Seven Habits for Winning at Direct Marketing

With Credit to Steven Covey

Seven Habits

1. Be Proactive2. Begin with the End in Mind3. Put First Things First4. Think Win-Win5. Understand, Then Be Understood6. Synergize7. Sharpen The Saw

Habit 1 : Be Proactive

A campaign should never be just a repeat of the last cycle. Even if results were on target last time.

Every cycle represents an opportunity to test and produce more positive results.

Don’t just focus on small opportunities. Put effort into potential breakthroughs.

Test Offers

51% Of Successful Direct Marketing Is In The Offer

Test your offers, drill down, know what works.

The Elevator Message

15 minutes to save 15% Around for decades

Life Insurance for a Dollar a Week Veterans Life

Test Lists

51% of Successful Direct Marketing Is In The List

Test lists, drill down, know what works.

It’s The List

Was – direct mail buyers, hotlines, affinity groups Seemed like magic

Now –segmentation, analytics, database marketing Seems like using information

Test lists, drill down, know what works.

51% Of Successful Direct Marketing Is In The Creative

Test creative, drill down, know what works.

It’s The Creative

In house team –tested 30 direct mail HIP packages over a few years #31 ?? New writer changed the equation.

Testing the same approach over and over gets the same results over and over

Test creative, drill down, know what works.

Habit 2: Begin with the End in Mind

A strategy focuses your testing on what you want your business to be and do.

If you don't visualize what you want, you leave it to competitors, circumstances and your winning offers to shape your business by default.

Vision Matters (So Does Execution)

Think Big and Figure Out How to Get the Money to Do It.

Vanguard and Fidelity Your father bought mutual funds from a

commissioned salesman. Your kids will never see one.

Buying direct is mainstream

GEICO and Progressive Made themselves the #1 household names Made buying direct mainstream

Invested $5 - $10 Billion since 2000

Thinking Big

Execution Matters

Vince Lombardi and John Naioti Blocking and Tackling

Answer the phone Close the sale Follow up on underwriting and policy

issue “Bocci Balls”

Habit 3: Put First Things First

Say “no” when necessary to focus on your highest priorities. Recognize that not doing everything that

comes along is okay.

Prioritize

Make Time for Big Opportunities

.

Follow the Money

“Deep Throat” famously told Woodward and Bernstein, at least in the movie version, to “Follow the Money”.

High Life Time Value Customers

High Premiums Good Persistency Cross Sell Opportunities

Leading Examples USAA AMICA

Medicare Products

High Life Time Value Customers

.

Build a Better Mousetrap

The biggest direct marketing businesses are “Take Away” sales

Auto, Medicare, etc. Competitiveness matters.

Price and benefits Know why you will win your share of

comparisons.

Habit 4: Think Win-Win Three vital character traits:

Integrity: sticking with values and commitments

Maturity: consideration for the ideas of others

Abundance Mentality: there is plenty for everyone

Win-Win

But Some of My Best Friends Are Actuaries

You can’t afford silos!

Habit 5: First Understand, Then Be Understood Most people first seek to be understood

Because you have a point you want to get across. And in doing so, you may fail to connect with

your audience. You filter everything through your life experiences,

your autobiography.

There can be a role for consumer research in direct marketing. Not a substitute for live testing.

Understanding through Market Research

.

Marketing Language = Customers Language

Habit 6: Synergize

Synergize is creative cooperation.

It's a process, and through that process, people bring all their personal expertise to the table.

When people interact together, and are open, they gain new insight.

Valuing differences drives synergy.

Spreadsheets Meet the “Arts”

.

Habit 7: Sharpen the Saw

Sharpen the Saw means having a program for growth and self-renewal. Insert Plug for Next JCG Conference.