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Tuesday, January 27, 2009

Meet the Debbie



Incase you missed it, Jim Emerson had a segment in Direct featuring our resident super-broker Debbie McLain on Thursday. Jim touched on Debbie's 25 years of experience, her outlook on the future of direct marketing, and her thoughts on how brokers can help fundraisers mail smarter. A nice piece for a truly stellar marketer.

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Thursday, January 22, 2009

Amazon & Overstock vs NY State



The first round of fighting in this case goes against Amazon and Overstock. Not a good sign for e-commerce. But I believe it goes beyond that to direct mail also. If this case is lost and .coms are forced to collect sales tax not only from NY State but all the other 44 states that have sales tax, can direct mailers be far behind?

The financial burden that will be placed on the marketer will be huge. It will certainly cause them to reevaluate their business strategies. E-commerce is a young and vibrant segment of our industry. Yes it's struggling like the rest of us but this decision has more far reaching effects.

Every state is strapped for money and they will put pressure where ever they can to create a tax revenue stream to help bridge their own fiscal shortfalls. We have been able to ward off the collection of sales tax from companies without a physical presence in the state, but if this case is lost the flood gate may be opened wide.

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Wednesday, January 21, 2009

ACMA letter campaign

I applaud the initiative being put forward by Chris Bradley of Cuddledown and the members of the American Catalog Mailers Association (ACMA). They are putting forth a letter writing campaign to request Congress to roll back the postage rates to pre May 2007 rates.

In the sample letter (which is included in the link sited above) catalogers outline how the roll back would allow mailers to stimulate their businesses in an ever declining economic environment.

My only addition to this would be that we all write letters to our elected officials requesting the same. After all, this would help everyone in our industry. The lower the postage rate the more mailers can afford to mail. The more they mail the more names will be available for everyone to use. This means more rentals and exchanges. So mailers, brokers, managers, and list-owners all benefit.

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Tuesday, January 20, 2009

The Hispanic market is worth a look

In a study by the DMA it was reported that 92% of all marketers and agencies who market to the Hispanic market use non-catalog direct mail. It was also reported that 52% telemarket to the Hispanic market. The report goes on with a lot of interesting statistics which goes to underscore what we at RMI have been promoting for years (blatant, unsolicited self aggrandisement inserted here). The Hispanic market is one of the fastest growing markets in our industry but you have to adjust your traditional methods to appeal to this market.

In a time when everyone is looking for ways to increase their business, it maybe well worth the time and investment to explore ways to tap into the Hispanic market.

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Monday, January 19, 2009

Is a 3.8% postage increase good news?



I guess it is if you compare it to two years ago. But in an economy strapped environment is any increase good? Usually when a service increases their rates they also tout the additional services they will provide the customer with. Like my cable and Internet provider. Along with their increase in price I'm getting a whole slew of new benefits (none of which I asked for nor will I use, but at least they are making a vale attempt at appeasement).

What will mailers get for their money? Better response rates? Larger orders or donations?

I'm sorry, I'm looking at the glass half empty. But I do like what Tom Conway (with the Alliance for Nonprofit Mailers) said in the article in The Nonprofit Times: "I'm not sure which is better, a 6% rate or a 4% rate with a tanking economy." He is referring to the fact that up until a few months ago the Consumer Price Index, which is what the postage increase is tied to, was heading towards 5-6% increase, but with gas prices dropping substantially the CPI is lower.

I'm still waiting to see what extras mailer's get for their increase in May. Maybe they all will get a new car from Oprah?

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Harnessing the youth movement

The 2008 Presidential election saw an unprecedented increase in one particular voter block; the 18-30 year old voter. According to CIRCLE this was a 4-5% increase over past performances, accounting for 23 million votes. What does this have to do with Direct Mail? Well how would you like to have 23 million more names to mail to or better yet 23 million more buyers, subscribers or donors?

It's been reported that the Obama campaign strategically targeted this market. One way was via the Internet. They appealed to them where they "live". I realize voting is different from spending money but we can learn from this exercise and begin to attract the youth segment by marketing to where they are. Don't get me wrong , if you have a catalog of orthopedic socks and foot wear, chances are good you won't win them over. But if your message can be adapted to the youth market, the Internet may be the place to begin to indoctrinate a new clientele. They will need orthopedics eventually.

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Ad pages down in 2008



According to an article in MediaPost News ad page sales were down 11.7% overall in 2008 compared to 2007. However, of the 10 largest publishers the numbers are even worse. Leading the pack, according to TNS Media Services, was Meredith with a drop in ad sales of 18.1%. Conde Nast was at 13.3% and Time Inc. (albeit below the average) also dropped off by 11.5%.

Is this an indication of the economy or alternate media sources? Or a combination of the two?

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Friday, January 16, 2009

I have more friends than you: social status in a capitalist society



For Facebook it's friends. For LinkedIn it's contacts. For Twitter it's followers. No matter what social media platform you're utilizing there are ways to track your "popularity" - or at least that's how some seem to view it. In a marketers mind it works... the more traffic I have on my website, the more successful it is - right? So why shouldn't my personal "traffic" equate my personal success?

I was at the Library with my family the other day and it was packed. So many people taking advantage of all the freebies the Library has to offer. Not just books anymore, but Internet, DVD's, music.... I started to wonder why it takes a major financial crisis for people to start using its resources more regularly. Why haven't we always flocked there? It's not like people don't like FREE... And then it dawned on me. For one, everything's - dare I say - "used", and more importantly, you have to return it. In capitalist society our house, our belongings, our careers, our possessions are what make us. Why get something for free if when you're done you can't display it for all to see?

It makes me wonder - how much of social media's success is attributed to our own subconscious capitalist urges? Getting more friends/followers/contacts, posting pictures about all the cool things you are doing, talking about your latest purchases... If Facebook, Twitter, and LinkedIn didn't publicly display our personal "statistics" would we devote as much time to them? I wonder to what degree they would be used in a communist environment? Less - or more, in an effort to define personal individuality?

What do you think? Drop a comment, or Tweet me via @beckyterhaar.

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Wednesday, January 14, 2009

The data card.



Ever since the computer has been utilized in our industry, and even before, the data card has been the single most effective way for List Managers to communicate with List Brokers and Mailers alike. So why is it that many List Managers neglect them? Keeping information current and accurate is paramount to Brokers. If a file hasn’t been updated in months it devalues the list. It raises questions as to the reliability of the list and its veracity.

The description of the file should also be reviewed. The description of the composition of the file is important because in just a few short sentences you are trying to capture the attention of a potential test. Finally, all SEO bells and whistles aside, don’t clutter the data card with too much statistical information. You want to invite a broker to call you for some more detailed information because lets face it, a direct conversation with a broker or mailer about a list you manage will more times than not result in a test.

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Tuesday, January 13, 2009

Cyndi Lee looks ahead



Incase you missed it last month, our Cyndi Lee had an interview in Folio and Audience Development about her outlook for the DM list sector in 2009. She provides some great insight on topics regarding hurdles, threats, opportunities, and trends for mailers and list owners this year.

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Telemarketing fundraising woes for New York State



In a recent article it was reported by NY State Attorney General, Andrew Cuomo, that telemarketing companies hired by New York fundraisers took more than 60% of the funds raised for themselves to pay expenses and fees. The report goes on to say that in 271 of 553 campaigns charities received less than 30%, 51 of the campaigns lost money and only 45 campaigns did the charities retain at least 65% of the money raised. The latter being acceptable under the standards of the better Business Bureau for charitable organizations.

According to our information, direct mail fundraisers use a ratio of at least 80% going to the program itself and no more than 20% going towards the costs of raising funds. These percentages go as high as 90/10 in some nonprofits.

This being said, doesn't the telemarketing equation seem off balance? Comments?

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Off come my clothes!



And on goes a bathing suit (whew!) All for a great cause, raising money to find a cure for Cystic Fibrosis.

Counting down the days, until I get the opportunity to once again participate in the 8th Annual Freezin for a Reason jump into Lake Mahopac. The event is scheduled to take place on March 28th at the Mahopac Golf Club. The actual jump will take place from 4:45-4:46, so don’t be late, because I don’t plan on being in the frigid waters for more than just one minute.

I have been spending my time taking cold showers, eating snow (the non yellow version) all as part of my training regimen. For those of you who can’t join me in person, you can learn more about the jump at www.westchester.cff.org/freezin.

Cystic Fibrosis affects some 30,000 children in America today. It is an awful disease that needs to be eradicated.

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Friday, January 9, 2009

First ever charity iPhone application



The Nonprofit Times carried a short piece in their print edition on one charity that just launched an iPhone app; Songs of Love Foundation. Wow… Fundraising has come a long way in a very short time and has penetrated most sources….billboards, direct mail, telemarketing, branding, web and now phone applications. Wonder what will be next? Where will technology be in a few years that will create new source to reach donors? I’m intrigued. Are you?

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Tuesday, January 6, 2009

2008: year in review



2008 was an unforgettable year for so many people and so many companies - the RMI family included. Loss, tears, celebrations, laughter, achievements - we've done it all (so much so that I thought it was deserving of the lovely Wordle above). Here's a look back at some of those landmarks from the past 12 months...

1/2 - Tally Maffucci named President
1/23 - RMI hosts 2nd Annual Nonprofit Mailer Symposium
3/7 - Hires: Justine Ciocchi & Eileen Harrick
3/14 - Mike Kertelits accepts Chair of DMA Nonprofit Federation's Suppliers Sub Committee
3/14 - Rich Leary & Debbie McLain volunteer at CAP's Operation New Hope
4/5 - Our dear friend and colleague Laura Smith passes away
4/23 - New client: Trinity Missions
5/7 - New client: Time Inc. Corporate Database
5/7 - Hire: Alan Yu
5/16 - RMI hosts 7th Annual Health Mailer Symposium
5/22 - New client: Berea College
5/30 - DJ Associates folds into RMI
6/6 - Arbor Day Foundation plants memorial tree for Laura Smith
7/2 - New client: PlanningFamily.com
8/1 - New client: Legal Sea Foods
8/1 - New client: Peaceful Valley Farm & Garden Supply
8/1 - New client: Smarthome™
8/5 - Hire: Thea Mathis & Janet Ward
8/14 - Cyndi Lee named Vice President of Business Development
8/21 - New client: Garden & Gun
8/27 - Martin was diagnosed with Non Hodgkin's type "B" Lymphoma
8/29 - New client: AirAge Media
8/29 - New client: Papo d'Anjo
10/20 - RMI Launches InTrends
10/28 - Martin announces he has battled cancer into remission
12/5 - HVDMA awards Laura Smith a posthumous Founders Award

Here's to a happy and healthy 2009.

Monday, January 5, 2009

All the world's a-Twitter



Twitter. It made DM News' "6 Words That Hit the Biz - Big Time" list. While the business application of it is still up for debate, Social Networking is here and it's not going away. I must admit, I'm addicted to Facebook and Twitter. And I have them linked so that I can post my "tweets" on Twitter via computer or phone and it automatically updates my status on Facebook. (Thanks to Darryl at Plaid for introducing us to Twitter.)

I have no idea how my posts are received but it's fun to do. From a social aspect, it lets your friends know what you're doing. From a business perspective, whether you're the client or the vendor, or the seller or the buyer, it humanizes you. My favorite Twitterer (is this a word?... now it is!) is Tony Hsieh, the CEO of Zappos. The guy is brilliant, and a real person to boot. His tweets range from what he's doing at the airport to Zappos' corporate philosophy, some of which we've embraced here at RMI.

Facebook seems more about finding old friends and staying connected. Twitter is more real time. What are you doing NOW? I would suggest though that if you're in the business of selling something, that at least some of the content be about sales or coupons or the hot product or gift or idea. Something of benefit to the current or potential customer. Just being out there or on there is not enough. You have to provide value.

On Facebook, friends find you and you find friends. With Twitter, it's Follow You, Follow Me. My client, the Arbor Day Foundation, started following me on Twitter. I wondered how they found me since I hadn't mentioned to them that I was on there. I remembered that I posted something about a recent meeting I had with ADF. So I'm guessing they search "arbor day" and find you that way. Of course, I now follow Arbor Day. By the way, check out their Give A Tree greeting cards offer. Very cool and a worthy cause. I found another RMI client, Consumer Reports, on Twitter as well. I'm sure more will follow.

I still don't know what it's all about. But I'm all in. (Tony, did you see what I did there? Inside joke!) You can find me as "Al Yu" on Facebook and "catchit16" or "Al Yu" on Twitter. I really need to build my Twitter network, so please... follow me!

Happy New Year, everyone!

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