MEDIA PROMOTED CONTENT
No. 6: Press and Public Relations – Press Articles that feature your brand When home or finance editors of national newspapers feature your company’s products in “Top Tips” or “What to Buy” articles, responses can run to hundreds. Whilst there is no direct cost, such mentions rarely come free. I strayed into the Sloane Street store of a company that sells white products a while back and was surprised to see about 50 ‘goodie bags’ lined up, ready for despatch to home editors. Whether it’s in the form of such ‘sampling’ exercises or you choose to pay a PR agency to achieve ‘placement’ of your brand with editors, PR-driven recruitment can be highly cost-effective.
Q = 8 (Customers who follow press recommendations have a high LTV) S = 1 (Not at all scalable, with success of placement unpredictable) C = 7 (Never entirely free, but a powerful driver of your brand’s reputation) R = 7 (Very low risk that your PR efforts will go entirely unrewarded) Score 23
Scotts results: Our annual press show used to be a cost-effective method of recruitment. This declined and we cut our PR budget. Off line, we are now solely reactive, in supplying journalists with samples on demand.
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No. 5: Retail ‘pick up’ of leaflets and catalogues. In any retail store or other location where there is retail traffic and you can exercise control or inf luence, the simple placement of leaf lets or catalogues can be highly effective. Again, this potentially FREE channel of distribution for your advertising message may be a tiny opportunity but is highly profitable. ‘Bag stuffing’ of advertising material with every purchase at retail point of sale is even more profitable as although response is much lower, volume is much higher than waiting for visitors to pick up your ad material.
Q = 6 (as customers may not be naturally responsive to DM); S = 1 (as not scalable unless your retail estate extends to dozens of stores.); C = 10 (as you have no distribution cost on your ad material); R = 10 (No risk as you control distribution. Risk is high on 3rd party distribution). Score 27
Scotts results: up to £4,000 in sales per ‘000 achieved from 148-page catalogue pick-up in store, relative to an average £280 cost of catalogue print. With bag stuffing, this drops to only £1,000 in sales per ‘000 for large catalogues, so close to break-even. Smaller, cheaper catalogues therefore favoured for bag stuffing as these will still yield up to £500 per ‘000 in sales from a £35 or £40 per ‘000 cost of catalogue.
No. 4: Package Inserts. Your advertising material in the fulfilment packs of 3rd
parties.
One of the most cost-effective channels of recruitment, but there are very few opportunities available in the market (e.g. Scotts parcels are full of our own ad materials). Certain direct retailers such as weekly food parcel distributors are unaware that acceptance of third-party inserts could provide them with income of £20-£40 per ‘000. Or 2p-4p for each piece carried.
Q = 8 (Audiences tend to be responsive, but could already be customers of your brand) S = 5 (Few opportunities available as few retailers are aware of this revenue stream) C = 7 (Access costs for the advertiser may seem high, but generally worth the price) R = 8 (Relatively low risk, although warehouse managers sometimes ‘lose’ inserts) Score 28
Scotts results: a small-format mini catalogue can generate over £200 in sales per ‘000, so with an insert cost of around £35 per ‘000 and print/paper cost of £40 per ‘000, these inserts often achieve break even or show a low cost per new customer.
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