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Direct Marketing and Beating the Big Boxes
I'm short, fat, balding and middle-aged. I love selling stuff through the mail. I also love to shop. I've had the pleasure of buying at the original Neiman-Marcus in downtown Dallas, the classic Marshall Fields in the Chicago Loop and Jack Henry in Kansas City's Country Club Plaza. When I first achieved a modicum of success I started buying my clothes at the now-defunct Armstrong's Department Store in Cedar Rapids (that's in Iowa – for those of you that don't know). My first purchase of a quality business suit was handled by a salesman we’ll call "Larry" – because that was his name.

The selection process was fun, the measurements went swimmingly and Larry picked out a couple of ties that were the "perfect match" for my new suit. Once a quarter until the store closed Larry sent me a postcard or called me about the "new summer jackets" or a sale on shirts – even a gift certificate on my birthday once. I bought a lot of clothes from him.
Bigmen.com
Fast forward about 15 years. I've gotten fatter. So much so that my now-favorite clothing store no longer carries a size that fits. They can special order, but the wait is 2 weeks and I need a new blazer now. The local "Big and Tall" store doesn’t have my size because I'm too short. There's that special order option again, but again a long wait.

On to the internet! I Google "short, fat guy clothes" and number 1 in the paid search ads is www.bigmen.com. I click the link and, voila, they have what I need (and shirts, too). They even give me the option of buying American made products (try that at Brooks Brothers). The ordering is easy, the site advertises their credit card security and I buy the blazer – and 2 shirts – and ask for 2-day delivery. The next day – Saturday – I get a phone call. It's a Big Man's store rep in Boston. He wants to confirm my sizes ("Do you need the 'portly' size option?"), my shipping address and that I do indeed want to pay for the expedited shipping. Tuesday the package arrives and the jacket and shirts are just as I envisioned them. Wednesday the same salesperson in Boston calls to see if everything fit – yes. All and all, an exemplary experience.
and then
That was 10 months ago and I've never heard from them again. Nor have I spent another dollar with them. Am I dissatisfied? Not in the least! They just don’t make it easy for me to buy from them again. They need Larry – or direct marketing.

Look at the things they did right. Their search marketing had the desired results. Their "after-the-sale" customer service was outstanding. You could not have asked for a new customer more ready to buy than I was – and they didn't even try.

The first thing a retailer needs to learn from direct marketers is to embrace the RFM (recency, frequency and monetary value) model. Any direct marketer that has sold more than $100 worth of stuff knows that the easiest sale to make is the second one to that person that just bought from you. He also knows that it's the most important sale he'll ever make. Why? The sooner the second order comes, the more frequently subsequent orders come.
Beat the Big Boxes
Do you or your retail clients want to beat the big box competition? Here are some strategies.

Take two lessons from www.bigmen.com.
  1. Pay more attention to your search marketing. Everyone can find the local Wal-Mart or Best Buy stores. They can also find Land's End and Sears online. Can they find your website? If not – why the heck do you have it?
  2. Live phone follow up will place you head and shoulders above even the best big box retailers.
Take the following lessons from traditional direct marketers.
  1. Make the second sale! Give the first-time buyer a reason to buy again.
  2. Test media. You have a variety of ways to interact with today’s shopper – paper mail, catalogs, email, your website, in-store kiosks and your floor sales people – identify which works best for you.
  3. Integrate your data. Your sales people, your call center, your POS systems and your webmaster all have information you need to serve your customers better. Get it and use it.
  4. Segment your customers. A small portion of your customers (15–20%) will account for the majority (70–80%) of your profits. As many as a third of your customers will never be profitable to you. Interact with them accordingly.
It's a tough business climate out there. Who do you know that's doing a good job of marketing? Email me the details at jim@dmsolutions4u.com and I’ll add it to the next issue of this newsletter.

This newsletter is meant to be fun and informative – not intrusive. Let me know and I'll be sure never to send you another. If, however, you find it valuable – please forward.

Until next time,
— Jim Brown

P.S. For more information on search marketing visit www.terrostar.com or email tterronez@terrostar.com.

Direct Marketing Solutions
130 24th St. NE, Cedar Rapids, IA 52402-4936
Phone: 319.378.3427
www.dmsolutions4u.com

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