Peg
Stocus, president of New York-area contractor
KO Electric Fiber & Data, recently had
a little lesson in the power of online marketing.
Quite
frankly, it shocked her.
It
happened when she was calling on a firm that
was considering using KO for a large project.
"I put my business card down on the table,"
she recalls. "They took one look at it
and said 'is this you?'" Her soon-to-be
clients pulled out an authoritative paper
on the intricacies of "sound masking
installations" of which Stocus's firm
does nationwide installations.
The
article in question was authored under the
careful direction of the New Identities Agency
and posted to hundreds of web sites and referenced
in thousands of newsgroups.
"They
told me they had been using the paper as their
Bible of sound masking," she recalls.
"They couldn't believe it. I couldn't
believe it!"
Not
long before that meeting, Stocus had hired
Internet traffic, marketing, and branding
consultant Jim Bock and his New Identities
Agency to market their company-she just hadn't
expected his work to generate these kinds
of results so quickly. In fact, like a lot
of people, she had grown a little skeptical
of Ad Agencies and the Internet as a cost
effective marketing tool.
"We
had been casting around for years," she
says. "We worked with all sorts of people
who called themselves marketing professionals.
But we've never had results anything like
this. My God, this really works!"
So
what happened? How was New Identities able
to get such great results, while more and
more big Agencies are failing miserably?
The
answer is simple: New Identities focused its
efforts on "Pin Point Direct Marketing"
and as a result was able to provide a positive
return on investment within 12 months.
Savvy Marketing for Savvy Consumers
At
the core of New Identities' "Pinpoint
Direct Marketing™"- give people what
they are looking for when they are looking
for it.
"Pin
Point Direct Marketing™" - is in direct
conflict with traditional "Interruptive
Marketing"- which gives you something
you aren't looking for when you are expecting
something unrelated.
"The
big difference," explains Bock, "is
that Pin Point Direct Marketing gives you
a solution when you are thinking about a problem."
For
example, let's say you are sitting at a table
in an airport restaurant eating a bowl of
complimentary pretzels. After you toss a few
salty pretzels in your mouth, you notice the
table tent which says "Reward Your Curiosity
- Try a Vanilla Coke Today".
That's
an appropriate message at the right time and
is the basis of Pin Point Direct Marketing.
Interruptive
Marketing, Bock explains, is when you are
sitting at a table and start eating some pretzels.
Just when you would be ready to order a drink,
you notice that table tent which says, "Get
the feeling. Toyota." Great ad campaign,
but at the wrong time.
"Pinpoint Direct Marketing™", on
the other hand, promotes a company and its
services at the exact moment that the person
is ready to buy-offering what the customer
wants, when the customer wants it.
According
to Bock, "The foundation of our campaigns
is to begin with determining "DEMAND"
and "LEVEL OF COMPETITION" relating
to our client's specific product or services
and then to establish whether a viable community
of potential customers exists."
With modern technology, New Identities is
able to quickly determine what is hot and
what is not.
"With
sophisticated Internet database queries"
Bock says, "we can advise our clients
what people are looking for in search engines,
level of competition online and provide an
educated assessment of offline interest, determine
achievable levels of traffic to newly developed
web sites and even probable response to television
commercials. Then we develop a ROI analysis
prior to developing expensive web sites or
other marketing initiatives."
Additionally,
New Identities can determine which Hollywood
Stars, vacation location, new fad or new slang
term companies or politicians should tie their
products or campaigns to for the best response.
Once
it's clear what potential customers are looking
for online, New Identities positions the product
or service so that it is accessible to them.
Unlike
traditional Internet developers that may build
a million dollar web site for a company that
has 10,000 products - the New Identities Agency
has taken a different approach.
New Identities might determine that of the
10,000 products being sold by their client,
only 2000 have enough online traffic to achieve
a positive return on investment.
"In
this case", Bock says, "we might
develop 2000 small web sites at $5000 each
instead of one web site offering 10,000 products
that might cost $1,000,000."
Bock
explains that people don't search online like
they shop at the mall. As the Internet has
grown, 'surfers' are learning that they need
to be very specific in their searching efforts.
"If someone is looking to purchase 'ladies
golf shoes' and search for only 'shoes', they
will find 5 million web pages listed, quickly
get frustrated and overwhelmed by the amount
of garbage. The experienced and savvy 'surfer'
is now searching for "ladies golf shoes"
and finding exactly what they wanted."
Some
products and services have so much related
search engine traffic that they warrant the
development of numerous related web sites-providing
third party endorsements and positioning the
client as the "expert". Something
to remember is that what is often the MOST
important thing a brand can accomplish on
the Internet is to establish credibility.
No Credibility = No Sale. Without the use
of multiple Internet channels and utilizing
offline channels it is often impossible to
establish enough credibility to close the
sale.
EXAMPLE:
A hypothetical chocolate manufacturer produces
chocolate chips and promotes them on a website
under the company name Mighty Sweet Inc.
Using
Pin Point Direct Marketing methods, New Identities
may find that the community of users of those
chocolate chips is not looking up "mighty
sweet" as a search term.
One component of "Pinpoint Direct Marketing™"
is to create a series of web sites to appeal
to each user community (which can then drive
traffic to www.mighty-sweet-inc.com through
content, testimonials, endorsements and links).
In
this example:
Recent
queries to databases have startling revelations.
Did you know that currently, more than 35,000
people per day are searching for "baby
names", as opposed to 12 months ago only
2000 people per day were searching for the
same term?
What is more startling is that there are only
57 web sites listed in Yahoo that come up
for the term "baby names".
What is more interesting is that there are
approximately 2000 people per day searching
for "baby boy names" and another
2000 searching for "baby boy names"
and there are NO sites indexed by Yahoo for
either of these terms [Yahoo accounts for
approximately 40% of all Internet search engine
traffic-when Google logo appears on Yahoo
search results page; it indicates that no
sites for search term are indexed in Yahoo].
The implications of all this are astounding.
Just
think of the Marketing, branding and manufacturing
data suddenly available for clothing manufacturers.
Until
recently expensive focus groups and consulting
companies over a three to six month period
were necessary to achieve what can be accomplished
in a few hours with today's technologies.
What
they are doing, is taking the public's temperature.
If you know what to target and how to target
you can invest a fraction of your previous
marketing dollars and experience one of those
rare Guerilla Marketing opportunities.
Throw
in user group postings, online press releases,
email recipe club, recipe screen savers and
a direct mail campaign to targeted visitors
and you've hit a home run; viral marketing
at it's best-marketing direct to your customers.
"Pinpoint Direct Marketing™" aims
to encourage potential customers to use the
Internet in the way it's most effective: as
a dynamic and vast information resource. By
working with search engines, community building,
and viral marketing, New Identities' "Pinpoint
Direct Marketing™" delivers Web surfers
the client's pitch after they have done some
research and are ready to make a purchase.
Big
Results for Drug Maker
One of Bock's partners, Jeff Greenfield, explains
how this approach made a huge difference in
pharmaceutical giant Forest Laboratories'
marketing of Celexa, a prescription anti-depressant
whose sales had plateaued at $800 million.
"It's
like Forest had been assuming that people
would see their ads and say to themselves
'I'm depressed, I should be using this drug'
and then go online to www.celexa.com. But
that's not normally how the Internet works."
Greenfield
states, "The real power of the Internet
is in people actually looking for information.
You can look at the numbers and see that a
lot more people are going online to learn
about depression than any specific treatments."
New
Identities developed a strategy for Forest
that targeted people who were already searching
for more information about depression, rather
than the excessively broad (and expensive)
TV-viewing and Web-surfing audiences they
had courted previously. Bock started with
a rigorous evaluation the depression community
including a focus group-arranged through a
third party-which demonstrated that 45% of
new depression medication patients research
online prior to getting a prescription.
Focusing
on that group of Web researchers, determined
the terms searched most often and drove traffic
to the website through such terms as teen
depression, clinical depression, medical side
effects, etc. The strategy included creating
sites, like www.healingdepression.com , to
encourage readers to learn more about depression,
with links to the product site where appropriate.
The Celexa site was constructed to dynamically
generate content tailored to the referring
site.
"In
the end," says Greenfield, "this
approach ends up getting people to www.celexa.com
only when they are ready for that. Sure, you
could have a pop-up ad connecting to the site
for people that search for information about
depression, but it wouldn't be as effective.
That person isn't interested in learning about
products yet-they want to research the condition
first. Our approach encourages them to do
that."
To add value to the Celexa site, New Identities
developed tools for patients. A prescription
reminder reminds individuals when they should
take their medicine. The "Action Tracker"
encourages people to track activities that
increase the likelihood of successful treatment
success, like exercising regularly and eating
well-balanced meals.
The
results for Forest were dramatic!
The
average number of monthly visitors climbed
from around 21,000 to over 600,000, drug sales
increased 20% over the following 12 months,
even while Forest Laboratories' average monthly
investment into promotion dipped to just 10%
of what it had been previously. "At the
same time," says Greenfield, "Celexa
became the hot new drug. The online marketing
had a lot to do with that."
In
a letter to Bock, Forest Laboratories Senior
Product Manager Matthew Warburton says the
work "enabled Forest to surge ahead in
its utilization of the Internet for e-business
solutions and make dramatic strides in its
direct to consumer online marketing program."
At
Risk Online Every Day: Brands
As more and more people use the Internet in
the purchase process, an unsophisticated approach
to the Web could start costing businesses
a lot more than missed opportunities. A cruise
line once approached New Identities eager
to improve their online presence. Even though
the company was regularly flooded with letters,
cards, and e-mails from very satisfied customers,
New Identities found that for some reason
when the company came up on popular online
message boards about travel, most of the postings
were negative. New Identities' research also
found that online cruise shoppers often visited
these message boards before making a purchase
decision.
New
Identities' approach began with an enormous
effort to "clean up" the company's
online reputation. The campaign was based
on finding ways to inspire people to put positive
messages on those message boards. It was a
step that could have been avoided though-if
the cruise line had focused on its online
image sooner.
Information
tends to spread like wildfire online, which
is why Bock feels it is essential for companies
to have a stake in what people are saying
about them. The right pinpoint direct marketing
plan can be a very effective way to do that-not
only can it protect a valued reputation, but
it can also help to generate significant new
business.
Knowing
exactly what people are looking for online
empowers New Identities to make smart use
of all sorts of marketing tools. Bock says
the agency's grasp of existing Internet activity
also lets New Identities give potential clients
remarkably accurate assessments of their likely
return on investment at the outset of Web
marketing projects.
The
New Identities team pools a wide range of
expertise into intelligent, integrated programs.
Their bag of tricks includes behavioral advertising,
Network & Cable TV advertising, direct
mail, print ads, newsgroup postings, email
newsletters, e-press releases, dynamic content,
online infomercials, pop-under ads, interactive
screensavers, downloadable tools, and more.
For
KO Electric Fiber & Data, for instance,
they put together an authoritative guide on
the type of services KO provides. Then, using
a variety of media-including broadcast fax,
direct mail, public relations, email, websites,
user groups, and chat rooms-they saturated
the market, positioning KO as an expert in
the field.
Often,
it makes sense to involve celebrities in promoting
products. For example, with the proper set-up,
a few well-placed phone calls could get some
top TV, movie, and music stars on the guest
list at a client's product launch party.
Photos
and video of the celebrities enjoying the
products (shot by professionals at the party)
can spruce up the client website, while ushering
in all sorts of free publicity. In addition
to standard news coverage, an executive or
two might win a spot as a guest on a radio
talk show to tell a funny celebrity anecdote
from the party. Even better, that same high-quality
video of stars at the launch party could end
up on a prime-time TV show like Entertainment
Tonight-generating the kind of excitement
money just can't buy.
Just
as TV can affect Internet marketing, the Internet
is permanently changing older media like TV,
too. Greenfield cites a statistic that this
year 20-25% of those responding to TV ads
featuring a toll-free phone number checked
for the product online before picking up the
phone. "We expect that number to rise
to fifty percent by 2007," says Greenfield.
"People are convinced there's magic in
there. They think the Internet holds some
secret they can find, like discounts."
This means companies advertising on television
will risk losing half of their new customers
to Internet-savvy competitors if they don't
have strong control of their online image.
Bock
points out that used properly, the Internet
can even play a huge role in market research,
giving companies the equivalent of massive,
instant focus groups. Testing the appeal of
different marketing messages used to require
months of expensive research. "Now you
can put the different test messages side by
side on the Internet, and track instantaneous
results," he explains.
Bock
believes that the more executives at client
firms understand about Internet culture, the
more likely they are to make successful decisions,
so he encourages them to get training, and
to use the Internet extensively for things
like banking, email, personal sites, research,
shopping and more. "We are not examining
a mature business model," he says, "so
the people with a feel for the culture have
a major advantage. The best way to get that
is to immerse the decision-makers in the culture."
Creating
New Identities: Consultant Jim Bock
Internet traffic, marketing, and branding
consultant Jim Bock leads pinpoint direct
marketing, customer relationship management
(CRM) and direct-to-consumer (DTC) programs
that achieve remarkable results for an array
of top firms like Hershey Foods, Forest Laboratories,
and Samsung Electronics.
He
came to New Identities after 13 years on Wall
Street and five years running The WIT Agency.
The techniques he develops benefit from his
mastery of business intricacies such as process
analysis and return-on-investment (ROI). He
has been involved in over $100 million worth
of financings during his years at investment
banking consultant HDV Holdings International.
At
the WIT Agency, Bock headed the company's
relationship with Hershey Foods. Among his
many successes with Hershey was the analysis
of all Hershey Chocolate sites, addressing
usability, site organization, and search engine
rankings. He also handled Hershey's launch
of the first Hershey product that also had
an Internet launch-Jolly Rancher Fruit Chews.
In
addition to Bock's experience, New Identities
clients also benefit from his obvious zeal.
Richard Vezzosi, president of HDV Holdings
International says that Bock possesses "the
finesse of a prima ballerina, the strategy
of Alexander the Great, the political savvy
of President Clinton, the kindness of Mother
Theresa and the tenacity of a pit bull."
Dick Anderson, former creative director/group
manager at McCann-Erickson (who handled the
Coke campaign) says: "In a time that
seems to serve up a lot of soft drinks without
fizz, Jim Bock is the real thing."
In
a letter to Bock; Tom Bugg, Hershey Foods,
Marketing manager writes "WIT can effectively
identify a target audience and deliver on
the target's expectation. " "…was
very committed to this process, as they have
been with all of our Hershey's projects, well
beyond just performing the work they were
asked or paid to do." "...has proven
to be an effective Internet partner and the
company consistently delivers quality products
and innovative content."
In
another letter to Bock while running WIT;
Matthew Warburton, Senior Product Manager
of Forest Laboratories, says "...contributions
have greatly enhanced Forest's ability to
use the Internet for more sophisticated marketing
and corporate communications, as well as dramatically
improved efficiency of the company's internal
operations."
In
a reference letter from his former business
partner, Margaret Irish, after six months
of running The WIT Agency says: "Beyond
the considerable financial improvements, Mr.
Bock's contributions include revamping the
corporate structure, adopting a new accounting
system, hiring and training our staff, adding
transparency to client billing and fees, and
in general organizing and scripting our business
process."
KO
Electric Fiber & Data's Stocus says that
in the end, it's that above-and-beyond quality
that she likes most about Bock. "He lives,
he breathes it, and he's thrilled by the chase,"
she says. He gets very excited about his work.
That makes for a very high-quality product.
That's why I have recommended him to some
other people I know, and that's why they are
very, very grateful."