see exactly what is going on in all the different parts of the business. Sales, marketing, customer service, accounting, project management - the list goes on.
One of the parts we especially liked was the way the program synchs employee emails with the customer relationship database. That way, everyone can see who contacted the client last and what was communicated. Generating reports is easy, because all the information is in one place. No more opening multiple programs. CentraView is completely scalable. Five employees or fifty thousand, it doesn't matter. The program grows with the company. Since it is intuitively based, the learning curve for new employees is a few hours - even without a manual.
CentraView is a good idea for anyone who wants to make managing their business easier.
How often do you keep in touch with your past customers to announce a new product or service? Have you developed a relationship with your customers since their initial purchase? Do you consistently reward customers for their repeat business?
Frequency marketing is simply identifying high value customers and building a solid relationship with them. It is also a very effective way of branding your product or service. It is a proven fact the developing relationships with your customers will increase sales and reduce expenses.
Reduce expenses?
Yes, acquiring new customers always costs more money than selling to your existing customers. Most companies do not realize the power of their in-house mailing lists.
Frequency marketing has been around long before the Internet. A prime example of frequency marketing are the many "frequent-flyer" programs. Many airlines offer free air miles if you travel on their planes. This is their method of building brand loyalty.
Should you implement frequency marketing in your marketing efforts?
Frequency marketing is a long-term strategy that requires commitment. Unlike promotions that may last only weeks, frequency marketing programs could last for several years. If you cannot make this type of commitment, then it will be tough to develop a successful frequency marketing strategy.
The rewards that you offer should be of value. Here are a few more examples of frequency marketing:
Credit Card Contests - Some credit card companies are offering you a chance to win prizes. Everytime you use your credit card, you are entered into the contest.
Stamp or Points - Companies will give you stamps or points that can be redeemed for brand merchandise. (e.g. Pepsi Points)
Contest and Games - Companies provide games or contests which require the player to make repeat purchases. (e.g. McDonalds Monopoly)
You do not necessarily have to offer a tangible reward. Studies indicate that rewards such as special treatment or recognition provide a stronger bonding impact.
Be genuine about your rewards. How many times have you received a "preferred member" plastic card with a toll-free number on the back? Where is the value?
Don't promise the world. If you cannot deliver on your promise, you could seriously damage you reputation and credibility.
When conversing with your customers, you should do it genuinely and not generically. Sending a letter that starts off with "Dear Valued Reader," will not be as effective as "Dear Jim,". Remember you are trying to develop a relationship. Frequency marketing communication is one-to-one, not one-to-a million.
The most important aspect of a successful frequency marketing program is to add "real" value to your customers. You have to look at your product or service and decide whether it warrants a repeat purchase. If you do not offer a high quality product or service, your frequency marketing strategy will fail miserably.
Frequency marketing is not for all businesses. They usually apply to business that have a high need for repeat business. You should also be in a business where it is hard to distinguish between you and your competitors to effectively use a frequency marketing strategy. If you have a monopoly in your business, it does not make sense to implement a frequency marketing strategy. Everyone has to purchase from you no matter what.
The downside to frequency marketing is that once all your competitors realize how successful it is, they will jump on the same bandwagon. Pretty soon, the whole strategy becomes meaningless if everyone else is doing it. That is why a frequency marketing strategy needs to be well thought out and constantly reapplied or revamped.
Frequency marketing is still in its infancy on the Internet. There are many programs evolving at this moment. There will be a lot of companies implementing this long-term strategy into their marketing efforts. Will yours be the next?
About the author: Gauher Chaudhry is editor of Cool Cash Ezine. You can subscribe for free by sending an email to subscribe@freecoolcash.com with "sub-art" in the subject. You will receive a free copy of the 225+ page book "How To Start And Operate Your Own Profitable Business At Home!" (reg. $20)
Direct response marketing is a lot different from indirect response marketing, although guerrillas like it best when the two are teamed up. The first is geared to obtain orders right here and right now. The second is geared to obtain orders eventually. Although a fair amount of standard, indirect marketing often is necessary to set the stage, to make prospects ready to buy, and to separate your company from strangers, it's when you initiate direct marketing that you first taste blood.
As you well know, we are living in the Age of Information, most of it very easy to obtain. But information is hardly enough for a guerrilla. And information is not insight. It's the combination of information and thought that leads to insight and it's insight that's going to make you a stand-out in the direct response arena.
The first insight for you to absorb is that direct response marketing either works immediately or not at all. Unlike standard marketing which changes attitudes slowly and ultimately leads to a sale if you go about things right, guerrilla direct response marketing changes minds and attitudes instantly and leads to a sale instantly if you go about things right.
When it works, you know it. You don't have to sit around and wonder. You don't have to wait months and months for your message to penetrate the mind of your prospect. Your time-dated direct marketing offer either results in a sale right now -- or it doesn't.
To succeed with direct marketing in any medium, remember always:
1.) Your offer is omnipotent. The best presentation in the world has a major uphill battle if you make a weak or ordinary offer.
2.) The market to whom you direct your message can make or break your campaign. Saying the right thing to the wrong people results in no sale.
3.) What you say and how you say it is easily as important as to whom you say it. Talk in terms of your prospects and how your offer benefits them.
4.) Carefully planning every cent of your campaign for maximum profits requires as much creativity as your message. Guerrillas excel at this.
5.) The more that people have been exposed to your other marketing, the more readily they'll accept what you offer with your direct marketing.
Some principles of indirect marketing apply to direct marketing. You must still talk of the prospect, not yourself, and you must make a clear and cogent offer. But from that point on, direct marketing is a whole new ballgame. And its one that you can win with the insights of the guerrilla.
Stupid mistakes in horrid abundance have been made by otherwise bright companies when testing the direct response waters. Fortunately, guerrillas can learn from these blunders, making those waters a bit safer. Listing them would take an endless series of books, but it's worth your time if I make a start by providing insight into ten of the most notable:
• Failure to attract attention at the outset dooms many brilliant campaigns before they have a chance to shine. Envelopes, opening lines, mail subject lines and first impressions are the gates to your offer. Open them wide.
• Not facing the reality of a direct marketing explosion relegates your attempt to the ordinary, which means the ignored. Guerrillas say things to rise above the din, to be noticed and desired in a sea of marketers.
• Focusing your message on yourself instead of your prospect will usually send your effort to oblivion. Prospects care far more about themselves than they care about you. So talk to them about themselves.
• Not knowing precisely who your market is will send you into the wrong direction. Research into pinpointing that market will be some of the most valuable time you devote to your direct marketing campaign.
• Mailing or telephoning to other than honest prospects wastes your time and money. If you make your offer to people who don't really have a need for your offering, they'll be an incredibly tough sale.
• Initiating direct response marketing without specific objectives gives you too hazy a target for bullseyes. Begin by creating the response method for your prospects so you'll know what your message should say.
• Featuring your price before you stress your benefit will be telling people what they don't want to know yet. First, your job is to make them want what you are offering, then you can tell them the price.
• Concentrating on your price before your offer is wasting a powerful selling point. Even if your price is the lowest, people care more about how they'll gain from purchasing. Give your low price at the right time.
• Failing to test all that can be tested is a goof-off of the highest order. Test your price points, opening lines, subject lines, envelope teaser lines, benefits to stress, contact times and mailing lists to know the real winners.
• Setting the wrong price means you've failed in your testing and your research. Guerrillas are sensitive to their market and their competition, testing prices and constantly subjecting them to the litmus test of profits.
As direct response vehicles become more sophisticated and prolific, guerrillas have the insight to zero in on the exact people to contact, so as not to waste time or money on strangers. Successful mailings to strangers net as high as two percent response rates. Successful mailings to customers and qualified prospects net up to ten percent. Precision leads to profits.
About the author:
Jay Conrad Levinson is the creator of the Guerrilla Marketing series of books - the best selling series of business books in history. He is also responsible for some of the most successful ad campaigns in history, including *the* most successful in history: The Marlboro Man. http://www.roibot.com/gm.cgi?sponsorID
There is a lot of information in the news today about hackers, viruses and email spam that must confuse the normal computer user. Now that broadband access to the internet is readily available to many home and home business users, hackers have now found a new set of resources for their exploits. This article will try to explain what a firewall does and does not do, and whether you need one for your business.
A firewall is…
A firewall, in computer terms, is a piece of hardware or software that blocks unwanted users from your computer or your network. A firewall will stop hackers from planting viruses on your machines, using your machines as a resource for attacking other machines, and reading the computer files on your machine. There are several different types of firewalls that range from software you can install on your machine to the industrial grade firewall for a large business.
A firewall does not stop you from getting spam or viruses from your email. If this is a problem there are several software packages that can block spam emails and check any incoming emails for viruses. Symantec, www.symatec.com, and McAfee, www.mcafee.com, are the two leading manufacturers of this type of software. You can go to the links provided to get the software you need for your computer. The cost is usually less the $70 per computer.
Who needs a firewall…
Anyone who is using a broadband Internet connection with their computer needs to have a firewall setup for their machine/network. Hackers will look to use any computer with a broadband connection to the Internet because of the speed, or bandwidth, of access to the computer.
Dial-up users, for the most part, are not as vulnerable to hackers because of the slower speeds used during dial-up access. This does not mean that if you use dial-up that hackers will never target your computer, it’s just less likely they will try based on the slow speed of the connection.
What type of firewall is right for your business…
If you are a home user or business user with only one computer using the broadband connection you can install a software firewall to protect your machine. Symantec’s Internet Security(IS) is one of the better choices. Internet Security will be packaged with Norton Anti-Virus and Norton AntiSpam for a complete solution. IS will allow you to filter out most known hacker ports on your machine and also comes with a web site blocker to allow you to filter out unwanted web content if your children use your machine. The cost of Internet Security is about $99 per computer.
If you have multiple computers running from a broadband connection that is either a DSL, Digital Subscriber Line, or Comcast Cable you will need to purchase a hardware firewall solution. Some of the leading manufacturer’s of these types of firewalls are Netgear and Linksys. You can either purchase these at CompUSA or on-line through the manufacturers’ web site. The companies will also refer to this hardware as a router, but it acts as a firewall as well. The cost of the firewall will be based on your needs as a business, but here is a guideline to help you choose:
1. If you have a hard-wire network, network lines running in your office, you will need to purchase a firewall with a hub attached. Make sure that the number of ports is 50% greater than what you currently need so you have room to grow.
2. If you cannot run network wire, or are looking to go wireless, you will need to purchase a wireless router/firewall. Make sure you purchase a wireless device that handles both 802.11b and 802.11g wireless protocols.
The cost of a firewall should be less than $150. Please note that if you are using Comcast cable you are limited to five machines on the network if you have the basic home internet package. There are no limits on DSL.
If you are using a T1 line or an ISDN line for your broadband connection you will need to purchase a larger scale solution. Sonicwall and 3Com both manufacture these types of firewalls. The Sonicwall SOHO3 is a very good choice for this type of broadband setup. The SOHO3 costs about $700. Whichever firewall you choose, make sure that the device will work with the type of internet connection you are using. Check the specifications from the manufacturer before making any purchases.
Who should install your firewall…
This really depends on your comfort level with computers and networking. For the single user, unless you really do not feel comfortable installing software, you will not need anyone to help you. The installation of Symantec’s Internet Security is very simple.
If you are working in a multi-computer environment then there more issues. Here is a little, five question test you can take to determine if you want to try to install the firewall yourself. If you answer yes to all five questions you should be okay.
1. Did you network the computers you currently have at your home or business?
2. Do you know what an IP address is?
3. Do you know what NAT means?
4. Do you know what DHCP means?
5. Do you what the default gateway setting means?
If you answered no to any of the questions above then you probably will need professional help to install your firewall. The cost to install the firewall should be between $200 and $250 depending on whether you have network cards installed at the same time.
Next time we will discuss wireless networks and how to make sure you are secure from intruders.
Dan Spalding is president of Spalding Computers. He can be reached at danielspalding@spaldcom.com or 610-496-0589.
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