Message From The CEO
Dear Reader,
Welcome to the inaugural issue of the Dream Team Direct newsletter. Our firm represents a comprehensive array of companies that form a brain trust of some of the finest Direct Response minds in the business. We offer multiple services to the Direct Response industry and these companies form the Dream Team Direct Alliance.
Our newsletter will offer you the readership a no cost medium and a birds eye view into relevant industry news and informative articles about how to source the right supplier for your product/s and/or service/s and how to monitor your campaign and maximize your profits.
Our corporate mission is to promote our partner companies through-out the industry to marketers who are in need of suppliers covering areas such as:
Complete Direct Response campaign management
Web sales and marketing programs
Managing continuity programs
Inbound/Outbound call center services for order capture both live agent and automated
Up sell and cross sell program sourcing and implementation
Comprehensive inbound/outbound customer service programs & operations management
Fulfillment and shipping
List brokerage for direct mail, list management and printing
Copywriting for direct mail, print and Direct Response TV scripts
Credit card syndication management and inserts
Nutraceutical marketing & manufacturing
Direct Response TV advertising production
Media buying for Direct Response TV, print & radio
Credit card processing and merchant account sourcing
Multi-channel marketing including retail
Product sourcing, financing and marketing services for Direct Response.
We welcome and encourage your feedback and have created a submit articles and news field on the main page where you will have an opportunity to share with the players in the direct response industry happenings in your company or announcements of new products you wish publicized.
Please also take the time to visit the dream team web site and to learn more about our partner companies.
Sincerely,
Michael J. Moreau
Chief Executive Officer
Dream Team Direct Inc.
877.486.8326
www.dreamteamdirect.com
Live Agent or Automated Agent?
by Michael J. Moreau - Chief Executive Officer, Dream Team Direct
In the world of inbound call centers, the emergence of automated agents or interactive voice recognition (IVR) systems as a competitor and an alternative to live agent applications can pose a dilemma for DR marketers and customer service providers.
Both applications have advantages and disadvantages both on the cost front and the people front. On the people front, one should consider when deciding which way to go, whether your core demographic from your media--be it TV, print, radio or direct mail--will be accepting of an automated voice recording their personal details, such as their home address and credit card number. Also, you need to determine whether those same customers would find it difficult to transfer from a live agent in the event they had a question not covered in the programmed script. In that case, the order will be lost and media dollars wasted.
Possible other conversion-related issues may arise if the price point is higher than $99.99 for the base offer plus upsells or if the product requires extensive explanation, such as a nutriceutical offer, where the caller generally has many questions regarding side effects and mixing medications with nutritional supplements. In those scenarios, an automated voice may simply not project enough confidence in the caller to go ahead and place an order.
THE PROS AND CONS
The DR market is also seeing more soft and trial DR offers, where the customer calling does not know the price or is being called to place a free trial order. Those type of offers generally require a live sales agent, where scripting comes second to personal one-on-one conversations designed to gain the caller's confidence as to why the price was not advertised, then justify that price by building value on the phone and then asking for the order and if need be, become tenacious in getting that yes. It would be a challenge to design an automated agent to be tenacious.
However, there are cost savings to be had using an IVR system if your core customer is accepting of the technology and the offer is generally below $99.99 including upsells. IVR is ideally situated for a national rollout after a test period has ironed out any wrinkles in the campaign wherein thousands and thousands of calls are projected daily and the price and offer are straightforward such as a kitchen gadget.
IVR - Yes Live Agent - Yes
Hard offers of $99.99 or less where little explanation is needed on the offer Hard offers over $99.99 needing explanation and questions answered.
Data capture calls (people leave name and number on a recording for a free brochure as an example with limited qualifying questions) Soft or trial offers, where selling is needed Your target customer is 50 and under and is more accepting of the technology Continuity programs Thousands of calls received a day Your target customer is 50 plus Better upsell conversion rates Customer service applications In my view, this is the most ideal IVR application: Base offer is $19.99 to $49.99. First, upsell another unit at a discount. Second, upsell an accessory to the base unit. Third, upsell and rush shipping. Finally, upsell a possible club membership.
IVR systems actually do better than live agents with all types of upsells and cross sells for one main reason. The offers are always read. The other reason is the ability to record exactly what the upsell should say and what tone of voice is used, so it is the same each and every time. You cannot have that kind of control in a live agent call center.
Another IVR advantage is that busy signals and abandoned calls almost never occur and that is a huge plus if your product really takes off and it is a good fit for IVR to begin with on the pricing and demographic front.
Benefits on the live agent side are easily identifiable. For hard offers where the price is known and an explanation of the offer is needed beyond basic questions and the price point is over $99.99, I would say live agent. If you have a continuity program that has to be successful in order to make you a profit as all your costs are only being covered by that first month's order, then a live agent center works best.
If your caller is in the age demographic (50 plus), where he or she expects a live person on the phone and at the very least a live agent zero out option, I would recommend utilizing a live agent center.
For soft and trial offers where specially trained inbound agents have to "close the deal" and the calls can be 10 minutes plus, with third-party upsells, I would recommend a live agent environment.
For customer service inbound or outbound campaigns, I would always go with a live agent component, as in those situations your customers would be calling back with a complaint or an issue. And if he or she is steamed to start with, it has been my experience that customers become more irritated when they have to go through multiple voice or keypad prompts before possibly getting to a live person to deal with their issue. The chart on page 62 is a simple quick reference guide to point you in the right direction when searching for your inbound DR campaign call center needs.
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Communication through Campaign Management
by Steven J. Edelstein - Chief Executive Officer, The Logical Step
The challenge is in the design, development, communication, and collaborative execution.
Campaign Management in today’s Direct Response industry is not JUST about selecting the BEST component partners, but creating a communication process and detailed “plan” that integrates all partners (from Conceptual Development to Logistics/Fulfillment/Distribution) – thereby insuring consistent communication throughout the lifetime of any campaign. Net, net – organization + streamlined communication + detailed integration process = greater profit margin and revenue!
The Financial Proforma:
In organizing and executing a well planned Campaign Management structure – the first initiative is to develop a sound financial plan. Detailing a Breakeven and Cash Flow analysis will insure that all components (i.e. Median Media expenditure, Upsell and Premium integration, Cost of Goods, Component partner cost, etc.) are evaluated, negotiated and projected. The financial Proforma provides a working document of financial data that provides an opportunity to evaluate the viability of a Direct Response campaign while deciphering all cash flow and capital expeditures needed to initiate a realistic campaign. The Proforma also allows for the analysis of any potential media and inventory funding that might be necessary to either offset current cash flow or provide funding that would otherwise not exist. Companies such as TPD Media Services provides this fortitude within a multi-channel environment – insuring uninterrupted media momentum.
Campaign Management – Gantt and PERT chart construction and ever-evolving analysis:
Since the essence of sound Campaign Management involves the consistent review of all component partners – from Manufacturing to Distribution – it is critical that a well designed and executed Gantt and/or PERT chart is developed. Within this structure – all methodical steps in the process are outlined, projected date ranges are profiled, and partner accountability is measured (including client partner involvement). This evolving organization segments all component partners, thereby providing ongoing detail as to the “what”, “where”, “how”, “when” and even “why” of all task deliverables during a Direct Response campaign. The truest value – above and beyond the organization and detail – is in the constant communication that takes place between every component partner. This organization provides for a NON-SILOED, collaborative campaign structure that promotes “shared knowledge” and the assurance that all partners will work together with commonality and client objectives at the forefront of all action. The design of the Gantt and/or PERT chart will always allow for adjustment, and will provide all partners with a “view” of campaign progression and actual deadlines. This is critical in maintaining all client campaign “launch” objectives – while measuring all benchmarks and achieved milestones during a campaign. This evolving document is the architecture by which all collaboration and program measurement takes place. The Campaign Management Gantt/PERT chart is the “holy grail” of program organization.
Communications Integration and Client Care:
Above and beyond all process mapping, component integration and implementation, campaign management, and benchmarking – is the critical component of communication and Client Care. As all firms should be dedicated to the success of client partner programs – the consistent and accountable communication that takes place between all component partners is paramount in achieving all client partner goals and objectives. This – above all else – is vital in maintaining program performance and achieving anticipated projections. Simply, with the attention paid to astute, interactive client engagement, the opportunity for long term success is eminent.
Benchmarking and Measurement:
In order to qualify and quantify the actual results and ongoing measurement of any campaign - Benchmarking must be instituted to insure performance measurement and accurate review of all campaign components. Through all process, procedures, service level review – the ability to benchmark both internal – and external – function is necessary in providing consistent measurement during each phase of program development. As a periodic review of all operations process (i.e. inventory control, fulfillment accuracies, data and report analysis, program and functional behavior, technology effectiveness, logistics and customer care cost assessment, etc.), setting benchmark standards will allow for accurate “review” of all components of the logistic and customer care mix, while providing a safeguard for continuous learnings, continuous improvement and program success.
Although benchmarking is a technique and application associated with “task” oriented issues – the challenge to benchmark internal functions is often satisfied by “employing” the services of external consultants, attending and exhibiting at trade events, involvement in educational seminars – and most important – LISTEN to your client partners!
As we have learned – the successful art of Campaign Management not only entails the thorough review of all best practice component partners, but the astute execution of all communication and coordinated information sharing. As we start to evaluate each individual Direct Response campaign – it is critical to maintain organization, expert implementation, and multi-channel awareness in each facet of a campaign. The measure of a truly successful Direct Response campaign is in the people involved in the program, the expert process that is employed – and the calculated measurement that drives all sales!
Steven J. Edelstein is Chief Executive Officer of The Logical Step, LLC – an intellectual property, logistics management, and consulting firm specializing in comprehensive Direct to Customer strategy and tactical marketing for revenue generation. Steve can be contacted at 203.773.9897 or via e-mail: sjedelstein@thelogicalstep.net
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Let Response Direct You
by Maria Eden and Cary Scottoline - President & Executive VP, Direct Response Media Inc.
It wasn't so long ago that when you mentioned Direct Response Television (DRTV), consumers and marketers alike conjured up images of pitchmen cutting copper pennies with Ginsu knives. Times have changed. Today, more and more mainstream marketers are turning to DRTV, as accountability becomes the rallying cry in an industry eager to show a measurable return on advertising investments. Traditional marketers like Procter & Gamble and L'Oreal have launched DRTV campaigns, driving consumers to the phone and Web for product sampling and couponing.
In short, DRTV is no longer an experiment - it's now an integral part of comprehensive multi-channel marketing campaigns.
The Drive to Measure
A successful DRTV campaign takes into account total costs throughout the sales cycle, from lead generation to data capture, manufacturing, fulfillment, and shipping. These costs determine the investment a company can afford to make to acquire new customers via DRTV, while the media-to-income ratio drives media purchases, manages risks, and delivers a justifiable return on investment.
In brand advertising, Nielsen ratings provide the gold standard for "reporting" viewership. But direct response has different standards. Direct response measures not only eyeballs but response, as well - a metric that equals real people. The next question is, How do we determine the value of these prospective customers and/or sales? What is the gauge by which we can measure ROI that meets organizational goals?
Marketers use DRTV as an integral part of their overall marketing strategy and measure on a blended response rate that delivers an acceptable ROI across multiple distribution channels. To work well, DRTV must operate in harmony with other marketing tactics. Successful DRTV marketers employ an integrated program of catalog marketing, drive-to-retail presence, online search, drive to web, telemarketing, and more. But DRTV remains the most effective tactic in providing a synergistic link across all marketing efforts.
Using DRTV Effectively
DRTV advertising is marked by its ability to deliver real-time results, allowing marketers to turn on a dime and fine-tune schedules, messages, and offers based on actual customer response. This feature is key to using DRTV effectively and profitably.
For instance, networks and shows that appear to be "no-brainers" because of their excellent ratings and audience followings often prove futile at generating response, undermining the economics of most DRTV campaigns. Though counterintuitive, the reason is deceptively simple: People are less likely to break away from a favorite show to respond to a call to action. Even worse for DRTV marketers, these same consumers tend to use commercial breaks to get a snack, return a call, or other activity.
Instead, daytime talk shows, cable documentaries, game shows, music channels, and other "diversionary" TV programming tend to deliver the greatest likelihood of success. Are their ratings lower? Probably. But DRTV advertisers don't only buy gross rating points - they buy response.
Testing, Testing, More Testing
From a DRTV point of view there are a number of areas that should be tested. These include the direct-marketing mainstays - creative, offers, product, and media - as well as such criteria as station, timing, season, and more. Continual testing is the secret to developing the staying power of your commercial, offer and product.
Running by time period provides actionable results as well. In addition to the length of the spot and the station, the time of day that a spot runs is a key factor in program development. Results analysis must take into consideration the effectiveness of each variable on response.
Building an effective direct-response media plan is more art than science, and as such should be based on one part previous experience and two parts real-time analysis. Today's media tracking software enables marketers and agencies to monitor every dollar spent against actual sales. It also provides dynamic real-time data that marketers can use to adjust and optimize buying on a day-to-day basis.
Results Analysis
Reporting is critical to measuring the success of any campaign. Stations, spots, and time periods that produce your target can be expanded. Those that miss the target are canceled or renegotiated to improve performance.
DRTV campaigns require daily attention to response tracking and media optimization. Companies look to their media-buying agency to provide this service with specialized technology that provides the tools for effective program management. DRMi’s proprietary MediaTrak™ system puts the results of a clients’ DRTV program at their fingertips, generating accurate reports enabling the sound decision-making that’s important to improving return on investment. The media buying agency and client must work in tandem when turning a DRTV program into a business.
Maria Eden and Cary Scottoline are the co-founders of Direct Response Media, Inc., a Wayne, PA-based direct response TV firm that works with some of the world’s leading direct response marketers. They can be reached at maria@directresponsemedia.com - cary@directresponsemedia.com or 1-800-898-DRM1.
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Fulfillment is more than pick, pack and ship
by Marty Bothwell - President, ThreeSource
If you think about building a successful direct marketing program as putting together a giant jigsaw puzzle, the fulfillment piece may often be the last to be put into play. In order to complete the picture, placing that last piece will always be the most important step. When marketing and selling to your customers, your fulfillment house is the link between your product and your customer. The importance of making sure that your customer receives your product when and how they expect it, cannot be understated.
But fulfillment is so much more than pick, pack and ship. It can involve order and payment processing, customer service via telephone or other electronic means, database management and perhaps most importantly, a means of reporting your activity so that you can measure your success. Your choice in a fulfillment company is as important as any other as you build a successful direct marketing program.
At Threesource, located just one hour south of Chicago, we provide a full-service option to clients marketing products through TV, Radio, Internet, and print advertising. Payment processing, packaging, customer service, order processing, continuity orders, auto ship orders, order save programs, up-sell, and cross-sell programs are just some of the services Threesource brings to the table. We take care of the back end operations so that you can focus on selling your product.
We feel that one of our most important qualities, as a fulfillment center is flexibility. Each of our clients puzzles are going to look a little bit different and it’s up to us to provide that last piece that will fit perfectly and complete the perfect picture. Consider ThreeSource as you look to build a successful direct marketing program.
To get started email Marty BothWell or call 1-888-673-4650.
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“Baby Boomers” and the “Silver Tsunami”!
by Chas Kutchinsky - President, iBoxFilms
The demographic picture of the nation is changing rapidly with the growth of the “Senior” 55 plus market segment (“Baby Boomers” and the “Silver Tsunami”). According to a recent US Census Report, it is projected that the Boomer demographic will represent approximately 14 percent (35,000,000 +) of the population in 2008. Television (DRTV specifically) has become a preferred medium to reach this “Seniors” market to establish or re-enforce a “Brand” and generate inquiries that result in a sale for a variety of products - e.g. Financial, Pharmaceutical, Wellness, Housewares, Exercise and even Medicare Managed Products. The companies utilizing DRTV today recognize the impact and power this medium can have on their “Brand” and their “Sales”.
No matter what you call them (“Boomers”) or how you refer to them (the “Silver Tsunami”), the fact remains they are aging into the retirement category and wanting “more for less” and “less to do more”!
My parents have recently hit the “Boomer” eligible age, have been retired for over five years now, and are living in Sun City, Arizona, in a 900 square foot trailer. Don’t get me wrong, it’s situated in an upscale retirement park and the trailer is practically like a small condo. But my point is….there is not a lot of space to keep a microwave, dishwasher, oven, stove, toaster, coffee maker, blender and/or banana hammock. And that is just the kitchen area. They are looking for products that are affordable, don’t take up a lot of space, and perform multi-functions with little effort.
Several research companies predict “Boomers” will also seek financial vitality, physical vitality, mental vitality, social vitality, and spiritual vitality for at least another 40 plus years. There are already several web sites dedicated to the over 50 population, from social networks to dating sites. The social network craze has not bypassed the “Silver Surfers”. There are some who say the 50 plus market is NOT online, and there are others who argue they ARE! “Eons”, a full-fledged social network and information portal for Baby Boomers, is one site dedicated to people over 50 getting connected with and celebrating life with others over 50. It currently has over 300,000 plus members.
Marketers and advertisers need to understand how this 55 plus market spends! They need to recognize and understand the psychology of the 55 plus buying behavior,
and they need to know that the quickest way to reach this 55 plus group is through DRTV. Remember, no single group to date has been shaped and influenced by Television during their formative years than this “Boomer” group. Television has entertained them (Ed Sullivan Show), informed them (CNN) and most importantly sold them (QVC).
The power of the DRTV medium over all other Direct Response mediums (Direct Mail, ROP, FSI, Billboards, etc.) has been with us for approximately 50 years. It is perhaps the most powerful and effective tool in today’s multi-channel world, offering bold and scalable advertising opportunities that can be measured to an exact cost for generating qualified leads and immediate sales. Yet the concept is relatively elementary: people watch a TV commercial, pick up the phone or log onto a website and generate a lead or complete an application for a sale.
No matter how you look at it, one important fact remains as these “Boomers” are expected to double to over 70 million over the next 25 years, starting now! Whatever your product, solution or information you have to offer this demographic, just remember, EVERYTHING can be upgraded and made more attractive. These boomers are happy to dole out the cash for their indulgent “Third Life”.
So if you’re considering promoting your product or service to these “Boomer” or “Silver Tsunami” groups consider iBOXfilms. We are a full-service creative and production company with over 27 plus years of experience creating successful branding and direct marketing visual media for the 55 plus market. iBOXfilms understands the psychology of the 55 plus buying behavior. Because of our long and successful tenure in the 55 plus market, we have been able to transform that understanding into successful DRTV campaigns for numerous clients. DRTV methodologies can be demonstrative, supportive and beneficial in creating “Brand” and generating “Leads/Sales”, along with allowing for quick reaction to competitive challenges, which lead to short term and long-term success.
There is no single market opportunity greater than the approaching “Silver Tsunami”! And iBOXfilms understands how to tap that “buying power” of this “Boomer” generation!
To get started, contact iBOXfilms at http://www.iboxfilms.com/, or call Darci at 480-945-5419.
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