Oct
13
Written by:
Lindsay Resnick
10/13/2011 6:17 AM
I recently had the opportunity to attend an interview with Lester Wunderman at the Direct Marketing Association’s annual conference. As many know, Lester Wunderman, the founder of the globally known digital marketing agency and network of the same name, is considered the architect behind direct marketing. Given his accomplishments, it’s no wonder: “1-800” number, magazine inserts, and marketing strategist behind the American Express card, just to mention a few.
Fifty years ago this month Mr. Wunderman made a ground-breaking speech about the birth of direct marketing in this country (for a copy of that speech in its original form, click here). An amazing amount of what he spoke about in 1961 still holds true, even as we witness today’s remarkable transformation of communications and media. When asked if he would still use the label “Direct Marketing”, he responded “If I were to name the industry today, I would call it Personal Advertising—an idea driven by consumer data and made possible by the rapid explosion of technology on every front.”
Personal advertising means collecting, analyzing, interpreting and acting on consumer data, allowing marketers to understand and address variations among audience segments. It provides a detailed, predictive understanding of prospective customers’ buying and decision-making characteristics–purchasing habits, lifestyle or lifestage attributes, psychographic profiles, and most recently, digital device and destination preferences. The result is a more insightful ability to diversify product portfolios, redefine marketplace outreach, and better manage sales cycles. For existing customers, the more you know about them–what’s important to them, where they go for information, who’s at risk of leaving, and who are most loyal–the more customers you will keep. And today, retention defines marketing ROI and customer LifeTime Value, which translates into real money.
Personal advertising also means shifting from low engagement to high engagement marketing tactics. It’s a form of interactive social engagement, moving from brand monologue to customer dialogue. Why? Because customers are in control.They’re talking about you, reviewing you, and price checking you. And, they have a choice. It’s the customer that determines your value anddefines your brand…so listen to them and engage in their personal conversation! Marketing technology and analytics make it possible for companies to have a 360 degree view of their customer, across traditional, mobile and digital conversations – integrated for a holistic understanding virtually instantaneously – so that companies can enter into the marketing dialog relevantly and influentially.
Marketing has always been where strategy and creativity converge. It’s where ideas sizzle and innovation comes alive. Concepts blossom, customer relationships begin and value is created through a series of sequenced activities directed at acquiring and keeping customers.
Direct marketing has been a discipline that encourages immediate consumer interaction through a creative message. When used effectively, direct marketing – today, much of it digital marketing -- successfully enhances product awareness and contributes to brand equity while generating revenue producing sales leads. It’s distinctive, customized and most of all, personally relevant. It leverages the always-on, device carrying connected consumer with the elegance of an ability to message at moments of maximum influence.
Connecting with a marketplace of demographically and generationally fragmented customers isn’t easy. It takes a commitment to upfront learning that transforms data into information, and information into actionable intelligence–identify specific consumers, their wants and needs, and enter into a personal conversation that addresses their preferences in ways that turn prospects into customers.