Most traditional mass-market approaches are hugely inefficient and wasteful, like direct mail. Witness Chase bank.
OK, I'll admit it…the title for this month's column is a little crotchety, but I'll be honest, I've gotten to a point in my career where I feel there's just no good excuse for poor targeted marketing. Sure, once upon a time everybody was doing the same thing. Everybody was married to the idea of using simple reach and frequency models to get their messages out to as many people as they could as often as they could. And I'm not even going to debate whether these models worked or not because we can all cite examples, especially for branding campaigns, where the results of the campaign indicated a definite uptick in sales or awareness.
But I also contend that most traditional mass-market approaches are hugely inefficient and wasteful. Let's take direct mail as an example. It still boggles my mind to consider that a marketer would build a direct response campaign around the promise of getting a 1 percent response rate. I can't help but think that if these marketers were able to better control the targeting parameters of the campaign and send mail to those people who had expressed even a vague interest in the offer that these same marketers could double or even triple their campaign results.
Sure, once upon a time getting that kind of data went well-beyond the pale. Most direct mail marketers had to settle for taking the word of the companies who sold mailing lists that the mail would be sent to people who kinda matched the target audience the marketers needed to reach. More often, the campaign planning didn't get too far beyond trying to reach "everybody."
The reason I bring this all up is because I am genuinely horrified with the current direct mail marketing campaign that Chase bank is employing for the Ink business card campaign. You've seen the ads on television where small businesses gush about how having this great credit card gave them lots of options and made it possible for them to run a business while getting cash back for all their purchases. I run a small business, so it has some passing relevancy (apart from the fact that I try to avoid using credit cards at all costs).
During the past month, I've started to receive direct mail pieces from Chase encouraging me to enroll for its great card. At first I received an offer sent directly to me. Then my wife received an offer under my business name because we share the same address. I then received a few more pieces based on variations of my name. Um…getting colder.
Last week I received one of the mailers addressed to the former owner of my home. It's worth pointing out that I have lived in my home for over 10 years now. It's also worth mentioning that I purchased my home from this man's widow! Really Chase? What kind of campaign results are you getting from the "formerly living" crowd?
Finally, a few days ago, I received another missive addressed to a business that used to occupy this address. Over 12 years ago.
Apart from getting my dander up, it brought to mind several things that those of us who normally dwell on the digital side of the fence can take away with us:
With just a little targeting common sense, online or off, marketers can actually reach the right people with the right message (at the right time) without wasting gobs of money, time, and natural resources.
OK, rant over.
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Rob Graham is the CCT (chief creative technologist) of Trainingcraft, Inc., where he heads up development of customized training programs for a wide range of digital marketing, entrepreneurial development, and digital media clients.
A 20 year veteran of digital media, Rob has served as the CEO of a multimedia development company; an interactive media strategist; a rich media production specialist; a Web analytics consultant; a corporate trainer and seminar leader; and a chief marketing officer.
When he isn't on the road presenting training workshops, Rob teaches at Harvard University, Emerson College, and the University of Massachusetts - Lowell where he teaches classes on Digital Media Development, Web Store Creation, Software Programming, Business Strategies, and Interactive Marketing Best Practices.
He is the author of "Fishing From a Barrel," a guide to using audience targeting in online advertising, and "Advertising Interactively," which explores the development and uses of rich-media-based advertising. He has been an industry columnist covering interactive marketing, digital media, and audience targeting topics since 1999.
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
June 10, 2015
12:00pm ET/9:00am PT