You say "online coopon", I say "online cuepon", everyone says "great idea"

This recent article caught my eye because we work with Boodle.com for some of our CPG clients.

Being immersed in the online world, we easily saw the benefits of offering coupons online. For one, it makes it easy for consumers - they are already on your website so why not give them a coupon instead of making them hunt through the enormous Sunday paper? There are a slew of other reasons (encourage consumers to take the next step after viewing your products online, keep up with competitors, provide value to your consumers, etc.).

So the point is, I'm not surprised that Coupons, Inc. would acquire Boodle.com because Boodle is doing a great thing. What really caught my eye was this stat that the article mentioned:

While the redemption rate from offline coupons is under 1% ... the rate for coupons that consumers choose to print from the Web is around 17%.

That is an amazing increase in the redemption rate when moving to the online space. And that shift ultimately amounts to better use of the marketing budget for the clients. Instead of spending x amount of dollars to distribute y amount of offline coupons, where only 1% of the recipients will use them and thus become familiar with the brand, the client can now spend less money on distribution (by just posting the coupons on their own website) and reallocate the extra funds to now cover the redemption costs. That means that a larger percent of the budget is being spent on actual consumers as opposed to potential consumers.

Just add it to the list of why we're happy to recommend this solution to our CPG clients.

The ePony Express

What does the approaching increase in postage from the USPS mean for marketers? Well, according to this article it means we should be pushing our clients more strongly into the online world. And I agree with that but just have a few comments about his article:

1 - Driving more business away from postal mailings is just going to cause the postage rate to increase even more. So unless you can completely eradicate all mailings, then you're not totally solving the problem by moving online.

2 - I believe in using an integrated marketing approach with clients. Sometimes that includes good old-fashioned snail mailings. I'm a big fan of online marketing, but if the situation calls for a direct mail piece, I don't think a 2 cent increase is going to be the deciding factor of whether or not to do it.

3 - On a more personal note, as an American living abroad I would like to point out that Americans have it pretty good as far as postage rates go. For example, the cheapest you can mail a letter within France for is $0.74. So $0.41 ain't lookin' too bad anymore (especially since the US is a lot larger than France). I'm just saying, there are bigger fish to fry.

I'm glad more marketers are encouraging and supporting email use, but you just have to remember to look at the whole picture.

Guts and Glory

We do a lot of email marketing for our clients. We have tons of fun coming up with the creative concept, are diligent in our implementation, and then fire off those bad boys to our carefully maintained opt-in lists.

Then it's time to track the results. Coming from a background in math, there is nothing I love more than generating reports about email stats and the corresponding web traffic. Seriously. I love gathering the data and I love analyzing it.

However, one aspect of this whole effort is seriously lacking. How do we know if our campaign was a success?

I have heard time and time again from e-newsletter after e-newsletter and marketing blog after marketing blog that it's not important to measure yourself against industry standards. Every campaign is different. Every client is different. The best way to see if you're doing well is to set your own goals and compare your results against that.

Well, I call BS. How do I come up with these goals in the first place? That's like eliminating speed limits and asking people to come up with the speed limit they feel best suits them. Sure, a lot of people will pick a decent speed limit, but some grannies will drive slow and some hot shots will drive fast, just to serve their own needs. Or what about GPAs in school? Should I just decide for myself what grade I think is sufficient? Because what would stop me from saying that getting a D on a test is good enough - I mean, at least I answered the majority of the questions correctly, right?

I feel that this popular stance of "we don't need to compare our stats to industry standards" is a big cop-out. It basically means you don't have to be held accountable. You could tell your client that 1% is a great open rate and 50% deliverability is awesome. If your client isn't very web savvy (and a lot of them aren't - that's why they hired you in the first place) they might believe you. And so every campaign you do is way above the mark. Well done. It's pretty easy to accomplish above average results when you set the bar on the floor.

I want to set high goals for my clients' email campaigns. I want to shoot big. But I also want to be in a somewhat realistic ball park. As it stands now, though, I hardly know where to set my expectations.

I did manage to find a few websites who would own up and post industry standards and goals (here, here, and here). Props to them. But what about everyone else? What about the writers of the e-newsletters from the so-called email marketing pros? Can they say with a straight face that they do not have access to data regarding the average performance of email marketing campaigns? I highly suspect that this data exists somewhere, someone just needs the cajones to post it, and then work hard to make their campaigns match it.

Speaking as a former teacher's pet, I'm up for the challenge. I'm not afraid to set high standards and motivate my team to reach them. Who's with me?

I must also note that if I am somehow just not able to find all this research and it is in fact posted right in front of my face - please send me a link! I don't mind being wrong; in fact, I'd rather be wrong if it means there are answers and cold hard stats out there.

I hear that edgy young dude got a new car

Toyota's latest marketing plan for the Scion is a great example of word-of-mouth marketing. They are purposely only targeting "edgy young dudes". In doing so, they're counting on them setting the trend and also talking about how cool their car is to their friends. Much more innovative than placing a full page ad in Newsweek or the like. I'd be interested to see how many Scions you see around town in about a year, and also if Toyota sticks with this subculture marketing or if they change directions and go mainstream.