The Chasm between Online and Direct Marketing

Written By Ted Grigg

I recently sent out a survey to my fellow direct and online marketing contacts with this question.

What specifically do traditional direct marketers not know about online marketing that makes them ineffective in this channel?

When looking for direct marketers who can run an online channel as  part of the mix, what specific things do skilled, traditional direct marketers not know about online marketing that would make them ineffective in this channel?

At first glance, there does not appear to be a clear line that separates traditional direct marketers from online marketers, only perceived differences. But how do direct marketers and online marketing professional view their skill set? Is it different, or are there more similarities than differences?

I think direct marketers consider the two disciplines synonymous seeing online as yet another medium like DRTV, direct mail, telemarketing and so forth.

On the other hand, online people with little to no experience in traditional direct marketing experience, see little to no relevance with the direct marketing discipline. How could they? They don’t necessarily know direct marketing. 

In other words, some see online marketing as a totally different discipline.

Maybe the question any client should answer when hiring online people is whether they are looking for a channel specialist or a direct marketer.  Would they rather have a direct mail, a DRTV or an online specialist if these are core media for them? Or would they be better off finding a direct marketer who moves freely from one channel to the other?

On the other hand, can traditional direct marketers manage a talented team of online specialists and add to the group’s overall capabilities to improve acquisition and customer retention profitability? Some say there are problems with direct marketers and their management of online programs. Here are a few responses from my survey to give you a taste of how some answered my questions.

"They [direct marketers] often don't know how to craft a brand image....and how merchandising and the catalog pages support it. It's usually marketing by the numbers only.  The second is that they are less familiar with social media and "interactivity." That being said, they also bring a discipline in customer segmentation, testing, and modeling that the online world, I've found, is weaker in.

Social media is not their background, so like with any new discipline, they have to learn it from scratch.  A junior person doesn't usually learn both, and social media is so new, that if they are a traditional direct marketer, they probably don't have this experience. " 

"Some would argue that any good direct marketer these days should be able to do both traditional and online channels well, but I've found that the single biggest challenge for traditional marketers making the transition - especially consumer marketers - is that they tend to approach online in the same way they do direct mail or print ads - as a series of one-off efforts rather than an iterative process involving multiple steps toward a sale.  Some of these steps include getting email opt-ins and increasing engagement with a website.

DMers who were used to executing promotions where the goal was to generate an immediate sale have often tried to transpose that model onto the online channel.  Maybe it's their own inclination, maybe it's management pressure to show an immediate payback, but I've seen this in many companies."  

"[Traditional direct marketers are weak in the following areas] 

1. SEO- natural and paid search

2. Web metrics such as Omniture

3. How to engage and use partner strategies to drive traffic and revenue

4. Use of more advanced Web 2.0 tools like blogs, WOM, social networks etc." 

"There are really 2 different levels of folks: THOSE WHO PROBLEM SOLVE, Think and Strategize and those who are more hands on doing day to day stuff like using SQL tools, or deciding on the test cells, or doing the analysis. So it depends on what level of expertise you need who would be the right kind of person.

If they have the skills, are willing to learn and have an open mind you are mostly there. The detail knowledge can be learned or gotten from others-you just have to be the kind of person who will ask so you don’t assume things that can get you into trouble later."

So the answers to the question continue to evolve.

How would you, dear reader, have answered my question?

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
Previous

What is the purpose of advertising anyway?
Next

Face to Face No Longer Required for Client Relationships