Relationship Builidng...

American neighborhoods used to be surrounded by rows of shopkeepers who knew the names and needs of their customers and families. In Mr. Smith’s General Store, for instance, you could count on Mr. Smith asking about your husband’s new job and offering your children free peppermint sticks. Mr. Smith even set aside some of the latest fabric shipment just for you, because he knew it was a pattern you would like. He built loyalty through prompt and friendly service and by knowing ahead of time what you’d be likely to buy.

Today, computers and telecommunications have given direct marketers the opportunity to sell the same way as Mr. Smith did: by maintaining a thorough knowledge of the wishes and needs of our customers, and giving us the ability to customize orders and build personal relationships.

The difference, of course, is one of scale. The shopkeeper served a small number of neighborhood customers while direct marketing can provide goods and services to millions of people throughout an entire nation, or even the world. No matter what the size of your customer base, the important components of a direct marketing campaign remain the same:

• Know your customers. Who are the people on your database? Who are your prospects? What is the best way to talk to these people?
• Get the right offer to the right people at the right time. Have you tested various offers and found the one that’s irresistible?
• Make sure your creative is appealing, unique, and represents your company’s "personality."
• Include a guarantee. This is extremely important in direct marketing, because customers who have never met you are buying from you on trust.
• Take advantage of customers’ "willing suspension of disbelief." A neighbor of mine recently received one of those publisher’s sweepstakes for millions of dollars. It said that she was one of the "few people in her area" to qualify for the grand prize, and the sooner she mailed her reply, the better her chances of winning. When I called to speak with her, she told me I’d have to call back. She wanted to make sure she was one of the first people to respond. Even though she didn’t really believe she’d win, she was willing to suspend her disbelief and send in her immediate response.

Direct marketing is growing and by the year 2000 its sales in the U.S. will exceed $100-billion. There are many reasons for this dramatic rise and growth. All are based on the use of technology to establish personal relationships:

• The computer, which allows marketers to store and analyze the buying habits, lifestyles, and incomes of specific market segments.
• The credit card, which adds payment options for customers and gives marketers "instant" money (total credit card purchases will reach a staggering $1.3 trillion in the U.S. by the year 2000).
• Advanced communications techniques that showcase products and services to millions and immediately satisfy responses through toll-free numbers.
• Reliable transportation networks that can deliver products (and immediate gratification) quickly.

By incorporating television, telemarketing, credit cards, computers, and complex delivery systems, direct marketing has ignited a genuine revolution in American buying habits. As we round the corner on this century, direct marketing is just beginning to gather steam. The world’s population will reach 65 billion, and modern communications and technology will reach most of them on a regular basis, compared to about 20 percent now. Indeed, annual global spending on telecom services exceeds $726 billion, and is expected to reach $1 trillion by 2001.

But "low-tech" principles will continue to power direct marketing. Customer relationships will be established one at a time and will be built upon the solid foundation of service, loyalty, and repeat sales. New ways of taking to our customers – such as telemarketing and the Internet, will continue to improve our targeting and the speed at which we can interact with customers. But personal relationships, like the ones we have with our favorite storeowners, will make the most successful direct marketing programs.

Mason & Geller Direct Marketing
18th Floor, 261 Madison Ave., New York, New York, 10016 (212) 697- 4477

Copyright 2003 Mason & Geller Direct Marketing, LLC., All rights reserved.