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THINGS I’VE LEARNED, RELEARNED AND UNLEARNED




                                                                   BY WILLIAM ZIERCHER
                                                       (REFORMED MARKETING KNOW-IT-ALL)




© Copyright 2011 Gabriel Group. All rights reserved.                                NEXT
CONTENTS
                       	 3	 INTRODUCTION
                       	 4	 CHAPTER	ONE	 I 	The One Metric That Will Always Be Important: ROI
                       	 5	 CHAPTER	TWO	 I 	ROI Is a Team Effort
                       	 6	 CHAPTER	THREE	 I 	The More You Know the Better You’ll Do
                       	 8	 CHAPTER	FOUR	 I 	Paying Attention to TCO—Total Cost of Ownership
                       	 10	 CHAPTER	FIVE	 I 	The One Totally Irreplaceable Resource
                       	 12	 CHAPTER	SIX	 I 	One Thing I Learned from My Mom: It’s Good to Share
                       	 14	 CHAPTER	SEVEN	 I 	More Wisdom from Mom: A Good Scrub Will Solve a Lot of Problems
                       	 16	 CHAPTER	EIGHT	 I 	Growing Green by Going Green
                       	 18	 CHAPTER	NINE	 I 	What’s Good for Others Is Good for You
                       	 19	 FOR	FURTHER	EXPLORATION
                       	 20	 ABOUT	THE	AUTHOR




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INTRODUCTION



                        Responsible	marketing is a relatively new addition to the marketing lexicon, and for some, it
                        has one meaning only—marketing that is responsible to the environment. But that’s	only	part	of	
                        the	story.	As marketers, we also have responsibilities to our shareholders, our clients or customers,
                        our associates, our communities and our families. And these responsibilities are not mutually
                        exclusive. In fact, like the things that make up our environment—air, water, plants, animals—they
                        are interdependent.

                        This book is a way of sharing some knowledge and insights on responsible marketing. It’s designed
                        to be read in bites—you can pick and choose whatever strikes you at the moment.

                        I have to confess that old friends probably would not think of me as an environmentalist. But I
                        believe strongly that the time for being responsible to all things on which we depend and which
                        depend on us is necessary and good. After close to 30 years in the field, I	am	still	learning,	
                        relearning	and,	yes,	unlearning	some things I was sure would never change. Including
                        my mind.




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CHAPTER    ONE


                                           THE	ONE	METRIC	THAT	WILL	ALWAYS	BE	IMPORTANT:	                                              ROI
                                           If there’s one metric you can’t downplay, it’s the importance of ROI. Since we’re all in business to
                                           make money or in nonprofits to advance our missions by raising money, a favorable ROI will always
HOW	DO	YOU	FIGURE	ROI?                     be the primary goal. It is where responsibility begins. And “nice try” doesn’t cut it.
    Here’s the most commonly
           used formula:                   I learned that a long time ago. If I ever forget it, I will need to relearn it ASAP, or there will be
                                           some people out of work who won’t deserve it. Responsible marketing involves accountability on a
  (Revenue	–	Investment)                   number of fronts: shareholders or partners, employees, clients, the community and the environment.
        Investment
   Remember to include all costs           But	here	is	something	I	realized	fully	only	in	the	last	few	years:	Being	
  associated with the effort. And          responsible	to	the	bottom	line	does	not	mean	you	have	to	set	aside	those	other	
try to have a reasonable projection        responsibilities.	In	fact,	taking	care	of	one	means	taking	care	of	all.
 of the real profit, not all of which
may be on the books immediately.           With positive ROI, your company is more likely to hire and retain great employees. It’s easier to
                                           justify raises, training, and benefits. And if you deliver positive ROI on the programs you manage,
                                           you are much less likely to be looking for a job when you’d rather not.

                                           The most obvious way to improve ROI is by improving	performance,	often easier said
                                           than done. Another is to cut	costs	by aggressive shopping and pricing demands. A third is to
                                           eliminate	waste.	When you cut waste, you are saving money that often goes directly to the
                                           bottom line, and your efforts will benefit the environment, too.

                                           Responsible	marketers	address	all	three.	




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CHAPTER    TWO


                        ROI	IS	A	      TEAM	EFFORT
                        I suppose there are a few marketing success stories that spring from a single, individual stroke
                        of brilliance, but in my experience far more result from collaboration—collaboration with
                        consumers, agencies, vendors, franchisees, distributors, retailers and most importantly, especially
                        in B-to-B situations, sales.

                        I came up through sales, so I have a bias, but I am totally convinced that sales	and	marketing	
                        have	to	play	as	a	team.	One supports the other, marketing by facilitating sales, sales by
                        providing marketing with input “from the ground.”

                        It should be one of the marketer’s key objectives to make life as easy as possible for the sales force,
                        because their fates are intertwined. That involves not just developing good materials, but making
                        them timely, easy to get, and easy to customize. Sales management needs to distill input from the
                        sales force and feed it back to marketing. The	information	gained	from	day-to-day	input	
                        from	customers	is	critical	to	the	development	of	new	products	and	services,		
                        as	well	as	to	the	building	of	the	right	sales.	
                        I have never known a sale to be made while a salesperson was scrounging around trying to get his
                        or her hands on the right brochures.

                        What	I	Relearn	Every	Day
                        n Nothing	happens	until	somebody	sells	something.
                        n Anything	that	diverts	a	salesperson	from	selling	reduces	ROI.




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CHAPTER    THREE


                        THE	   MORE	YOU	KNOW	THE	BETTER	YOU’LL	DO
                        Today’s marketing executive reminds me of those old-time one-man-band acts, playing five or six
                        instruments at once, and trying to keep everything going at a nice, harmonious pace.

                        It was so much easier back when I started out—and I am not THAT old. There was mass media and
                        direct. Print and broadcast. Network and spot.

                        Now the marketing executive has all those cards to play, plus web, email, mobile, social media
                        and whatever tomorrow will bring. It	is	his	or	her	responsibility	to	put	them	all	in	play,	
                        keep	them	working	together,	and	to	be	able	to	justify	the	company’s	investment		
                        in	each	of	them.
                        That requires constant measurement and analysis of every effort and its effect on profitability.

                        Welcome	to	the	world	of	analytics.	
                        This is an area that has grown, has become infinitely more complex and yet, thanks to our friend the
                        microchip, has become more accurate than ever before.

                        In my early direct response days, we were proud of our ability to measure	response.	Sure
                        those ad guys were creative, but when they figured out they failed, their client was on its way
                        into the tank. We	knew	what	succeeded	and when, down to the last block group.

                        But we didn’t know at what point the consumer sent our mailing piece to the wastebasket. And
                        we still don’t. But we know where he clicks on the website, and how long he stays. And if he puts
                        something in the shopping cart and then abandons it.


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CHAPTER THREE




                                      By analyzing her actions, we	can	spot	the	consumer	who	is	heading	for	the	other	
                                      brand,	and head her off before she gets out of the fold.
                                      We know which donors have more	to	give	than they are giving to us, and when we’re not getting
                                      our fair share of the business buyer’s wallet.

                                      We know when	our	email	is	opened,	and when it is bounced. We can measure and analyze
An	organization’s	ability	            the click-throughs and actions.

to	learn,	and	translate	              We can monitor	social	media	to see what our fans (and those not so friendly) are saying about
                                      our latest product release, searching for keywords that indicate “for” or “against.”
that	learning	into	action	
rapidly,	is	the	ultimate	             If	we	are	not	taking	advantage	of	those	capabilities,	we	are	either	leaving	money	
                                      on	the	table	or	throwing	it	away.	Neither	one	is	terribly	responsible.
competitive	advantage.	

                Jack Welch            What	I’ve	Learned
                                      n Nobody	except	a	gambler	would	roll	the	dice	for	millions	of	dollars	based	on	a	gut	hunch.		
                                         And	responsible	marketing	managers	are	not	gamblers.

                                      What	I	Am	Always	Learning
                                      n There’s	always	something	new	to	measure,	and	some	new	tool	that	will	do	it.




              n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 7              PREVIOUS   NEXT
CHAPTER    FOUR


                        PAYING	ATTENTION	TO	                   TCO
                                          …TOTAL	COST	OF	OWNERSHIP

                        When I started my career selling envelopes, and then direct mail, we ALWAYS over-ordered
                        consumables, usually by about 10 percent…less on really large quantities. This wasn’t gouging…
                        there was a real concern. If you ran short, it was expensive to go back on press…and production
                        could not promise to hit the quantity mark right on. So	“overs”	made	sense.

                        In some areas, “overs” are still a necessary part of doing business. In processing for mail, there
                        can be spoilage on imaging and inserting equipment, even in the best-run shops. But	“over”	
                        thinking	became	a	habit,	and	it	can	be	an	expensive	one.	Here’s why:
                        It	costs	money	to	ship,	store	and	account	for	all	that	extra	paper.	And	mountains	
                        of	unused	paper	can	accumulate	seemingly	overnight.	

                        A	bit	of	relearning	about	TCO
                        Technology clients of my company initially taught me the meaning of the letters “TCO”—total cost
                        of ownership, including software, training, upgrades, etc. At first, it didn’t occur to me that TCO was
                        important to printed materials. But then one day, I walked through our warehouse, and looked at all
                        the paper clients had stored there—for months on end.

                        If your department produces sales sheets, brochures, trade show materials, I’d bet good money that
                        you would find all kinds of ancient history on your warehouse shelves. If it were only gathering dust,
                        no big deal, but the	costs	mount—ching! ching!! ching!!!—with every month those materials sit.



n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 8                       PREVIOUS   NEXT
CHAPTER FOUR




                        Before	you	know	it,	the	total	cost	of	ownership	of	those	overprinted	and	
                        probably	obsolete	materials	is	twice	what	you	paid	the	printer.	Seriously!
                        And that cost could be critically wounding your ROI. Not good.

                        With the advent of capable,	high-quality	digital	imaging	systems	there’s an
                        economical	way	to	print	only	what	you	need	when	you	need	it.	This won’t work
                        if you need a million pieces or even 100,000, but it’s great for quantities of, say, 100 or 1,000
                        or even 2,000, which are expensive to put on press.

                        What	I’ve	Learned
                        n The	TCO	of	many	printed	materials	is	double	the	original	cost.	That	can	seriously	
                           undermine	the	ROI	you	thought	you	had.

                        What	I’ve	Unlearned
                        n Old	print-buying	habits.	“Over-thinking”	can	be	a	costly	problem.




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CHAPTER     FIVE


                        THE	ONE	TOTALLY	                 IRREPLACEABLE	RESOURCE
                        There’s a lot of talk about conserving natural resources, and that’s a good thing. But there’s one
                        resource that is totally irreplaceable, and that is time.

                        We often overlook the time people waste by working	inefficiently…looking for things,
                        duplicating efforts, straightening out accounting snafus and such. These things went on all the time;
                        they were often part of the process. It happened in my own company, and I still see clients—I’ll never
                        tell who they are—who are even more serious time wasters.

                        Now there are systems to help them manage their digital assets better. Forget all the costly
                        time-wasting double and triple efforts. Set	up	an	effective	Digital	Asset	Management	
                        (DAM)	system.	With it, you’ll get…
                        n   An instantly accessible repository for the constantly growing collection of digital files every
                            marketing department accumulates—logos, brochure files, sales sheet files, ad files, videos,
                            commercials, you name it
                        n   A fulfillment system, capable of accepting orders, initiating production, tracking production and
                            shipping or mailing, and then billing them all with just a couple of clicks
                        n   A system for customizing printed or electronic materials—a real time saver for companies who
                            franchise, have retail stores, agents, or even just a large sales force
                        n   An inventory management system tracking usage and supplies and alerting when levels are low




n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 10                        PREVIOUS   NEXT
CHAPTER FIVE




                        n   A watchdog for branding and compliance…it won’t allow incorrect use
                        n   A truly accurate source of marketing data to feed into your analytics programs

                        Bear	in	mind,	these	systems	don’t	take	vacations	or	holidays	and	can	be	
                        accessible	from	anywhere	in	the	world.
                        Think about the time a system like that would save your company. Just as importantly, think about
                        the time your people are wasting now, and how much it is costing you. Then don’t get sidetracked
                        by thinking about the cost of building and maintaining such a system, because there are ways you
                        can have the cake and eat it, too.

                        What	I	Am	Constantly	Relearning
                        n There	is	no	virtue	in	working	hard	when	you	make	more	money	by	working	smart.
                        n People	have	better	things	to	do	than	fight	inefficient	systems.




n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 11                  PREVIOUS     NEXT
CHAPTER      SIX

                        ONE	THING	I	LEARNED	
                        FROM	MY	MOM:		                             IT’S	GOOD	TO	SHARE
                        Mom was thinking about toys and cookies. I am thinking about technology	resources. Making
                        the best possible use of technology resources is a foundation principle of responsible marketing.
                        And in many cases, the way to accomplish this is to share.

                        The Digital Asset Management system I described in Chapter Four is a case in point. If	you	were	
                        to	build	it	from	scratch,	it would take months—okay, years—of programming time, a small
                        fortune in computer hardware and software licenses, plus weeks of training and retraining. Your
                        investment always ends up being much larger than you budgeted. And it’s up to you to explain
                        how this happened.

                        By	the	time	you	actually	got	it	going,	it	would	be	too	small,	possibly	unreliable	
                        and	almost	certainly	obsolete.	This	is	a	fast-moving	world.
                        That’s the bad news. The good news is that you	don’t	have	to	buy,	you	can	share,	paying
                        only for what you use. There are companies who specialize in shareable resources for production,
                        fulfillment and distribution of marketing materials (mine is one). These systems are easy and
                        ultimately far less expensive to use.

                        Here	are	some	of	the	advantages:
                        n   You have no initial investment cost to justify or recoup.
                        n   The system is available now.
                        n   It is tested and reliable.



n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 12                  PREVIOUS    NEXT
CHAPTER SIX




                        n   It can accommodate all kinds of files, from documents to customizable brochures and sales
                            sheets, to forms and supplies, to sound and video files for commercials and presentations.
                        n   There is minimal need for training; the system is user-friendly.
                        n   You don’t have to worry about the cost of upgrades.
                        n   It can handle your company’s growing needs easily.
                        n   Your staff time can be invested in growth instead of maintaining the status quo.
                        n   The system can be customized to your look and to your accounting needs.
                        n   You pay only for what you use.
                        n   It is usable 24/7 from anywhere, by any authorized staff member, dealer, reseller, etc.
                        n   You make the rules of access.

                        Mom	was	right.

                        What	I’ve	Learned
                        n Sharing	cookies	is	good.

                        What	I’ve	Relearned
                        n Sharing	cookies	is	not	nearly	as	good	as	sharing	resources.
                        n Never	buy	what	you	can	lease.	Never	lease	what	you	can	rent.	Never	rent	what	
                            you	can	borrow.	Never	borrow	what	you	can	salvage.
                            Ian C. MacMillan, professor of entrepreneurship at Wharton’s Snider Entrepreneurial Center




n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 13                            PREVIOUS   NEXT
CHAPTER    SEVEN


                        MORE	WISDOM	FROM	MOM:                           	A	GOOD	SCRUB	
                        WILL	SOLVE	A	LOT	OF	PROBLEMS

                        Mom was thinking more about faces and floors, but her motherly wisdom extends to the world
                        of marketing. Dirty	data	destroys	ROI.	If you contact your customers directly by mail, email,
                        phone, text or whatever, you should become	a	clean	freak.

                        Recently,	DM News	reported	that	direct	mailers	waste	more	than	$6	billion	
                        a	year	on	undeliverable	mail.	That’s	way	too	much	money	to	throw	away,	and	
                        that’s	an	awful	lot	of	trees	that	have	given	their	lives	for	nothing.	
                        While the cost per contact of email is less than that of mail, the percentage of waste is even higher
                        than the seven-plus percent of mail that is typically undeliverable.
                        If you practice any form of direct contact, data cleanup is the first and usually most productive
                        step to improving your ROI.

                        Cleaning your data house can produce improvements that will not only make your response	
                        numbers	look	better	but will result in financial	gains	that	go	straight	to	the	bottom	
                        line.	If the improvements result in fewer printed pieces, you’ve saved some trees. 	
                        There are companies that can help you get your data in order (mine is one), and if the cleanup
                        task seems too formidable for your internal resources, call on one of them to clean	and	
                        maintain	your	database.	Their services will be far	less	expensive	than	constantly	
                        mailing	to	the	landfill.



n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 14                     PREVIOUS   NEXT
CHAPTER SEVEN




                           THINK	ABOUT	THIS:
                           n You mail 1,000,000 pieces a year.   If 10 percent of your database in undeliverable, a duplicate or
                           n The TCO of each piece is $1.50      miscoded (and this is by no means uncommon), you have spent
                             (see Chapter Four).                 $150,000 mailing directly to the landfill. Reducing that waste
                                                                 and the cost that goes with it directly improves the bottom line.
                           n Your annual cost is $1,500,000.

                                                                                                MOM	WAS	RIGHT	AGAIN.



                        What	I’ve	Relearned
                        n Inaccurate,	dirty	data	destroys	ROI.	That’s	true	in	email,	phone	sales,	direct	mail	
                           and	your	personal	sales	pipeline.
                        n Cleaning	up	a	dirty	database	is	a	key	step	toward	improved	ROI,	and	one	of	the	
                           most	productive.




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CHAPTER    EIGHT


                        GROWING	GREEN	BY	GOING	GREEN
                        There	is	a	fairly	common	misconception	that	going	green—reducing	your		
                        impact	on	the	environment—is	costly.	While there is often an up-front cost, in the long
                        run many environmentally sensitive steps actually protect revenue and save money, and in ways
                        we don’t always consider.

                        Let’s talk about producing and protecting revenue. Over the past couple of years, I have looked at
                        a fair number of Requests for Proposal, and nearly every one has an environmental question or
                        section: “How do you handle waste?” “Do you recycle?” “Describe the steps your company takes to
                        protect the environment.” “Are you and your suppliers FSC certified?” FSC is the Forest Stewardship
                        Council, which promotes the use of “farmed” trees rather than harvesting from wild forests.

                        A few years ago, only nonprofits with environmental causes and perhaps governmental entities
                        would have asked those questions. Now they come from insurance companies, manufacturers,
                        banks, retailers, and the list goes on.

                        Increasingly,	businesses	and	consumers	are	looking	at	sound	environmental	
                        practices	as	a	baseline	selection	criterion	for	those	with	whom	they	do	business.	
                        Here’s another fact: Waste	creates	cost	in	subtle	ways,	not just in the cost of the wasted
                        materials. We’re paying for those landfills with tax dollars. We all moan about extra costs and taxes.
                        Cutting out waste is a way of doing something about them. Every trashed brochure or mailing piece
                        puts a small dent in your ROI. Added up, they can do some real damage. Cutting	waste	can	
                        make	a	remarkable	improvement	of	5	to	10	percent	program	costs…and	that	
                        goes	straight	to	the	bottom	line.


n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 16                     PREVIOUS   NEXT
CHAPTER EIGHT




                        What	I’ve	Unlearned
                        n The	idea	that	“environmental”	equals	expensive.

                        What	I’ve	Relearned
                        n Waste	not,	want	not.




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CHAPTER    NINE


                        WHAT’S	GOOD	FOR	OTHERS	IS	                           GOOD	FOR	YOU
                        Doing what is good for your company and the sales force and the environment—all worthy pursuits,
                        no doubt about that. But	responsible	marketing	is	also	good	for	you.	When you respect
                        and build the bottom line, you increase your own job security. Considering the environmental aspect
                        of your activities is rewarding in itself, but it also preserves a better world for those who come after
                        you (like our children and grandchildren). Improving the tools available to your staff encourages
                        better performance and better job satisfaction, and they’re less likely to start looking around.

                        By honoring your responsibility to your programs’ ROI, you will find that you get quicker, more
                        hassle-free approval for new programs. (Just don’t go wild!) The escalator to the executive floor
                        seems a little shorter, and if and when you go looking for a new position, it will be on your own
                        terms. Oh, and you’ll probably make more money, too.
                        Enough	said.




n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 18                      PREVIOUS   NEXT
FOR FURTHER EXPLORATION



                        Books
                        Savitz, Andrew, “The Triple Bottom Line,” available at www.amazon.com

                        Ziercher, Kyle, “Kyle’s Plain American English Guide to Digital Asset Management,”
                        available at www.GabrielGroup.com


                        Coming soon—“Resposible Fundraising” will be available at www.GabrielGroup.com in March 2011



                        Websites
                        Forest Stewardship Council — www.fsc.org

                        PODi, the Digital Printing Initiative — www.podi.org




n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 19                PREVIOUS   NEXT
ABOUT THE AUTHOR


                                        William (Bill) Ziercher is Chairman of Gabriel Group in St. Louis, Missouri, a company that
                                        specializes in helping commercial and nonprofit organizations practice responsible marketing
                                        with practical, profit-producing technology solutions.

                                        Gabriel Group
                                        3190 Rider Trail South
                                        Earth City, Missouri 63045
                                        314.743.5700
                                        Bill.Ziercher@GabrielGroup.com

                                        You are invited to visit the Gabriel Group website at www.GabrielGroup.com.




                                        While you’re there, be sure to visit Moe, Joe and Flo…and watch their show.




FEBRUARY 2011   n WILLIAM ZIERCHER   RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 20                  PREVIOUS

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Responsible Marketing: Things I\’ve Learned, Relearned and Unlearned

  • 1. THINGS I’VE LEARNED, RELEARNED AND UNLEARNED BY WILLIAM ZIERCHER (REFORMED MARKETING KNOW-IT-ALL) © Copyright 2011 Gabriel Group. All rights reserved. NEXT
  • 2. CONTENTS 3 INTRODUCTION 4 CHAPTER ONE I The One Metric That Will Always Be Important: ROI 5 CHAPTER TWO I ROI Is a Team Effort 6 CHAPTER THREE I The More You Know the Better You’ll Do 8 CHAPTER FOUR I Paying Attention to TCO—Total Cost of Ownership 10 CHAPTER FIVE I The One Totally Irreplaceable Resource 12 CHAPTER SIX I One Thing I Learned from My Mom: It’s Good to Share 14 CHAPTER SEVEN I More Wisdom from Mom: A Good Scrub Will Solve a Lot of Problems 16 CHAPTER EIGHT I Growing Green by Going Green 18 CHAPTER NINE I What’s Good for Others Is Good for You 19 FOR FURTHER EXPLORATION 20 ABOUT THE AUTHOR n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED PREVIOUS NEXT
  • 3. INTRODUCTION Responsible marketing is a relatively new addition to the marketing lexicon, and for some, it has one meaning only—marketing that is responsible to the environment. But that’s only part of the story. As marketers, we also have responsibilities to our shareholders, our clients or customers, our associates, our communities and our families. And these responsibilities are not mutually exclusive. In fact, like the things that make up our environment—air, water, plants, animals—they are interdependent. This book is a way of sharing some knowledge and insights on responsible marketing. It’s designed to be read in bites—you can pick and choose whatever strikes you at the moment. I have to confess that old friends probably would not think of me as an environmentalist. But I believe strongly that the time for being responsible to all things on which we depend and which depend on us is necessary and good. After close to 30 years in the field, I am still learning, relearning and, yes, unlearning some things I was sure would never change. Including my mind. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 3 PREVIOUS NEXT
  • 4. CHAPTER ONE THE ONE METRIC THAT WILL ALWAYS BE IMPORTANT: ROI If there’s one metric you can’t downplay, it’s the importance of ROI. Since we’re all in business to make money or in nonprofits to advance our missions by raising money, a favorable ROI will always HOW DO YOU FIGURE ROI? be the primary goal. It is where responsibility begins. And “nice try” doesn’t cut it. Here’s the most commonly used formula: I learned that a long time ago. If I ever forget it, I will need to relearn it ASAP, or there will be some people out of work who won’t deserve it. Responsible marketing involves accountability on a (Revenue – Investment) number of fronts: shareholders or partners, employees, clients, the community and the environment. Investment Remember to include all costs But here is something I realized fully only in the last few years: Being associated with the effort. And responsible to the bottom line does not mean you have to set aside those other try to have a reasonable projection responsibilities. In fact, taking care of one means taking care of all. of the real profit, not all of which may be on the books immediately. With positive ROI, your company is more likely to hire and retain great employees. It’s easier to justify raises, training, and benefits. And if you deliver positive ROI on the programs you manage, you are much less likely to be looking for a job when you’d rather not. The most obvious way to improve ROI is by improving performance, often easier said than done. Another is to cut costs by aggressive shopping and pricing demands. A third is to eliminate waste. When you cut waste, you are saving money that often goes directly to the bottom line, and your efforts will benefit the environment, too. Responsible marketers address all three. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 4 PREVIOUS NEXT
  • 5. CHAPTER TWO ROI IS A TEAM EFFORT I suppose there are a few marketing success stories that spring from a single, individual stroke of brilliance, but in my experience far more result from collaboration—collaboration with consumers, agencies, vendors, franchisees, distributors, retailers and most importantly, especially in B-to-B situations, sales. I came up through sales, so I have a bias, but I am totally convinced that sales and marketing have to play as a team. One supports the other, marketing by facilitating sales, sales by providing marketing with input “from the ground.” It should be one of the marketer’s key objectives to make life as easy as possible for the sales force, because their fates are intertwined. That involves not just developing good materials, but making them timely, easy to get, and easy to customize. Sales management needs to distill input from the sales force and feed it back to marketing. The information gained from day-to-day input from customers is critical to the development of new products and services, as well as to the building of the right sales. I have never known a sale to be made while a salesperson was scrounging around trying to get his or her hands on the right brochures. What I Relearn Every Day n Nothing happens until somebody sells something. n Anything that diverts a salesperson from selling reduces ROI. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 5 PREVIOUS NEXT
  • 6. CHAPTER THREE THE MORE YOU KNOW THE BETTER YOU’LL DO Today’s marketing executive reminds me of those old-time one-man-band acts, playing five or six instruments at once, and trying to keep everything going at a nice, harmonious pace. It was so much easier back when I started out—and I am not THAT old. There was mass media and direct. Print and broadcast. Network and spot. Now the marketing executive has all those cards to play, plus web, email, mobile, social media and whatever tomorrow will bring. It is his or her responsibility to put them all in play, keep them working together, and to be able to justify the company’s investment in each of them. That requires constant measurement and analysis of every effort and its effect on profitability. Welcome to the world of analytics. This is an area that has grown, has become infinitely more complex and yet, thanks to our friend the microchip, has become more accurate than ever before. In my early direct response days, we were proud of our ability to measure response. Sure those ad guys were creative, but when they figured out they failed, their client was on its way into the tank. We knew what succeeded and when, down to the last block group. But we didn’t know at what point the consumer sent our mailing piece to the wastebasket. And we still don’t. But we know where he clicks on the website, and how long he stays. And if he puts something in the shopping cart and then abandons it. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 6 PREVIOUS NEXT
  • 7. CHAPTER THREE By analyzing her actions, we can spot the consumer who is heading for the other brand, and head her off before she gets out of the fold. We know which donors have more to give than they are giving to us, and when we’re not getting our fair share of the business buyer’s wallet. We know when our email is opened, and when it is bounced. We can measure and analyze An organization’s ability the click-throughs and actions. to learn, and translate We can monitor social media to see what our fans (and those not so friendly) are saying about our latest product release, searching for keywords that indicate “for” or “against.” that learning into action rapidly, is the ultimate If we are not taking advantage of those capabilities, we are either leaving money on the table or throwing it away. Neither one is terribly responsible. competitive advantage. Jack Welch What I’ve Learned n Nobody except a gambler would roll the dice for millions of dollars based on a gut hunch. And responsible marketing managers are not gamblers. What I Am Always Learning n There’s always something new to measure, and some new tool that will do it. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 7 PREVIOUS NEXT
  • 8. CHAPTER FOUR PAYING ATTENTION TO TCO …TOTAL COST OF OWNERSHIP When I started my career selling envelopes, and then direct mail, we ALWAYS over-ordered consumables, usually by about 10 percent…less on really large quantities. This wasn’t gouging… there was a real concern. If you ran short, it was expensive to go back on press…and production could not promise to hit the quantity mark right on. So “overs” made sense. In some areas, “overs” are still a necessary part of doing business. In processing for mail, there can be spoilage on imaging and inserting equipment, even in the best-run shops. But “over” thinking became a habit, and it can be an expensive one. Here’s why: It costs money to ship, store and account for all that extra paper. And mountains of unused paper can accumulate seemingly overnight. A bit of relearning about TCO Technology clients of my company initially taught me the meaning of the letters “TCO”—total cost of ownership, including software, training, upgrades, etc. At first, it didn’t occur to me that TCO was important to printed materials. But then one day, I walked through our warehouse, and looked at all the paper clients had stored there—for months on end. If your department produces sales sheets, brochures, trade show materials, I’d bet good money that you would find all kinds of ancient history on your warehouse shelves. If it were only gathering dust, no big deal, but the costs mount—ching! ching!! ching!!!—with every month those materials sit. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 8 PREVIOUS NEXT
  • 9. CHAPTER FOUR Before you know it, the total cost of ownership of those overprinted and probably obsolete materials is twice what you paid the printer. Seriously! And that cost could be critically wounding your ROI. Not good. With the advent of capable, high-quality digital imaging systems there’s an economical way to print only what you need when you need it. This won’t work if you need a million pieces or even 100,000, but it’s great for quantities of, say, 100 or 1,000 or even 2,000, which are expensive to put on press. What I’ve Learned n The TCO of many printed materials is double the original cost. That can seriously undermine the ROI you thought you had. What I’ve Unlearned n Old print-buying habits. “Over-thinking” can be a costly problem. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 9 PREVIOUS NEXT
  • 10. CHAPTER FIVE THE ONE TOTALLY IRREPLACEABLE RESOURCE There’s a lot of talk about conserving natural resources, and that’s a good thing. But there’s one resource that is totally irreplaceable, and that is time. We often overlook the time people waste by working inefficiently…looking for things, duplicating efforts, straightening out accounting snafus and such. These things went on all the time; they were often part of the process. It happened in my own company, and I still see clients—I’ll never tell who they are—who are even more serious time wasters. Now there are systems to help them manage their digital assets better. Forget all the costly time-wasting double and triple efforts. Set up an effective Digital Asset Management (DAM) system. With it, you’ll get… n An instantly accessible repository for the constantly growing collection of digital files every marketing department accumulates—logos, brochure files, sales sheet files, ad files, videos, commercials, you name it n A fulfillment system, capable of accepting orders, initiating production, tracking production and shipping or mailing, and then billing them all with just a couple of clicks n A system for customizing printed or electronic materials—a real time saver for companies who franchise, have retail stores, agents, or even just a large sales force n An inventory management system tracking usage and supplies and alerting when levels are low n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 10 PREVIOUS NEXT
  • 11. CHAPTER FIVE n A watchdog for branding and compliance…it won’t allow incorrect use n A truly accurate source of marketing data to feed into your analytics programs Bear in mind, these systems don’t take vacations or holidays and can be accessible from anywhere in the world. Think about the time a system like that would save your company. Just as importantly, think about the time your people are wasting now, and how much it is costing you. Then don’t get sidetracked by thinking about the cost of building and maintaining such a system, because there are ways you can have the cake and eat it, too. What I Am Constantly Relearning n There is no virtue in working hard when you make more money by working smart. n People have better things to do than fight inefficient systems. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 11 PREVIOUS NEXT
  • 12. CHAPTER SIX ONE THING I LEARNED FROM MY MOM: IT’S GOOD TO SHARE Mom was thinking about toys and cookies. I am thinking about technology resources. Making the best possible use of technology resources is a foundation principle of responsible marketing. And in many cases, the way to accomplish this is to share. The Digital Asset Management system I described in Chapter Four is a case in point. If you were to build it from scratch, it would take months—okay, years—of programming time, a small fortune in computer hardware and software licenses, plus weeks of training and retraining. Your investment always ends up being much larger than you budgeted. And it’s up to you to explain how this happened. By the time you actually got it going, it would be too small, possibly unreliable and almost certainly obsolete. This is a fast-moving world. That’s the bad news. The good news is that you don’t have to buy, you can share, paying only for what you use. There are companies who specialize in shareable resources for production, fulfillment and distribution of marketing materials (mine is one). These systems are easy and ultimately far less expensive to use. Here are some of the advantages: n You have no initial investment cost to justify or recoup. n The system is available now. n It is tested and reliable. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 12 PREVIOUS NEXT
  • 13. CHAPTER SIX n It can accommodate all kinds of files, from documents to customizable brochures and sales sheets, to forms and supplies, to sound and video files for commercials and presentations. n There is minimal need for training; the system is user-friendly. n You don’t have to worry about the cost of upgrades. n It can handle your company’s growing needs easily. n Your staff time can be invested in growth instead of maintaining the status quo. n The system can be customized to your look and to your accounting needs. n You pay only for what you use. n It is usable 24/7 from anywhere, by any authorized staff member, dealer, reseller, etc. n You make the rules of access. Mom was right. What I’ve Learned n Sharing cookies is good. What I’ve Relearned n Sharing cookies is not nearly as good as sharing resources. n Never buy what you can lease. Never lease what you can rent. Never rent what you can borrow. Never borrow what you can salvage. Ian C. MacMillan, professor of entrepreneurship at Wharton’s Snider Entrepreneurial Center n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 13 PREVIOUS NEXT
  • 14. CHAPTER SEVEN MORE WISDOM FROM MOM: A GOOD SCRUB WILL SOLVE A LOT OF PROBLEMS Mom was thinking more about faces and floors, but her motherly wisdom extends to the world of marketing. Dirty data destroys ROI. If you contact your customers directly by mail, email, phone, text or whatever, you should become a clean freak. Recently, DM News reported that direct mailers waste more than $6 billion a year on undeliverable mail. That’s way too much money to throw away, and that’s an awful lot of trees that have given their lives for nothing. While the cost per contact of email is less than that of mail, the percentage of waste is even higher than the seven-plus percent of mail that is typically undeliverable. If you practice any form of direct contact, data cleanup is the first and usually most productive step to improving your ROI. Cleaning your data house can produce improvements that will not only make your response numbers look better but will result in financial gains that go straight to the bottom line. If the improvements result in fewer printed pieces, you’ve saved some trees. There are companies that can help you get your data in order (mine is one), and if the cleanup task seems too formidable for your internal resources, call on one of them to clean and maintain your database. Their services will be far less expensive than constantly mailing to the landfill. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 14 PREVIOUS NEXT
  • 15. CHAPTER SEVEN THINK ABOUT THIS: n You mail 1,000,000 pieces a year. If 10 percent of your database in undeliverable, a duplicate or n The TCO of each piece is $1.50 miscoded (and this is by no means uncommon), you have spent (see Chapter Four). $150,000 mailing directly to the landfill. Reducing that waste and the cost that goes with it directly improves the bottom line. n Your annual cost is $1,500,000. MOM WAS RIGHT AGAIN. What I’ve Relearned n Inaccurate, dirty data destroys ROI. That’s true in email, phone sales, direct mail and your personal sales pipeline. n Cleaning up a dirty database is a key step toward improved ROI, and one of the most productive. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 15 PREVIOUS NEXT
  • 16. CHAPTER EIGHT GROWING GREEN BY GOING GREEN There is a fairly common misconception that going green—reducing your impact on the environment—is costly. While there is often an up-front cost, in the long run many environmentally sensitive steps actually protect revenue and save money, and in ways we don’t always consider. Let’s talk about producing and protecting revenue. Over the past couple of years, I have looked at a fair number of Requests for Proposal, and nearly every one has an environmental question or section: “How do you handle waste?” “Do you recycle?” “Describe the steps your company takes to protect the environment.” “Are you and your suppliers FSC certified?” FSC is the Forest Stewardship Council, which promotes the use of “farmed” trees rather than harvesting from wild forests. A few years ago, only nonprofits with environmental causes and perhaps governmental entities would have asked those questions. Now they come from insurance companies, manufacturers, banks, retailers, and the list goes on. Increasingly, businesses and consumers are looking at sound environmental practices as a baseline selection criterion for those with whom they do business. Here’s another fact: Waste creates cost in subtle ways, not just in the cost of the wasted materials. We’re paying for those landfills with tax dollars. We all moan about extra costs and taxes. Cutting out waste is a way of doing something about them. Every trashed brochure or mailing piece puts a small dent in your ROI. Added up, they can do some real damage. Cutting waste can make a remarkable improvement of 5 to 10 percent program costs…and that goes straight to the bottom line. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 16 PREVIOUS NEXT
  • 17. CHAPTER EIGHT What I’ve Unlearned n The idea that “environmental” equals expensive. What I’ve Relearned n Waste not, want not. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 17 PREVIOUS NEXT
  • 18. CHAPTER NINE WHAT’S GOOD FOR OTHERS IS GOOD FOR YOU Doing what is good for your company and the sales force and the environment—all worthy pursuits, no doubt about that. But responsible marketing is also good for you. When you respect and build the bottom line, you increase your own job security. Considering the environmental aspect of your activities is rewarding in itself, but it also preserves a better world for those who come after you (like our children and grandchildren). Improving the tools available to your staff encourages better performance and better job satisfaction, and they’re less likely to start looking around. By honoring your responsibility to your programs’ ROI, you will find that you get quicker, more hassle-free approval for new programs. (Just don’t go wild!) The escalator to the executive floor seems a little shorter, and if and when you go looking for a new position, it will be on your own terms. Oh, and you’ll probably make more money, too. Enough said. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 18 PREVIOUS NEXT
  • 19. FOR FURTHER EXPLORATION Books Savitz, Andrew, “The Triple Bottom Line,” available at www.amazon.com Ziercher, Kyle, “Kyle’s Plain American English Guide to Digital Asset Management,” available at www.GabrielGroup.com Coming soon—“Resposible Fundraising” will be available at www.GabrielGroup.com in March 2011 Websites Forest Stewardship Council — www.fsc.org PODi, the Digital Printing Initiative — www.podi.org n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 19 PREVIOUS NEXT
  • 20. ABOUT THE AUTHOR William (Bill) Ziercher is Chairman of Gabriel Group in St. Louis, Missouri, a company that specializes in helping commercial and nonprofit organizations practice responsible marketing with practical, profit-producing technology solutions. Gabriel Group 3190 Rider Trail South Earth City, Missouri 63045 314.743.5700 Bill.Ziercher@GabrielGroup.com You are invited to visit the Gabriel Group website at www.GabrielGroup.com. While you’re there, be sure to visit Moe, Joe and Flo…and watch their show. FEBRUARY 2011 n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS I’VE LEARNED, RELEARNED AND UNLEARNED n 20 PREVIOUS