By Bruce Britt

Chris Newman has earned multiple awards for his work on behalf of several brands. But it’s the 28-year-old advertising maverick’s fiendishly clever array of mail campaigns for Sprint Nextel that has the direct world buzzing.

While many of his Gen-Y peers focus almost exclusively on the Internet, Newman, a senior art director at Euro RSCG Chicago, has made marketing headlines by applying Web-inspired dynamics to that tried and true response-getter — direct mail.

He’s won several honors, including a 2010 Emerging Leader Award from the Chicago Direct Marketing Association and several AMBIT Awards from the Kansas City Direct Marketing Association. The Chicago Sun-Times hailed Newman as “a man on a mission … to dispel the misconception that direct mail pieces are dull.”

“I always try to create direct mail pieces that will get people to want to interact with them,” Newman says. “Maybe it’s because I’m so used to having the Internet. It’s about taking that online interactive experience and bringing it into a direct mail/print form.”

What inspires Newman
Hailing from Sioux City, Iowa, Newman expressed his creativity from a young age, exploring drama, photography, art, music, choreography and even politics (he was student body president in high school). Those early experiences serve him well in his current job.

“Through acting and other artistic experiences, I learned how to put myself in the mindset of others,” Newman says. “When you’re acting, you really have to think, Who is this person and what would be relevant to them? One part about marketing and advertising is that you’re marketing to a different audience every day, whether you’re targeting mobile moms, college students or a boomer audience. Art is a great way to step outside of yourself and be someone else.”

Direct mail affords him the chances to unleash some powerful artistic impulses. “I love it when I get these [direct mail] assignments,” Newman says. “The challenge is always great … but the sky’s the limit when it comes to conveying something.”

That sort of thinking has led him to view the world as his own personal petri dish, where he can collect, cultivate and grow ideas. “I draw inspiration from everything,” he says. “If it’s Saturday and I’m out in the city and I see something, I think, ‘Oh, that’s really cool — I should keep that in the back of my mind.’ I’ll tear things out of magazines. If I see cool products or tchotchkes at trade shows or auto shows, I’m always trying to think how I can integrate something like that into what I’m doing.”

But as whimsical as his pieces may seem, Newman quickly points out, “Strategy is at the center of all my ideas: Who are you talking to? What are you trying to say? How can you best communicate your message in a way that’s relevant to people? How can you make the consumer understand it in a way that’s engaging for them? You look for an idea that has ‘legs.’”

Another aspect of Newman’s approach is a creative philosophy he calls Responsible Design. “It’s just being really responsible with where you place things — really thinking about where the headline is, where the images are, where the product and the price points are,” he says. “It means that everything has a place, a purpose and a reason for being there.”

How he puts philosophy into action
That approach has led Newman to churn out some of the best recent work in the business.

For instance, as part of a marketing push for Sprint’s Wireline Convergence Wireless Integration system, which integrates consumers’ personal smartphones with their Private Branch Exchange business lines, Newman took full advantage of mail’s tactile power by devising a B-to-B direct mailer that included a jar of peanut butter and jar of jelly.

“We came up with the concept of two things that are completely separate but really work together as a whole,” Newman says. “Knowing that we needed a high-impact DM, we asked, ‘What’s the ultimate combination of two things?’ That’s how we came up with peanut butter and jelly.”

The campaign — which also included an offer for a gift card for pricey steaks — exceeded the goal by more than 300 percent. “Our client told us that the Sprint national account managers loved the concept so much that when they were scheduled to go to appointments, they were actually bringing loaves of bread to go with the peanut butter and jelly,” Newman laughs.

Not long after that, Newman put together a hit B-to-C mail campaign for Sprint’s Handset Upgrade Optimizer, a portfolio of new, feature-intensive devices. Newman’s job: Entice existing Sprint customers to renew their contracts by informing them about the company’s new, feature-heavy phones.

He created a foldout mailer that spotlighted the array of new Sprint phones and carried the theme “One. Two. Three. More.” Measuring 6 inches by 9 inches when shut, and 12 inches by 18 inches when fully opened, each page of the mailer featured smartphone screen shots highlighting a certain PDA feature. The introductory page is devoted to texting (“One.”), another to the web (“Two.”), another dedicated to e-mail (“Three.”). A final page details the full capabilities of the entire Sprint handset series (“More.”). “That was the idea when I was designing it — to have it continuously open, and get bigger and bigger, so that the last reveal of the three phones feels exciting,” says Newman.

More than 150,000 pieces were mailed July 14, 2009, with an initial intended run of three months. But when the response rate topped 10 percent, the Kansas-based company extended the mailer’s run for two additional business quarters before refreshing the format in 2010.

Newman says the campaign, which included versions for Baby Boomers and Millennial generation users, allowed him to explore how technological breakthroughs are further boosting the versatility of mail.

“The handset upgrade piece was a great way for me to learn how I can take advantage of all today’s new technologies and printing techniques — and how we can customize and tailor a piece toward specific customers,” he says.

Turning direct mail work into play
Many of Newman’s direct mailers veritably scream, “Play with me.” Take his award-winning 2009 mailer, “Tackle Everything Faster,” a B-to-B Sprint project that gives fresh meaning to the phrase “reeling ’em in.” The campaign was engineered to entice primary decision makers at vertical businesses. Devising a tackle box that he dubbed a “solutions tool box,” Newman placed his enticing teaser message clearly on the outside of the box, cautioning recipients, “Don’t let this one get away.”

Inside the box, recipients are presented with fishing supplies, including lures, fishing wire, bobbers, sun block and more. Also included is a brochure promoting Sprint’s work-grade communications and a business card for a Sprint sales representative. Sprint produced more than 500 boxes for the campaign, with more than 5 percent of recipients rising to the bait.

Then there’s Newman’s 2008 back-to-school Sprint mailer, “Dissection.” It allowed more than 600,000 college student recipients to virtually dissect a frog by tearing open a center vertical perforation revealing a card detailing Sprint’s latest phone components.

Both pieces underscore for Newman the unique sensuality of direct mail. “What makes direct mail so appealing is finding that you can interact with the piece,” he says. “Since direct mail is tactile, the goal for me is to have people open it up and examine it. There’s something powerful about being able to hold something in your hand and explore it on your own, whether it’s peeling something back, or scratch ’n sniff, unique stickers or different print techniques. It’s definitely a ‘real’ experience, as opposed to a virtual experience.”

Which isn’t to say he doesn’t know how to leverage virtual experiences with mail. Consider the B-to-B mailer he designed for Sprint Mobile Broadband: It placed recipients into virtual, lifelike working environments including a coffee shop and a diner — a creative device Newman used to show that consumers could transform any setting into an office using the service. More than 10 percent of recipients responded, while Newman nabbed two Tempo Awards for the project.

Hitting the target with direct
Of course, Newman acknowledges that he learns something new with every project. Perhaps the biggest lesson of all? Newman’s award-winning work has cemented his faith in the bull’s-eye impact of direct mail.

“One thing I really like about direct is that you can reach a specific audience with a specific message,” he says. “You’re focusing your message directly toward a person who has a higher propensity to want to respond to your offer. It’s great that you can really target an audience like that.”

You Might Also Be Interested In:
How a Few Pennies Got Customers Thinking about Life Insurance

Baseball-Themed Mailer Helps Sprint Score with Decision Makers

By Anne Stuart

You wouldn’t typically expect to see “origami” and “tractor” in the same sentence, but that unusual combination sums up the thinking behind a dimensional mailer John Deere used to distribute a comprehensive collection of digital images last year.

The Moline, Ill.–based maker of farm equipment wanted a fresh approach for delivering the stock photo library it periodically sends to media, marketers and advertising agencies in the agriculture industry.

“Our video manager had a mock-up of a folding paper automobile that he’d picked up from one of our suppliers,” recalls Barry Nelson, media relations manager for John Deere’s Agricultural and Turf Division. “You could open it up and look inside. He said, ‘Wouldn’t it be great to take a John Deere tractor and do the same thing with it?’ We loved the idea.”

Working from photos and illustrations, an in-house team created an elaborate design for a scaled-down replica of a recent addition to Deere’s 8030 line of high-power tractors.

“We wanted it to be as accurate as possible because our target audience knows our tractors very well,” Nelson says. “They can look under the hood and know every nut and bolt and every part of the engine and transmission.”

The team sent its design to Structural Graphics LLC, an Essex, Conn., agency that specializes in creating dimensional marketing pieces and displays. The project presented some “paper engineering” challenges, recalls Structural Graphics president Ethan Goller.

“Among other things, we had to consider the grain of the paper so that it worked with the design rather than against it,” he says.

Then there was the question of making four round 3-D wheels from a flat printed sheet. “That involved lots of bends and curves and making paper do all kinds of things it isn’t designed to do,” Goller says.

Ultimately, Structural Graphics produced a pint-sized tractor that not only rolled on those 3-D paper tires, but also unfolded to let recipients peek at its highly detailed interior. “You open the roof of the cab, and you see the seat,” says Deere’s Nelson. “You open the hood and you see the engine. If you keep opening it up, you’ll see a flash drive.”

Deere packaged each fully assembled tractor with an eight-page directory of images in the flash drive’s photo library. Then the company sent the boxes to its key media contacts.

While the company didn’t formally track results, requests for information were higher than normal after the mailing, Nelson says. But, he adds, the real win came in terms of buzz — especially on farm-related blogs and websites — and awards.

But for the John Deere marketing team, the reward was seeing its project go viral. Says Nelson, “We’re experimenting with social media here, and this one really took off.”

You might also be interested in:

Why Chris Newman Has the Direct Mail World Buzzing

Polycom Promotes Conference Call Cringe Cure with Direct Mail

There’s a lot of marketing buzz surrounding social media these days, but does its return justify spending? We asked marketers at both small and large businesses to weigh in.

Linda LoRe
President, Frederick’s of Hollywood Group Inc.

The real danger with social media is in marketers expecting too much from it.
What you are trying to do with social media is engage the consumer in a conversation that is relevant to him or her.

Social media needs to work hand-in-hand with other channels, whether it’s direct mail or an in-store promotion, to create a holistic marketing campaign that drives consumers to the branding you want to get in front of them.

Because each additional touchpoint helps drive consumer loyalty, it is important to have a diversified strategy that includes direct mail, e-mail, online and social media. It is price effective to mix these tools by campaign, enabling you to connect with people in the way they are most comfortable with.

See David J. Brown, executive vice president, National Trust for Historic Preservation

There’s a lot of marketing buzz surrounding social media these days, but does its return justify the spending? We asked marketers at both small and large businesses to weigh in.

David J. Brown
Executive Vice President, National Trust for Historic Preservation

I think it’s important that nonprofits continue to experiment with social media tools and look for ways to test its effectiveness. This will help them properly allocate resources to social media.

For the National Trust, investing in social media helps us reach certain goals, such as building awareness for preservation, because it reaches new and non-traditional audiences.

But many of our social media followers also get direct mail from us because people don’t use just one form of communication anymore.

In fact, social media and direct mail are quite complementary. When we think about using social media, we think about having an immediate impact and reaching new audiences. When we think about using direct mail, we are thinking more about donors where we have an existing relationship.

See Kassie Rempel, owner, SimplySoles

By Paula Andruss

As pizza chains go, zpizza International may not be the largest — but it’s working furiously to ensure that its links to its customers are among the strongest in the business.

Hoping to seize on the benefits of repeat customers, the California-based pizza maker recently created an integrated marketing campaign combining direct mail, e-mail and mobile to entice consumers to join its ztribe loyalty club.

Officials at the chain — known for gourmet pizza with unique toppings such as shiitake mushrooms, arugula and pears — say they are building the club today with the long-term goal of doing more business with recruits in the future.

“Our goal is to have 1,000 heavy users — people who order at least twice a month and spend more than $50 — at each of our locations,” says Brandi Babb, zpizza director of training. “If we can identify those people and capture them in our loyalty database, we know that we’re working toward accomplishing that goal of reaching out to customers who are already part of the repeat clientele.”

Don’t ask for business — reward it

The campaign centered around two rounds of mailers sent to consumers living near zpizza’s 86 stores nationwide. (A limited number were available in-store, too.) In the August mailing, 2,800 cards per store were sent out; that number increased to 3,000 cards per store in October.

The mailers contained a pizza-shaped scratch-off area that revealed a code recipients could then text in to the company, along with their e-mail address, to claim a prize.

The pizzeria offered the prize without requiring recipients to make a purchase, and also told them what they had won before asking them to join the club — a smart move, says Christie Nordhielm, associate professor of marketing at the University of Michigan Ross School of Business in Ann Arbor, Mich.

“The wrong way for loyalty programs to work is for the company to emphasize the fact that the reward is contingent on purchase behavior,” she says. “This makes the reward program seem like just another pricing trick. The point is to truly reward loyal behavior and to transform the relationship.”

Why targeting leads to higher ROI

While most of the zpizza prizes consisted of a free item or coupon offering, there also were gift certificates in different denominations and two grand prizes: free pizza for a year in the first round of mailings, and $5,000 in the second round of the campaign.

“The card was the call to action that encouraged people to text in, and once they did that they immediately got a text response back from the company telling them to check their e-mail to see what they had won,” says Susan Goodwin, account executive with BrandStand Group, the agency that executed the program. “That e-mail also prompted them to join the club because it contained a link to the loyalty program.”

She adds that mail let zpizza target a very specific geographic area — no more than three miles outside any given store — and that led to a higher return on investment.

“Direct mail is an efficient method for marketing your brand and message exactly where you want it to go,” Goodwin says. “You can waste a lot of money going to the masses cheaply and then not knowing if you’re getting your message to the people you really want to see it.”

Babb says that, thanks in part to the still-soft economy, the number of mail marketing offers in her industry has increased aggressively. As a result, zpizza wanted to appeal to consumers with something completely new.

“The scratch-incentive card was an opportunity to open the door for something unique that would get people to actually stop and look at it to see if they could possibly win a prize,” Babb says.

How rewards motivate loyalty

Not only did the mailers reach new guests as well as those who’d eaten at zpizza before, they stirred the recipients to action.

The August mailer garnered more than 500 text-in entries and a redemption rate of 1.5 percent. In October, the company received more than 1,400 text entries and a similar redemption rate. (Goodwin says that because not all stores submitted their redeemed coupons to the agency, the actual redemption numbers are likely even higher than that.) In addition, ztribe registration increased by nearly 20 percent compared to the regular sign-up rate.

While the company doesn’t plan to repeat this particular promotion, Babb says that because of its initial success, she expects another loyalty promotion in the near future.

“People were asking questions about the scratch-off and sending us lots of comments about it, which means they were talking about it,” Babb says. “The driving force was to add more members into our loyalty program, and that goal was certainly achieved.”

You might also be interested in:

3 Ways to Enhance Your Loyalty Marketing Program

Finding the Right Balance for Your Media Mix

Great space has been given online and offline recently to tout the newest digital killer app — a new e-reader which shall remain nameless — as the savior for the magazine industry. No more must we worry about how our ever-expanding arsenal of digital devices will destroy magazines; this one can help save them.

So imagine the consternation it must have caused when the CMO Council released a study that found that consumers actually prefer — gasp! — printed magazines over their digital counterparts. How many? Ninety percent of those surveyed said they’ll hang onto their print magazines, even with the option of an e-reader or online counterpart.

If this feels like déjà vu all over again, it’s because it is. The obituaries for print have been many and myriad over the past two decades — and obviously wrong. While it is true that consumers have found much to love about the digital tools we now possess, it’s also true that they haven’t come close to giving up on print.

And why would they? To borrow a phrase from the digital lexicon, print is “user friendly”: It’s portable, accessible, visually compelling, highly effective and a real value. There’s no reason for users — sorry, consumers — to give up on it. For them, it’s not a choice of one or the other, it’s a matter of using both print and digital — for different objectives.

So, should we be surprised that nine out of 10 people want to hang onto their magazines? That in the past 11 years, as search engines have begun to rule our online lives, print magazine readership has risen 4.5 percent? That print still delivers a higher level of engagement and returns a significantly higher response rate?

It’s not a surprise to marketers. Spending on all forms of print still dwarf the spend on online advertising (direct mail alone is more than $29 billion vs. $7.8 billion for Internet display ads).

Arguing about whether digital will supplant print next year or the year after that or the years after that misses the point. It’s not about independence, it’s about integration.

Time after time, marketers have proven that the two media work better together. Print is the “push” that complements the Web’s “pull.” As catalogers know well, a print piece not only drives additional traffic to the website, it increases the amount that people spend when they arrive.

Print’s demise may be overstated, but it would be just as foolish to ignore the growing dominance of digital. Smart marketers are finding ways to blend the two to create an even more powerful connection to their customers. Are you?

You Might Also Be Interested In:

Colors to use (and avoid) when looking to achieve specific results

Don’t let the buzz surrounding social media obscure the real story

By Mindy Charski

You’ve probably seen QR (quick response) codes in magazines and on billboards. But did you know they could add interactivity to direct mail?

When a person snaps a picture of these two-dimensional bar codes — using a smartphone equipped with camera and reader software — the codes spring into action, perhaps redirecting the browser to a personalized landing page or showing a phone number or message.

“The rapid penetration of mobile phones in the U.S., increase in the speed of wireless data transfer and availability of free bar code reader applications have all made QR codes a viable option for marketing campaigns,” says Ramin Zamani, marketing director at software company MindFireInc in Irvine, Calif. “The key factor is how fast people will adopt the technology.”

One early adopter is online retailer Go Green Items in Tampa, Fla. The company mailed postcards, created by Tampa-based print marketing firm Direct Marketing Concierge,® to 1,000 prospects in April with a QR code that revealed a discount code and a link to its website. Within a week, Go Green Items received three orders from people who had scanned the bar code

You Might Also Be Interested In:

Why You Should Respond to Leads Within Minutes

The New Way to Download Non-Media Products at Home

There’s a lot of marketing buzz surrounding social media these days, but does its return justify the spending? We asked marketers at both small and large businesses to weigh in.

Kassie Rempel
Owner, SimplySoles

Social media takes up more time than it does money. At SimplySoles, we haven’t allocated a specific budget for social media. I have, however, adjusted my schedule so I can devote time to the social media channels that have come into play in the past few years.

Connecting with customers is core to SimplySoles’ business. We view social media, therefore, as a natural evolution of the customer outreach we’ve been doing all along. This includes sending handwritten thank-you notes, which are great attention grabbers. Personal touches such as this are one of our differentiating factors in the marketplace.

The common ground between handwritten notes and social media is accessibility. Both can help marketers relate to customers on a personal level and humanize a company.

While our marketers all agree that social media is a great way to engage with consumers, Deliver readers aren’t sure it’s worth the investment, with 57% saying they don’t think its return justifies spending.

Missed our poll? You still can weigh in by commenting below.

By Stephen Kearney

Today’s marketers face a significant set of challenges in reaching consumers. They must be innovative, stretch boundaries and really reach to create breakthrough messaging or a strategy that will capture attention and engage consumers. Let me give you an example of how the Postal Service™ recently helped a marketer do just this.

A large national retailer created a mailing program that included fixing a coupon card to the outside of a catalog to help promote its offer. When customers used the card, the retailer could track the business it was generating.

Would it drive sales? Absolutely. But the card’s positioning did not meet Postal Service standards. So, we met with the retailer and its marketing partners to devise a mailer and a card that would meet the retailer’s needs, while meeting the standards we needed in order to process it. In the end, the retailer got a much-needed business boost, and we provided a solution that helped.

That’s the kind of partnership we think would help all marketers. We want you to seek innovative ways to use Postal Service products and services. But make us part of the planning process so we can offer insights that may save you hours and dollars in the end.

I was reminded of the value that kind of dialogue could deliver recently at the National Postal Forum (NPF). It was an opportunity for us to talk face-to-face with some of the nation’s largest marketers, to kick around ideas and get their feedback on how we might better help them deliver on their objectives.
More than that, it provided a chance for those businesses to have similar conversations with their peers, exchange ideas, share strategies and glean insights from others who are faced with the same challenges.

The NPF won’t come around again until next spring, but I’d encourage you to attend your local Postal Customer Council® (PCC®) meeting. These councils, made up of the same enthusiastic professionals, offer opportunities to network with your peers, discuss issues with Postal Service representatives and, ultimately, collect knowledge that can make you a better marketer.

In fact, National PCC Day on Sept. 15 is the perfect reason to check out what your local PCC has to offer. You’ll hear what’s happening both nationally and in your area, meet local Postal Service representatives, and network with other marketers in your city.

Consider opening a dialogue with the Postal Service. We want to help you grow your business. We can help you deliver innovative solutions that get your marketing noticed, and, more important, meet your business objectives.

Stephen Kearney is senior vice president of customer relations, which includes pricing, consumer affairs, corporate communications, and customer and industry marketing, at the U.S. Postal Service.®

You Might Also Be Interested In:

Let Consumers Sample Your Product for Themselves

A 12-Step Program For Marketing Failure

Intelligent Mail is making it simpler for Hallmark customers to send personal greetings while helping the Kansas City, Mo.–based company easily track pieces as they enter the mail stream.

Hallmark’s new Postage-Paid Postcards — which hit store shelves in May — come with prepaid First-Class Mail® postage, eliminating the need for consumers to place a stamp on them.

When mailed, Intelligent Mail barcode technology linked to the postcards notifies the Postal Service™ that postage was prepaid when the consumer purchased the card.

“These Postage-Paid Postcards create a convenience we’ve not offered before,” says Cindy Mahoney, vice president of product development at Hallmark. “All consumers need to do is fill out the postcard and drop it in the mailbox.”

You Might Also Be Interested In:

Six Ways Direct Mail Will Thrive in the New Year

Direct Mail Messages Take Social Network Connections to the Next Level

Don’t have a big marketing budget? Consider partnering with other local businesses to make your dollars go further.

It worked for 32 Cape Cod, Mass., small businesses and the local division of a waste collection provider. Each paid just $1,000 to participate in a highly targeted lead generation campaign.

“As a small business owner, it’s tough to send prospect mailings to large amounts of people because of the expense,” says Joe Jamiel, owner of Ardeo, a restaurant with five locations that participated in the program. “This co-op program is an incredibly cost-effective and unique way to market my business.”

Dynamic marketing communications firm Curley Direct of South Yarmouth, Mass., developed an oversized trifold mailer for the group, which was sent to the primary residences of 27,700 owners of area vacation homes in May 2009.

The personalized piece included the advertisers’ logos and invited recipients to visit a personalized URL (PURL) for exclusive offers. More than 2,200 people — or 8 percent of recipients — went to the PURL and clicked on an advertiser’s link. Nearly 1,000 people shared their e-mail addresses to receive future offers.

Thanks to the program’s success, a similar mailing went out this June.

You Might Also Be Interested In:

Mall Marketers Use Mail to Reach to Shoppers

Capitalize on the Explosion in Coupon Usage

By Pamela Oldham

Loyalty marketing has significantly evolved in the last two decades — and there are pitfalls to not keeping up. Marketing guru Jill Griffin, author of the best-selling Customer Loyalty: How to Earn It, How to Keep It, explains how changing your approach to loyalty can help you win more business from the customers you already have.

1. Evolve with Your Customers
Customer needs are changing, constantly evolving, be it business-to-business or business-to-consumer. “Customers can help you stay on top of the ‘value curve’ and help you find ways to deliver exceptional value,” Griffin says. “But you can’t depend on them to spell it out in a focus group. You have to dig for that info.” Find the behaviors of your best customers, understand why customers are walking away from you when they do and put together the pieces of the value puzzle.

2. Keep Up with Loyalty Marketing Trends
Right now, it’s less about redeeming for merchandise and more about access and enhancing experiences — for example, a credit card company giving customers the ability to get great tickets for a major rock concert before they go on sale to the general public. “Bigger retailers are recognizing that customization of experiences is a big deal,” Griffin says. “And the payoff is that customer spending increases significantly over the months following an event.”

3. Identify and Monitor Your Best Customers
Don’t just amass customer data, truly wade through it and make it strategic.
Look at spending. But don’t stop there. Also look at future lifetime value and share of wallet. Marry geographic and income data with that to see if that person has a larger wallet and a larger potential to spend long term. “You want to invest in that potential,” Griffin says. “It’s not just who’s spending the most money with you right now.”

You might also be interested in:

How Using Mail with Mobile Benefits Marketing Loyalty Programs

How Bold Brands Can Keep Customers

Do consumers see value in loyalty programs? Absolutely. A recent study from the CMO Council finds:

• 52% are influenced to buy because of loyalty programs
• 58% want more relevant offers and individualized deals
• 70% want more discounts and savings incentives

This research shows that consumers expect marketers to understand them better and deliver more relevant and valued offers. How can you do this? Stick with deeper engagement and personalized contact — not mass blast communications and gimmicks — to drive loyalty.

You might also be interested in:

3 Ways to Enhance Your Loyalty Marketing Program

How Using Mail with Mobile Benefits Marketing Loyalty Programs

Business author Kenneth W. Gronbach explains how capitalizing on generational shifts is the key to brand survival.

By Bruce Britt

An author and internationally respected demography expert, Kenneth W. Gronbach has spent years crunching numbers to determine how marketers can reach across generational divides to appeal to the broadest audience possible. But statistical calculations aside, Gronbach says, he finds the clearest proof of what works in a much more familiar place: his family’s mailbox.

“[A local retail store] sends coupons to my teenage girls,” says Gronbach, founder and CEO of Connecticut-based KGC Direct. “And they always direct [the girls] to their Web site for more information and additional deals. That’s the way it should be done.” In mixing its marketing media, he says, that local store has found that even Web-savvy young consumers like his daughters enjoy the idea of getting something in the mail addressed to them and are more than happy to respond, especially digitally. It also has discovered the power of what Gronbach insists will be a key to marketing success in coming years: demographics.

The recent author of The Age Curve: How to Profit from the Coming Demographic Storm, Gronbach reminds us that, with Baby Boomers moving into retirement and their parents well into old age, direct marketers are going to need a deeper demographic understanding of younger customers if they hope to remain relevant.

With 100 million young American consumers in its ranks, Generation Y — aka the “Millennials” — has replaced the nation’s 78 million Baby Boomers as the largest consumer group. As a result, Gronbach says, many marketing tactics and strategies designed to appeal to the once dominant Boomer generation must now evolve for the younger crowd. (Likewise, marketers who still covet older generations like the Boomers will also have to keep pace with demographic shifts to adjust their messages and media mixes as their targets’ life cycles spin toward the winter years.)

Demographics allow marketers to better segment all of these groups, says Gronbach, and to avoid erroneous assumptions about how to reach them. He cites many brands’ ham-handed efforts at digital marketing to Millennials as a prime example of why demographics are key. “We know absolutely that the Internet is going to play a part in the future of marketing, but we also know there are some built-in land mines,” Gronbach says. “There’s a resistance to advertising on the part of the users of social media sites. If you start jamming things down their throats with pop-ups, or introductions that can’t be shut off, that’s a slippery slope. You’re almost in danger of making enemies.”

On the flip side, Gronbach says, his research shows that traditional forms of direct marketing, most notably direct mail and outdoor advertising, continue to appeal to younger buyers. “With direct marketing and billboards, the habits of the viewer haven’t changed,” insists Gronbach. “No one has taken their mailboxes down, and the outdoor is still right there on the road facing you. Yet for some reason [advertisers and marketers] are missing two of the biggest opportunities.” Everyone checks the mailbox, Gronbach notes in his book, “even the most devoted Internet followers.” His book adds, “Direct marketers and their client companies will be the clear winners in the decades to come, no matter what happens to costs, labor and the generational shifts that lay ahead.”

Youth movement

In anticipation of these changes, Gronbach has spent considerable time sketching profiles of six distinct generations of consumers: the GI Generation (born 1905 to 1924), which includes those who fought in WWII; the Silent Generation (born 1925 to 1944), the children of the Great Depression, including those too young to serve in WWII; the Baby Boomers (born 1945 to 1964); Gen X (born between 1965 and 1984); and Gen Y (born between 1985 and 2004). And finally Generation Z, born 2005 to present.

Gronbach says that the older generations are waning considerably in influence, and the Boomers, though still an economic force, are rapidly retiring. Meanwhile, Gen X, with about 70 million American consumers, is still smaller than the Baby Boomers and lacks the same punch at the cash register.

But Millennials, he says, more than make up for shortcomings in the preceding generations. “Generation Y is going to make themselves felt like no other generation in the history of our nation,” forecasts Gronbach. “They are bright, educated, and they can multitask. They have a social conscience. They don’t see [race].” Barring unexpected economic disaster, Gronbach says, these Millennials will fuel explosions in a wide range of industries, from apparel to car sales.

Problem is, even though Millennials represent the most massive marketing opportunity since the Boomers, members of Gen Y can be tough for brands to reach, Gronbach says. While Gen X is thought to respond to both traditional and new media, members of tech-savvy Gen Y are more fickle. “With the exception of the Internet, Generation Y is not being reached with any kind of media,” Gronbach complains.

Gronbach refers back to his daughters to drive home his point. “Neither of them has ever read a newspaper in their life,” he says. “Neither of my daughters listens to radio. Magazines? They will go online and pick their stuff.”

He adds that television doesn’t fare much better with younger consumers. The classic TV business model, where networks offer “free” entertainment in exchange for viewers watching heaps of 30-second ads, is sputtering.

“It was a good deal, but we’ve gone from five to 10 commercials an hour to as many as they can wedge in,” Gronbach says. “They’ve breached the deal. When people are on Facebook and they can’t get rid of a pop-up, they resist. Internet users don’t transfer the same attitude over from their TV viewing.”

Find what works

Gronbach believes some traditional marketing outlets do have greater potential than others to reach younger consumers. He contends that mail, with its tactile power and potential for personalization and precise targeting, is among those channels that offer cross-generational appeal: “If you mail something to somebody, they get it.”

He adds that direct mail can sometimes act as the Trojan horse that allows marketers to pique Millennials’ interest before making good on the vaunted potential of digital media. “If you have a really good digital presence, a lot of times it’s like an amusement park on a desert island,” Gronbach says. “Either people don’t know you’re there, or they don’t know how to get there. If you want to have some kind of co-promotion between online and direct mail, there’s absolutely nothing better.”

Outdoor media possess the same inescapability as direct mail, he says, and he sees plenty of room for improvement. “Billboards where the images change are a real step in the right direction,” Gronbach says. “I think billboards can speak to the cars. You could actually put a radio signal in the boards, where if someone was interested in the board they could hear a message. There are lots of things you can do.”

He says that marketers must be careful to consider the environmental impact of their vehicles, too, as Millennials tend to be more eco-conscious than older generations of consumers. “Print everything you have on recycled paper, and make sure the recipient knows it,” he says. “Come up with some angle that makes you the friend, not the enemy. It’s not that hard.”

Respect elders

Of course, he urges marketers to do the same when reaching out to older generations, who, despite their diminishing influence and comparatively small numbers, shouldn’t be forgotten. He points out that Boomers, for instance, still wield about $2 trillion in annual buying power and that Gen X still includes nearly 70 million American customers.

In reaching Boomers, he says, marketers should know that they are receptive to multimedia messaging, but respond best to many traditional forms of direct marketing because they are more familiar with them. Retiring at a clip of one every eight seconds, Boomers are more age-conscious and respond well to marketing messages that recognize this. “If you want to sell something to the Boomers, offer up something that will keep them young, because they are going to be playing air guitar in rest homes,” he says.

In some ways, Generation X — composed of those born between 1965 and 1984 — mirrors the Boomers. Gen X was already around by the time the technology revolution of the 1980s and 1990s kicked off, so while its members certainly aren’t tech-averse, they continue to make good targets for multimedia marketing campaigns that blend new media with old.

“Gen X is bilingual,” explains Gronbach. “They speak cyber as a second language — but do not respond to Internet marketing efforts. They are as at home in the cyber world as they are with television and, in some cases, radio. They do not read newspapers at all.”

However, they do read what shows up in their mailboxes, provided they consider the offers genuine and compelling, says Gronbach. “They are very savvy and see through marketing gimmicks,” he warns. “This is an esoteric group with eclectic tastes and an entitled attitude.
They have vexed Madison Avenue for 20 years,” he says, although Gen X “can’t consume at the level of the Boomers who preceded them because they don’t have the critical mass.”

At this point, the same can be said of the GI Generation (86- plus years old) and the tiny Silent Generation (now 66 to 85 years old), says Gronbach. “Their consumption levels have dropped like a stone,” he notes. He says the Silent Generation will pose particular challenges to certain industries because of its small size compared to the GI Generation. “They’re going to disappoint the assisted living facilities, the funeral parlors and the cremation companies,”
Gronbach predicts.

Still, these older consumers shouldn’t be completely forgotten, says Gronbach. And marketers who do seek them out will generally find that they respond best to time-tested marketing methods. “They are devoted newspaper readers, especially the obits,” he points out. “They inhale talk radio and overnight television. They are also direct mail junkies and religiously use coupons and anything else that saves them money, like senior discounts.”

He says they also offer a viable audience for products aimed at kids. “The one real bright spot in their consumption,” says Gronbach, “is called the ‘Bubby Factor:’ They will spend money on their grandkids with a vengeance.”

By the numbers

Of course, Gronbach cautions against making too many assumptions even about older consumers. The hard data, he says, allow for much more educated guesses. And in an age where marketers are more pressed than ever to guess right about consumers’ desires and to demonstrate verifiable results from their campaigns, hard data should be embraced as a CMO’s best friend.

”The behavior of the consumer is very predictable,” says Gronbach. “The Bureau of Labor Statistics has been writing about [demographics] for maybe longer than 30 or 40 years. We know at what ages people buy automobiles, their first houses or the most clothes. We know when consumption peaks. Demographics don’t lie.

Dissecting a Millennial

These kids today They’re confident (at times to the point of arrogance) about their ability to contribute and make a difference in the world.

Attitude Adjustments Huge in both number and potential impact, they’re a sharp departure from Gen X trends and the opposite of Boomer youth behavior.

A bunch of know-it-alls Technology-enabled in every aspect of their lives from where they shop to what they buy, read, cook, eat and watch.

Six Generations of Consumers

GI GENERATION— (born before 1925) Made up of those who lived through and fought in WWII. Also known as “The Greatest Generation” because of its contributions to the second World War. Buying power considered negligible.

SILENT GENERATION — (born 1925 to 1944) Those generally thought to be too young to fight in WWII and those born during the war. The smallest generation of the 20th century as a consequence of low Depression-era birth rates. Buying power considered negligible.

BOOMERS — (born 1945 to 1964) Children of the GI and Silent Generations. The second largest generation (78.2 million Americans) and one of the most coveted, with about $2 trillion in annual buying power.

GEN X — (born 1965 to 1984) Largely children of the Silent Generation, numbering around 69.5 million Americans. Regarded as technologically “bilingual,” but do not respond to Internet marketing efforts.

GEN Y — (born 1985 to 2004) Also known as “Millennials,” “Echo Boomers” and “The Net Generation.” They are the children of the Baby Boomers and the largest generation at 100 million Americans. The most coveted buying group, consuming at a rate of more than five times the Baby Boomers (in adjusted dollars).

GEN Z — (born 2005 to present) With 4,317,000 babies born, 2007 was the largest birth year in U.S. history. Latinos make up about 14 percent of our total population but accounted for more than 25 percent of total babies born in 2007. This new generation is already more than 20 million strong and is sure to be an exciting and challenging market.

Direct mail messages that focus on a few quality contacts can take social network connections to the next level.

By Steve Tingiris

Forget the sales funnel. This traditional marketing approach of getting your message in front of thousands of people to net a handful of customers isn’t working the way it used to.

Consumers today are inundated with marketing messages — and they’re not paying attention to most of them. How can they? It’s gotten so easy to communicate electronically that most can’t keep up with the number of daily e-mails, text messages, instant messages, friend requests, tweets and all the other updates they get.

So the key is to identify the few people who will have the greatest impact on your business and connect with them on a one-to-one basis. Problem is, most marketing communications are still generated by databases and, all too often, electronic messages get lost in the crowd or aren’t as personal as the social media channels to which consumers have become accustomed.

We’re changing that at Enthusem by putting a digital twist on classic greeting cards. With our technology, marketers can send a handcrafted greeting card from the Web with a personalized message and a link back to their online world. They can include a digital component like a URL or a pickup code, which recipients can type in online to view a custom video or read an extended note, among other things. Plus the cards arrive in translucent envelopes that catch the eye of the recipient more than an e-mail or e-card might.

We’ve used the approach to successfully market our own company. When Marc Fors, our co-founder, saw the potential for collaborating with a data storage site, he mailed the company’s CEO a card featuring a photo of the company’s lobby, a message suggesting a partnership and a link to more information online. We signed an agreement 30 days later. That was a $2 marketing campaign.

You can see why salespeople love this technology — they can connect with prospects, customers, supporters, friends or anyone else in a way that is personal, engaging and extremely memorable. Even simple business thank-you cards can link your best customers to online product literature — without spending the time to hand-write every note. It’s traditional style with almost infinite possibilities.

Whether you’re making the connections online with social networking or in person, if you can capture a postal address, you can use mail to see results. The secret is in identifying those few people with the power to have the greatest impact on your business, then communicating with them in unexpected ways. A custom-created greeting card with a personal note and a link to more information online is one of the best ways to do that today.

-Steve Tingiris is founder and chief executive officer of Enthusem.com.

Rethinking your assumptions can bring new clarity

Everyone knows that the world is flat. Everyone knows the sun revolves around the Earth. Everyone knows that our continents don’t move.

Go ahead and laugh at these assumptions, but ladies and gentlemen: We submit to you that the fabled playing field of business is littered with the carcasses of people who knew the truth — until they didn’t.

The world has a funny way of keeping us off balance (beyond the recent tectonic shifts). It’s tempting to say that the period we’re in now is filled with more change than any other time, but that’s likely not the truth.

Each age has felt as though their world was being turned upside down by what the history texts label as “progress.” The rules are that the rules are always changing — and that’s the way it has always been.

So, what do you as a smart marketer do about all of this? Honestly, if we had the perfect plan, we’d patent the idea, write a book, go on the speakers’ circuit and retire rich.

But we do have an idea of where to start. Don’t take any of your marketing assumptions at face value. Start by challenging yourself — and your staff if you’re lucky enough to still have one — to provide some backup for your beliefs, your theories, your “truths.” How do you know that? And even better, how do you know that you know that?

And, here’s another freebie: Talk to your customers. Really talk to them. Not that feeble once-a-quarter-focus-group interaction, not the occasional letter you receive and respond to, but a real, genuine meet-up — face-to-face if you can make it happen.

Here are a few things you might find out: Customers don’t like being interrupted by marketing. They want to hear from you on their terms. They want you to recognize them — especially if they’re already your customers — and talk to them in a way that reflects that knowledge. They don’t mind marketing — if it’s relevant to them.

And frankly, that challenges a lot of our assumptions. We’ve lived too long with the “spray and pray” model, the idea that if you put the message out there and get enough eyeballs on it, sales will rise. We’ve gotten very comfortable with using the firehose instead of the dripline.

So, challenge your assumptions. Think outside the box — or in this case, inside the mailbox. Because mail is one form of communication that’s not an interruption, that is highly targeted and can be completely personalized.

And here’s another assumption that you should shed: Young people don’t respond to mail. Because, as researchers will tell you Millennials make it part of their lives, same as the generations before them.

If that doesn’t inspire you to change your game, then something’s missing. So get out there and revolutionize your marketing. The world is changing. Maybe it’s time you changed, too.

Marketer demand for value spurs First-Class Mail® changes.

By Steve Monteith

With the economy ticking back, marketers are looking for new, creative ways to reach consumers while increasing returns — and they’re demanding more for their dollars.

In response, the U.S. Postal Service® is developing a variety of programs that would bolster our First-Class Mail offering. We’re exploring opportunities that use the newest technology, like the Intelligent Mail® barcode, in combination with pricing incentives. And we’re looking for delivery performance improvements.

Late last year, we rolled out the first-ever First-Class Mail Incentive program, which provided a 20-percent rebate on certain presort pieces. This followed two incentive programs aimed at Standard Mail.® With each program, we’re able to build on what we’ve learned for future programs.

In fact, discussions with industry organizations and customers showed that marketers find value in transpromo mail (transactional mail that includes promotional or educational content), but struggle with extra costs to cover the added weight or a reply envelope. We are looking at ways to promote and encourage the use of transpromo and additional marketing inserts to add value to bills and statements in the First-Class Mail stream.

Another idea under consideration is a product priced between First-Class Mail and Standard Mail. Currently a marketing mailer must choose between First-Class Mail and Standard Mail for their marketing or advertising campaigns. The intent is for a letter product that provides premium service, with optional features from which the mailer can select.

This all is just a glimpse at the marketing mail strategies we’re looking to implement. Our goal is to offer additional products, features and benefits that will further enhance the value of marketing and advertising in the mail.

Many businesses want to use a variety of ways to communicate with consumers, as well as provide choices for consumers to communicate back. As part of a fully integrated campaign, First-Class Mail gives you a targetable, trackable and measurable media channel. It also allows for personalization, detailed product information and a wide range of formats. Plus, its reliability lets you time your mail campaigns with television, radio and other media efforts to create multichannel impressions.

Mail remains a valuable way to reach customers, and a vital component of the messaging mix. And I see the Postal Service™ playing a pivotal role in recognizing and supporting all the options.

— Steve Monteith is manager of Transactions and Correspondence at the United States Postal Service.®

A regional magazine uses direct mail to return former subscribers to the fold.

Interview by Chantal Tode

Not too long ago, regional publications were a success story in the magazine industry thanks to their ability to deliver targeted content to local audiences. The challenges of the past year, however, spared few, including many homegrown titles. Thirty-five-year-old St. Louis magazine, which saw its circulation decline 5 percent and also lost advertising sales, is among those that are valiantly fighting back. With a circulation of about 40,000 readers, the monthly for upscale professionals in metropolitan St. Louis has a plan in place for 2010 to elevate its circulation rate, and direct mail plays a big role. Circulation manager Dede Dierkes talks to Deliver® about why direct is a good method for re-signing subscribers.

DELIVER: How has your circulation strategy evolved?
DIERKES: This year, we will be relying more on direct mail in our efforts to boost our circulation and bring it back up to where it used to be. To accomplish this, we will be doing more frequent, smaller mailings and using our house list more to reach out to expired subscribers. We used to drop large acquisition mailings three times a year. The focus was primarily on people we had never contacted before, with approximately 75 percent of the names coming from rented lists while 25 percent were lapsed subscribers.

DELIVER: What’s the reason behind deciding to focus on reactivating lapsed subscribers over acquiring new ones?
DIERKES: “Expireds” brought in the best response rates over the past few mailings, responding at a rate of close to 3 percent compared to 1 percent, at the most, for everyone else. In our first new direct mail concept for 2010, the mailing list will skew more heavily toward names from our house list. We’ll also mail only to ZIP Code™locations that fit our target reader and are within the city’s borders or are nearby. As the year progresses, we’ll expand the reach to outlying areas.

And even though we will be using fewer rental names, we will be venturing out more to try out new and different lists instead of relying on the same old lists we’ve been using for years.

DELIVER: Why is direct mail a key part of the push to recapture this group?
DIERKES: It’s a good way to reach a large group of people and show them what they’ve been missing. We tend to lean away from telemarketing because we don’t want to bother readers at home in the evening to ask them to subscribe. With direct mail, recipients can open a piece at home on their time, see what they’re getting and make a decision to respond.

We will also be using direct mail to drive people online to subscribe. Our Web site currently offers the ability to subscribe online to the print publication, but there are a few kinks in the system. Once we work those out and can make it easier for people to subscribe online, we will begin testing to see how many direct mail recipients respond via the mail vs. how many choose to go online.

DELIVER: Why increase the frequency and decrease the size of the mailings?
DIERKES: As we work toward bringing our circulation back up, we want to get the most bang for our buck. With smaller mailings, not only will our balance sheet not take as big a hit, but we’ll be able to do more testing. Instead of throwing our money into a big mailing and crossing our fingers that we will get a strong response, we can see what’s working and what’s not throughout the year and make changes as we go along.

DELIVER: Do you have a favorite marketing campaign, from either your company or another?
DIERKES: I would have to say the one we did this past fall is a favorite because it had such a good response rate. We included a four-color buckslip [a small insert] in the envelope instead of the black-and-white insert used previously. The new insert was a 3-inch by 5-inch glossy sheet of paper printed with several magazine covers on one side and a list of some of the publication’s special features on the other. It was a very clean, crisp-looking piece that people really liked and were more apt to respond to. And because it was four-color, it really popped and got people’s attention. We spent more on it than on previous inserts, but with a higher response rate, the return on investment was there.

DELIVER: Is there a piece of direct mail you hold on to because you think it’s beautiful, awful or inspiring — or for some other reason?
DIERKES: I hang on to a piece from a men’s magazine because I think it is awful. The font used in the piece is very small, there are just two colors in the piece and the offer is very straightforward. There obviously wasn’t a lot of creative thought put into the piece. It has no pizzazz.

I expected more from the direct mail for this high-end magazine. The magazines themselves are great looking and provide a lot of information. The direct mail should be along the same lines and reflect the brand. This is something we aspire to do at St. Louis magazine — continue our branding efforts through the direct mail pieces.

With cash-crunched consumers hunting for bargains, Valpak is capitalizing on the explosion in coupon usage.

By Sandra Bechwith

After nearly two decades in decline, the coupon is back. Last year marked the first time in 17 years that consumers used more coupons than they did the previous year. An estimated 3.3 billion consumer packaged goods coupons were redeemed in 2009 — a whopping 27-percent increase over the 2.6 billion redeemed in 2008, according to Inmar, a coupon processing company.

It’s no surprise that the uptick coincided with news of the U.S. financial crisis. But despite the tight economy, marketers invested heavily in coupons, boosting the number available to the highest level in more than 30 years.

“Brands saw coupons as a key to maintaining brand strength,” says Matthew Tilley, marketing director for Inmar’s promotion services division. “If they reduced their promotional presence, they stood to lose sales to lower-priced competitors and store brands, so they doubled down hoping to create brand loyalty once the economic dust settled.”

One of the companies that benefitted from the coupon surge was Valpak, which gives local and national advertisers an affordable way to reach targeted audiences with mailed coupons.

But unlike other brands, Valpak’s challenge wasn’t so much awareness. (Its signature blue envelopes loaded with coupons and special offers already were hitting 42 million homes nationwide each month.) It was to remain relevant to coupon clippers, including those who prefer digital delivery.

“If consumers receive a packet of coupons that aren’t relevant to them, it won’t be long before they stop opening our envelope,” says Greg Bicket, president of Cox Target Media, Valpak’s owner.

But for to day ’s consumer, remaining relevant also means making coupons available where people are looking for them. For some, that’s online. To keep up with changing consumer wants and needs, Valpak began syndicating its coupons to 150 online locations. Coupon links on those sites bring shoppers back to Valpak.com, where the Largo, Fla. –based company tracks which coupons are printed or viewed and provides the information to advertisers. Valpak also recently began offering mobile applications for smart phone users seeking coupons based on their location.

In an effort to showcase the company’s ability to stay current with trends, it collaborated in March with a popular daytime talk show for a high-profile promotion involving augmented reality. Valpak house holds received an envelope with an icon that triggered an augmented reality experience on the show ’s Web site when the icon was held up to a webcam. The promotion required users to first register online for a chance to w in a trip to a show taping, then use their augmented reality icon to determine if they won a cookbook. The icon also triggered a thank- you video from the show ’s host.

“Early research suggests that consumers are going to include augmented reality experiences in their product purchase research, and we’re in an excellent position to help make that possible by adding the icons to our paper coupons,” Bicket says.

Even though Valpak is dabbling in new distribution methods, the company maintains a stern commitment to print. “More than 90 percent of our business comes through direct mail, and we don’t expect that to change anytime soon,” Bicket says.

To that end, the company has invested $200 million in a 10-acre, state-of-the-art printing and mailing facility that runs 24 hours a day, six days a week.

Valpak franchisees diligently work with advertisers to create an effective offer to be printed on an insert that will join, on average, 40 others in the blue envelope. Using data compiled by the company’s in-house research department, franchisees advise clients on appropriate reach, recommended frequency and effective offers.

“I’ve been with franchisees when they have turned down advertisers who either aren’t a good fit or aren’t able to make the right offer to consumers,” Bicket says. “It’s one way franchisees help keep what’s in our envelopes relevant.”

Bicket adds that there are a lot of ways to jazz up what is already a very effective four-color coupon that is well established with the public.

“We can give it new dimensions that sustain interest and relevance to multiple generations,” he says. “While one might prefer a traditional print coupon, another might be interested in more high- tech features.”

Recognizing that people interact with media in different ways, Valpak expects to see a growth in digital options to as much as 10 percent of its business in five years. “Even so, we see a long future in print,” says Bicket, “because when our advertisers combine digital with print, they get better results.”

With tax season approaching, Jackson Hewitt launched a new multichannel campaign that takes the pain out of filing a return and puts the fun back in “refund.”

By Pamela Oldham

Tax season can evoke plenty of sentiments. Excitement, though, is usually not one of them.

Unless you ask a Jackson Hewitt client.

While devising Jackson Hewitt’s marketing strategy for the 2010 tax season, marketers for the tax preparation company conducted a study to learn more about clients’ purchase motivations and their opinions about tax time. Among the feelings they found common to many clients? Enthusiastic anticipation.

“Many of us think about tax season as a time of stress and worry,” says Debra Dowd, Jackson Hewitt’s vice president of Marketing. “But when you actually talk to consumers and ask, ‘How do you feel about tax time?’ you hear, ‘I can’t wait’ and ‘I’m really looking forward to it,’” Dowd says. “It’s a surprisingly consistent response — but not one that’s typically publicized.”

Of course, Jackson Hewitt finds its own type of joy in tax time. The Parsippany, N.J.–based company is an industry leader, providing full-service federal and state income tax return preparation via its 6,300 franchised and company owned offices throughout the United States.

The enthusiasm expressed by clients arises from a basic truth: More than 70 percent of taxpayers — about 90 million people — receive tax refunds each year, according to the IRS. The average refund check is nearly $3,000. For taxpayers who have sacrificed all year long in an economy gone sour, a tax refund seems like a welcome reward for them and their families. Many of those surveyed said their refunds would be shared with relatives or to purchase something special.

“It was such a pervasive response that we thought we’d dial up the fact that tax time is something to look forward to,” Dowd says. “It’s a very positive message. For many people, a tax refund is probably one of the biggest checks they’ll get for the year. Especially given the economy, when people are feeling a bit down, [that refund] is a good piece of news.”

Dubbed “Big Check,” the national Jackson Hewitt campaign includes television, radio, print, online, out-of-home, direct mail and in-store components. While the firm’s closest rival touts its ability to answer tough tax questions, and other competitors address minimizing the pain of tax preparation, Jackson Hewitt focuses on the payoff — that big refund check and the promise it brings.

“We wanted to focus on the happy moments that could be shared when you have your refund check in your hand — going to a favorite restaurant, going shopping or taking the kids to a ball game,” explains Dowd.

Direct mail led the way for the campaign. Even before other media were put into play, Jackson Hewitt sent a series of mailers to previous clients in November, all containing offers prior to the start of the tax season.

“When you’re in the tax business, you engage with your clients less when it’s not tax time,” Dowd says. “So it’s very important to remind people that we’re here and ready to serve them again when it comes time to prepare their taxes. The November mailers helped reinforce our brand message and remind our prior clients why Jackson Hewitt continues to be a great choice for tax preparation.”

“Direct mail has always been an important channel for us, especially when it comes to reaching out to prior clients,” Dowd says. “It is highly trackable and measurable; it gives us the ability to understand in real time how we are performing against this part of our plan and whether we need to ‘dial things up’ or not, and it enables us to send timely and relevant messages to this very important audience.”

But the larger-than-life check featured prominently in the campaign’s direct mail and advertising isn’t the only thing that’s big about Jackson Hewitt’s marketing.

“The 2010 tax season marks the start of our exclusive relationship with Walmart, serving as its official in-store tax preparation service,” Dowd says. Jackson Hewitt’s presence in approximately 1,800 of the chain’s stores this season also has been promoted through co-branded television, radio and direct mail, as well as a co-branded tax center accessed through the retailer’s Web site.

Additionally, customer acquisition–focused direct mail targets prospective clients who may have come into the store last year to work with a different tax preparation service. Jackson Hewitt also uses direct mail specifically targeted to the store’s employees — a universe of more than 1.4 million.

“We are offering Walmart associates a special 25-percent discount for in-store tax preparation, or 30 percent off if they choose to file online with Jackson Hewitt Online,” Dowd says, adding that by mid-January Jackson Hewitt was already starting to see store employee traffic build.

Meanwhile, the tax preparer is undertaking other efforts to raise its brand profile. In January, the company launched Jackson Hewitt Online, a Web-based tax preparation solution for people who choose to prepare and file their own tax returns. In announcing the new offering, Jackson Hewitt CEO Harry Buckley positioned the product as part of the company’s commitment to providing all clients with options and services to make filing taxes as “accurate, easy and convenient as possible.” According to Dowd, Jackson Hewitt Online addresses the growing market demand for this channel, especially among first-time tax filers and clients migrating from traditional tax preparation services.

The past year also marked other marketing moves: The redesign of the company’s national Web site, jacksonhewitt.com; the introduction of “TaxTalk,” a company blog; and an expansion of its social networking presence into some of the most popular social media sites. The company’s high-touch, multichannel strategy also helps set Jackson Hewitt — ranked No. 2 in its industry category — apart from competitors.

Results from Jackson Hewitt’s 2010 tax season campaign won’t be tallied until after April 15, but the company looks forward to driving traffic into their stores with taxpayers seeking assistance in claiming many new tax rules, including credits for buying an energy efficient appliance or buying a new home. “New and changed tax rules can impact our industry in a very positive way,” says Dowd.

No doubt that will raise the enthusiasm level of Jackson Hewitt clients yet another notch.

Campaign synopsis
• Company: Jackson Hewitt
• Product: Tax preparation services
• Channels: Television, radio, print, direct mail, online, out-of home, in-store
• Goal: Raise brand profile and increase share of market
• Tactics: In addition to the campaign, the company made a deal with a major retailer to be the official instore preparer in 1,800 stores
• Response rate: Initial response to the campaign has been strong, but the company won’t know the full impact until tax season is over.

Tax Time By the Numbers

Whether you have a tax service like Jackson Hewitt prepare your return or tough out your 1040 on your own, there are plenty of numbers to crunch. Here are a few other numbers about tax time:

The IRS expects 238 million returns to be filed during calendar year 2010. That’s down from the 2009 level of 240.4 million.

The IRS spent an average of 50 cents to collect each $100 of tax revenue in the 2009 fiscal year.

Adjusted gross incomes declined 3.7% to $8.2 trillion in 2008. Taxable income also decreased, dropping 5.1% to $5.6 trillion.

Total income tax for 2008 decreased 6.2% to $1 trillion.

The first income tax was instituted in 1862 to help pay Civil War expenses.

In 1918, the tax was revised to help raise sums for World War I. It imposed a progressive income-tax rate structure of up to 77%.

Source: IRS