Following on from David Frey’s article last week, I’ve spoken with visiting friends from the UK, Auzzie and US recently, specifically asking them their impressions of NZ. Not the touristy stuff, but how we compare in the marketing and technology arenas. It makes for depressing conversation. Inevitably they mention our huge internet and mobile phone charges, as well as our old-fashioned marketing strategies.

Yes, it seems we’re expensive and years behind in adoption of new marketing tools and methods. We like to talk of new technologies that will save us and expand boundaries, yet we’re still not doing the basics right. It appears we can do nice TV ads, but little else. Examining some of our letterbox mail reveals even our direct mail strategies are old world. We’ve been conditioned to accept 0-2% response rates when 3-5% is becoming the norm overseas. The very best average a staggering 12-15%!

What New Methods?

New database marketing practices lower overall marketing costs and also help boost sales results, especially for retailers. But making it happen comes down to a real desire to become more efficient, less wasteful. Additionally, there’s often a fear of databases and vested interests within most creative agencies to keep the status quo. Real change may mean finding a new supplier!

It’s a ‘Green’ initiative. A question of sending out relevant mailers, only to those that want them..

It also comes down to wanting to understand our customers better and getting our hands dirty with CRM (Customer Relationship Management) toolsets. Easy perhaps for large retailers like Sainsbury in the UK and even Myer in Auzzie. They can utilise their loyalty program customer data to build targeted direct mail campaigns. It’s cheaper than mass advertising and far more effective.

Highly personalised, relevant full colour offers in the mail is extremely rare here, even though the technology is readily available through Actionmail and others. Even the big retail chains here with customer data don’t do it properly, with their handful of direct mailers using little more than adding a first name to a generic postcard. They say they do more, but it’s not obvious. Even our utility and credit card accounts that also have ample transactional data are 5-10 years behind the best in the world practices - Are we being lazy, or just lack the skills?

So, we’re ineffective and way behind – Can we catch up?

To gauge what’s required, compare what’s commonplace in the US market from the video below. It reminds us to always look at mailer design from a customer perspective. Smarter direct mailers are performing very well in the US. Because these well-targeted direct mail promotions really work, it’s been a hidden goldmine, especially for small businesses, helping them get more customers and sales.

If any of these ideas or items in the video bring you inspiration, give us a call on 027 244 4884 or email kevin@digitalmarketing.co.nz.

P.S. Think the fancy CRM systems that drive all this are only for the big corporates and national retail chains? Wrong. Smart, more affordable online systems now bring easy loyalty and CRM technology to small business  – In fact for those starting afresh, with no legacy systems in place have a big advantage.

Need more proof ? Read Double Your Rewards, our Rafi Articles, the Insight out of chaos website and GAWright retail marketing video