Four Recent Changes Brought On by the Direct Marketing Discipline

Written By Ted Grigg

One of my readers asked four thought provoking questions that I answered
and are worth repeating in this post.


1. What are the forces changing DM?

Better return on dollars spent is the driving force behind DM. And with
this recession, that force becomes even more potent.

So it's not so much the forces that are changing DM as events are
creating the perfect storm for the DM strategy.


2. Will there be new media?

Of course there will be.

The mobile phone is already emerging as a mini computer that is truly
available 24 hours a day. Eventually, shoppers will rely upon a single,
powerful device at home and work to make purchase decisions.

Direct marketing and it's call-to-action characteristic now dominate
this new technological environment and assures the growth of new media.


3. How will the Internet play into the future of direct response
commerce?

Again, it's not so much that the Internet changes direct marketing as
direct marketing leverages the Internet.

The immediacy and interactivity of the Internet delivers the direct
marketer's dream medium.

The Internet enables consumers to use their natural purchasing process
to flourish. By that, I mean that consumers can quickly find out about a
product's reputation from their peers. These shoppers can also find the
best price once they select the product. With the pervasive presence of
the Internet, competitive pricing, ease of purchase and a good
reputation are now givens.

With all of this in place, it is natural to ask for the order. That is
direct response at it's best.

The Internet will become increasingly important to direct marketers and
their companies.

But security and spam issues continue as negative forces that direct
marketers must contend with. Governments will continue to place
increasing pressures to make transactions over the cloud more secure.

Direct marketers will lead the way to compliance with regulations and
will build consumer confidence in email and Internet transactions.


4. How will DM affect the future of cable TV and DRTV as a whole?

DM represents the salvation of broadcast media as it becomes
increasingly dependent on direct marketing to replace the revenues that
continue to decrease in the awareness advertising arena.

What other changes do you think DM brought about in the world of
commerce in the last several years?

Ted Grigg

Ted Grigg is a direct response strategist who helps growth-focused companies reduce risk by identifying weak assumptions before they become costly mistakes.

Over the course of his career, Ted has evaluated several hundred million dollars in direct response testing across direct mail, digital, print, television, telephone, and other channels. His work combines direct response strategy, acquisition economics, customer analysis, creative evaluation, offer development, and disciplined testing.

Ted has worked on both the client and agency sides of the business. That experience gives him a practical understanding of the pressures facing executives, marketing teams, agencies, and service providers—and of the problems that arise when activity, media volume, or creative preference replaces a clear economic objective.

His consulting work helps organizations examine such questions as:

  • Are acquisition goals economically realistic?

  • Is the allowable Cost Per Sale supported by customer value?

  • Are targeting, offers, creative, media, and response paths working together?

  • Are tests structured to produce reliable business decisions?

  • Are unproven assumptions being treated as facts?

  • Is the organization measuring sales outcomes rather than convenient proxies?

Ted’s experience includes the development of direct mail and multichannel acquisition programs for insurance, healthcare, financial services, technology, nonprofit, manufacturing, retail, transportation, communications, government, and business-to-business organizations.

For a national direct-to-consumer insurance company, he developed a direct mail format that defeated established controls and helped expand the productive use of compiled prospect lists from less than 10 percent to more than 30 percent of total direct mail circulation within one year. He also planned Medicare lead-generation programs for more than 60 regional and national HMO and PPO organizations, with some programs exceeding sales projections by as much as 60 percent.

Ted founded Wyse Direct, a direct marketing division of Wyse Advertising in Cleveland, where he developed acquisition programs and helped launch a new technology product for Seiko Instruments by generating a predictable flow of qualified sales leads for its national sales organization. As vice president of new business development for the Grizzard Agency, he helped broaden the agency’s strategic capabilities and pursue new commercial and fundraising opportunities.

He is the author of The HMO/PPO Marketing Plan—A Step-by-Step Guide, published by Executive Enterprises, and has written numerous articles and conducted webinars on direct response strategy, testing, creative development, and marketing economics.

Ted earned a Bachelor of Arts degree from Abilene Christian University and completed two years of graduate study at Texas Tech University. He is the founder of DMCG, LLC.

http://www.dmcgresults.com
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