Rational Marketing

Category: Buying Behavior

  • Planned Retirement Age is Going Up

    A Gallup poll found that the number working Americans expecting to retire at 65 or older has risen from 44% to 61% over the last 15 years, while the number predicting retirement before 65 has fallen from 50% to 29%. The reasons may be related to shifting views on the rewards of working, as well as on the shrinking value of investments.

    expected retirement age
    Expected Retirement Age

  • Details from France Provide Signals

    The Harvard Business Review’s Daily Stat republished information from the McKinsey Quarterly about how people over age 55 will drive two thirds of all growth in consumer spending in France over the next 20 years. These findings can offer implications for other developed countries.

    French Consumers
    French Consumers

    Consumers do respond differently to different types of media. While most of us still prefer direct mail, older consumers prefer it even more.

  • Wow Numbers Mean Direct Mail Success

    As a follow up to our post about “WOW” numbers:

    According to the USPS Household Diary Study, 79% of all households read or scan the advertising mail sent to their home.

    ATG’s Cross-Channel Commerce: The Consumer View report found that 78% of consumers are using multiple channels to research, shop, and ultimately complete purchases. Consumers browse and research online, then make the purchase in the store–39% went to the store to touch/feel the products; 36% visited the store to compare brands; 22% visited the store because they needed the product immediately

    76% of Internet users said they were directly influenced by direct mail; 67% were influenced by TV; and 58% of email users were influenced according to Exact Target’s Channel Preference Study. Additionally, 75% of 25-34 year-olds have made a purchase as a result of direct mail and 62% of 18-24 year olds purchased due to direct mail.

    R2integrated, an integrated marketing and technology company found that 65% of companies had not increased revenue or profited using social media.

    Public Television stations have reversed their decline in acquiring new donors through direct mail campaigns. DMW Direct analyzed 700 campaigns representing 34 million pieces mailed and found that $295.32 was raised per thousand pieces mailed in 2009, up 16.3% from 2008 and the average gift was $42.10 up from $41.64.

  • How to Get “No” for an Answer

    The Harvard Business Review offered this advice in its “Management Tip of The Day”.

    When making a sales or other pitch, no one wants to hear no. In the absence of a yes, you may think that maybe is preferable. But when maybe is a long prelude to no, it can be a waste of time and resources. It’s better to hear no sooner rather than later. Here are three steps to driving a decision:

    1.      Be clear about your request. People often say maybe because they are confused about what you’re asking of them.

    2.      Set a deadline. When meeting a prospective investor, buyer, or customer, explain when you need a decision. A deadline can yield a quicker yes or no.

    3.      Know when silence means no. People hate to say no as much as you hate to hear it. When you sense that your audience is going to say no, but hasn’t built up the courage to express it, provide an out. Something as simple as, “I assume it’s a pass for now?” can help the other party be definitive about its decision.

  • Integrating Campaigns Boosts Response

    Marketing Experiments published an article with this headline, “How one company combined offline and online marketing to increase subscriptions by 124%”. The article told of the great success of using the same images and visuals in a mailing campaign and in the associated online content to increase new subscriptions.

    The conclusion was that the offline direct mail marketing campaign led recipients to all areas of the online content. The two weeks that the mailing campaign was active drove significant sales activity throughout the company.

  • Advertising is Still Important

    The graphic from the previous post about Word of Mouth showed that advertising, including direct mail, is the most important factor of consumer purchasing decisions during the “initial consideration” phase of the purchase decision making process.

    Consumers “pull” information to them later in the purchase decision process.

    How can we help you use direct mail to help you build your brand or stimulate demand?

  • Word of Mouth Matters

    Word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions.

    The power of word of mouth is greatest when consumers are buying a product for the first time or when products are relatively expensive, these factors tend to make people conduct more research, seek more trusted opinions, and take longer to think about purchases.

    The Harvard Business Review summarized research from the McKinsey Quarterly that indicates that in developed markets, word of mouth has its biggest impact when consumers decide which products to consider and when they’re actively evaluating products.

  • Bombardment Can Hurt Consumer Loyalty Too

    DMNews posted an article about how customer loyalty practices can build brands. American businesses that have the strongest bottom lines right now are those that enjoy the strongest brand loyalty. More and more organizations are searching ways to gain visibility for and engagement with their brands. Marketers have always known the value of brand building. Once consumers begin to trust a brand, their loyalty to it grows – and loyal customers have far higher long-term value than opportunistic customers.

    Consumers have shown that they will defect from brands that bombard them with impersonal and irrelevant information. However, they are more likely to make a purchase after a personalized interaction with a brand.

    First impressions can’t be taken back, so it’s important to interact with interested consumers effectively – not damage your brand for future customers.

    Direct mail has been shown to be a great brand building tool. The piece can be touched and felt and it is not considered to be an intrusive interruption – it is desired communication.

  • Too Much Contact to Businesses Can Hurt

    The Harvard Business Review featured some results from a McKinsey & Company study that found that the “most destructive” failures of business-to-business sales reps are too much contact with customers (35%). Customers want to be contacted, not bombarded. The upside of getting things right is significant: A primary supplier perceived as having a high-performing sales force can boost its share of a customer’s business by 8 to 15 percentage points.

    Chart of Ways Customers Are Turned Off

    The methods of “bombardment” are in person, by phone or via email. Postal mail is not listed. Use direct mail to stay in touch with business customers without making them feel inundated.

  • Happiness Depends on Age

    The New York Times reported on a Gallup Poll that found that people start out at age 18 feeling pretty good about themselves, and then, apparently, life begins to get challenging. They feel worse and worse until they hit 50. At that point, there is a sharp reversal, and people keep getting happier as they age. By the time they are 85, they are even more satisfied with themselves than they were at 18.

    We hope you see opportunities and optimism with this information. Not only do you know that life will continue to get better, but you now have great information as you craft your marketing messages. Understanding some of the emotions of your target audience will help you as you write compelling appeals. This is a great complement to marketing to people during life changing events.