Friday, December 29, 2006

Insert media programs
deliver excellent ROI
Okay. Not all programs are created equal. But even a mediocre program may be a good buy if you’re cash poor. And the beauty of inserts is there are so many programs available you can find one that’s right for your business. What’s more, like other direct marketing venues, inserts lend themselves to testing and measurement. And tweaking…and negotiating.
Insert media can be a DIY project, but I don’t recommend it for a newbie. Like most marcom ammo, few of us know as much as we think we do about the nuances of any channel we’ve seldom (or never) used. It’s best to work with an expert for your early ventures. Maybe later on you can get creative and network with simpatico partners to swap lists or do cooperative mailings.
Experts who have been there done that, can make recommendations and help you decide and test venues. Everyone is familiar with statement stuffers and free standing newspaper inserts (FSIs), but they may not have considered package inserts, piggybacks, card decks, dimensional mailings, and ( annoying but effective) blow-ins and many others.
One tip offered by experts is to expand your reach through what might be called unconventional partnerships. Your product may not be related to the mailer’s but still interest the same types of buyers. In other words, it may not look like a fit, but still fit.
Another piece of advice I like is to print your offer on both sides of a blow-in. Don’t assume the recipient is going to read both sides of a card. When s/he does, you’ve had a second shot to push your most important benefit.
If you do want to try a DIY program, one that I’ve seen work well on a tiny budget is to negotiate with clubs to include your material with their newsletters. Reprints of ads with special offers and coupons give you an easy way to measure response.
Two excellent sources of background info on insert media are Target Marketing Magazine at http://www.targetmarketingmag.com/ and DM News at www.DMNews.com.
Insert media is one of the many paradoxes of marcom. To break through the clutter we add to the clutter. But it’s good clutter. Check out the possibilities.

Monday, December 11, 2006

Direct response marketing fundamentals

helped NutriSystem boost profits

from $2.5 million to $55 million

Instead of chasing silver bullets, little guys should focus on tactics that work. That’s what Mike Hagan has done since he took over at NutriSystem in 2002. Let’s look at his approach in terms of the four “P’s” of marketing.

Product: First, he fixed the product. He rehired diet scientist Jay Satz, who had left NutriSystem in 1990, to improve the Company’s menu. The result: new products renamed NutriSystem Nourish. Some describe the offerings as “small, safe and idiot proof portions.”


Place: He dropped retailers and bought out Company franchisees. Now customers enjoy the convenience of getting a month’s supply of shelf-stable nourishment shipped via UPS from one of five warehouses. And it’s nourishment that will help them loose weight.

Price: Mike Hagan’s company, like his best customers, is lean. Through outsourcing for data and logistics services; the commission program for call center reps; relationships with private label packagers; and low costs of distribution, the Company can offer competitive prices yet maintain healthy margins.


Promotion: NutriSystem leverages promotional dollars by taking advantage of left-over advertising inventory. This year, reports say they will invest over $100 million in advertising. With that kind of kitty, the opportunities for fantastic buys of space and time must be many.

Follow their ads, you’ll note the good old DM fundamentals at work: Every ad describes the food, promises weight loss, presents a bonus offer, provides strong visual proof with supporting testimonials, and has a strong call to action. And that call to action is backed up at their call centers by reps who know how to close the deal.

Mike Hagan was named Entrepreneur of the Year by Forbes Magazine. He junked a lot of silver bullet ideas that sucked and concentrated on the basics--- the four “P’s” of marketing success. And look where they took him and his Company.