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SEVEN STRATEGIES TO INCREASE YOUR MARKETING
CAMPAIGN RESPONSE RATES
The success of
any marketing campaign depends upon a number of
important variables. Here are seven variables
for boosting your marketing campaign response
rates provided by Ralph Elliott, Clemson
University Professor of Economics and Vice
Provost, Office of Off-Campus, Distance and
Continuing Education.
1. Databases
How strong of a
database of prospects do you have? This variable
can have the most significant impact on your
marketing efforts and can potentially increase
your response rates by a factor of nine, says
Elliott. There are two broad categories:
internal and external databases.
Internal Database
Typically an
internal database is comprised of past
customers, individuals who have inquired about
your program, and people who have been referred
to you by others, such as existing students.
It’s important to get permission from each group
to be in the database and to find out their
preferred method of communication, i.e., e-mail,
fax, direct mail, etc. When an individual comes
to your Web site or receives a mail piece, have
them fill out a form that asks how they would
like to be communicated with in the future.
Elliott also
suggests that you segment your database and use
a strategy called recentness, frequency and
monetary value (RFM) analysis. For example, a
customer who has recently taken a course is
theoretically a better prospect to take another
course than someone who took a course several
years ago. Individuals who frequently take
courses are typically better prospects than
those who have taken courses periodically. The
monetary analysis is how much a customer has
spent. "The point is you use RFM analysis to
find the segments of your database that are most
responsive, and then you allocate your marketing
dollars to those segments that offer the
greatest potential lifetime value," says
Elliott.
External Database
These are lists
of names and addresses that Elliott recommends
you purchase from a reliable list broker to
compliment your internal database. There are
basically two types: compiled lists and response
lists. Compiled lists are the least expensive
but they are typically listings of people that
have never indicated any particular interest in
education. Response lists, on the other hand,
can be listings of subscribers to a particular
publication, or members of an association, or
people who attended an educational event.
Response lists cost in the range of $100 to $150
per thousand.
The most
effective external databases, and most
expensive, are response opt-in e-mail lists,
which cost in the range of $200 to $300 per
thousand. These are e-mail lists of people who
may, for instance, have indicated through
another promotion that they are interested in
obtaining more information about business
education.
2. The Offer
"You might say
your goal is to create an irresistible offer,"
says Elliott, who divides this variable into two
categories, inquiry generators and closing the
sale.
With inquiry
generators your task is to make your promotion
customer friendly, meaning applying simple
techniques, such as providing plenty of response
options (postage-paid reply cards, telephone
numbers, e-mail addresses, fax number, etc).
Also, supplying the name of the person they need
to respond to is important. Secondly, you need
to create a sense of urgency, which could be a
deadline for registering for a class with a
limited enrollment. Third, you need to offer an
incentive to respond. Some typical incentives
include offering a free book or report to those
who respond within a certain time period.
With regard to
closing the sale, Elliott explains that you must
provide sufficient information. "Describe the
offer in adequate detail to encourage the person
to buy. If you don’t want to provide all that
information inside the promotional medium you
are using, you can offer a click-through option
to a Web site that provides additional
information."
3. Price
This is an area
that distance education departments typically
have little, if any, control. Nonetheless, some
strategies used typically in non-credit
offerings include offering early-bird discounts
or team discounts.
Concerning the
price of your marketing efforts, Elliott says
"20 percent of your expected revenue should be
allocated to your up-front marketing and
promotion costs."
4. Program Components
This variable
deals with the information you provide about
your courses. Generally speaking, you want to
have a benefit-oriented title for your course,
especially if it’s a non-credit course. It’s
also important
to provide a
detailed course description. Another program
component is a guarantee or personal pledge from
a department chair that addresses your
institution’s commitment to quality.
5. Timing
Make sure your
e-mail or snail-mail promotions arrive on a
Tuesday and not on a Monday or the first day
after a holiday or break period. The best month
to promote is January because it’s a new year
and people are making plans for their education,
says Elliott. September is another good month
"because people’s minds often turn to education
in the Fall." Additionally, make sure your
promotion reaches your prospects well in
advance, typically 10 to 12 weeks prior to the
course start date, so there is enough time for
them to make application and enrollment
decisions.
6. Advertising
The format of
your advertising is an important variable. For
e-mail promotions Elliott suggests using html
instead of text because statistics show that
html e-mail garners higher click-through rates
than text-based e-mail. He also suggests that
you incorporate a tracking scheme into your
e-mail promotion, such as a link to a specific
Web page that allows you to count visitors.
Other factors to consider include providing an
opt-out statement; incorporating a viral
marketing technique, whereby you encourage
people to email your promotion to their
colleagues or friends; and having a strong
privacy statement. "All of these will increase
the success of your e-mail campaign," Elliott
claims.
For direct snail
mail, a marketing piece inside an envelope will
generally outperform a self mailer; large
envelopes and large brochures outperform smaller
ones; and personalized promotions outperform
mass promotions. Sometimes a teaser on the
outside of the envelope, briefly detailing
what’s inside, will lift a response rate. Again,
some sort of tracking scheme should be utilized
inside your direct mailers, such as a priority
code.
With regard to
space ads, "80 percent read the headline and 20
percent read the copy," says Elliott. Generally,
larger ads outperform smaller ads, although a
series of smaller ads can be better than one
large ad. Also, ads on the right side of a page
typically outperform ads on the left side of a
page. Elliott also advises to try to place ads
on days when a publication has the lowest
concentration of total ads.
7. Copy
Says Elliott:
"Use ‘you’ copy versus ‘we’ copy. Active voice
outperforms passive voice. Directed copy is much
stronger than feeling copy. And don’t’ forget
the fog index. If your sentences are more than
14 words long, you have foggy copy. If you have
left or right justified copy, you have foggy
copy (use ragged right). Do not have more than
seven lines per paragraph. Indent your sentences
and put your copy in columns. Long copy will
outperform short copy when you are trying to
sell, but short copy will outperform long copy
when you are trying to produce an inquiry."
In Conclusion
At the end of the
day it takes the resources of a talented
marketing team to put all seven variables into
effect. "If you say I can’t get anything done
because I don’t have the support (which is not
uncommon at many distance education
departments), you’ll never get anything done,"
says Elliott. "You have to sort out what the
economics of taking action might be. If by doing
better tracking or better database selection you
are able to increase revenue, then you might be
better off outsourcing some support to get the
job done. If you are demonstrating that you are
going to make an improvement in the income
stream, then you have a justification for
getting additional support." |