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Tips & Tactics for Growing Your Company Multichannel Magic Newsletter
Email Treasure Map
A Step-by-Step Action Guide for
Increasing Open Rates, Click Through, & Response
(Improving customer relations and
profitability along the way)
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Multichannel Cost Management: Tighten Your Belt Without Feeling the Pinch (Part 1) Trim the Fat and Leave the Filet The economy is delivering a one-two punch of higher costs and lower sales. It doesn’t have to be a knockout blow. In fact, it might not even hurt, if you are willing to cut costs, market smarter, and innovate. When there is a dip in the economy (some would say we are in a dive!), there is an immediate call to eliminate all non-essential expenses. If this is your company’s approach, please answer this question: Why do you have non-essential expenses in your business? After all, the purpose of business is to generate profits by serving customers. All expenses should be investments that move you towards better service or higher profits. Now is the time to start that movement. Even if you don’t have non-essential expenses, there’s always room for improvement. Your goal is to reduce costs without adversely affecting service and sales. This requires a team effort, top-notch analytics, and a scalpel to trim the fat. To Start the Trimming Process: Reduce Mailing Promotional Pieces to Hit-and-run Customers. You’ve heard it here before. I apologize for the redundancy, but this is one of the fastest ways to reduce costs without affecting sales or service. If you identify 5,000 hit-and-run customers before you mail them four catalogs at $0.50, you will have added $10,000 to your bottom line. If you are marketing on the Internet, then you have a hit-and-run problem. Failing to recognize it and modifying your marketing to minimize the effect is costing your company thousands of dollars every year. Stop Sending Mass Emails to Your Entire Customer File. They are spam, even if you require a double opt in and your customers aren’t complaining. This marketing technique is like a rattlesnake without rattles. You don’t know there is a problem until you are bitten. If you continually send discount or coupon emails, then you are training your recipients to wait for the sale instead of paying full price. If you are sending them too often, you are desensitizing your customers to your marketing. And, if your argument is that they are still working, you haven’t tested a generic discount email against one personalized by customer preferences and behavior. (Try it. I promise that the results will amaze you!) Ban Accountants from Your Cost Analysis Team. Accountants make great number crunchers, but they are lousy marketers. They trim with a hatchet instead of a scalpel. Most start the cost cutting process with the largest line item on your financials. (i.e. Your marketing budget!) Long-term consequences follow their short-term gains. Multichannel marketing is a back-end business that requires upfront investments. Marketing money spent this month may be returned next month, next quarter, or next year. Eliminate the time required to explain how marketing is muscle, not fat, by keeping the accountants away from the cost analysis. Eliminate Negativity within Your Company. There is good and bad in everything. If you focus on the bad, there isn’t room for the good to grow. This is especially true in corporate offices. If everyone focuses on the state of the economy or the challenges within the organization, there isn’t room for innovation. Creativity requires a positive environment to thrive. This isn’t an endorsement for burying your head in the sand. It is a recommendation to look for solutions instead of focusing on problems. Reduce Reliance on Outdated Marketing Techniques. Direct marketing used to be as simple as defining the segmentation process, evaluating the results, and repeating for the next mailing. Today, we have more information available, better technology, and consumers who expect personalized contact from companies. (“Insert name here” doesn’t count as personalization.) Create customized marketing plans by combining behavior analytics with traditional segmentation. Your response rates and average orders will increase while your costs decrease. Eliminate Incoming Customer WISMO’s (where is my order) Calls and Emails. Customers shouldn’t have to inquire about their orders. Not now, not EVER! Incorporate automated emails into your marketing plan. Stay in contact with your customers from the time you receive the order until they are satisfied with their purchase. Don’t stop the communication when the order ships. Send a follow up after the buyer has had time to use the item(s) purchased to insure complete satisfaction. And, if you don’t have email addresses for some of your customers, send a postcard or call them if there is going to be a delay. While the FTC requires a 30-day notice, corporate success requires immediate notification. This practice simultaneously improves satisfaction and reduces costs. Reduce Multiple Shipments for Single Orders. Your customers only pay once for the delivery of their order. Follow their example, whenever possible. Manage your inventory to minimize the number of multiple shipments. Remember to keep the balance between backorders and overstocks. If you are out of balance, you are reducing service, profitability, or both. Next Steps: Read Part Two: Tighten Your Belt Without Feeling the Pinch Part Two Give your email marketing a makeover Email Treasure Map: How to Move from the Outbox to the Shopping Cart Reduce marketing to hit-and-run customers How Much Money Do You Waste Marketing to Hit-and-Run Customers?
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Debra Ellis - Founder P.S. Even if you don't subscribe, join our Multichannel Magic blog. We love to have commentary that that helps our industry improve. Do you like this article?
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