Archives for June 2010

Why Your Next Business Card WON’T be Virtual

June 30th, 2010 | by Luis Paez

I have to take issue with an article on American Express’ OPEN blog titled “Why your next business card may be virtual”, because it’s a little misleading on the widespread use of “virtual card” technology.  Applications like Bump and LinkedIn’s iphone bluetooth app provide simple proximity exchanges of vcards but there’s 2 problems with them that my favorite tech blogs forget to really detail:   1) You have to have the right phone , and 2) You have to have the right App. LinkedIn’s app is iphone-only and Bump is limited to 2 types of smartphones.

Ease vs. Techiness

Ease vs. Techiness

Even considering the only major virtual card format, the pervasive “VCARD” (files in .vcf format), there’s obvious shortcomings on adoption of this standard across platforms.  I have been very impressed that Apple’s taken the standard that Microsoft popularized, and integrated it into their own world.  So, .vcf files are indeed an option for exchanging contact information if you are in your office communicating with someone over the internet – whether they have a Mac or PC.  However, what if you aren’t in the safety of your office?  When you go to a conference or seminar and meet 12 people at your networking table – how long will it take you to ask each of them individually to spell out their email address so you can punch in an email on your iphone and attach your .vcf file?  Or do you just want to get their phone number, and have to call them later to ask for “the rest of their information”.  That’d be an awkward phone call.

This is the current reality of vCards or virtual business cards – they take way too much time and effort to exchange contact information when you meet someone in person when compared with the traditional paper business cards.   Why aren’t we in a virtual card world yet?  Couple of reasons:  One reason is that cellular companies have lagged tremendously in adopting cross-platform proximity technology, because … well… it would mean that they would have to work together on a common tech standard – and in the real world they don’t like to talk to one another.

The second reason we’re still in a physical card world is that many people make good use of the creative, visual aspects of business cards (in ways that a VCARD format would never allow).   A business card can be used as a branding “first touch” in a marketing sense, to make the recipient think about the company or value proposition, like this Graphic Designer does with his complex back.   Or the countless other examples of memorable executions of printed cards.

In the OPEN blog post Josh Catone’s tone is that anything physical is inevitably going to be replaced with the virtual.  In fact he only passingly mentions  this quote from Moo CEO Richard Moross:

“Some of the emerging virtual business card ideas are great, but they universally lack one critical ingredient: personality. Form is still just as important as function these days. A virtual business card is just data.”

In truth, we live in a physical world every moment of our day.  More of our time is spent online, but I think we are a long way from being like Bruce Willis in Surrogates, only living to “plug in” to our virtual selves.  When we’re at real-life events like seminars, classes, church services, wine-tastings or whatever you like to do in your spare time, you really have three first impressions: what you look like, what you say, and your business card.

How Many Times Should I Advertise?

June 23rd, 2010 | by Luis Paez

I’ve been thinking alot about this question, as some who are new to direct marketing have a hard time understanding the time-tested methods that result in positive return on investment.  It might be a generational or technological culture of instant gratification that makes us want to see our first marketing campaign rake in the dough.  It might even be the direct marketing companies that tempt those new to the field with the DMA’s latest ROI metric (and if you haven’t heard it, it’s essentially “For each $1 spent on DM advertising, it results in $10+ of ROI”).  I just feel it needs some more context, to put it in the correct light.

If you send only 1 Ad / Impression, then Give Away the Farm

First off,  most marketing campaigns require more than 1 touch. (If you haven’t heard the term “touch”, touch = impression = ad; but it can also be a phone call or other interaction.)  In fact, marketing campaigns require multiple touches over time to a given customer before they’re ready to buy – just think of any relationship you’ve made in the past – you’re more likely to buy from someone who you’ve had multiple interactions with, than someone you’ve met for the first time (given that choice).  The only exceptions to this marketing rule, are in those cases where a product or service is incredibly cheap or incredibly scarce.  In terms of offers, think $10 round-trip airfare specials  or a seller with an experimental iPhone not available to the public…. you get the picture.

Most of Us Like Balanced Offers

However these extreme types of offers are the exception, not the rule. Most marketing campaigns balance an offer with a description of marketing features/benefits.  Consequently, both your brand (if you have a new/unknown brand) and your specific offer needs time for consumers to recognize the brand, then hone in on your exact message.

Many clients ask – how many times do I send out my mailing / advertisement?  This question is relevant across marketing disciplines, whether you use TV, Radio, Direct Mail or any other outbound method.  I get the sense that most people are looking for a definitive number – an absolute truth in marketing that they can rely on, to do the marketing for them.  It’s good then that people step up to the plate:  some advertising students say 5 impressions is required,   Creative Directors say 8 impressions, and others say 27 times.  I’m glad they step up with these firm numbers, as I am not sure I would ever float a definitive number, because it really depends on all the demographic and psychological factors that go into a specific brand & offer  being marketed to a specific audience.  Even the proponents of the renowned professor John Philip Jones who asserts that in the end, a single ad impression can influence a buyer, have to consider the observable, historical fact, that “enough concentration of media weight” must be placed to that buyer, for it to cross the necessary threshold with her for a purchase decision.  So for many campaigns, this means that one impression won’t cut it.

O.M.G. – Is this going to be a drain on my marketing budget?

Most companies see ROI fairly quickly if they know how to approach their campaign.  Instead of asking “How many times do I send out this ad?”, it might be better to ask “How many minimum touches do I need to send in order to start seeing returns?”  This takes into account all the factors that I mentioned above.  Your ROI trendline will probably look more like a bell curve anyway, so expect that there will be a ramp up period and a period of ongoing positive returns that will make up for the startup cost of branding your impressions on a given audience.  Just make sure you send out your ads for repeated impressions.

Your 5th Ad should not be a Clone of your 1st Ad

I cannot tell you how many times companies take it for granted that they have designed the best possible piece  – and never consider improving it as they go along.  Do research on how to do A/B Testing  (sometimes called Split Testing). The same audience demographic should be getting two different versions of your ad.  Pay close attention which performs better.  Typically you need a large mailing to prove statistically which one wins, but even if you do two small mailings side by side – if you get zero responses from one and 7 from the other, I think you can feel secure to judge a winner.  (Caveat: there may not always be a winner).  The point is that you are increasing the effectiveness of your ad in measurable ways, and by the 6th, 7th, or 8th impression your piece will have matured enough to make the appropriate impact with your prospect.

As a closing thought to the number of times one should advertise – in most cases if your campaign is a direct order campaign, and you can link positive ROI from one of your “Nth” mailings, then watch that ROI percentage closely.   That metric will tell you better than any marketing veteran when to stop advertising.   If you’ve sent out your 20th mailing and there is still positive ROI from the marketing campaign, then ask yourself – is there any reason to stop?