sponsors In association with

the DMA
 [ contents]

02 consulting editor and editor’s note 26 customer strategy

consulting editor – Nici Stathacopoulos – a note from one of Doug Leather wants to know if your customer strategy is
direct marketing’s leading guru’s about the exciting times ahead working as well as it should.
for the industry. 27 direct marketing takes centre stage
editor – Michelle Sturman – a brief introduction to this year’s CEO of the DMA, Brian Mdluli, looks at the evolution of direct
publication. marketing in South Africa as well as the Direct Marketing
03 sponsor – the direct mail centre
Association.
the DMC demonstrates why direct mail is so vital to the industry
28 world trends in CRM
as well as introducing an exciting new product.
Nici Stathacopoulos zooms around the world picking up best
04 direct mail = junk mail
practices.
Mashepo Majola, senior manager at the DMC looks at how to
address the perception of direct mail as junk mail. 29 a new era in direct
06 sponsor – the RCS Group Melvin Chagonda looks at the South African direct marketing
the RCS Group offers advice and tips on how to use direct trends.
marketing effectively. 30 using call centres to deliver effective CRM
08 creating a platform for dialogue Craig Ireland looks at how to use a call centre for effective CRM
Vaughan Berry looks at brand activation and experiential 31 is blended best?
marketing especially within the informal sector. Stuart Forrest investigates the advantages of blended contact
10 the demise of personal contact centres.
Jodi Starkowitz investigates how online tools have changed 32 the best service is no service
direct marketing Bill Flynn states that customers shouldn’t have to interrupt their
12 5 ways to increase e-mail responses
busy schedules to get what they want from customer service.
Janet Roberts in conjunction with the Web Digest For Marketers
And there is a way to achieve this.
offers five easy ways to increase your e-mail responses.
34 360º Loyalty
13 podcasting
Jean-Claude Latter looks at bridging the gap between brand
Michelle Sturman investigates the potential of podcasts within
the realm of direct marketing. promise and delivery by creating a loyal workforce.
14 using mobile marketing to build customer relationships 35 the glue that binds us
Candy Goodman provides tips on to to engage in ethical and Liz Venter offers sound advice on customer engagement strategies.
relevant mobile marketing. 38 permission marketing – the big difference
16 getting mobile with one-to-one marketing Diane de Villiers explains the virtues of adding permission
Mark Angus writes about the third screen as an interactive marketing to the marketing mix.
medium for direct marketing. 40 direct, meaningful, desired and effective: the custom
18 creativity magazine
direct asked some of the world’s top creative directors working Fulvia Becatti looks at the benefits of custom publishing and
in direct marketing ‘what creativity really means in this how to get it right.
environment’.
21 promises – direct to you
case studies
internal marketing is just as vital to a successful direct campaign
46 eBucks / price ‘n pride
as sending out the mailer says Terri Brown.
22 smart technology = smart CRM solutions 48 mtn / eBucks
the future of smart technology is already here says Denvor 49 gcis / renault
Phokaners. Are you ready? 50 soul city / telkom
24 databases 51 microsoft / landrover
a good database is worth its weight in gold – is yours really up 52 mtn
to scratch, asks Michelle Sturman. 53 st luke’s
25 let maps show you the right direction 54 rcs / fnb
geo-spatial technology can help to precise pinpoint your target 55 mweb
market says Metse Phiega. 49 FNB / Sasko

editorial staff
publisher: Terry Murphy
consulting editor: Nici Stathacopoulos
editor: Michelle Sturman
advertising sales: Robyn Andrews
layout: Spencer van Graan
proprietor and publisher:
Systems Publishers (Pty) Ltd.
1st floor, North Block, Bradenham
Hall, Rivonia
Tel: (011) 234 7008
© 2007 Systems Publishers.
The opinions in this publication do
not necessarily represent the views of
the publisher
Printed by: ContiPrint

direct > 2007 1

 [ consulting editor ]
a word from the top
In the world of direct marketing the period leading up to
the publication of the 2007 direct magazine has been
hugely energising.
We have had the Data Privacy Bill lurking in the wings; the
launch of the National Credit Act; the new opt in regulations
governing marketing text (SMS) messages; entering and
winning (or not winning) a Loerie and of course, there have
been the two CRM Masterclasses that have been held in
Johannesburg and Cape Town.
It’s a huge pity that some of you missed the workshops.
Ideally, we should have had one full day in each city. We
intend to have the same speakers in each city next year as our
audiences were extremely responsive and our 10 speakers
delivered unique content and had so much to say. World
trends, changing consumer behaviour, mobile messaging, call
editor’s note
Welcome to the second issue of direct. This issue is a reflection
of what is happening in the world of direct marketing and
more importantly, of the acknowledgement that DM is
receiving from marketers. What’s great about direct marketing
is its adaptability. The present wave of new technology,
which is offering ways of communicating more effectively
with consumers, has lifted it into a whole new stratosphere.
This is why direct marketing is currently one of the most
exciting sectors in the marketing mix.
Within these pages you’ll find many articles by experts in
particular direct marketing fields, which contribute valuable
knowledge to this subject. Topics include internal marketing,
permission-based marketing, ethical mobile marketing, ways
2 direct > 2007
centres, the DMA efforts and opt-in databases, were among a
few of the key topics.
The direct marketing industry has many facets. Respect for the
consumer and the measurement of campaigns are key to our
success and we really do have the tools to do both successfully
and energetically. Not trading consumer details and refraining
from sending unsolicited messages (irrespective of the chan-
nel) is an expression of respect. Interestingly, whenever some
one questions ‘spam’ they always seem to refer to the junk
emails we receive from ‘those awful people overseas.’ While
we can do nothing about that, a marketing message can be
clocked and a good marketer sent to the gallows for one mes-
sage that is sent out. I truly hope that we will also find a way
to stop the junk worldwide.
What prompts the consumer to read an SMS or take a call or
open the mail is usually a high degree of innovative creative
thinking. However, if the message isn’t rewarding, relevant
and acknowledging, why bother? Consider this: sending out
10 000 mail packs or e-mails to a list which won’t engage
with you, is just as bad as spray and pray advertising. Actually,
it may be worse.
As marketers and agencies that are leading the way, we also
need to educate and assist others where we are able to in
order to grow our capacity. It appears that despite having
earned our rightful place in the mix, we still battle to get
youngsters enthused by what we do and to draw them into
our side of the business. I believe that this is definitely the next
arena that we should concentrate on.
There are exciting times ahead indeed.
Nici Stathacopoulos, CEO
proximity#ttp
the innovative marketing services agency.
to improve e-mail responses, as well as the latest trends. We
also have case studies – I have to say a huge thank you to all
those who sent them in. While we all know how tightly
everyone keeps strategies and results to themselves, the
whole industry benefits by sharing insights into what works
and what achieves results.
Lastly, I have to thank the sponsors of this publication.
In no particular order, thanks to MTN, the Direct Mail
Centre and the RCS Group. All three of the above are
founder members of the Direct Marketing Association
of South Africa and all these organisations are committed
to furthering the direct marketing industry.
Michelle Sturman, editor, direct

direct solutions
In this age of fragmented media and with this customer-centric
environment, it is of paramount importance to choose the best
media for communicating with customers and prospects. The
need to communicate personally with the customer, in a targeted,
measurable and affordable way, has become a major challenge
for businesses worldwide.
South Africa bucks international trends that point to a decline
or stagnation in the growth of mail volumes. The moderate
absorption of technology and economic conditions in South Africa
means that there are still plenty of opportunities for the growth of
mail, particularly in the field of direct mail.
To this end, The Direct Mail Centre (DMC), the specialist division of
the South African Post Office, focuses on growing the use of
direct mail in different businesses and sectors of the market. The
DMC role centres around providing advice on the successful
implementation of direct marketing campaigns. This includes
assistance from the conceptual stage up to lodgment and post
campaign analysis. A large range of services and products that
cover all the different aspects of mailing are available.
The South African Post Office has over 2 500 outlets nation-
ally and delivers more than six million letters daily to 10 mil-
lion addresses in South Africa. The mail business unit gener-
ates an estimated 65 per cent of total SAPO revenue from
approximately 80% of its business customers, as opposed to
individual consumers.
SAPO is wholly committed to the growth of direct marketing
as a viable advertising medium. The Direct Mail Centre is seek-
ing to partner with customers to grow their businesses
through the effective use of this medium and to grow the visi-
bility of the direct marketing industry in general.
services
The DMC offers campaign management, which is one of its
largest areas of expertise. It also offers advice and training on the
planning, development and implementation of direct mail
campaigns. This includes the assistance of personal consultants,
who are able to help with the preparation of business cases,
direct mail messages, target market selection, campaign
evaluations and response management. The campaign
management team works hand-in-hand with the database
management team and offers services such as the creation of
new databases, data capturing, data mining and cleaning,
market segmentation and geo-demographic mapping.
For those who wish to brush up on their direct marketing skills,
the Direct Marketing Centre offers basic, advanced and specialist
courses, as well as a library that includes marketing publications,
textbooks, statistics and legislation. Guest speakers and
industry leaders are frequently invited to run seminars covering
developments and important topics in the direct marketing industry.
[direct mail centre ]
products
The DMC provides a number of products that allow businesses
to communicate different promotional activities, ranging
from price sensitive to those that the creative industry will
salivate over.
3D marketing mail
The centre is in the process of creating a new package,
which is specifically designed to get the creative juices
flowing, increase response rates and combat restrictive postal
regulations. 3D marketing mail provides marketers with
creative freedom, as direct mail can be now constructed by
using a wide variety of materials such as rubber, cardboard,
paper, foam and plastic. As a result packages stand out from
the normal clutter, increasing the chances of a response. It is
also perfect for lead generation and creating brand awareness
and is ideal for launching new products. Please contact the
DMC for further information on the 3D marketing mail
launch date.
advertising mail
It is best if the content of addressed direct mail consists
solely of an advertising or promotional nature. Minimum
consignments consist of 1 000 articles per size or mass and
include a SAPO approved response device.
promo mail
As with advertising mail, contents may not include any
additional items that relate to previous business with the
client (invoices, statements etc). They may include
teaser/advance mailings (advising a customer of the
impending arrival of a promotional item) for addressed mail.
The minimum consignment is 1 000 articles per size. The
promo mail product can be used to recruit new customers,
send out information regarding special offers and provide
competition or fundraising details.
info mail
This is the right product to use if the distribution of
unaddressed mail of a promotional nature – including
pamphlets, brochures, area newspapers, trade samples etc – is
required. Info mail is great for promoting new products,
special offers and announcing meetings etc. Pre-testing
and follow up are available for this adaptable and cost-
effective service.
direct > 2007 3
 [ direct mail centre ]
direct mail = junk mail
Direct mail is one of the most powerful and effective means of
reaching consumers and this form of marketing offers a highly
targeted way to reach your current and potential customers.
However, the growth of direct mail in South Africa remains minimal,
especially when compared to other marketing and advertising
media. Recent data from ACNielsen reflects that at the end of
2006 the total advertising expenditure across all media was
R19.2bn. The largest share was allocated to TV and print media
and was in excess of R14bn. Direct mail still ranks very low in
terms of the allocation of advertising spend at no more than 1.5
per cent. This picture is the complete opposite of the US experience,
where direct mail ranks high on the list of options and competes
directly with TV and print. Total direct marketing driven sales
stand at US$1.85 trillion or 10.3 per cent of US GDP.
Different factors impact on the growth of direct mail and in
order for us to reverse its position and facilitate its growth, we
need to get a few basics right. This includes an examination of
the ‘junk mail’ label that has been attached to it.
definition of ‘junk’
The Oxford English dictionary describes the word ‘junk’ as useless
or nonsense – junk mail therefore refers to useless information
or to information that one does not want. As marketers we
know that this description is not at all accurate – in fact, it’s
the exact opposite. By its very nature, direct mail is the one
medium that allows for targeted communications to a selected
audience with specific needs and a propensity to respond
positively to the particular products and services on offer. The
question therefore arises: ‘How did such a powerful medium –
known for its exceptional features – end up being associated
with junk by the end consumers or recipients of mail? The
answer is simple: it is the result of reckless and irresponsible
marketing, which has not included the proper research on the
suitability of the lists used or the relevance of offers to the end
consumers. Marketers need to go back to basics when putting
together a direct mail campaign. By making a concerted effort,
I believe that we can begin to demonstrate that direct mail can
contain useful information and that it is not junk.
starting points:
Show some respect. Respect should be one of the core
values that govern the relationship with customers and should
also apply to the way you communicate with them. Sending
messages to specific consumers on matters that are of interest
to them is a sign that you understand their needs and value
their time and that you are therefore only communicating
what is relevant to them.
In order to do this, you have to thoroughly research your list
and ensure its relevance to what you are trying to communicate.
This principle forms one of the basic rules of direct mail,
4 direct > 2007
by Matshepo Majola
although it has been largely ignored by marketers when
putting campaigns together (not only fuelling the ‘junk mail’
perception but also wasting time and money). The selection of
the target market and the proper use of marketing lists are
crucial to any marketing campaign. As a rule, a thorough
analysis of the list should be done before a promotional
campaign is sent to customers. If all direct mailers could devise
a way to target their mailings accurately, each piece would
become meaningful communication – and junk mail as we
know it would cease to exist. (Ref: Essays of an Information
Scientist. Vol: 6 p1-5; January 3; 1983)
There is a value in keeping in touch with customers and regular
communications help to develop a relationship with them. We
do however have to guard against the common thinking that
holds that the more advertising we do, the more effective
it becomes. In actual fact it may be more useful to use a less is
more approach, as too many indiscriminate mailings are likely to
annoy the customer, leading to a drop in campaign responses.
As Richard Krieger, Association of American Publishers once
explained, ‘The best direct mail campaign is the one that mails
least.’ (Ref: Privacy Protection Study Commission, Washington
DC; Personal privacy in an information society).
By zeroing in on those prospects that are likely to respond most
favourably to an offer, direct mailers can counteract spiralling
printing, postage and other related costs.
Finally, it is our responsibility to pro-actively ensure that our
customers are in the know, particularly with regard to the
Privacy legislation and the options that are available to them.
I am specifically referring to the Opt-out register that was
launched by the Direct Marketing Association of SA to ensure
that those who do not want to receive promotional information
are removed from the mailing lists of DMA members. In doing
so customers also need to understand that once they decide to
go onto the opt out register, they are isolating themselves from
other information that could be relevant to them.
There is a still room for direct marketing to grow in South
Africa and here are some of the reasons:
l Heightened consumer expectations – greater business and
consumer value placed on personalisation
l Positive economic growth
l Limited penetration of the Internet – for now
l Growth of the middle class: this section of the population
has already passed the two million mark and is said to have
grown by 30 per cent over the past year, pumping an extra
R50bn into the economy.
The growth of this industry depends on all stakeholders – a
commitment to enhancing its image and profitability is crucial.
Matshepo Majola
senior manager: Direct Mail Centre (A Division of the SA
Post Office)
 [ rcs group ]

RCS Group
no lengthy ‘face to face
about the RCS Group Group interviews,’ and no
RCS is an independent retail financial services company with a
market capitalisation of R2.5 billion. The Foschini Group and
complicated questions
Standard Bank are shareholders, with 55% and 45% respectively.
The RCS Group was founded in 1999, using direct marketing
to market Personal Loans to niche sub-segments of the
Foschini Group database. Since then it has provided credit and
financial services to over 600 000 unique customers, primarily
through it’s Card and Personal Loan products.
Other products on offer are Vehicle Finance, Home Loans and
Private Label Cards.
RCS understands the unique credit requirements of retailers
and individual consumers. Thanks to this retail/consumer
understanding, through utilising the RCS Card, the RCS Cards
division has positioned itself as an outsourced credit partner to
over 7 500 merchants across a wide range of industries.
RCS prides itself on its expertise in consumer lending, direct
marketing, risk and analytics.

With regard to Personal Loans in particular, direct marketing

RCS Group expertise
risk & analytics expertise
lTeam of analysts and statisticians
lScorecards/models across credit life cycle
l Sound management of risk policies and strategies
lReporting/MIS and database management
infrastructure
campaigns have allowed the group to attain high levels of
repeat loans and there is more scope for new and repeat
business from its customer base. The successful launch of the
‘newer’ initiatives such as Home Loans and Vehicle Finance –
using the RCS database for customer acquisition – proves the
level of brand loyalty that RCS has achieved.

proven marketing experience

RCS and direct marketing
lLeaders in direct marketing Since its inception, the RCS Group has used direct marketing
lIn-store advertising and marketing expertise as its primary method of customer acquisition. The RCS target
market is between 25 and 45 years of age; LSM 5 to 7.
compliance & legal infrastructure Due to the nature of the target market, RCS focuses on
lIn-house attorneys using direct mail and SMS as its primary direct channels.
lClose relationship with the National Credit Regulator However, RCS does have plans to use online marketing more
aggressively in future.
world class systems Having multiple products that all utilise direct marketing to the
lCustomer level view same database obviously means that database and campaign
lDecision management software (TRIAD) management is critical. On any given day there could be as
lDedicated IT support teams many as two million RCS mail-pieces in the market place. Says
lSignificant further investments in next 3 years Nicola Byers, group marketing executive: “The focus at RCS is

6 direct > 2007

 [ rcs group ]

on sending targeted marketing messages to customer touch

points. We try to ensure that we proactively manage how
many times a customer is contacted, as well as when, how
and why.” The ultimate goal is optimising the lifetime value of
the customer through offering the right credit solution at the
right time.
To this end, RCS has invested heavily in an SAS Information
Warehouse to manage its direct marketing campaigns and to
facilitate the ‘test and learn’ philosophy at RCS. “At RCS we RCS card partners:
test everything – from creative ideas, to messaging, to credit
risk odds. We test; we measure; we learn and we refine,” says The RCS card can also be used at 7 500
Byers. However, she cautions that using a robust testing participating merchant outlets countrywide, including:
methodology is key to the integrity of the results. Game
Marketers must know their customers and remain abreast of Dion
their customers’ changing needs. By using other information Makro
gathering techniques such as statement inserts, surveys and Supa Quick
research, RCS is able to hone its future communication in a Midas
manner that is relevant to the individual customer. Meltz
Byers also acknowledges that creativity in direct marketing Sportsman’s and Outdoor Warehouse
plays a huge role in the success of a campaign. “Creativity is Glomail
crucial. Without it, you’re going to face brand fatigue. If a Cashbuild
customer receives the same envelope/message over and over, Build It
he/she will eventually stop listening, opening and reading.” Builders Warehouse
Since RCS uses above-the-line as a part of its marketing mix, Intec, Damelin and Lyceum College
the group tries to pull creative themes through all brand
touch points, thus giving existing and prospective customers a
consistent message.
RCS has its own call centre, which makes an enormous
credit power at your
difference in its line of business. It provides RCS with the abili- fingertips
ty to give life to response rates and to look beyond the num-
bers, which in turn makes it extremely proactive in terms of

being able to make intuitive changes to its campaigns. More

top tips from the RCS Group
lTalk to the customer and not at the customer
lChange regularly… be relevant to customers and
‘where they are at’
lBe responsible
lTry different mechanisms (both in isolation and in
combination)
lTest and learn; test and learn; test and learn. Track all
your responses and spend time trying to understand
them – these are your customers speaking to you.
importantly, according to Byers, it provides RCS with the
opportunity to interact directly with its customers and to
continue the conversations initiated in direct campaigns (such
as mail packs for acquisition mailings).
RCS fully supports and is fully compliant with the National
Credit Act but warns that self-regulation is critical, especially
in the light of the upcoming Consumer Privacy Bill and the
Protection of Personal Information Act. To this end, as a
founder member of the Direct Marketing Association of South
Africa, RCS is committed to helping the DMA to lobby on
behalf of its members and the direct marketing industry.

direct > 2007 7

 [ brand activation ]
creating a
platform
for dialogue
by Vaughan Berry
In recent years direct marketing through brand activation has
gained a great deal of traction in the eyes of marketers and
the ever-evolving South African consumer. Given the
abundance of one-way communication through the cluttered
mediums of television, radio and print media, brands require
effective ways to extend and cement their share-of-mind – as
well as a share-of-pocket – with consumers. This is best
achieved through building a closer relationship with consumers,
by providing them with ‘touch points’ where they can interact
with and experience a brand outside of traditional mass
branding campaigns.
Activation media are about creating an experiential marketing
interaction between the brand and the consumer. A connection
needs to be made with the consumer that goes beyond the
simplified messages that are inherent in above-the-line
communication mediums today.
Activation marketing is becoming increasingly popular as part
of a marketing mix strategy, due to a number of factors:
lThe fragmentation of traditional media
lThe changing lifestyles of consumers
lAn increasingly competitive South African retail environment
lThe fact that trust is created when consumers can experience
the brand first hand and link an already established brand
identity with a tangible product.
Effective brand activation is built on sound consumer and
product insights and on the creation of a creative, strategic
platform that attracts the attention of the target market and
allows the consumer to engage with the brand. During this
customer contact it is essential that the activation campaign is
executed by marketers who understand the target market,
who are able to effectively extend the brand beyond traditional
advertising. Bringing the brand to life in the mind of the
consumer will only work if the brand image is consistent and if
the quality of the communication platform and message is
in-line with the established brand values and identity.
The success of the activation campaign therefore hinges on
the knowledge and insight (regarding the target market) of
the marketer or the brand manager, as well as on the ability to
translate this knowledge into an effective communication
platform. This transfer of knowledge needs to be properly
8 direct > 2007
there are limitless channels that
brands can use in order to reach
our fragmented consumer bases
in ways that are both innovative
and appropriate.
implemented, from the briefing process through to the
selection and training of all promotional teams. Promotional
staff become the link to the target market. If they are not well
trained, credible, presentable and able to communicate with
consumers, one loses the opportunity to connect with the
target market on a meaningful level.
Creating a two-way communication process between a brand
and consumers is the focus of any brand activation campaign.
These interactions should lead to the building of relationships
and they represent an opportunity to reinforce a sustainable
brand image and ultimately to affect buying patterns. The key
to this communication is the use of well researched and
targeted messaging, since the broad stroke approach to mass
marketing is often lost on the diverse cultures and multiplicity
of languages in South Africa. This messaging is only effectively
created through a thorough understanding of the target
market and the product.
The location of the brand activation and the implementation
of creative ideas are among the key factors that ensure
success. There are numerous channels, other than traditional
in-store and mall activations, that can be used to reach people
today. Consumers need to be reached in innovative ways and
in unusual settings. Using non-traditional settings to create
novel customer interactions has become the key to attracting
the attention of South African consumers.
The informal retail sector in South Africa has also influenced
the kind of direct marketing tools that are used to reach this
market. Brand vans provide a highly focused and visible sales
and distribution resource that can effectively reach a pre-defined
consumer base within a particular geographical area. Other
innovative activation techniques include task force teams that
can handle any non-traditional activation campaigns and
youth events, such as in-school and campus activations.
There are limitless channels that brands can use in order to
reach our fragmented consumer bases in ways that are
both innovative and appropriate. However, companies need
to realise that activation media need to build relationships
with their target markets by offering value and creating brand
awareness through direct interactions that are meaningful
and relevant.
Vaughan Berry, director and head,
Activation Division, ProVantage Media
 [ online ]

the demise of
personal
contact by Jodi Starkowitz
the Internet is a great tool
that allows people to connect
and relate. It has also become
an alternative to spending
What does a high-class London call girl have in common with an
exhausted mother of three-year old triplets in Nelspruit, a body-
time alone and it ultimately
builder who is addicted to tattoos and a philandering politician? replaces that much-needed
The answer: they’re all compulsive bloggers.
For those who have been in exile for the last decade, blogging
face-to-face interaction.
consists of anything from online journal keeping to debating
forums. What started out as a nerdy pastime in 1994 –
computer geeks sharing an enigmatic code – has evolved into
the biggest technological trend since cellphones.
Blogs are the natural evolution of the homepage, only much
more fun. Unlike their static predecessor, they are completely
interactive. They can be updated regularly with whatever is
occupying your cerebrum – be it the latest Louis Vuitton collection,
sex, socio-political issues or last night’s catastrophic blind date.
What is the fascination with divulging intimate details of your
life to a faceless mass of voyeuristic surfers?
Perhaps it’s more exciting to immortalise your thoughts in
cyberspace than to keep them hidden in a black diary under
your mattress. It’s the thrill of someone reading and appreciating
your thoughts – in short, a new age chat room.
Maybe blogging is a subconscious withdrawal symptom – a
consequence of living in today’s collapsed society. The sense of
community that was the hallmark of the previous generation is
almost extinct. Today neighbours hardly know each other,
homes resemble Alcatraz, benign pets have been replaced
with Rottweilers and unexpected visitors are as rare as Manolo
Blahniks on sale. with their customers. When strategically used, business blogs
Social networks like Facebook, Blogger, YouTube and MySpace help to personalise a company’s products and services by
are redefining how we communicate in the 21st Century. They opening up direct channels of communication and engaging
have become a way of reaching out. They give everyone the with prospective and existing customers. The readers of
opportunity to create their own private community and meet business blogs often become passionate word-of-mouth
their friends’ ‘friends’ – even sharing photos, journals and ambassadors. Business blogs not only directly generate
videos. Describing these social networks as merely popular is a revenue, they can also be an effective way to offer a call to
gross understatement. There are over 106 million registered action and greatly increase search engine rankings.
users on MySpace (accurate as of September 2006) and 27 The Internet is a great tool that allows people to connect and
million active users on Facebook. If MySpace were a country it relate. It has also become an alternative to spending time
would be the 11th largest country in the world – a frightening alone and it ultimately replaces that much-needed face-to-face
thought, isn’t it? interaction. Colleagues and students spend more time talking
Markets are conversations, which is why the business world is to each other online than they do in person: tone and body
using blogs to develop their online reputation and connect language have been replaced with animated emoticons and

10 direct > 2007


punctuation marks. In November 2006, Britney Spears
reportedly used text messaging to inform her husband, Kevin
Federline, that she was filing for divorce.
One of the most noticeable results of excessive Internet use is
a lack of attention to daily responsibilities. The average
MySpace page is visited 30 times a day and the average US
online user spends 70 minutes a day online. It’s not surprising
that most businesses have blocked employees from accessing
social networks. However, banned access in the workplace has
not deterred avid MySpace and Facebook aficionados from
surfing their favourite pages after hours, until the early hours.
Moreover, blogs can serve an extremely informative and
positive function. The University of Cape Town has a flourishing
blog, which offers students and lecturers the opportunity to
express their views and exchange information about subjects
pertaining to their curricula. Blogging is even creating authors.
Lulu, a company founded by Bob Young, promotes ‘blooks’ –
printed books based on blogs. Lulu’s list of fictional ‘blooks’
include Belle du Jour and Intimate Adventures of a London Call
Girl, which have gripped at least 15 000 bloggers a day.
While glossy magazines continue to divulge the personal
exploits of Hollywood stars, the youth no longer aspire to be
like their rehab devotees but rather to be celebrities in their
own right. This new trend, aptly named celeb-zero, has
emerged due to the increasing popularity of blogging and
YouTube. Founded in February 2005, YouTube is the leader in
online video and the premier destination for watching and
sharing original videos worldwide. The youth are motivated to
launch their own blogs or to broadcast themselves on
YouTube, in this way attracting their personal fan clubs. The
most viewed video clip on YouTube has been watched more
than 50 million times – proving that 15 minutes of fame is not
an impossible feat. As for talent – it’s purely optional.
Alternatively, you can claim your 15 minutes in the spotlight
by typing a text message. Sixteen-year old student, Ang
Chuang Yang of Singapore, has earned a place in the Guinness
World Records thanks to his super-fast thumbs. Yang typed a
160-character SMS message in an astounding 41.52 seconds,
beating the previous record by seven-tenths of a second. The
SMS reads: ‘The razor-toothed piranhas of the genera
Serrasalmus and Pygocentrus are the most ferocious freshwater
fish in the world. In reality they seldom attack a human.’
I think most of us would take 40 seconds just to type the first
three words.
In South Africa, while not everyone has a computer and an
Internet connection, almost everyone owns a cellphone.
The mobile youth of today are constantly seeking new and
[ online ]
innovative means to stay in touch with their peers. MXit, a
text chat application, charges less than 2 cents per SMS,
severely undercutting the costs of SMS services. MXit has
spread faster than wildfire, with over four million South
Africans using it every day. This number increases by an
astounding 12 000 users daily and 100 million messages are
sent each day.
Typing an SMS of 450 characters in less than 30 seconds,
without making mistakes, is not uncommon among the
youth. Words are reduced to strange abbreviations, for
example, ‘want to’ becomes ‘wna’ and ‘thought’ becomes
‘thawt.’ A self-confessed SMS addict, known as ‘fast fingers’
among her peers, says that she has to re-read her varsity
papers carefully before submitting them because spelling has
become a problem for her. ‘On an average day – when I’m
being good – I send about 300 SMSes. It’s incredibly
addictive. Sometimes I get into bed at 11pm and SMS until
4 the next morning. My mother jokes that she needs to join
MXit so that she can chat to me more often.’
It seems the world is lending itself to excess: there are more
potential pleasures and displeasures; there is more to
withdraw from and increasingly there are more insatiable
withdrawal symptoms. It’s fair to say that most of us are
addicted to something these days, whether we are increasing
our friends’ list on Facebook or SMSing rather than talking.
It wouldn’t surprise me if all future communication is written
in txtspk (texting language). Now, if u’ll xcuse me, I need
2 update my profile on Fbook.
Jodi Starkowitz
Stark-e, an e-commerce solutions company
jodistratowitz@gmail.com
direct > 2007 11
 [e-mail ]
five ways to increase
e-mail
responses
1. list hygiene is essential
A clean list – one with few outdated or incorrectly formatted
addresses – will have a higher deliverability rate. This translates
into more messages delivered correctly to intended recipients.
A clean list also makes ISPs happy. They are less likely to block
your e-mail messages or route them to bulk/junk email folders.
The more often you send, the more frequently you need to
clean your list, and the more often you need to monitor your
list’s performance. Blacklists, or third-party monitoring services,
also watch e-mail deliveries closely and will put your e-mail
address or mail server identification number on their lists if they
suspect you. ISPs and other e-mail services consult these black-
lists to help them decide whether to allow, block or filter your
messages. Therefore, check your delivery reports during and
after each message send to find out who is blocking you. You,
your IT/database people or your e-mail agency can work with
the ISPs and blacklists to resolve disputes, but it may require
you to change the way you send messages – and to get very
serious about monitoring who you send your messages to.
2. avoid list fatigue
The more often you send e-mail (especially if you send more
e-mail than your recipients wanted or expected when they
signed up) the lower your open rates will be. You are simply
wearing out your list, ie, wearing out or ‘fatiguing’ the
patience of your subscribers. Return Path, an e-mail monitoring
and optimisation service in the US, found in surveys taken
after the 2005 and 2006 holiday shopping seasons that many
recipients complained that they got too much e-mail. The
consequences of e-mailing too often? Your recipients will
delete your messages unopened or unsubscribe from your list.
Worse, they could hit the ‘report sp*m’ button in their e-mail
programmes thinking this shortcut will stop your e-mail. Let
your recipients choose how often they want to hear from you
by listing frequency options on a preferences page, and then
respect their choices.
3. gauge your list’s age
How old your list is also affects your open rate. As with traditional
direct marketing, your most enthusiastic recipients are your
12 direct > 2007
newest ones, or what are known as your ‘hotliners’. You need to
capture them right at the get-go, when they sign up, with a
welcome message that tells them what they can expect, with
copy, frequency, benefits and the like. Recent research by
marketing publisher MarketingSherpa showed subscriber interest
drops off markedly within weeks of signing up. So, you’ll also
need to recapture your older subscribers’ interest. Create a list
subsegment of names that have been on your list for a certain
amount of time – say, three months – and send them a special
offer or put a custom subject line on your regular offer to grab
their attention and get them back into the fold. If you let
subscribers choose their own options or provide a registration
page, invite them back to update their preferences or registrations.
4. reinvigorate inactive subscribers
You can also segment your list by activity to find out who is
opening your messages. An inactive list is not going to generate
any of the numbers you need, no matter how tempting the
offer is. This is an argument for the use of specific e-mail
distribution software or a third-party agency. Either one will
generate reports that will tell you pretty precisely what kind of
activity your list is producing. If you want to boost your open
rate, you will need to look at the number showing you the
unique opens for that campaign: one open per reader, not
multiple opens from a single reader (which skews your results).
Once you know that number, you can dig down into your
database and create segments based on activity, such as those
who have not opened or clicked in the last three months, to
re-engage the interest of those subscribers who have grown
passive. Then test an offer on that segment or invite them to
update their subscriptions.
5. write clear, informative subject lines
Your subject line is crucial. It has about two seconds and
50 characters to tell your readers who you are, what you’re
offering, and why they need to skip over all the IN box clutter
and open you right away. You need to be eye-catching but not
deceptive. Direct is best: Put the benefit, call to action or
urgency element in the subject line. Resist the urge to be cute.
Saying ‘Here’s something we know you’ll like...’ tells the reader
nothing and even makes you look like a sp*mmer if your name
is not familiar. Do make sure your company or brand name
shows up in the ‘from’ field, not an e-mail address, a
department name such as ‘Sales’ or ‘E-mail Marketing’, or a
person’s name – unless that name would be instantly familiar
to your recipients.
This article was originally published by Larry Chases’s
Web Digest for Marketers and written by Janet
Roberts. You can subscribe for free to the Web Digest
For Marketers at www.wdfm.com.

podcasting
by Michelle Sturman
Do you fancy learning Mandarin Chinese courtesy of the Sunday
Times UK; watching BBC World Service documentaries or
viewing travel pieces from The Travel Show? Have I mentioned
that it’s free and that you can do it from the comfort of your
laptop or iPod at a time that is convenient for you? Impressed?
Welcome to the Web 2.0 version of direct marketing.
Podcasting is a growing phenomenon and the above examples
represent just a few of those that I’ve downloaded recently.
What’s even more impressive (at least from a branding point of
view) is that I selected them from among many in the same
category because I trust and have a relationship with the brands
in question. Now my faithfulness (to these brands) has been
validated as they’ve provided me with excellent, extra content
that is both relevant and useful.
You don’t even need an iPod to make use of podcasts. I
downloaded from Apple’s iTunes store simply because I have an
iPod and the necessary software on my laptop, which is where I
view them. Luckily, most podcasts on iTunes are free and you
can subscribe to a series, which will be downloaded automatically
every time you load it up. Unfortunately local regulations
prohibit downloading anything other than free podcasts from
iTunes. They also (more importantly) prevent us from uploading
podcasts to the site. Luckily, iTunes is only one avenue – there
are many brands and many other sites that offer podcasts.
A podcast is merely a way to distribute multimedia content and
should definitely be on any marketer’s list of tools (it happens
to be very cool and trendy). You will score points in many circles
in South Africa if your brand offers a podcast. A huge benefit is
that they can be played wherever and whenever – whilst
commuting, multitasking, working or on the beach.
how to use a podcast
Podcasts are relatively quick, cheap and easy to produce and have
the potential to be used by millions! They can be either audio or
video and the possibilities for brand building, brand awareness
and getting directly in touch with your audience is limited only by
your imagination. You can make your own mini series, offer Q&A’s
with the big boss or provide expert advice columns.
You can also take podcasts in-house and use them to dissemi-
nate important company information that can be downloaded
at leisure e.g. training manuals, CEO announcements etc. It’s a
great way to impart information on a worldwide basis across
your company and employees are no longer tied to hours that
are often quite unsocial when attending video conferences. By
using software, you can also make them interactive and live if
you wish to do so.
[ podcasting ]
The golden rule for developing and disseminating podcasts is that
in order to build an audience, you MUST provide unique, relevant
and interesting content that is not found anywhere else. It’s a
good idea to list them in as many podcast directories as you can
in order to gain access to as wide an audience as possible.
While most podcasts are free when used to build brands and
loyalty, you can also make money. If you really think yours is
worth paying for, apply the golden rule and try asking for a
subscription fee. You can also go the traditional route here and
look for sponsors (approach this in the same way as you would
any other sponsorships).
In-house advertising with links back to a website can feed sales and
also provide a measuring tool for how successful your pocast is.
Make sure to integrate your podcasts with the rest of your
marketing strategy and remember that this is one-to-one
marketing. This approach is not the same as placing a TV or
radio campaign on air. Podcasts generally attract a specific
niche audience and while content is King, costs can be justified
by segmenting the database into very niche audiences. This is
invaluable data.
Remember that a podcast can provide a direct and regular line of
communication with your customers/subscribers and that relevant
content can increase loyalty to your brand. Providing valuable content
can really set you apart from your competitors. Regular interviews
and expert opinion pieces can put you ahead of the curve and
confirm your status as a leader in your industry, for example.
If you’re unsure, find an expert in podcasting to help you – a
badly executed podcast can do a lot of damage. If you need a
helping hand, there are many podcasts on podcasting. Try
these podcasting sites: www.podcast.co.za; www.podcast.net;
www.podcastingnews.com;www.freshpodcasts.com (and don’t
forget iTunes).
direct > 2007 13
 [ ethical marketing ]
using mobile
marketing to build
customer
relatioships
by Candy Goodman
‘Let’s do a simple SMS competition. We’ll market a short
code number and get them to SMS our brand name to it
and this will increase brand awareness and sales.’
What do we do after this? Is it just as simple as that?
Most of us have a cellphone within reach or on our person
most of the time, making this form of communication the
most direct, immediate and personal way of reaching
customers. Mobile marketing is widely used and is becoming
one of the most powerful media available to marketers
today, especially in South Africa.
However, despite its powerful nature you have to listen to
what your customers have to say in order to get the best out
of this method of marketing, together with other traditional
media, to build customer relationships and maximise the
return on investment and the efficacy of your brand.
i need to trust you if I am going to
interact with you
Customer relationships are dependent on the creation of
trust. It is our responsibility to use mobile marketing ethically
and appropriately in order to unleash its true power. At the
latest Interactive Marketing seminar held by the Institute of
Direct Marketing in April 2007, there was a great deal of
talk about the ethics involved in TV text-in competitions inter-
nationally, reflecting the potential hazards that face mobile
marketers. Everyone involved, from the programme makers
and the broadcasters to the show producers, should be operating
ethically and with a high degree of transparency and care for
the viewers who are also their customers. They have a duty to
deliver value and content in an accountable fashion. SMS
competition entrants should feel safe and secure in the
knowledge that there is a fair chance of winning a competition.
don’t spam me
It is precisely because the cellphone is held within your
customers’ ‘personal message space’ that unsolicited
messages can be even more detrimental to your brand than
other messaging media.
14 direct > 2007
The keywords are:
permission
Make your customers feel as if they are in control of the
communication and that they have some power when it
comes to managing their relationship with you. Allow them
to opt-in to receive your messages and honour their requests
to be unsubscribed at all times. Having said this, it is important
to provide additional channels through which they can
unsubscribe, such as a website.
Customers should be drawn towards mobile marketing in an
integrated fashion through other traditional media, rather
than by sending unwanted messages to their cellphones.
timing
Take all the necessary steps to ensure that your customer
receives the message at the most appropriate time and when
they are able to take the required action. This is normally
during working hours and not in the middle of the night.
value and relevance
Content should be relevant to your target market and should
also be of some value to them (either informational value or
possibly even entertainment value). When your customers
first receive your message, it is important that they are able
to identify who is sending it at a glance. This will immediately
make them more open to receiving your communication and
responding to it.
don’t just talk to me – listen to me
SMS is a two-way communication channel and should be
used not only to talk to your customers but to listen to them

as well. The first step is always to have a reply message when
you send out a bulk SMS. This lets your customer know
that someone received the SMS and it opens the door for
further communication. When your customers do reply to
you, read their responses and take care to note any action
that is required (for example, a request to be contacted
or unsubscribed).
make me feel important…
In order to continue this relationship (or friendship), you
should address your customer by name whenever possible. If
you don’t have his/her name you can always embark on a
focused profiling campaign to get it. Your customer’s name
is gold.
Remember that you are not speaking to a cell number but to
a person. Make sure that the tone of your message is warm
and personal and that it doesn’t sound automated.
Have you ever thought of using celebrity marketing? This is a
powerful phenomenon that creates a win-win solution all
round – for the fan, the celebrity and the advertising brand
(see the case study of how Mara Louw assisted Sasko Flour in
promoting their message of ‘better tasting baking’ on the TV
show Mara & Friends) p56.
If you are sending a regular message, try changing it each
time to tell customers something different and interesting in
order to keep them engaged and possibly even entertained.
The challenge is to tantalise your customers by providing
them with something that is unique and creative.
[ ethical marketing ]
abuse and the failure to
understand how to use mobile
marketing in an ethical manner
will only turn people off.
use it or lose it
If you’ve spent the money and taken the trouble to run an
SMS competition, use it. Don’t let the database gather
cyber-dust. Data ages and your customers will forget that
they ever knew you. If you don’t use the data you have
collected you are wasting your money and throwing away
your most valuable asset, which is the ability to talk to the
most important person in your business – your customer.
Getting any of the above wrong can lead to your brand
being damaged, as well as to the loss of customers.
Mistrust is created in this way. Abuse and the failure to
understand how to use mobile marketing in an ethical
manner will only turn people off. (Consult the legal and best
practice guidelines of the following organisations: the DMA
of SA (http://www.dmasa.org ); the Mobile Marketing
Association (MMA – http://mmaglobal.com); WASPA
(Wireless Application Service Providers Association –
http://www.waspa.org.za ), as well as other related
professional bodies.)
Observing the correct guidelines can lead to the voluntary
and positive spread of your message through customer advocacy.
According to the Mobile Marketing Association, if you get it
right, you potentially have one of the most persuasive direct
communication channels working for you. There is much
value to be found in enlisting the services of a professional
mobile marketing consultant who understands how to use
the medium in an ethical manner, while creating innovative
and unique ways to activate your customers and build a
long lasting and mutually beneficial relationship with them.
Candy Goodman
managing director
mo-B
www.mo-b.co.za
direct > 2007 15
 [ mobile marketing ]
getting mobile with
one-to-one marketing
the third screen delivers an interactive
medium for direct marketing
While television and cinema have long dominated the
channels for electronic advertising, a third screen has now hit
the marketing fraternity with the advent of mobile marketing.
It is estimated that there are over 30 million cellphone
subscribers in South Africa, each with a mobile device that
has the capacity to receive marketing messages (as well as
advertising and interactive content) and to deliver information
directly into the hands of users. While marketing pundits and
advertising consultants have been slow on the uptake, the
emerging opportunities cannot be ignored as the benefits of
mobile marketing become more obvious and pioneering
companies start to target the third screen.
Mobile marketing enables companies to target precise
marketing messages to specific groups by age, ethnicity,
home and business ownership – and to deliver content to
them at a time when they are most likely to respond. By
using Bluetooth and infrared technology, a few mobile and
one-to-one marketing agencies are already targeting
consumers in shopping malls and retail outlets with what is
known as ‘near field communication.’ Working with technical
developers and network companies, they are able to develop
concepts and deliver rich media content to targeted
customers within a two to three metre range, by sending
digital adverts (consisting of marketing messages that are
linked to specific, advertised brands or services) directly to
their cellphones. The technology provides organisations with
the opportunity to engage and interact with a customer
instantly – and most importantly – with the customer’s
permission. Targeting customer databases or consumers at
events and in specific retail outlets, these companies are able
to direct specific campaigns and marketing messages to
identifiable public groups – all within a one-to-one marketing
environment. They have developed innovative ways of targeting
these consumers by sending them information (push
campaigns) or by getting consumers to respond to specific
promotions (pull campaigns), while adhering to permission
16 direct > 2007
mobile and one-to-one marketing
agencies can deliver secure,
brand promotional campaigns
directly to the mobile handsets
of a target audience at specific
times of the day.
marketing policies that allow consumers to opt in or opt out.
The results are trackable and measurable.
This form of mobile marketing is being hailed as the best
consumer approach, as digital content is only sent to
consumers’ cellphones when they want to receive it (e.g.
when they are in a particular store or when they make a
conscious decision to interact). If there is no consumer
agreement or if the consumer is unaware that they are being
targeted by wide area Bluetooth broadcasting (known as
Bluejacking), this can be seen as spamming. There have been
many cases where consumers have taken shopping mall
managements to task, believing that their privacy is being
invaded with adverts they have not requested and do not want.
pull campaigns – vouchers and secure
ticketing
Mobile and one-to-one marketing agencies can deliver
secure, brand promotional campaigns directly to the mobile
handsets of a target audience at specific times of the day.
This maximises the likelihood of a purchasing decision by the
customer. These vouchers are able to contain barcodes, 2D
pixel matrix images and/or numeric codes, which are
delivered by SMS. The vouchers can be linked to above the
line media or advertising campaigns, allowing customers to
text in a keyword in order to receive promotional offers.
Each voucher is unique and once it has been redeemed it can
be suppressed, which eliminates the possibility of a security

breach or an abuse of the system. The issuing, requesting
and redeeming of vouchers is tracked and recorded on a
CRM database, in this way assisting a company to build a
highly profiled customer database for ongoing promotions.
With secure ticketing, event agencies and other companies
can rely on the expertise of mobile and one-to-one marketing
agencies to create, distribute and authenticate tickets for
events. As customers arrive at these events, they are able to
scan their embedded barcodes and their tickets are then
printed out by portable or fixed on-site high-end scanners,
which interpret the unique 2D pixel matrix codes that have
been sent to each mobile phone.
push campaigns – digital content
Retailers and businesses now have a new way of allowing
people to access relevant information and content on their
mobile devices. As consumers enter a ‘live’ area, be it a shop,
office or event, they can activate Bluetooth or infrared on
their handsets. Mobile marketing systems are able to detect
their phones by proximity and can request their permission to
opt-in and receive information. Digital content that is
optimised to the make and model of the handset is then
delivered directly to the user’s phone.
By using small electronic Hypertags® that are attached to
posters, displays and exhibition stands or to sashes that are
worn by roving promotional staff, companies are able to
send free digital content to these consumers. This content
could include anything from digital adverts; mini web
browsers; videos; music; vouchers; invitations for events;
games; live information; MMS business cards or contact
information. This is increasingly becoming a great way for
companies to run competitions; conduct live polls and
voting; make promotional offers; brand new products and
services or conduct customer surveys.
[ mobile marketing ]
with mobile and one-to-one
marketing, you can track the
effectiveness of marketing
campaigns and gauge the
response of customers to
products and services on an indi-
vidual level.
one-to-one marketing in print
Some mobile and one-to-one marketing agencies have
teamed up with print design specialists to offer one-to-one
marketing solutions across both mobile and print mediums.
Using both mediums, these agencies are developing cutting-
edge marketing concepts and ingenious ways of targeting
customers and business persons. Through the use of
sophisticated printing software, print design machines and
mobile marketing technology, they are able to produce
individualised, liquid printed, tailor-made literature that is
targeted to each individual customer by name, as well as
information and variable data that only they will want to
see. With graphics which can be changed according to the
market sector, all editorial, copy and marketing messages are
personalised to each customer, speaking in their language
and offering them services that relate to their organisations.
In this way marketing messages are modelled to consumer
requirements and advertisements can appeal directly to each
customer by promoting products that they are attracted to.
With mobile and one-to-one marketing, you can track the
effectiveness of marketing campaigns and gauge the
response of customers to products and services on an
individual level. It’s the next wave of marketing and many
experts believe that it will revolutionise the way that
businesses and professional organisations communicate and
market their products and services. The key to success is
becoming interactive with each consumer and providing
customers with what they want on a one-on-one basis.
Mark Angus
managing director, Innoviate Interactive Agency
info@innoviate.net
(with Gordon Parkin, managing director, Brandscape)
direct > 2007 17
 [ creativity ]
direct
creativity
johan verest, co-founder and
creative director, I DO, Belgium
I believe that creativity came about long, long ago to attract
attention. Caveman Oumph – or maybe it was caveman
Groumph (historians aren’t really sure) – wanted to get more
attention from the spirits, so he made his grotto paintings
more colourful and more detailed and he painted an auroch
instead of that boring mammoth.
While creativity still has this function today amongst modern
cavemen and cavewomen, it has acquired an additional
dimension: the dimension of respect.
I believe that creativity in DM is not only a way to attract the
attention of our customers; it is also an expression of our
respect for them. Most of the time when we knock on their
doors we are uninvited and unexpected. If we’re asking for
five minutes of their precious time, let’s provide them with
some entertainment in return. It’s the least we can do.
Respect is also a matter of not taking up any more of their
time than is necessary, which is why I will stop here, as you
must have better things to do. Have fun, heirs of Oumph and
Groumph and be happy.
daren kay, executive creative
director, Tullo Marshall
Warren Limited, UK
‘Give a man a fish and you’ll feed him for a day. Teach him how
to fish and he’ll feed himself for a whole lifetime.’
When I think about South Africa I think of Jurassic Park-sized
trees, a night sky full of stars and loads of amazingly warm
people.
Coincidentally, it’s also the place I shot a direct response
TV ad for Oxfam, from which the opening lines of this piece
were taken.
It was shown all over the world and went on to become one
of the most successful Direct Response TV (DRTV) ads of all
time. At the time DRTV was the next big thing. The fact that
people would watch a TV ad, pick up the phone and give us
their credit card details was mind-blowing.
However, today all this seems charmingly quaint in an age of
viral e-mails, virtual worlds and blogs.
18 direct > 2007
direct asked a few of the world’s finest
creative personalities to tell us about
creativity in direct marketing, its ori-
gins in the caves of the Neanderthals
and its evolution in this modern era of
Facebook, iPods, the PVR and the
Internet. In this article these experts
unpack their knowledge and skills, as
well as offering some simple insights
regarding creativity in the direct mar-
keting industry.
The point is that the phenomenon of consumers being mere
passive observers of advertising is long gone. Today people
relish the opportunity to interact, to add and to influence.
For me this has always been the power of direct. It is the
point where ideas meet the real world and where brands can
really get under the skin of the consumer. If you don’t
believe me, look at the Titanium winner at Cannes this year.
The Burger King game is a brilliantly executed idea. It has
also enabled BK to get in front of their audience for far
longer than a 30-second TV ad would allow.
This thinking is right at the heart of our direct work for
Guinness (incidentally also a winner at Cannes). We recognise
that for a hard core of Guinness drinkers our relationship is
similar to that of a close friend. (These days this is more
fashionably labelled CRM or eCRM.) We remember their
birthdays, we give them something for Christmas and we
invite them to the really good parties. Certainly we have a
shared sense of humour and are interested in similar things –
but more importantly, like a good friend, we want every
contact to leave them a little happier. In order to do this we
need to have a two-way relationship.
This may mean sending them seven birthday cards (because
we know that as we get older we find fewer cards on the
doorstep) or sending them viral e-mails that feature an Irish
dancer you can put your own head on and send to friends
as an invitation to a St Patrick’s Day party (because we know
you’re the most fun person in your gang). Our direct
communications always start from the Howard Gossage
position that people will read/watch whatever interests them
and sometimes this is an ad. Of course, the black stuff is central
to all the creative (just like burgers and eating is in the Sneak
King game for Burger King) but ultimately we’re providing
useful content first and engaging in the act of selling second.
Talking to consumers in this way on a one-to-one basis and allowing
them to physically interact with the brand over a period of time
creates a deeper, more profound and longer lasting relationship
with the brand than the occasional burst of entertainment.
So – fish anyone?
 [ creativity ]
peter reily, 20:20 London
I’m often asked how I define my agency. Is it a digital agency
or a direct marketing agency? Is it one of those ‘creative’
agencies? Is it an ‘agency’ at all in the normal sense of
the word?
It’s helpful for many clients to think of their service suppliers
as specialists in their chosen fields. At 20:20 we are blessed
with forward-thinking clients who challenge us to create new
and exciting ways to mobilise their customers and prospects.
More often than not this means using a variety of methods
and mediums: print, TV, digital and of course, direct market-
ing. However, the single most significant factor in achieving
success is derived from a client’s understanding that creativity
is the starting point and effectiveness is the finishing line –
and nowhere is this more exciting than it is in the area of
‘direct marketing.’
In recent years, the specialist field of direct marketing has
shown itself to be a friendly sort of fellow, opening its arms
and embracing digital, mobile and even that brash chap called
‘TV’ who likes to keep himself to himself. My point is that this
form of marketing allows the greatest creativity because it
acknowledges and feeds off every other sector. For my money,
anyone who is thinking of a career in advertising should choose
direct marketing as the most dynamic and exploratory sector in
the wider advertising industry. Take a look at the recent Cannes
Lion Awards. The Grand Prix prizes in each sector give you a
snapshot of the ad industry in 2007. All the usual suspects are
there: clever special effects in the TV category, simple puns in
the Press category and head-turning images in the Outdoor
category. Now look at the direct winner and you find
something altogether more innovative and engaging.
‘Direct’ is by definition the place where we creative types can
spark a dialogue between brand and prospect. This dialogue
can continue for years until the prospect is ready to take the
relationship further and because we are having a two-way
conversation with prospects (as opposed to other media,
who are often simply shouting) we have many more creative
opportunities to engage in. This is the bottom line with
direct marketing – it is the opportunity to use creativity to
engage in ways in which other mediums can’t.
stu stobbs, creative partner,
proximity#ttp
Above the line, below the line, through the line – to hell with
the line.
I used to think that ‘the line’ was still there because clients
still think in that way. While this is partly true, the fact of the
matter is that we in the industry are even worse. We who are
meant to be on the cutting edge of society and communication
are stuck in our ways and are still protecting our turf or
20 direct > 2007
‘speciality.’ How many times have you heard sweeping
statements like ‘direct’ is better than TV or vice versa? That
may have been true a while ago but now things have
changed. The world of ‘advertising’ consists of a myriad of
colours and possibilities rather than only of black and white.
‘The line’ refers to media options and our job is not to push
a particular medium. Our job is to push our clients’ products.
The product doesn’t care whether it’s on TV or radio or in a
mailer. All that ultimately matters is that it gets sold – and
what is the best way to sell it? Start by discovering who you
are trying to sell to. If it’s a guy who sits around and watches
TV all the time, do a TV ad. If it’s someone who lies on the
beach all day, write your message in the sand or on a towel
or hide it in an ice cream. It’s all about using the best
medium (or mediums) for the target, the idea and the job.
If no medium exists, create a new one.
They painted fresh lines on my street today, which is great
because we need ‘rules of the road’ that govern where we
drive, so that we don’t all die every time we get behind the
wheel. (After all, it’s not really a great idea to encourage
‘creative driving.’) However, we’re not in the business of road
safety (thankfully) and ‘lines’ only restrict our thinking. So
let’s get rid of the bloody line and the restrictive silo mentality
that goes with it – before it gets rid of us.
andrew tompkins, creative
director, G2 Sydney, Australia.
Every year the Australian Direct Marketing Awards (ADMA)
continue to set a high level of creative standards, with a
greater number of entries and a record number of finalists –
living proof that Australian DM creative is well and truly alive.
What is interesting is the need to combine DM and digital in
a seamless integrated campaign. This is the next generation
of DM strategies, which is continuing to evolve via mobile
marketing strategies. It involves communication with the
audience at every level and entry point and uses creative and
direct marketing knowledge as a base to drive the message
home, at the same time not loosing sight of the fact that
every thing we do must be measurable.
The fact that Australian work is now being showcased at
leading world creative award events such as the Cannes
Lions, is a testament to the outstanding level of Creative DM.
Australia’s creative footprint in the direct marketing industry
is beginning to take shape, especially as the industry is
evolving from being print based to becoming
a totally integrated solution. Understanding the roll that
creative plays in the many opportunities that are presented
by digital media – and how best to integrate the digital
channel into multi-channel marketing campaigns – is the key
to our success.

promises –
direct to you
Your direct mailer is full of guarantees – about products,
services, competitive pricing, reliability, usability and availability.
It’s also full of subtly implied promises about your brand,
your customer experience and the service that customers can
expect when they come through your door.
While these promises are easily made by marketing
departments (in collusion with advertising agencies), the
reality of whether they are kept or broken lies with your
employees, particularly with those that face your clients every
day. Unfortunately, there are a hundred degrees of separation
between the people who make them and the people who
keep them – or not.
it’s not as difficult as it sounds.
Internal marketing is simply bor-
rowing marketing ‘tricks’ and
applying them to a different tar-
get market – your employees.
Most of us have had that experience. You know, the one
where you walk into the shop/bank/hotel and the experience
you receive is nothing – and I mean nothing – like the pledge
that was made in the direct mailer. As you stalk out of the
restaurant/airport/garage muttering and cursing (and using
the odd expletive), you ask yourself why you never get the
service/product knowledge/efficiency that you are promised.
Companies are making big commitments to consumers – and
they’re spending a lot of money on making them. However,
what are they investing (in terms of time, energy and money)
in delivering on their promises? In order to ensure that our
actions are in line with our commitments (thus ensuring
client satisfaction and conversion), we need to dedicate more
energy to those who are responsible for delivering on them.
Ultimately, it’s not the brand agency, advertising agency, PR
agency or marketing department executives who own your
brand. They are only the facilitators who define its promise.
Your employees own your brand – they are accountable for
defining the reality of your pledge to deliver.
To ensure that employees have the knowledge, skills and
experience to meet the high expectations of customers,
companies need to invest in marketing internally. Advertising
spend is money spent on making a promise, whereas employee
[ internal marketing ]
engagement is money spent on fulfilling that promise. Many
companies still don’t realise that the sum of the advertising,
brand building and public relations functions that are
delivered to an external audience don’t come close to having
the same impact on their brands as their employees have.
One of the biggest reasons for employees not being able to
deliver the goods, is that they’re not aware of the goods in
the first place. It’s usually only once campaigns have been
conceptualised, developed and designed, that any thought is
given to employee communication. Frequently employees are
only informed of campaigns once the mailer has already
landed in customer post boxes – and by then it’s too late.
Certainly, you can expect a few customers to be a little unhappy.
Not everyone is going to walk out with a product in their
hands and a smile on their face. You can’t win ‘em all.
However, the few who do ‘get way’ are costing you more
than you think, especially with big-ticket items such as TV’s
and bonds on houses or cars. Just a handful of customers
who choose to buy can significantly increase your ROI.
Entrenching the kind of knowledge, culture and service ethic
that is required to make good on a company’s commitments,
demands a strategically driven, focused and planned internal
marketing calendar.
It’s not as difficult as it sounds. Internal marketing is simply
borrowing marketing ‘tricks’ and applying them to a different
target market – your employees. By marketing messages to
your internal audience, rather then trying (unsuccessfully) to
instruct, you can ensure the effective consumption of
information – and more than this, you can ensure that the
messages that you send out are understood and turned
into action.
This is where the magic lies. When insight is turned into
action, you can drive business growth and ensure that good
marketing doesn’t end when the envelope is opened.
Terri Brown, director of Actuate
www.actuate.co.za
direct > 2007 21
 [technology for CRM ]
smart technology leads to smart
CRM solutions
by Denvor Phokaners
One of the big questions in direct marketing today is: how
does an organisation extract the best performance from
relationship marketing? There is one simple answer: use
technology as an enabler. However, an organisation’s systems
must be regulated in order to provide the customer with a
seamless experience. This means that every customer interaction
must be a moment of truth.
so how do we do this?
We believe that there are a number of basic relationship
marketing principles. ERM (Employee Relationship Marketing)
is based on the ‘inside out’ principle mentioned above and
relies on the commitment of the whole organisation. Then
there is CRM (Customer Relationship Marketing), which is the
building and maintaining of profitable relationships with
customers, or FRM (Franchise Relationship Marketing). There
is also a new CRM emerging – Cause Related Marketing – as
well as PRM (Partner Relationship Marketing), which leverages
partnerships with other customer centric organisations to
add value to existing customers. Lastly, there is SRM (Supplier
Relationship Marketing) or employee relationships, to attract
and acquire new customers or employees. According to the
CEO of Digital Solutions Group (DSG), Yaron Assabi: “In the
future, the most powerful brands will be customer-centric.
Successful companies will know their customers and will be
the customer’s advocate.”
the business challenge – consistency
Could your organisation deal with the following enquiry?
‘Hi, I’m phoning you today about the e-mail I sent you yester-
day, concerning a transaction that took place last week. Are
you able to help me?’
Would your staff be able to handle any transactions or
interactions, regardless of the channel? Would they be able to
provide agents with visible evidence of interactions across
channels? Could they provide cross-channel reporting and
analysis and would they be able to apply the same cross-selling
programmes to all their customer interactions? The web can
be used as a collaboration tool in addition to being used as a
medium. By using it as a business-enabling tool, for example,
you can help your organisation to achieve the above and
much more. With the birth of XML you now have transparency
and interpretability between systems. Web-centric applications
allow for the updating of all channels simultaneously, thus
ensuring consistent service across all channels. The web is
also one of the best knowledge management tools available
as it reports in real time and provides access to information
anywhere and at any point in time. It is also the most interactive
22 direct > 2007
self-help channel – with some of the lowest service costs –
and personalisation is easy to accomplish when compared
with other channels.
Other smart technologies such as VoiceXML (interactive voice
dialogues between a human and a PC) can also achieve
smart CRM. This application is perfect for a call centre
environment. It is inexpensive (when compared to a live
agent); it allows for application control and it’s easy for
employees to update. VoiceXML also provides the cost savings
and automation that were previously promised by IVR.
web 2.0 is all about mobile
There is a definite trend towards mobile applications, which will
evolve to 3G. This will allow for a richer user experience
through multimedia programmable terminals. There will also
be IP and mobile convergence (increasing content availability)
as well as higher bitrate wireless communications. In addition
there are great applications that have facilities such as the
interactive application that was developed for the 46664
concert by DSG. Concertgoers were asked to send SMS messages
to the number 46664 and these messages were displayed on a
big screen behind top international artists as they performed.
Over 37 000 SMS’s were sent during the week of the 46664
campaign, generating an amount in excess of R780 000.
In addition, mobile can now provide TV with direct response
interaction. TV struggles with differentiation, positioning and
an audience that is becoming bored with the standard audio
IVR/SMS participation. This medium could be revolutionised
by 3G video calling technology. TV production houses will be
able to ask viewers to make a video call by using their 3G
handsets. In doing so audiences will be able to video call TV
shows, allowing for a live interaction process between the
caller and the show’s host on screen.
Clearly, technology is able to provide the solution for a
customer-driven strategy and in this way it enables more
effective marketing. However, there are a few rules.
Be certain that any employees who are likely to have contact
with customers can personalise their service and that they have
all the necessary information at their fingertips. Ensure that
this takes place by engaging in best practices such as thinking
of the experience from the customer’s point of view, improving
any technology that acts as a barrier and eliminating anything
that might annoy the customer. It’s also important to ascertain
whether your database is up-to-scratch and to make a point of
communicating efficiently and regularly. You should also make
sure that your service is based on opt-in marketing; exploit the
connectivity of the web and use rich information to improve
sales and the product mix. Lastly, leverage offline relationships
to gain online customers and vice versa, while developing
interactive experiences.
Denvor Phokaners
group business development manager
Digital Solutions Group
denvor@dsg.co.za
 [ databases ]
mining
gold by Michelle Sturman
A database is like a goldmine. Blast away wherever the fancy
takes you and you’ll find a few worthwhile nuggets. Dig carefully
and with informed precision however and you’re likely to hit the
jackpot. If mined in the right manner, a database can yield huge
returns in terms of both monetary value and customer information.
Unfortunately, too few companies treat a database with the
respect it deserves. All too often it is filled with outdated,
useless information and anything and everything is dumped into
it. Frequently a number of databases are in use – for example,
the ‘marketing’ database that is used by the marketing team,
the one that is used by the sales force, as well as the lists of
contacts that reside with various other employees. No one has
taken the trouble to blend them together into a seamless,
active, updated and relevant file of valuable customer data. The
merging of disparate databases can have significant marketing
worth (once they have been updated and de-duped).
A database can actually become a ‘living entity’ which provides
valuable data that everyone is able to use to suit their particular
purposes (eg the sales team for prospects and the marketing
team for mailings, promotions etc).
Once this is done, the hard work begins. An up-to-date
database only has value if it is mined correctly. Once it is
cleaned up, companies tend to believe that it’s useful and they
implement a direct marketing programme. While it is useful
up to a point and while it does get results, it can only take a
campaign so far. Even if you have fewer returns and a higher
response rate, you still don’t really know the customer.
What is marketing all about today? The answer is: targeted
marketing and a 360º view of a customer. In order to achieve
this, data analytics, including market segmentation, is
required. The more information about a customer you add to
a database, the easier it is to segment your customers into
smaller target markets, which in turn allows for more targeted
messaging. It’s as simple as that. The result will be a much
higher response rate, paving the way for cross-selling,
up-selling and increased brand loyalty.
To do this, everyone that has customer contact must be involved
or must at least have access to a regularly updated system.
Deciding what information to add is key and once again, buy-in
from everyone is required. The marketing team may not need
the same information as the sales team, so separating strategic
information for each function is a good idea.
24 direct > 2007
a database can actually become
a ‘living entity’ which provides
valuable data that everyone is
able to use to suit their particular
purposes
Collecting information can start at the storefront or wherever
there is a direct interface with a customer. It’s crucial to
provide the usual explanation and to go through the process
of opting-in. Only ask for details in order to target customers
specifically with offers etc, which are pertinent to them
(remember the new legislation). This is a great step towards
adding valuable customer data that you would probably
otherwise never get. Adding in loyalty card information (what
is purchased and when), as well as learning why certain items
are purchased, can add to the profile. For example, was an
item bought for a child’s birthday? Discovering what your
customers’ purchasing habits are and keeping a record in the
database can help to make all direct marketing much easier. It
can also have a spin-off in other areas, such as custom
publishing. Capturing information at every contact point
should be a given as it can help to provide ideas for improved
service and new products etc (don’t forget psychographic
profiling and lifestyle variables, as well as RFM – recency,
frequency and monetary – values).
One must however, be careful not to simply put customers
into little target boxes for the purpose of direct marketing
campaigns. More can and must be done. Insights into how
and why people are buying must be applied focusing only on
what gets sold is not sufficient.
Segmentation can help with this but the segments need to be
clearly defined before using them with the variables that make
sense for whatever one is trying to achieve e.g. brand building,
direct marketing, up-selling etc. There is also a danger of too
much segmentation, which can result in lost customers.
Profiles that everyone can understand are imperative.
Identifying the differences between customers and applying
external research (consumer trends or geomapping, for
example) is important. Incorporating high-end analytics is also
advisable. This should even help with elements such as
monitoring promotional campaign effectiveness. The bottom
line is that over and above the standard contact info, data
regarding markets, consumer behaviour, campaigns, products
and sales results should be fed into a business intelligence and
analysis system that can spit out behavioural insights. This is
when a database becomes valuable.

let maps show you the
right direction
by Metse Phiega
The world of business is, well, a cutthroat business. All companies
compete on the local or world stage and they all share the
same objective: increasing market share and profitability. In
such a competitive world, many businesses are moving
towards the use of location-based data to more accurately
target promotions, field marketing and sampling campaigns.
It is the age of technology and those with the necessary
know-how rule the business world. Given the more recent
advancements, businesses are finding more intelligent ways of
reaching their current and potential customers. Traditionally
companies have employed a great deal of guesswork in
determining the LSM profile or demographic make up of an
area. This approach yielded limited success and usually felt like
shooting fish in a barrel. With the future on the doorstep,
technology now allows us the use of location-based information
to collect data and conduct direct marketing campaigns with
potential clients in specific areas.
While some ways of accessing information directly are
complicated, there is (thankfully) also a stress-less way of
doing so ie making technology work for you. By using
georeferencing in the application of digital maps and geographic
information systems, coupled with business and demographic
analysis tools, you can look at an area from a microscopic
perspective – right down to the roof count of flats, townhouses
and residential estates – in both formal and informal areas.
targeted geo-spatial marketing
The marketing director of a large automotive manufacturer is
preparing to launch a new vehicle. The company needs to know
who their customers are, as well as where they stay and how to
reach them. The old-fashioned way of accessing this customer
information is to read through and interpret mountains of paper
containing all the company’s marketing research.
This is when technology is able to step in and make life a little
easier – especially technology that allows you to convert data
into spatial information. By using it the marketing director will
be able to load proprietary company information – such as the
position of all their dealerships, including those of competitors
– and display their relative positions on a map. He/she can also
upload the residential information of past and current clients.
The information will be visually displayed, down to street level
detail. This knowledge allows marketing directors to see where
their client base is in relation to their competitors, which
facilitates planning when it comes to targeting marketing
[geo-spatial technology ]
initiatives. The technology also allows marketing directors to
narrow the target market down so that it fits into a certain
income bracket, gender and professional group.
This is the future of technology – making the information
work for you. Marketing directors may also want to find new
clients (in addition to their existing client base) in a given target
market. This is accomplished by querying census and LSM
data. If they know what LSM group a product appeals to, as
well as the income bracket, age and gender of the target
market, they can find out where they stay.
Some targeted Geo-spatial marketing technology has the ability
to query the latest census and LSM information and display the
results on a thematic map. The map will show specific areas
where the designated income groups, genders and professional
groups live. Marketing directors are therefore able to use
the technology to be very specific and to obtain a detailed
representation of the customer profile in a designated area.
Using this information allows one to build a tactical and targeted
media and marketing campaign in order to reach the most
relevant target groups.
knock and drop
A local retailer would also be able to use this technology to
narrow down an area based on age, gender, income and
professional group in order to target a Knock and Drop
marketing campaign. One could then accurately provide the
correct number of leaflets or pamphlets to be dropped off at
each townhouse or business complex.
As described above, those who are in the know are able to
use technology for their own benefit. Before comparing this
to the activities of a super-villain in a comic book, consider
that this kind of technology can allow businesses to expand
their databases through direct marketing, while saving time,
space and energy – and most importantly money.
We are living in the information age – an age that has
endless possibilities and opportunities. Technology has provided
us with a trip to the moon, as well as a video recording of
the event. It now allows us the opportunity to use maps to
help build businesses and economies.
Metse Phiega
brand manager, MarketScope
www.mapit.co.za
direct > 2007 25
 [ customer strategy ]
customer
strategy
by Doug Leather
Customers are crucial to your profitability, regardless
of the type of organisation you are running. If
you’re looking for superior profits, you need an
effective strategy that will enable you to under-
stand who your customers are, what it is they seek to buy
from you and how you will meet their needs.
Strategy is best defined by clearly stating where the company
wants to compete, how it will create value for its customers
and how it will generate profits. A strategy is required as it is
necessary to make intelligent decisions on where resources
need to be focused for value creation. Companies must
recognise that customers are not all created equal and that
some are more valuable than others. It’s about designing
initiatives that are built on a real and deep understanding of
segments or groups of customers.
The development of a customer management strategy requires
a deep understanding of a number of interlinked/inter-related
practices. This article focuses on the Analysis and Planning
element of the Customer Management Assessment Tool
(CMAT™), as well as on the customer management activity
area, which is characterised by Retention, Efficiency,
Acquisition and Penetration – the REAP levers.
The CMAT™ that is illustrated in the diagram above assists in
defining current customer management competence, so that a
set of well-aligned initiatives that deal with building and
developing customer competencies across the entire organisation
can be designed.
analysis and planning
Excellence in customer management begins with a deep
understanding of the nature and value (actual and potential)
of existing customers and potential prospects. This needs to be
supported by a robust strategy for managing them and should
include clear plans of the type of management activity that is
to be implemented for different types of customers. Determining
how these customers need to be handled to maximise
customer value is best done by focusing on the REAP levers.
retention
The retention of good customers is one of the most cost-
efficient ways of driving profit in an organisation. In order to
reduce customer attrition in the future, it is essential to take a
close look at how you welcome and get to know your customer
and to examine the journey all the way from customer
involvement, to the rewarding of loyalty, to the last attempts
to retain customers just before loss and the management of
26 direct > 2007
dissatisfaction. Simply retaining all customers at any cost represents
one of the largest areas of wasted investment in business.
efficiency
The acquisition, retention and value development of customers
cannot be carried out at any price. If the cost of the activity
exceeds the value delivered to the organisation, profitability
will suffer. The management of efficiency, particularly in terms
of the cost of serving customers, is critical to making a profit,
even with customers that have minimal apparent value.
acquisition
Without the planning and management of acquisition activity,
‘acquisition at any cost’ may result. This is particularly so in
sales-led organisations or in those which reward the ‘acquirer’
for any type of new customer. Attention must be paid to the
targeting of good quality new or previous customers and to the
managing of the relationship, from the first expressions of
interest right through to the conversion to becoming customers.
Equally valuable is the management of enquiries and sales leads.
This should include looking for measures that prevent low value
or high-risk prospects from being converted into customers.
penetration
The ability to derive more value from existing customers through
cross-sell and up-sell activities is critical to an organisation’s
return on its customer investment. An investment in extending
the value of current customers is able to deliver much more
value than the same investment in winning new customers.
other fundamental ingredients
People and organisation, as well as supporting infrastructure,
are critical to any customer management framework. Without
an explicit focus on the staff and channels that deliver the
organisation’s proposition, it is impossible to maximise the
return of customer management infrastructure and processes.
Measurement is another vital component of any strategy
and this needs to begin with key performance indicators
that are agreed by senior management. It should then
cascade into tactical measures that drive the everyday activities
of the organisation.
Doug Leather
founder and CEO REOP Consulting
dougl@reap.co.za

direct
marketing
takes centre stage
The facts are clear. More companies, including some of the
largest global blue chips, are shifting their ad spend to add
more direct marketing activity to other diverse marketing
services such as public relations, sales promotions and
interactive, all of which involve some form of direct or
response mechanism. This is happening in a bid to reach
increasingly sophisticated target audiences and to break
through the clutter that has to a great extent created an
advertising-averse consumer who is tired of being spoken to
and who is now demanding dialogue rather than dictation.
The recently released US Advertising Age mentions that
research shows that less than half of agency revenue streams
come from advertising and media planning and buying. More
than 50 per cent of revenue is derived from other diverse
marketing services, of which direct forms the bulk. This trend
is certainly already apparent here in South Africa.
A snapshot of the Direct Marketing Association of South
Africa’s membership tells the tale of how some of the biggest
brands in the country and some of the key role players in DM
have rallied together to commit to the association. They have
also committed to collectively driving compliance to industry
best practices and to developing a professional code of
conduct that says ‘direct means business; we mean business –
and most of all, we respect the rights of our consumers.’
In recent years, the failure to self-regulate has seen
Government take action in a bid to protect the right to privacy
of consumers who have been at the mercy of unscrupulous
operators. We’re talking about those operators who have no
regard for private information and who regularly invade the
personal space of consumers in order to peddle their
messages, irrespective of how irrelevant or misguided their
approach may be. Their lack of professionalism has been
alarming and direct has been labeled as the poor cousin of the
glitzy glamorous world of advertising. Direct marketing has
had a bad rap.
However these days are rapidly coming to an end and we are
now creating a healthy, active industry that conforms to the
highest standards and ethics. Most importantly we are delivering
a marketing practice that is explicitly designed to dialogue with
consumers in a process that is tailored to their personal needs and
requirements. ‘Goodbye Mr. Mass Marketing, hello Mr. Direct –
and yes thank you, the wife and kids are doing beautifully.’
Legislation will radically change the manner in which marketers
get their brands to market from a direct perspective. The
[ dma ]
DMASA has been a crucial element of this critical legislative
debate and development, lobbying and assisting Government
to develop legislation that is fair and in the best interests of
both the industry and consumers – with great success. Initial
concerns about the serious potential damage that uncontested
legislation can do to the industry are being addressed and we
are presently emerging as a stronger, unified industry. We also
currently have a professional body whose members have
provided a firm commitment to play fair, to respect their
consumers and to honour the privilege of knowing them at an
intimate level for the purpose of improving their bottom line.
To sustain this goodwill and professional standard, a number
of things had to be put in place. Two of these have been
identified as critical by the DMA:
lSkills development: ask anyone who has tried to recruit a
professional direct marketer and they will tell you that it’s a
tough and lonely road. South Africa has a dearth of skills in
DM, which is regarded as the poor, ugly cousin of advertising.
Most creatives and strategists head off to the glamorous
world of television and billboards and Direct has suffered as a
result. This has nothing to do with the incredible efficacy of
the medium – when employed correctly – or with the fact
that direct can be as sexy as you can make it. The DMASA has
launched a number of educational courses (all NQF-aligned
and SETA-approved) that are delivered by seasoned profes-
sionals. The DMA’s core focus is firstly to grow the number of
skilled professionals in the industry in order to sustain its
professional growth and standards and secondly, to increase
the representation of black professionals in the industry.
lCode of Conduct: the DMASA is a long way down the road
to establishing a professional code of conduct (aligned to
legislation) for the industry to adhere to. Members have
already committed to this code and measures such as the
national opt-out register or ‘do not contact me’ database will
further enforce compliance.
As Government and industry work towards legislation that
could see prosecution for non-compliance, the DMA view is
that this is not a threat but a positive move towards creating
a well regulated, coordinated and orchestrated industry that is
in harmony with itself. It has thrown down the gauntlet to all
DM players to raise the bar and there is only one way that
standards can go and this is ‘up’.
The proverbial wheat will be separated from the chaff and to
this end we are about to see the Assegai Awards as we have
never seen them before. This is both challenging and
thoroughly exciting.
With such tremendous evolution ahead, the time is nigh for
Cinderella to leave her sooty fireplace and take over as the belle
of the ball, leaving her ugly stepsisters quivering in her wake.
Brian Mdluli
CEO, Direct Marketing Association of South Africa
direct > 2007 27
 [ world trends ]
world trends in
Conducting the research for this article was truly an interesting
experience. Everyone is talking about mobile marketing as the
new CRM. Surely mobile is just another arrow in the quiver of
tools needed to implement it and engage with consumers? What
are the real trends that are emerging worldwide and locally?
CMR – could this be the new acronym? Mark Hancock, strategic
director of Proximity WW, suggests that we should look at
customer managed relationships rather than customer
relationship management. “It’s not about the opportunity to
sell – it’s about engaging every interaction to the benefit of
the consumer, facilitated by technology.” He goes on to
suggest that it’s about customer self selection and that there
is no need to collect a lot of data unless it leads to a better
customer experience, so cost to serve is becoming largely
irrelevant.
In their 2007 Management Tool and Trends publication, Bain
and Company highlight the following:
lCulture is as important as strategy for business success
lIT can create significant competitive advantages
lInnovation is more important than cost reduction for long
term success
lInsufficient consumer insight is hurting performance
lCustomer loyalty is important but companies don’t know
how to improve it profitably.
Further research on COLLOQUY shows that perhaps too many
people join too many loyalty programmes and that active
loyalty is questionable. So what is the trend here? I believe
that marketers need to adopt highly targeted enrolment
strategies: they need to get the right people on board at the
right time and allocate resources where they will truly meet
the objectives. Adopting this philosophy is a new trend. The
age old spray and pray ‘let’s have everyone on our loyalty
programme’ negates the efforts of rewarding and recognising
your most loyal and valuable (or grow-able) customers.
Once you have the right customers on board, drive active
participation, employ rewards selectively
(customisation) and use data to increase customer insight.
The WOW! Factor has also been highlighted as a new trend.
While we have always talked about ‘surprise and delight,’ few
28 direct > 2007
CRM by Nici Stathacopoulos
the age old spray and pray ‘let’s
have everyone on our loyalty
programme’ negates the efforts
of rewarding and recognising
your most loyal and valuable
(or grow-able) customers.
organisations have truly adopted this as a differentiator. Look
at your rewards and your interactions and measure them
carefully. Are they relevant, unique and imaginative? What
makes one e-card stand out from the clutter?
Let’s revisit the new wave technology: iPods, Facebook, mobile
messaging, Bluetooth (some of my personal favourites) are the
new fashion accessories for CRM. These are all great if you
know how to use them, when to use them and why to use
them. Adopting these new accessories can be fun and might
even be a part of your WOW! Factor but if you don’t have a
great strategic reason for using them, are you truly starting a
trend or simply following the masses?
What about revisiting the old trend of talking with your
customers instead of talking at them. In the words of David
Ogilvy: “The consumer is not a moron, she is your wife!” I
recently met with the IT team of a leading company, who
were engaging us because they (the marketing people)
realised that they needed one company CRM solution that
could be sufficiently differentiated between their brands. I
believe that this is currently a world trend: marketing and IT
are actually starting to engage with each other instead of
fighting about whose domain CRM actually falls into.
In conclusion, it seems that CRM is the new trend for South
African marketers. Many have now awoken to the fact that
without understanding your consumers (who have the buying
and spending power) you face the risk of losing out on sales,
which translates into profits.
Nici Stathacopoulos, CEO, proximity#ttp
www.proximityttp.co.za

A new era in
direct by Melvin Chagonda
The South African direct marketing industry is alive and
thriving and anticipating increasing growth. This new age
direct marketing approach is currently taking giant-sized bites
of the market, whereas Above-The-Line (ATL) has traditionally
taken the lion’s share. Compared to ATL campaigns, direct
marketing promotions offer marketers the power to develop
customer loyalty, deliver identifiable sales results and provide
measurability and accountability.
personalised messages
A part of direct marketing’s large increase in market share can
be attributed to the increasing differentiation of mass markets.
This has resulted in ever-greater market fragmentation, which
has given rise to sectors that have individualised needs and
wants. As consumers are clamming up with regard to
divulging personal information with the introduction of The
Data Privacy Law and spam restrictions, direct marketers are
investing heavily in technology to create personalised messages
and track customer patterns. Companies are also having to
work harder and smarter to establish credibility and engage
with customers.
The way forward has to offer consumers benefits that add
value to their lives and in this regard direct marketing is
coming into its own as a customer retention tool. By offering
consumers ‘quality purchasing experiences’ – with personalised
communication, tailored information and incentives such as
loyalty clubs – advertisers are connecting with customers and
building an ongoing rapport with them.
going online
Online direct marketing has been in the international spotlight
for years and is constantly growing and evolving. Predictions
are that social media, like Facebook and MySpace, will be
heavily mined for this purpose. Even though it excludes the
broader population (and is currently limited by expensive
broadband, permission issues and accessibility), the buying
potential of the approximately four million South Africans (in
high LSM brackets) who use online cannot be ignored. Online
direct marketing is limited by its greatest strength: its intrusive
nature is its greatest weakness, while much of its content is
resented and rejected as spam.
accountability
The days of ‘hit and miss’ direct marketing are over. Clients are
demanding measurability from providers that includes accurate
[ local trends ]
accounts of the traffic volumes and mystery shoppers who
investigate promotions, as well as ‘hygiene issues’ that relate
to the accuracy of data bases. Companies that offer
accountability are already reaping the benefits – particularly in
terms of increased market share – while those who don’t are
staring extinction in the face. This is potentially good for the
industry, as it is weeding out fly-by-night companies and
forcing direct marketing organisations to become more
professional. Credibility stamps, such as membership of the
Direct Marketing Association of South Africa, are becoming
increasingly important.
return to direct mail
Internationally, marketers are turning en masse to the use of
direct mail (one of the oldest forms of marketing). Despite the
availability of web-based technology (e-mail, blogs and the
like), those who recognise the limitations of digital
communication are going back to direct mail. This trend is
strong in South Africa and banks and major retailers rely heavily
on this media platform. The greatest growth is bound to
come from the small to medium enterprises that make up the
bulk of the South African business landscape. These companies
are not able to afford big advertising budgets and direct mail
is the most effective and inexpensive way of creating an
awareness of sales, events and special offers (in specific areas)
in a short space of time. Marketing shrewdness is necessary in
these situations and the trick is to target the right customers
with the right message. Any business considering direct mail
should consult with experts to assist with creativity and logistics
and avoid unnecessary wastage.
Melvin Chagonda
managing director, Primedia @ Home
www.primedia.co.za
direct > 2007 29
 [ call centres ]

using call centres to deliver

effective CRM by Craig Ireland

Building customer loyalty and strengthening customer

relationships are vital to the health of today’s brands.
Engaging in and using Customer Relationship Management
(CRM) offers many benefits, among which is a view into
market trends, the understanding of customer requirements,
real time market research and intelligence, as well as data
integrity. Putting CRM into practice provides many rewards for
a business, including building brand equity, increasing the
spend of a customers wallet and improving the profitability of
the business.
A call centre is just one way of using CRM effectively, if the call
centre used provides effective CRM.

so, why use a call centre?

lProvides a means of ‘voice’ dialogue
lEnsures consistency (message and quality)
lImproves productivity
lIncreases time to market
lExtremely flexible
lProvides real time ‘comprehensive’ reporting
lEnables instant resolution
lCan convert an inbound customer query into a sale.

A call centre can also help with acquisitions by providing lead

generation through a qualified programme and the real time
distribution of leads via e-mail. It should also be able to collate
competitor information and provide closed loop reporting. All growth
of this is vital for the next step of a CRM programme: service, lUp-sell and cross-sell
growth and retention of customers. lTargeted sales campaign – segmentation
lIncreased revenue from existing customer base
service, growth and retention lProduct specific – increased product mix
Call centres can take charge of loyalty programmes and lHighly measurable sales results
proactively serve existing customers through various methods, lClosed loop reporting.
including target and cyclical customer contact, proactive
customer service and – importantly – up-sell and cross-sell retention
opportunities. lPolicy/contract renewal
lTime-sensitive retention programme
service lPolicy expiry dates managed and monitored
lJumpstart programme lCustomer specific sales execution
lIncreases customer loyalty and satisfaction lCustomer feedback reporting – retained versus lost
lImproves data accuracy lIncrease longevity of customer base.
lManages marketing spend Craig Ireland
lReduces inbound calls CEO, Velociti
lPromotes customer activity and revenue. craig.ireland@velociti.biz

30 direct > 2007


contact
centre focus:
is blendid best?
by Stuart Forrest
Due to an increase in regulations and heightened competition
in South Africa, the region’s contact centre marketplace has
undergone a significant shift in needs and objectives, moving
towards a more responsible and intelligent form of contact,
with a focus on proactively managing customers.
The industry has been under a microscope recently and has
been scrutinised with regard to its ability to measure up
internationally. As a part of the overarching Accelerated and
Shared Growth Initiative, the South African government’s
incentive scheme for the Business Process Outsourcing (BPO)
industry has identified the contact centre sector as a specific
growth area, resulting in an investment of almost R1 billion in
a bid to accelerate economic growth, develop a stronger skills
base and create jobs. Furthermore, many organisations operating
in this region are recognising that the call centre industry is
maturing. There is a move towards implementing more
intelligent blended calling strategies, which are aimed at
managing the inbound calls from a large customer base, as
well as proactively making outbound calls to prospects.
This shift will only be made possible through greater integration
with CRM and sales systems and by achieving a higher level of
data management. This integration (along with changing
attitudes within contact centres) is set to raise productivity
through maximising staff resources, whilst at the same time
reducing expenses and ultimately maintaining consistently high
levels of customer service.
Call centres are recognising that in order to operate in this new
climate, a converging relationship is required between outbound
and inbound and that unified contact provides customer and
data management advantages for effectively managing the
complete customer lifecycle. While these concepts are not new,
this trend is currently being driven by a combination of easy-to-
use contact technology and the economic necessity of managing
a large customer base more effectively.
Given the greater need for integration with enterprise databases
and between inbound and outbound campaigns, as well as
direct real-time interaction with mission-critical systems such
as CRM and sales systems, contact centres are beginning to
adopt a more sophisticated approach to managing their
interactions. The nature of campaigns is also changing. There
is a move away from aggressive cold-calling tactics to managing
interactions with methods such as up-selling, cross-selling and
[blended call centres ]
loyalty services. By blending capabilities one allows for peaks
and troughs in service demand, ensuring that agents are
being productively utilised at all times.
Advances in technology can also provide for:
lPrioritised contact handling – queues can be prioritised and
allocated to your most skilled agents, while also managing
hold times during busy periods
lConfiguration – the system can be configured to determine
the agent groups that are best able to handle specific types
of calls
lReduced costs – hold times and long distance charges are reduced
through more efficient routing and service level management
lCustomer self service – IVR (Interactive Voice Response)
integration increases call centre efficiency and productivity,
while providing valuable customer services
lImproved customer experience – CTI screen pops allow
agents to view critical customer data throughout the
customer contact.
The successful and seamless integration of these core contact
centre competencies remains an elusive goal. Many attempts
at blended centres have failed, simply because the ACD,
outbound dialer and call management software were
designed as separate technology silos, often forcing contact
centres to operate inbound and outbound calling as distinct
business lines, each with separate reporting capabilities and
agent interfaces. This silo-based approach is more expensive in
terms of redundant applications and systems, incomplete views
of contact centre activities and disjointed services. The
inadequacies of this approach are also apparent to the customer.
Finding a suite to manage inbound calls as effectively as
outbound calls is the key. Look for inbound capacity that
includes, for example, a self-service IVR system which routes
calls, provides voice mail and performs data look-ups. It
should also include more advanced capabilities such as
text-to-speech and speech recognition.
The results of replacing a manual method of prospecting for
customers with a fully automated, blended solution can be
phenomenal. One of the critical success factors is the ability of
such technology to analyse data and create detailed reporting for
more focused campaigns. Reporting and data management tools
allow users to produce all the types of statistics that improve
productivity, as well as vital information such as the ability to
identify the best days and time of day to call customers.
Truly blended environments supplied by the right software
provider will maximise productivity, enhance service levels and
reduce expenses, while maintaining the reliability and
scalability of the individual components.
Stuart Forrest
business development director, Amcat,
www.amcat.co.za
direct > 2007 31
 [ customer service ]
the best service is
no
service by Bill Price
the background
Those of us who have been in the customer service world for
the past 15+ years have engaged in a mighty struggle to
improve customer service through various means. These have
included applying new technologies, such as intelligent call
routing or automated speech analytics, attempting to identify
and hold onto the best possible talent to answer e-mail or
handle phone calls, as well as implementing better training,
scheduling and other systems to pull it all together.
Unfortunately, in spite of all our efforts (including billions of
dollars and blood, sweat and tears), customer satisfaction is
still essentially flat, while operating, capital and support
budgets are extremely strained. Customers have more and
more choice and are expressing their frustration by switching
companies at the drop of a hat, often sharing their
dissatisfaction with thousands of others on Internet blogs.
When two ships on the high seas (or even in protected waters)
approach each other, there are very clear international ‘rules of
the road’ that dictate which should give way to the other.
However, if they appear to be on a collision course – also
known as being ‘in extremis’ – they must take more drastic
action. Both are required to undertake bold course corrections,
while signalling clearly that they recognise the dire situation
and that they intend to fix it.
In the same way (despite the investments in customer care
that have been mentioned), we in the customer service industry
are ‘in extremis’ and need to correct our course. Instead of
coping with customer demand, building more capacity and
trying to figure out how to improve customer interactions,
we need to challenge that demand and find other, more
sustainable solutions that will enable a win/win/win for our
customers, our companies and our agents. I have named this
new course ‘The Best Service is No Service,’ meaning that
everything should work perfectly and in such a way that
customers do not have to interrupt their busy day to call;
e-mail; launch a chat session; walk into a branch or in any
other way interact with a customer support person.
This might sound like nirvana or it might even concern you –
32 direct > 2007
‘The Best Service is No
Service,’ meaning that
everything should work per-
fectly and in such a way
that customers do not have
to interrupt their busy day
to call; e-mail; launch a chat
session; walk into a branch
or in any other way interact
with a customer support
person.
after all, don’t customers prefer to speak to a real person
instead of a machine? Won’t we risk losing all those
cross-sell and up-sell opportunities if we get rid of customer
contacts? Stay with me while I illustrate this picture with two
quick stories and describe how to initiate the journey to ‘The
Best Service…’
the stories
One of the early inspirations I had for Best Service was in the
early 1990s at MCI Telecommunications, a renegade upstart in
the US that was battling the AT&T long distance monopoly
(MCI is now part of Verizon). MCI offered low cost home and
business phone services and although it (originally) had fewer
bells and whistles than AT&T provided, it was increasingly
closing the gap. In California MCI’s services appealed to
immigrants from Mexico or Asia who placed long distance
calls to these countries and who craved lower rates. MCI’s
Californian call centre was expanding rapidly, as more and
more customers signed up for the company’s services.
However, by listening to the calls, an MCI customer service
manager figured out that most of the time the bilingual
agents were simply translating the English language invoices
for confused customers – not adding any ‘value’ and eating
into MCI’s tight profits at that time. He decided to change
course boldly by proposing the production of invoices in
different languages. Shortly after MCI launched this
programme, calls plummeted and the call centre shrank in
size. Customers were delighted – so much so that they
remained loyal to MCI even after AT&T bombarded them with

offers to convert… to AT&T’s English-language only invoices.
This was clearly a win/win/win.
Amazon has been the poster child for Internet commerce and
is now a US$11 billion juggernaut, selling products on seven
websites and in 41 different stores. Amazon’s early products
were BMV (books, music and video, such as DVDs or VHS
tapes) and when a rare shipping mishap would damage a
product, Amazon would send a free replacement, no questions
asked. While this helped Amazon to develop its reputation and
to garner the second highest score for the ACSI (American
Customer Satisfaction Index), this customer-centric strategy
wasn’t scalable when the company launched electronics or
sold back-up generators. There was no way that they could
send free replacements and instead they had to follow
standard ‘reverse logistics’ practices by issuing RMA’s (return
merchandise authorisations). Customers would call Amazon’s
centres, explain to a patient agent why they needed to return
one of these more expensive products, request the RMA and
wait for it to arrive in the mail. Amazon decided to embark on
a bold change of course by challenging its vaunted web
self-service team to work with reverse logistics, marketing and
customer service, in order to produce what we called
‘downloadable return labels.’ As a result the calls plummeted
and agents could service other issues, while customers
controlled the RMA directly from their home or office printers.
Another win/win/win.
the best service journey
The MCI and Amazon experiences are not unique. They share
the same stepwise approach that your company could apply to
[ customer service ]
be proactive and send timely
alerts instead of waiting for
the inevitable contacts
change course and reshape the way in which your customers
are able to get what they want. There are seven steps in this
Best Service journey:
lChallenge the demand for service, as opposed to coping
with customer demand. Sort customer contacts into
‘valuable’ or ‘irritating’ for both the customer and the
company, leading to four clear categories of action: (a)
eliminate contacts entirely (irritant/irritant); (b) automate
contacts (valuable for customers/irritating for the company);
(c) simplify or improve contact handling (valuable for the
company/irritating for customers); (d) leverage and spend
more time on contacts (valuable/valuable)
lEliminate dumb contacts (the irritant/irritant category, which
is usually 20-40 per cent of the customer contact volume,
defined as the number of agent-handled contacts X the
average handle time X the cost per hour)
lMake it really easy for customers to contact your company,
instead of burying toll-free numbers or ignoring the
growing blogosphere
lCreate engaging self-service by using web and IVR tools and
aiming for 80 per cent ‘success rates’
lBe proactive and send timely alerts instead of waiting for the
inevitable contacts
lOwn the actions across the organisation, assigning the blame
for customer contacts to those departments whose broken
products or mistakes or confusing policies are actually
causing the contacts (usually 90-95 per cent of them)
lListen to and act on what customers are saying, since they
convey tremendously useful information about your
products and what they want to buy from you or your
competitors, as well as other brand-affecting issues.
By following these seven steps and choosing a bold course
instead of investing more effort and scarce resources in
coping with customer demand, you can raise the bar and
achieve that rare win/win/win for your company, your
customers and your agents.
Bill Price
founder & president, Driva Solutions
co-founder, LimeBridge Global Alliance
Amazon’s 1st global vice president of Customer Service
1999-2001
direct > 2007 33
 [ loyalty marketing ]
360
While loyalty discussions in the service industry typically focus
on winning the hearts and minds of customers through the
‘customer experience,’ a growing body of international
research supports a link between employee satisfaction and
customer satisfaction that is often overlooked in the grand
scheme of the loyalty strategy. This is a connection that
companies ignore at their peril.
Key findings from research conducted by the Forum for
Performance Management and Measurement out of
Northwestern University in the US reveal:
lThere is a direct link between employee satisfaction and
customer satisfaction and between customer satisfaction
and improved financial performance
lEmployee satisfaction is a key antecedent to employee
engagement and the motivation to perform
lOrganisational culture is a significant driver of employee
engagement: employees are not only expected to cooperate
and work together but also to take charge and provide a
voice for the customer within the organisation
lOrganisations with engaged employees have customers who
use their products more – increased customer usage leads
to higher levels of customer satisfaction
lEmployees have a direct influence on the behaviour and
attitudes of customers – customers drive an organisation’s
profitability through the purchase and use of its products.
In short, while brand promises come from the top, delivery
happens on the ground and it takes a staff of loyal,
impassioned, empowered employees to translate a brand
vision into a brand reality. In other words, you’re certainly not
going to get a caring, sensitive, customer-focused performance
from disgruntled, brow beaten and marginalised staff. The
logic is really pretty obvious. The ultimate customer experience
works from the inside out.
0
loyalty as a 360 issue
The 360-degree approach starts with creating a ‘shared
mindset’ that involves the customer, the employees and the
organisation, so that the customers (outside) and the
employees (inside) share a common view of the organisational
identity. Creating a shared mindset shifts the traditional focus
on culture from a strictly internal affair to being something
that considers the perceptions and responses of all stakeholders,
even channel partners – most particularly it considers the
perceptions of customers. This is called ‘building culture from
the outside-in.’
34 direct > 2007
0
loyalty
it’s all about nurturing an
engaged, motivated and loyal
workforce that is empowered
and committed to delivering the
ultimate customer experience.
The task of creating a shared mind-set among key stakeholders
is not as daunting as it may seem. One asks two questions to
begin with:
lIs what customers say is important to them congruent with
what employees say is important to customers?
lDoes management empower employees to deliver the brand
promise and do employees have the skill and confidence to
make the right decisions?
On a tactical note Dave Ulrich and Norm Smallwood in their
book Why the Bottom Line Isn’t propose a four-step plan for
creating a shared mindset:
1. Create the desired identity: What are the top three to five
things we want to be known for (by our best customers) in
future?
2. Make the identity real to customers: How do we make it
real for customers? What are the touch points and how do
we make the desired identity come alive at each touch-point?
3. Make the identity real for employees: How do we make it
real for employees?
a. Create an intellectual agenda that changes how employees
perceive and think about the company.
b. Establish a behavioural agenda by developing mechanisms
that engage the employees.
c. Institutionalise the organisational agenda by embedding the
new mindset into the systems and processes of the organisation.
4. Build an action plan for implementation.
Rather than being a new concept the 360º loyalty view is a
fresh perspective on bridging the gap between brand promise
and delivery. It’s all about nurturing an engaged, motivated and
loyal workforce that is empowered and committed to delivering
the ultimate customer experience. Loyalty begins at home.
Jean-Claude Latter
director of sales
Achievement Awards Group
www.awards.co.za

the glue that
binds us by Liz Venter
Customer satisfaction is no longer enough for brands. The
goal is to engage with the customer. Engaged customers
provide sustained and profitable growth, especially since
customers are not equally loyal to a company or brand.
One of the primary reasons for companies paying attention to
the wrong outcomes is that they prefer to focus on those that
are easy to manage and control, as opposed to those that are
more difficult to measure and manage. Focusing on the wrong
outcomes leads to the use of the wrong measurement tools
i.e. defining customer ‘loyalty’ as purchase frequency/share
and trying to create it by buying it or by implementing short-
term cost efficiencies that can damage customer relationships.
Customers can become emotionally attached to – or ‘engaged’
with – a brand through their various encounters with it.
Alternatively, they can become ‘disengaged.’ When customers
disengage they reduce their visits and purchases. Even more
problematically, they share their discontent with others.
Customer relationships often don’t last. This is partly because
there are an increasing number of competing options, all of
which are equally attractive. Similarity does not produce
customer engagement – it creates commodities that are only
differentiated by price.
A recent study by The Gallup Organisation in the US (3 000
customers across six different product and service categories)
found that 21 per cent of customers are ‘fully engaged’ with
the brands that they use, own, shop for or buy most often.
Conversely, 28 per cent are actively disengaged with the same.
The term ‘actively disengaged’ means that these customers
feel no sense of loyalty towards the brand. They have little
trust in it and exhibit no discernable pride in association with
it. More importantly, they view the brand as easily replaceable.
Even the best-performing brands have 14-30 per cent of
customers who are actively disengaged. Why should companies
respond to this and change the disengagement issue? The
answer is that this situation represents an expensive and major
missed opportunity. It is however, possible to address it and
while the disengagement might not be eliminated, it can
certainly be reduced.
Identifying the problem is easier than solving it and organisational
commitment and investment are needed to respond to both
the opportunity and the risk represented by customer
disengagement. It requires a coordinated and fully integrated
[ customer engagement ]
customer engagement
provides a sharper and more
relevant picture of brand health
than do any number of other
measures that companies and
analysts typically rely on.
ongoing programme of relevant measurement and meaningful
intervention that reaches deeply into the organisation and
changes all customer touch points. It cannot be achieved by
simply adding another website or increasing ad spend or
launching yet another initiative that is aimed at speeding up
the checkout line or getting the sales staff to smile more.
The four stages of customer interaction are:
lInitiation
lIntegration
lIntelligence
lValue creation
In order to develop relationships with customers that result in
repeat business, referrals, profitable relationships and high
lifetime value, the following statements must become an
integral part of customer interfacing activities and processes:
lEvery interaction – or lack of interaction – tells customers how
much they are truly valued
lThese interactions are moments of truth – this is when the
customer learns whether brand promises will be honoured
or not
lIn order to create great experiences for their customers, com-
panies must know what they want them to feel, think and
do at every stage of the relationship
lThe most dissatisfied customers can be a company’s greatest
resource where innovation is concerned. Customer engagement
failures must be pursued aggressively to find out how to
create great experiences and value WITH – and not for –
customers
lBusiness processes must enable brand promises to be realised
as customer experiences.
What is customer loyalty? Is it a matter of repeat purchases?
Does it consist of a customer who gives a company a second
chance when it falls short on delivering the appropriate
experience? Is this concept defined by a customer who refers
others to a supplier/ retailer? Loyalty is all of the above and
more: it’s a state of being that is defined by behaviours and
experiences on BOTH sides of the relationship (retailer/company
and customer), resulting in value creation for both parties.
direct > 2007 35
 [ customer engagement ]
The four stages of customer interaction are designed to enable
companies to ensure that their business processes deliver on
their brand promises.
initiation
This is the active management of welcoming (or ‘on boarding’)
a new customer and the beginning of the customer relationship.
attributes: welcoming information and materials are provided
and explained to customer; robust project processes and
communications protocols are established; The right information
is delivered to the right people at the right time.
customer experience:
emotional: Satisfied with the retailer/supplier selection; confi-
dent about the likelihood of success; anxiety-free start-up with
no sense of being overwhelmed
intellectual: Understands process and product information;
focuses on how to successfully apply product/ knowledge
behaviour: Actively engaged with the company and the product;
communicates clearly about issues
culminating status: Has a clear understanding of product and
product information; there are no surprises.
integration
This is the active management and assessment of the product
or service after the initiation stage has been completed. The
ultimate goal of the integration stage is achieving operational
excellence.
attributes: Project/service is complete from an implementation
point of view; all components/ aspects are operational; the
right information is delivered to the right people at the
right time.
customer experience:
emotional: Satisfied with process/progress/product; Able to
make an anxiety-free transition to the operational stage
intellectual: educated and knowledgeable about all aspects –
there are no surprises; understands the next phase and/or steps
behaviour: customer is communicative; continues to meet
existing deadlines and to provide appropriate performance
updates; understands and follows proper support channels
culminating status: Project results are acceptable to the
customer; customer is receiving the benefits of the service/
product; there are no surprises; willing to consider and/or
offer referrals.
intelligence
This is the active management of the following:
Gathering all the learnings from the initiation and integration
stages; conducting additional research; assessing the
performance of the customer and the company; making a
company decision regarding the level of further relationship
investment required from a financial return point of view;
36 direct > 2007
developing an understanding of the customer’s long-term
strategic goals.
attributes: Customer and vendor are sharing information in an
effort to glean as much knowledge about the operational
excellence experience as possible, including how the customer’s
customers are being impacted by the experience; vendor is
learning about the customer’s strategic goals; vendor is learning
which customer needs are not being met (new opportunities to
provide solutions); the right information is being delivered to
the right people at the right time.
customer experience:
emotional: Satisfied; trusting; increasingly willing to share;
information.
intellectual: Considering other ways in which the vendor can
help; analysing learnings to discover innovation opportunities
behavioural: Sharing information; referring the vendor to
colleagues and peers or considering doing so
culminating status: Have gathered the information required
and are considering value creation through innovation and/or
considering other products or services from the vendor
value creation
This is the active management of developing a partnership with
the customer in order to become a part of the customer’s per-
formance and everyday life. It involves creating new value and
gaining recommendations from the customer for new business.
attributes: Applying learning to drive innovation; creating new
products, services, relationships, revenue and cost savings;
creating new or optimising standard operating procedures and
communication channels; delivering the right information to
the right people at the right time.
customer experience:
emotional: Fully trusting
intellectual: actively focused on innovation
behavioural: Partnering for innovation; staff working on innovation
projects in conjunction with the vendor
culminating status: New processes/services/products developed
with the company; actively referring friends, etc to the company.
One of the most important aspects of customer engagement is
that it provides a sharper, more relevant picture of a brand’s
health than most other measures do. It reveals the extent to
which a company has created a strong and valuable brand
marriage. Remember that when engagement slides, other key
outcomes slide as well, including future sales, growth and profits.
Customer engagement provides a sharper and more relevant
picture of brand health than do any number of other measures
that companies and analysts typically rely on.
Liz Venter
integrated marketing manager,
Ford Motor Company SA
 [ case study: renault ]
Advertorial

YOUR DIRECT MARKETING PARTNER

The success of Computer Facilities is measured
in terms of our clients’ perception of the serv-
ice they receive, not our perception of the serv-
ice that we provide.
The success of any direct marketing campaign rests on the quali-
ty of the service bureau charged with handling the mountains of
data to be utilised. This is why Computer Facilities, a service-
orientated bureau and outsourcing facility, has been in business
for 25 years. Computer Facilities is a direct marketing industry
stalwart that is recognised for its service to clients, advertising
agencies and the Direct Marketing Association.
“Our difference is not based on price; we’re not the
cheapest. Our difference is based on our impeccable
service and the fact that our clients’ needs come first
– this is why clients stay with us for years.” – Ian
Geary, Managing Director, Computer Facilities.
Computer Facilities has a long history with the direct marketing
industry after it started as a mainframe computer bureau. The
company has changed with the times and today its business is
95% direct with clients and 5% involvement with agencies and
clients. Amongst their clients are some of the biggest South
African corporates including Absa and Nedbank and they also
host the Direct Marketing Association database.
Computer Facilities focuses on four main aspects of direct
marketing services: An Outbound Call Centre, data processing,
laser printing and fulfillment through their integrated offerings
detailed below.
One of the latest additions to the services being provided is
Geo-coding – this is the process of assigning geographic coordinates
(e.g. latitude-longitude) to street addresses, as well as other points
and features. With geographic coordinates, the features can then
be mapped and entered into Geographic Information Systems.
Geo-coding assists clients in exploring their customer markets,
help project sales and analyse market penetration.
A major retailer is using this service to deter-
mine where stores should be located conve-
niently close to their customers.
Company Structure
Computer Facilities: Level 1 BEE Compliance.
On 1 March 2006, 49% of Computer Facilities was sold to its
employees. An employee trust was set up for all staff. To qual-
ify for the trust, an employee has to work for 12 months and
if an employee leaves the company within three years, they
forfeit the non-transferable units.
Amazing fact: the average length of service at Computer
Facilities, excluding the call centre staff, is in excess of eight years.
COMPUTER FACILITIES BUSINESS PROCESSES
Direct Marketing processing facility
Computer Facilities provides the following services:
Capacity to process millions of records per campaign
Comprehensive data checking
Data enhancement and correction
De-duplication of names and addresses where no ID number present
Comprehensive data demographics analysis
Valid8 – Developed by Computer Facilities and certified by
Microsoft
This comprehensive package verifies postal codes and suburb/place
names according to the Post Office official tables and Computer
Facilities own tables of the most common misspellings – applies cor-
rections where applicable. It also caters for address formats in the
informal areas and provides comprehensive demographical statistics.
Laser printing and associated services
Capacity for print runs in excess of one million.
Letter set-ups
Digitising logos and signatures
Sorting data by postal code and any other field e.g. surname
Apply all variable data to Computer Facilities unique print package
PrintNet, which offers full document composition capability, merges
variable data with letter copy and creates images and prints.
Call Centre
Outbound telemarketing
Inbound response management
Over two years ago Computer Facilities extended its services to
include a 48 seat out bound call centre. In August 2005, Computer
Facilities was awarded the Nedbank Card Business and a year later
increased the number of seats to 112. The Call Centre is currently
concentrating on outbound selling. Sales progress is monitored by
clients through an on-line reporting service, reflecting up to the
minute results
Response management facility
Policy Administration – including the issuing of policy documents and
the collection of premiums
Mailed responses
Bulk inbound faxes
Bulk SMS
Hosting Web Services
Bulk e-mailing
Daily statistics through their On-line Reporting Services
CRM – database management and control facility
Custom-built solutions
Complimented by the Response Management Facility
Contact Computer Facilities:
387 Surrey Avenue
Randburg
Tel: (011) 577 2600
Fax: (011) 577 2662
www.facilities.co.za
Managing Director: Ian Geary: iang@facilities.co.za
 [permission marketing ]
the big dif-
ference
In 1998 Seth Godin, author of Permission Marketing, declared
that traditional advertising [including direct marketing] just
wasn’t working as well as it used to. He based this deduction
on the fact that there is too much of it and that people have
learned to ignore it. ‘We are entering an era,’ Godin said,
‘that’s going to change the way almost everything is marketed
to almost everybody.’ How does this argument stack up in the
South African context almost 10 years on?
Permission-based marketing practises all the age-old truisms
that direct marketers have tested for decades and know to be
true: razor sharp targeting is vital; message relevance is critical
and correct timing definitely improves results. So what then –
if anything – makes permission marketing different and why
would you consider including permission based marketing in
your marketing programme?
There is a BIG difference – several differences really – and
understanding the marketing topography in which this debate
finds itself is an aspect of appreciating the divide.
the new – and ever changing –
marketing landscape
Transparency and trust have become the new marketing standard.
These critical tenets, which have originated from the ethos of
the Internet, have become our guiding lights and underscore
the crafting of our marketing programmes and campaigns. Two
key pieces of information express this universal ethos: The
Cluetrain Manifesto (Christopher Locke, Rick Levine, Doc Searls,
David Weinberger) and The Declaration of the Independence of
Cyberspace by John Perry Barlow – Google them.
On the other hand, today’s consumers are more empowered,
savvy, demanding and discerning than their 20th century
counterparts. They are time starved and overloaded with
information about an ever proliferating and confusing array of
products and services in a cluttered and busy market place.
Bryan and Jeffrey Eisenberg discuss the phenomenon of the
current marketing challenges in their book entitled Waiting for
Your Cat to Bark. The authors reckon that the ‘old’ consumer
can be likened (attitudinally) to dogs, displaying similar
excitable and keen-to-please Pavlovian conditioning when
responding to the stimuli of marketing messages. In contrast
the ‘new’ consumer is like a cat – aloof, indifferent, self-
indulgent, independent, solitary – and immune to traditional
advertising methods.
38 direct > 2007
www.winnow.co.za is a competition website that uses
permission-based marketing techniques and incen-
tives to supply real-time leads to South African com-
panies. The website attracts potential customers by
providing registered users with the opportunity to
win daily luxury prizes. The users select the prize
they are interested in and are then served a
questionnaire from a sponsor. The user is under no
obligation to provide any information to the sponsor
company if they are not interested in the product or
service that is offered.
So how does permission based marketing fit into this fast
changing landscape?
information is currency
In a permission-based communications programme the
consumer understands the worth of personal information and is
willing to trade it for value. There is no question that consumers
hold the key to the relationship and that they define the
boundaries. Based on the perceived value of the brand, product
or service, as well as on the trust they have established, they
may offer certain brands deep and meaningful details of their
needs, intentions, tastes and preferences, whilst keeping other
brands at bay with nominal morsels of information.
Consumers know that providing detailed information is in their
own self-interest. They are willing to participate because they
stand to gain something highly desirable: the ideal product
match; the perfect service solution; enhanced service or a
better price… all of which represent a change for the better.
They will provide accurate information or none at all, knowing
that inaccurate information will only result in them receiving a
return that is of little value or interest.
‘The first rule of permission marketing is that it’s based on
selfishness,’ Godin says. ‘Consumers will grant a company per-
mission to communicate only if they know what’s in it for them.’
opt-in approach
In permission marketing consumers explicitly consent to receiving
marketing communication before it is sent to them. They care
about receiving messages that are relevant to them and will
actively participate in a permission marketing programme as
long as they are realising tangible benefits or feel that the
interaction is adding value to their lives. The highest level of
 [ permision marketing ]

consumer participation is active engagement.

In traditional direct marketing terms the marketer usually THE DIFFERENCE
promotes directly to a group of people without their consent Then – traditional Now – permission
and the offer is unsolicited and often unwelcome. Within the direct marketing marketing
permission marketing communication piece itself there is an
opportunity to opt-out of future communications. Exiting is Opt-out Opt-in
Push Pull
the lowest level of consumer participation. Today’s consumer Low conversion rates High conversion rates
does not want to feel trapped, cajoled or tricked into a Consumer indifference Consumer commitment
relationship with a brand or into purchasing a product or service. Passive observation Active engagement
Restricted options Variety and choice
Unsolicited offers Communication welcome & expected
consumer commitment Consent not requested or granted Consent granted
Much more is expected of consumers in a permission-based Smoke and mirrors Transparency
Covert Overt
marketing programme. There is a much higher level of
Relationships exploited Trust-based relationships
engagement and a higher degree of commitment. In permission Privacy disregarded Privacy valued
marketing consumers invest a substantial amount of their time One directional Two way exchange
upfront to provide information about their needs, preferences Marketer initiated Customer initiated
Dogs Cats
and interests before receiving any communication whatsoever, Offline Online
unlike direct mail for example, where recipients choose Targeting on averages One to one targeting
whether or not to engage with the communication they receive. Delayed time Real time
Gradual response Instant response

impact of the internet

Even though permission marketing can be implemented in any
direct medium, it has only really come into its own since the
advent of the Internet. Online applications enable the convenient
and secure collection and updating of personal information
and preferences, a key component of any permission based
marketing campaign. This is difficult, time consuming and very
expensive in offline environments. In addition the Internet
facilitates a rapid feedback mechanism and an instantaneous
two-way communication.
true one-to-one targeting
Permission marketers are adept at creating environments that
are conducive to pursuading consumers to provide information
about themselves. This information is usually collected in the
form of surveys and marketing questionnaires. In South Africa
the newly launched competition website, Win Now
[www.winnow.co.za], does exactly that. The site attracts
consumers by offering a variety of aspirational, luxury prizes,
which are drawn daily. In order to enter for a prize consumers
complete a sponsored questionnaire, which captures their
preferences, choices, aspirations and requirements vis à vis a
particular sponsor’s product. Sponsors request permission to
provide further information about the product if consumers
express an interest in it.
This is a brand new approach. Never before have we truly
been able to target a market of one with such highly relevant
messaging.
fresh and relevant information in
real time
Because most permission programmes are Internet based,
consumer information is provided in real time, which makes it
fresh and immediately relevant. Data is not usually collected at
the inception of the relationship (only to decay day by day on
a database). It is designed to be collected at points in the
relationship or campaign where it is essential and where
follow-up communications are 100 per cent personalised and
are consequently the most relevant.
high conversion rates
Due to the nature and design of permission marketing,
programme conversion rates are usually very high. This is not
rocket science. Consumers raise a hand to express an interest
in your product, voluntarily providing more information about
exactly what they need so that you can make them a tailored
offer. The results are immediate because the interaction takes
place on the Internet.
If your product appeals to the 3.6m savvy, economically active
South Africans online, it might be time to add permission
marketing to your marketing line-up.
Diane de Villiers, managing director, Autumn Star, the
online permission marketing agency which operates
Win Now
www.winnow.co.za

direct > 2007 39

 [ custom publishing ]

the custom magazine:

direct, meaningful, desired and effective
by Fulvia Becatti

Custom magazines are quickly becoming the ultimate brand

accessory. This is not surprising when you take a closer look at
what the custom magazine can do for direct marketing. “As
the targeted voice of a brand, custom magazines reach
consumers in their homes, in a format that is at once
recognised, accessible and – hopefully – entertaining. There
are very few other marketing tools that are able to achieve this
– and none in quite the same way as a magazine,” says Tony
Vaughan, managing director, Media Nova. As Mark Beare,
director, The Publishing Partnership (TPPSA) points out, the
custom magazine does two things. Firstly, it amplifies
messaging by acting as a brand awareness vehicle and
building the brand in the mind of the reader and secondly, it
has the capacity to drive sales. “Research indicates that people
do buy the items that they see in magazines,” says Beare. Lani
Carstens, publisher, Edgars Club Magazine, says that the
custom magazine is increasingly being perceived as the
number one marketing tool. It has the ability to provide
valuable product and brand info within real editorial content,
while reaching a specific mix of readers. She points to research
undertaken by Edgars Club during 2006, which found that
Edgars account holders who receive the Club magazine show
a higher affinity for the brand than those who don’t. “Sixty
two per cent of Club members claim that Edgars Club
Magazine makes Edgars seem more appealing,” says Carstens.
Furthermore, 87 per cent of readers claim that the magazine is
their primary source of information about Edgars (as opposed
to other forms of advertising).
Whether or not a custom title delivers the kind of returns that
make the cost of production and distribution worthwhile really
depends on the business model of the individual magazine, as
well as on its purpose. While many mags turn to third party
advertising to cover their costs, there are certain factors that
need to be considered. (For example, increasing the number of
ad pages may push the magazine into a different postage
category, which will inflate costs.) “Advertising will never
cover all the costs of some magazines,” says Carstens. “Clients
need to realise that the custom magazine is a marketing tool
and that it needs a marketing budget. The objective is not
always to be self-sustaining,” she says.
While direct ROI is somewhat difficult to track, there is
evidence that these publications are valuable. Readers do write
letters to these mag editors and they do surf their websites.

40 direct > 2007

 [ custom publishing ]

They also buy the products that they see in these magazines. lower LSMs find more value
According to Carstens, magazine events are just one way of
gauging reader response while an online component allows in custom mags?
for the measurement of the audience. Beare reports that While the lower LSM markets may not have the
advertising placed in the Icon magazine resulted in the sales of disposable income that allows them to purchase con-
two Bentley cars (at R2.4 million a piece). The buyers walked sumer mags and entertainment products, this market
into the dealerships with their Icon magazines (and the Bentley is info hungry and responds very well to custom
ads) in hand. “There is also a growing trend amongst titles. “There is no doubt that there is a huge demand
consumers towards researching the things that they buy. in the lower LSMs for this kind of info,” says Beare,
Consumers are information hungry. They seek out the info that pointing to the growing demand for Jet Club magazine
will influence their decision making,” says Beare. (which has a readership of over 2.5 million).
The question for many marketers is how to use custom titles “Magazines are expensive for this market, which is
to achieve maximum impact. Magazines abroad are making why they’re scarce. The lower LSMs have less access
use of database management technology to segment reader- to information and therefore find more value in these
ships into groups and to target them directly (via customised magazines. However, there are financial constraints:
magazine content and shopping vouchers, for example). Local you need to get to more of the lower LSMs in order to
publishers say that they do have the technology to do this and have the same economic impact as you would
that some have started using it to improve their direct marketing. amongst the upper LSMs,” says Beare. Are local com-
(Clicks ClubCard, for example, segments members according panies making the most of these markets? “The fact
to purchase patterns and sends them relevant shopping that there isn’t a local retail chain or brand that has a
vouchers.) However, it may be a while yet before this is done high enough (or loyal enough) local following in its
on a larger scale. “There’s a huge demand for content – lower LSM customer base to warrant a custom title
customised content – but who’s paying?” says Beare. indicates that our top companies are still failing to
In spite of the limitations of cost, publishers are confident that tap into the mass market effectively,” says Vaughan.
we will see an increase in the use of these and other
technologies (such as vouchers with barcode tracking, used to
measure sales), as marketers and brands demand greater
media measurability and seek out ways to target the consumer
on an individual basis. “There will be a progressive shift in
ad-spend, with everyone wanting to be right next to the
relevant content,” says Beare.
Using database technology is not the only way to drive the
value of the magazine. Publishers who get creative with the
magazine business model are seeing great results. Beare points
to the Obrigado magazine (coffee shop Vida e Caffe’s custom
mag) as an example of a custom mag that is
cross-accessing databases in order to have a greater impact.
The magazine is not only available in-store (and to stakeholders),
it is also sent to all Mini car owners. This is just one example
of an innovative business model, which adds value to the
magazine through the advertising and content that it
engenders, as well as through the way in which it seeks out
potential acquisitions through brand partnerships. According
to Carstens, this sort of partnership has to be carefully
managed, as accepting the wrong advertising could completely
destroy the magazine’s readership.
Other publishers are using a unique focus to get ahead. On
Target – Kick Off’s custom publishing division (which is a part
of parent company, Touchline Media) – uses soccer content as
the driver behind their titles. Their clients include FIFA, the SA
Football Association and the Premier Soccer League, as well as
Vodacom, Sasol, McDonalds, Absa and others. On Target helps

42 direct > 2007

 [custom publishing ]
these companies to leverage their brands and campaigns
through soccer media products. Some of their recent
publications include the 90 Minutes for Mandela, match
programmes, the 2007 Vodacom Challenge Tournament
Guides and the Sasol u23 AmaGlug-Glug postcards.
Changing the mindset of readers is another way to diversify
the distribution model. “In the US and UK, only a third of
magazines are posted. The majority are picked up in-store,”
says Carstens. There is no doubt that this sort of model would
cut costs dramatically for the many local mags that are
delivered direct to home – but would it work? Is this what
customers want? “It requires a culture change. Our research
shows that readers like receiving their mags. They see them as
a gift – as something that’s all theirs. However, we are testing
it,” says Carstens.
While sampling and free gifts are also great options for
magazines that are product focused, the big issue is cost. This
practice also compromises the value of the editorial if it’s not
done correctly. Carstens prefers the use of vouchers and guides
(think of the Edgars Club mini dining or beauty voucher booklets),
which add value to the magazine in a manner that is perfectly
aligned with the magazine’s purpose. “While everyone likes a
freebie, in reality the quality of the freebee often does the
brand more harm than good,” says Vaughan. “Giving away a
pair of sunglasses might impress your readers – but who really
wants another lanyard or another badly made sun visor with a
low-res logo on it? Do it right or don’t do it at all.”
A multi-platform approach is becoming increasingly important,
especially one that includes an online element. “We cannot
separate the various platforms any more. We need to leverage
content across as many platforms as possible because people
want to have access to information on their own terms,” says
Beare. He believes that it’s becoming increasingly important
for brands (and their custom mags) to develop both an online
and a mobile presence in order to be truly accessible. Whereas
magazines could previously be separated from the direct
marketing campaign, these two elements now need to be
closely aligned. “While this is a massive trend overseas, it’s too
soon to tell whether it’s a growing trend here in South Africa.
The online platform allows for extra information and added
value,” says Carstens. She points to online ad packages that
offer advertisers yet another way of reaching readers, whilst
also boosting magazine revenues (although many publishers
are expressing concerns over how to capture this value and
how to monetise these platforms). Publishers who appreciate
that this trend looks set to grow are appointing digital
managers to administer magazine websites. “Online ad-spend
in the UK has already outstripped print and this trend will
definitely filter through to South Africa in the not-too distant
future,” says Vaughan. He says that home-pages with badly-
done flash intros and a few contact details won’t do. Online
44 direct > 2007
platforms need to include interactive pages, the use of digital
and SMS technology and page-turn programs. “Nothing
should be considered too radical until it has proved to be
impossible or too expensive,” he says. Beare adds that the
advent of the Internet has blurred the lines between free and
paid-for content. “If consumers can get your content for free
online, they should definitely get your magazine content for
free and it should be delivered directly to them,” he says.
Another important consideration is the look and feel of the
magazine. Publishers should avoid turning the mag into a
hard-sell or product catalogue. “When executed effectively, the
magazine format – which the consumer is accustomed to
perceiving as a read of choice rather than a read of necessity –
is the ideal tool for the soft sell or reinforcement of a brand,”
says Vaughan. According to Carstens, offering practical advice
and including unique content is one way for product-focused
publications to avoid looking like a product catalogue.
“Remember that your magazine is in peoples’ homes and that
they could be doing a million things rather than reading it.
The message has to be built into the mood of the magazine
and into the entertainment that it’s providing,” says Vaughan.
Moving ahead, it looks as though direct marketers will find
more and more reasons to make custom magazines a part of
their brand campaigns. “There’s a developing trend towards
the brand persona and as a result, we’re seeing more
platforms emerging and more content being created. Brands
also have to be a part of the many conversations that are
currently taking place,” says Beare. Experienced players are
quick to offer advice to would-be custom publishers. “It’s
expensive and time-consuming and if you’re not careful, it’ll
break your budget, if not your heart. However, if it’s done
properly, you’ll have tears in your eyes when you hold the first
copy (hot off the press) in your hands. Then you’ll spot the
first typo,” says Vaughan.
 [ case study: eBucks/price ‘n pride ]
client: eBucks
campaign: Festive 2006
agency: eBucks

The eBucks business model is South Africa’s leading and most

innovative multi-partner rewards programme and is based on
partner companies allocating free eBucks to their customers as
an acknowledgement of their loyalty.
Member activity and a robust spend-to-earn ratio are key
indicators of a healthy rewards programme. The more frequently
members take part and enjoy the benefits, the greater the value
they receive. eBucks enjoys an average earn-to-spend ratio of
above 80%, exceeding the international benchmark of 70%.
For the financial, retail and online partners, it represents an
opportunity to acquire new clients and to increase the activity
level of existing customers. eBucks is an aspirational brand that
gives its members endless opportunities to get ‘stuff for free.’
solution:
A campaign was developed highlighting a number of opportunities
to encourage spend from the broadest base possible and the aim
was to drive sales though all the various spend channels.
eBucks issued a direct mailer to 550 000 members and inserted
800 000 statement stuffers into FNB credit card statements, as
client: price ‘n pride
campaign: debit order campaign
agency: lesoba difference
As part of its marketing strategy for 2006, Price ‘n Pride briefed
Lesoba Difference on conceptualising a promotional campaign
that would increase debit order usage on installment purchases
by creating an awareness about this method of payment. The
requirements for the campaign were as follows:
lutilise different media to create awareness and educate clients
about the debit order method of payment, while generating
interest and response
lmeasurability
lcost-effectiveness
lachieve a reduction in unpaid installments through prompting
clients to pay by debit order, thereby generating a return on
investment.
The target market was the following:
1. Existing Price ‘n Pride
customers who were main-
taining a good account
record and who were paying
the correct installments
timeously each month (in-store),
were to be encouraged to
convert to a debit order
method of payment.
2. Prospective/new Price ‘n
Pride customers/customers of
other chains, who had been
enticed to purchase based on
current promotional activities,
46 direct > 2007
well as placing 100 000 inserts into a Makro direct mailer;
600 000 inserts into True Love, Cosmopolitan and Fair Lady
magazines and 7 000 inserts into eBucks for Business statements.
They also sent 94 000 emails to eBucks members and placed a
banner linked to a feature section on the eBucks website.
results:
The 2006 festive campaign recorded a record breaking
R46 million worth of eBucks, which were spent across all
the available channels.
The record spend was largely driven by higher member
activity and eBucks spent on eBucks cards accounted for
the largest percentage of member spend at retail partners.
eBucks
were to be encouraged to sign a debit order up-front to
facilitate the payment of their installments.
solution:
It was believed that this campaign would only work in conjunction
with an intensive educational drive. The benefits of signing a
debit order would have to be clearly explained to the customer
and this would be best achieved in a face-to-face scenario. For
this reason the following approach was taken:
Promotional material was created for in-store display; direct
mailers were sent to current customers; statement stuffers
were sent to the base and simple, educational pamphlets that
could be distributed to customers/prospects were produced.
All communication featured two cartoon characters: the ‘hero’
who made use of a debit order and explained all the benefits
(saves time; no queues; you know your account is always paid
on time; no need to carry cash; etc) – and the ‘anti-hero’ who
had been doing everything the ‘old’ way and who became
convinced that debit orders are the way of the future.
Each customer who signed up for a debit order during this
period received a branded watch (saving time… saving money
with Price ‘n Pride) as a thank you gift.
In addition, Price ‘n Pride took the opportunity to run specials
during this period to encourage impulse purchases.
results:
The campaign was particularly well received by both branches
and customers, generating extremely successful results for Price
‘n Pride.
price ‘n pride
 [ case study: mtn/eBucks ]
client: mtn
campaign: mtn sms ya seiva
agency: wunderman south africa
MTN, the cellphone network operator, wanted to increase
SMS usage by 5% amongst LSMs 1-5, aged 16-24, in
predominantly rural areas. They also wished to educate this
target market about its benefits and savings and to establish
top-of-mind awareness of the MTN SMS service. They realised
that peer influence would play a strong role in the campaign’s
success and that non-traditional media –using easy-to-under-
stand terms translated into the vernacular – would be
needed to overcome literacy issues. It was also understood
that a large part of the campaign needed to take place at the
taxi-ranks and marketplaces where the target market spends
much of their time.
solution:
The concept of ‘SMS Ya Seiva’ – ‘An SMS can save you time
and money’ – was developed. Industrial Theatre illustrated
how an SMS can be a life-saver. Crowds were engaged by a
master of ceremonies who distributed MTN SMS Ya Seiva
comic books that featured educational and entertaining
stories, tips on saving money by sending SMSs and an ‘SMS
speak’ dictionary. Prizes included cellphones and airtime.
ATL support included TV, radio in all 11 languages, print
and murals.
client: eBucks
campaign: valentine’s day
agency: eBucks
eBucks, the reward of choice, is South Africa’s leading and
most innovative multi-partner rewards programme.
A member of the FirstRand Group, its business model is based
on partner companies allocating free eBucks to their cus-
tomers as a reward for their loyalty. The programme has over
one million members and has to date allocated over R850
million worth of eBucks.
48 direct > 2007
results:
The competition received over 100 000 entries (a 10%+
response rate). Over a million people attended the events
and hundreds of thousands can now for the first time
communicate via SMS. The promotion resulted in 6 500
handset sales per week (as opposed to the norm of 2 000)
– an increase of over 300%). Over a period of only two
months SMS usage increased by an extraordinary 8.5% to
50.12 % across the entire MTN base, achieving MTN’s
second highest monthly SMS activity ever (the highest SMS
usage was recorded on the 31 December 1999 – the eve of
the millennium).
This campaign won Gold for Marketing Innovation in the
Lester Wunderman Awards 2006.
MTN
The eBucks partners are split across the financial, online and
retail sectors, allowing members to earn and spend in a vast
array of ways and places. Members can spend their eBucks in
the eBucks shop (which offers more than 2 000 products);
with online shopping partners; at the eBucks travel desk and
eBucks auctions; as well as by using the eBucks card in the
real world at any of the eight retail partners.
solution:
For Valentine’s Day 2007, eBucks offered members a choice of a
range of gifts. The campaign’s positioning, ‘spend quality time
with the one you love,’ aimed to encourage members to buy an
experience for their beloved rather than a ‘traditional’ gift.
The campaign comprised a number of elements including a web-
banner and a feature section on the website. An electronic newsletter
was also mailed to 86 000 members on a permission basis.
results:
Compared to the same period in 2006, the 2007 Valentines
sales figures increased by a dramatic 60% from R1 828 149
to R2 917 909. The total number of purchases improved from
726 to 4 072. The promotional electronic newsletter received
a click-through rate of 23.5%, the highest rate ever achieved
by an eBucks electronic newsletter.
eBucks

client: government communications information systems
campaign: 13th language
agency: action ambro’s
GCIS had a need to educate their staff on how to utilise and
understand marketing media. A workshop was arranged for this
purpose and educational marketing material was distributed.
Staff needed to be informed of the event, as well as intrigued
enough to attend. They also needed to receive a pack of
information at the event itself.
client: renault clio
campaign: renault clio 3 launch – pre-sell activity
agency: proximity#ttp and mustard seed
proximity#ttp was tasked with developing a low cost
communication to existing Renault Clio owners to give them the
first preview of the new Renault Clio 3. The fact that the typical
Renault owner falls into either the innovator or early adopter
category means that they are eager to try out new and exciting
innovations and therefore tend to exchange their vehicles
earlier than the vehicle owners of competitor brands. The
marketing objectives were to create excitement and hype
around the launch; encourage existing Clio owners to upgrade
their vehicles; generate test drives; generate sales and retain
and up-sell existing Renault
2 drivers whose vehicles were 18 months old and older.
solution:
To anticipate the launch of the new Renault Clio 3, Renault
targeted existing Renault Clio owners, giving them the chance
to be the first to see and test drive the new Clio 3.
Data was mined in order to
pull out only those Clio
owners whose email
addresses we had and
whose vehicles were 18
months old and older. An
SMS campaign was included
to prospective customers to
generate additional e-mail
[ case study: gcis/renault ]
solution:
The concept for the South African Government’s educational
media was directed at its communications department and
centred on the idea of communication itself. Talking is the sim-
plest form of communication and South Africa has 12 official
languages. Positioning media as the ‘thirteenth official language’
was a direct way of approaching the subject of business commu-
nication. Although the client had instructed us to create a file
folder, we discarded this idea. The reason for this was simple: the
information needed to be top-of-mind and by using a folder it
would ultimately have been filed away. By creating a hook on
which to hang the booklet, the information was made easily
accessible, while acquiring an immediate presence in all commu-
nication departments at the GCIS.
results:
The staff were fully informed and educated on all aspects of
marketing. The knock-on effect was that the number of briefs to
ad agencies increased, as did the speed of the execution of
campaigns. This in turn, allowed the GCIS much greater
access to the public, making their own unique offerings far
more marketable.
gcis
addresses. Existing owners were given the opportunity to view
dynamic images of the new Clio; view and download the 30”
TVC prior to the launch; book a test drive online and test drive
the actual car.
results:
The 2 105 e-mails that were sent out resulted in 207 test drives
being booked. Out of the test drives that were booked, 69
purchases were made by current Clio owners who received the
communication and booked their test drive online through the
sneak preview e-mail. This took place over a two-month period
and constituted a test drive to sales conversion rate of 33.3%.
renault
direct > 2007 49
 [ case study: soul city/telkom ]
client: soul city
campaign: soul city series 7B SMS competition
agency: mo-B
Soul City is a real-life television drama that focuses on the health
and development issues that mirror those of the South African
population. In series 7B it was repositioned to appeal to a more
youthful target audience. It depicts real-life stories, which make
it authentic for the millions of people who have grown to trust
the powerful messages of this wildly popular programme.
Soul City had a challenge. They wanted to:
create awareness, excitement and attract maximum audiences
for the drama, especially in the first two episodes
increase their viewership over last year create an awareness of
their repositioning in order to appeal to a younger audience.
solution:
A specially designed loyalty-based SMS competition was
created in which viewers had to answer a context-based
question at the end of the programme. These were ‘marked’
in real-time and a response was sent back to participants,
letting them know if they had answered correctly, as well as
how many points they gained. Due to Soul City’s social
awareness, they discouraged the viewer from making multiple
entries once they had submitted the correct answer for the week.
With each subsequent correct answer the viewer scored
points that went towards the weekly prizes and the final prize
of a car. The prizes were very carefully selected so that they
were appropriate to the brand and the target market’s
aspirations. Over 100 people won prizes, including TVs,
client: telkom
campaign: surf’s up
agency: action ambro’s
The brief was to promote the
Telkom ‘Surf Anytime’ bundles to
small/medium business and to
get them to convert from a
standard dial-up connection to a
prepaid bundle. This would
enable them to budget their
Internet costs on a monthly basis,
resulting in them being able to
surf for longer and at higher
speeds on the Internet, while
enjoying lower monthly costs.
solution:
Direct mail was chosen for a more niched approach to targeting
the audiences, as opposed to going the standard ATL route.
Market research had indicated that small business owners do
not utilise the bundled options because they simply don’t
understand the technological jargon or the different options that
are available.
A mailing that was easy to understand and that had a relaxed
approach was created (so as not to scare away potential
customers) and the metaphor of surfing was used to break
away from the usual techno jargon that IT providers use.
50 direct > 2007
cellphones and Soul City CDs over
the 13 weeks of the competition –
and two viewers earned the
opportunity to have dinner with their favourite actors
from the show. Using the cellphone database that was
expanding week-by-week, SMS teasers were sent out on a
Tuesday afternoon, reminding participants to watch the
programme and giving them a hint regarding the episode’s
competition question. After the 13-week challenge, the
deserving winner of the VW Polo valued at R117 000 was a
single 19-year old unemployed mother from Brits – she
answered every question, every week, correctly and collected
the most points in the competition. She was greatly
rewarded for her loyalty.
results:
There were over 206 000 SMS entries, which contributed to a
680% increase over the previous year’s paper-based viewer
competition. The SMS teasers created such hype and buzz
around the programme, that it became the second most popular
series on television after Generations. Viewership grew from
the average – for that time slot – of ARs 14-16 to over 20. In
creating a loyal Soul City-centric database, Soul City was able
to cross-sell other products such Soul Buddy’z – another TV
programme belonging to the Soul City Institute – via SMS.
soul city
The outer carrier design was a pair of surfer shorts that was
created by using bold, bright colours and the inner piece was
personalised with a clear adhesive element. This broke away
from the standard letter that is usually created for direct
mailings and personalisation purposes.
The inner piece contained information that detailed all of the
options available, so as not to confuse and intimidate the
reader. This was done by illustrating a huge surfboard that
grew longer and longer as one opened the pack.
results:
This mailing exceeded all expectations in a market segment
that is usually skeptical about suppliers encroaching on their
business. 15 000 mailings were sent out to a purchased
database that was segmented into different industries. They
were sent out in batches of 2 000 to allow for an outbound
telephone campaign follow up.
The call centre was inundated with calls and additional staff
had to be commissioned to man the lines. A 76 % conversion
rate was achieved out of the 41% response rate, resulting in
4 674 new bundled connections over the period of the
campaign. With an average monthly subscription fee of R412
the campaign generated a staggering R23.1 million for a
marketing investment of just over R200 000.
telkom

client: microsoft
campaign: microsoft open licence programme
agency: wunderman south africa
Microsoft required a programme to educate their sales partners
on how to sell Open Licence agreements. However, selling a
Microsoft Open Licence agreement as a Microsoft accredited
partner is regarded as being complicated as there are many
variables and a detailed product knowledge and understanding
of the potential client’s business is required. This resulted in
frustration and a lack of motivation, which in turn resulted in a
decrease in sales.
solution:
A campaign was designed to take the stress out of the selling
experience. A creative theme based on Zen and Yoga principles
was chosen and partners received a sweatband invitation to
attend a sales education event. At the event, partners lit a stick
client: land rover
campaign: a world apart
agency: wunderman south africa
The aim of the Land Rover a World Apart campaign was to break
through the clutter and impress the individual members of its target
market (high income, extremely difficult to reach) enough to persuade
them that it was worth their while to book a Land Rover Range Rover
test drive – and then to convince them to convert the experience of the
test drive to the decision to purchase a new vehicle.
solution:
Firstly, the INTROYE database was segmented and by using a tiered
approach it was ensured that those who were targeted would possess
the greatest propensity to purchase a Land Rover Range Rover.
Individuals were contacted telephonically in order to pre-qualify them
for a follow-up mailer. Realising that these high-profile people would
have ‘gate-keepers,’ the process was designed so that these gate-
keepers were given an incentive to access the information that was
needed to get through to the key decision-maker. This was achieved by
offering the gate-keeper (or PA) an incentive of a R1 000 voucher for a
Spa Treatment if the main offer was passed on to the identified individual
and if that person took up the offer of a test drive.
The main offer consisted of a 3D Mailer in a box that contained an
interactive customised CD that featured all the benefits of a Land Rover
[ case study: microsoft/land rover ]
microsoft
of incense, got into a Yoga position and employed the business
Zen philosophy of ‘With Microsoft Open Licence it’s all sorted
and everything will work in perfect harmony.’ Partners received
sales kits consisting of boxes of green tea and incense to send to
prospective clients as a ‘door-opener’ brochure explaining the
Open Licence benefits.
results:
The events were all over-subscribed and attendance reached
150% of those invited. Feedback from partners was overwhelmingly
enthusiastic. They found the new information to be concise,
informative and easier to understand. Partners have also requested
additional quantities of sales collateral to send out to current
and prospective clients. From an impact point-of-view, the
campaign resulted in dramatic increases in sales figures: after
just two months FY07 Jul-Oct Open Revenue reached
US$1,038,330 (almost double FY06 Jul-Oct Open Revenue of
$521,660) – an overall increase of almost 200%. Even better, the
most successful partner has enjoyed a YOY growth of 4 140%.
This campaign was chosen by Microsoft as their best campaign of
the year for the Europe, Middle East and Africa Region.
Range Rover. Since the target market database had
already been segmented, it was known that all of our
key target market decision makers were avid bird
watchers and for this reason a pair of binoculars was
included to spark their interest.
Where an immediate response was lacking, a follow-up
was made to encourage these individuals by mailing
them the latest issue of the Roberts Book of Birds.
results:
The campaign generated a profit of R1.2 million
and represented a Return on Investment (ROI) of a
staggering 729%.
land rover
direct > 2007 51
 [ case study: mtn ]

mtn
client: mtn
campaign: mtn sms a winna
agency: mtn
MTN needed to build a database of their prepaid customers in
order to improve service delivery and to assist in direct marketing
initiatives. Prepaid MTN clients are not required to provide
their personal information when purchasing a Pay as you go
(prepaid) starter pack. There are no barriers to acquiring a
prepaid service: no registration, names or identity documents
are required and there are no credit checks.
MTN dealt with the dilemma of how to gather data on their
prepaid clients by utilising their network in a manner that
would encourage subscribers to participate and share their
information, whilst generating the greatest returns.
Bear in mind that the many reasons for subscribers choosing
Pay as you go (prepaid) over post paid (contract) include the
anonymity of this method of payment. MTN had to find a
creative way of persuading subscribers to provide their personal
details, including their identity numbers. The main objective of
the campaign was to build a prepaid subscriber database.
solution:
MTN created the ‘SMS a Winna’ campaign, which consisted
of a competition in which entrants could win cellphones and
airtime. Competition details were included as a tag on to all
call back requests. The message read ‘SMS your name, surname
and ID number to 32041 and you may win a cell phone from week’s entries were not eligible to be drawn again, so each
MTN (SMS R1.00).’ Anyone could enter and there was no age week began afresh.
restriction. In order to qualify to be a winner, entrants had to The information was loaded onto a database that was
provide all of the information required. separated from the general database. In a situation where a
During the 6 month period of the campaign’s life (1 August non-MTN subscriber entered and won airtime, the winner
2006 to 31 December 2006), 20 handsets were given away was requested to purchase an MTN prepaid starter pack
and airtime was allocated directly to the winners’ MTN cell (ranging between R1.00 and R20.00 depending on where
numbers. Three winners were drawn each week. The previous it was purchased) and advise MTN of the new number.
MTN would then load the airtime that had been won onto
the new number.
results:
The information obtained is now being used when prepaid
customers contact the MTN call centre for assistance.
Expectations regarding the number of responses were
exceeded and a total of 910 000 entries were received. This
can be attributed to a number of factors: the non-invasive
nature of the campaign, the prizes that were on offer (the
relevance of the prize to the target market), as well as the
fact that it was simple and did not require much effort.
Due to its success, this campaign is being repeated in 2007,
using the same formula. Entries will be SMSed to a
dedicated number. The campaign began on 1 July and will
run until 20 December 2007. There will be 10 weekly
prizewinners and handsets and airtime will once again be
given away.

52 direct > 2007


client: st luke’s hospice
campaign: august 2005 mailing
agency: primaplus
St Luke’s Hospice is a charity that offers free palliative care to
terminally ill patients. The charity relies completely on funds raised
from donors for medication, professional care, etc. St Luke’s
Hospice generally has a mailing slot to existing donors in August
and in this, their 25th Jubilee year, they wanted to make an extra
push to encourage financial contributions to the organisation.
The mailing included two segments:
Retention: Donors that had specifically supported them in the past
Acquisition: Potential donors, who had not yet supported the
organisation but who had made contact during the year or shown
an interest in doing so in the past
It also included paid competition entries for a monthly prize.
solution:
It was decided to make the campaign a personal story and to push
for more money in every way. However, the campaign first had to
get around the fact that most people do not want to think about
death. Somehow it had to make the topic of dying a little ‘warmer
and fuzzier’ and it had to keep the target audience reading for
long enough to recognise all the good that St Luke’s does.
It was also decided to push for regular debit order contributions
rather than once-offs and to ask donors who were donating via
debit order to increase their contribution amounts. A small upfront
gift was used to encourage an increase in donations.
A workable story was found and the permission and details of the
person in question was provided. A mailer was developed that was
creatively very different to anything that had previously been
[case study: st luke’s ]
distributed. Rather than sending out a plea for St Luke’s, a plea on
behalf of St Luke’s was sent out – by a supporter who had had a
personal experience of the Hospice and its vital service.
There was no St Luke’s signatory. The letter arrived almost
anonymously on what appeared to be personal stationery. A real
photograph of the ‘supporter/writer,’ printed on photographic
paper, was included to further personalise the experience. The
letter itself was the focus of the pack, emotively telling the story of
a life that St Luke’s had touched. In doing so it took some of the
sadness away from the subject of death. The letter was written in
a manner that reflected the positive experience that St Luke’s had
allowed one little girl to have at an extremely tragic time in her life
– that of her father’s death.
Fields were lasered in on the reply card, allowing for the
customisation of increased debit order amounts and specific
amounts were requested from donors who may only have been
inclined to make a once-off donation. Amounts beginning at R10
higher than their last donation were lasered in for donors who had
made once-off donations in the past. Creative costs were kept as
low as possible, making sure that it was a DL mailing.
The decision was taken to send a bookmark as a gift, as it allowed
for those who didn’t know anything about St Luke’s to understand
a little more about their good works, while re-affirming this
information for regular donors.
results:
Targets were exceeded by 29% and the campaign raised
R116 013. The average donation increased by R75 or 58%. In
addition, despite a wider mailing (to people who’d never been
spoken to before) a response rate similar to that of previously
more targeted campaigns was maintained.
st luke’s
direct > 2007 53
 [ case study: rcs/fnb ]
client: rcs home loans
campaign: rcs home loan debt consolidation product
agency: rcs home loans
An opportunity had been identified in the pre-approved credit
market for the granting of a switch and debt consolidation
home loan to existing homeowners of the RCS Group. The
equity in their home loans offered them the opportunity to
restructure their unsecured debt into secured debt at a much
reduced interest rate and over a longer term. The impact of
this for property owners was that they could improve their
monthly cash flow considerably, thus reducing the need for
more expensive short-term debt for the purpose of financing
short-term cash needs.
solution:
A direct mail campaign was chosen in line with the RCS
Group’s marketing strategy. The pack consisted of a generic
letter emphasising the current value of customers’ homes and
client: FNB commercial division
campaign: FNB operations hands on
agency: wunderman south africa
First National Bank (FNB) Commercial Division wanted to build
stronger relationships between their relationship managers
(RMs) and their clients. This was in line with their strategy of
building Enduring Rewarding Relationships with all FNB
stakeholders. However, research revealed that RMs already
had good relationships with their clients and that internal
issues with back-office staff were hindering them. The
back-office staff felt that RMs were rude and demanding,
while the RMs felt that back-office staff weren’t interested in
the needs of their clients. The focus therefore shifted to
concentrating on building internal relationships between RMs
and back-office staff.
solution:
A comprehensive ERM initiative called Operation Hands On
(OHO) was created, providing everyone with an opportunity
to go through a ‘hands-on’ experience of creating better
relationships and an improved working environment. OHO
54 direct > 2007
describing how they could save money on a monthly basis
by taking up the product.
results:
The mailer generated a response of 12%. The success of the
mailer can be seen by the following testimonial: ‘By moving
our home loan to RCS Home Loans, who re-financed our
home on the basis of its increased value, we saved a small
fortune. We now have money left over every month to save
for a holiday.’ – Mr and Mrs Hendricks, Gauteng.
RCS home loans
launched with a countrywide roadshow, which touched all
2 000 employees with an inspirational message from the
CEO. A drumming team-building exercise followed. OHO
‘Handbooks’ were printed for each staff member and
‘Hlangananis’ (fun events) were designed to create new
friendships between staff members. Staff participated in
‘Deep Feedback’ sessions where internal problems and issues
were addressed. OHO’s momentum was sustained throughout
the year for the purpose of improving training, celebrating
success and inspiring staff.
results:
OHO has been exceptionally successful, resulting in a
significant improvement in the relationships between
front-office and back-office staff. Qualitative research showed
that 97% of staff were extremely positive about the
programme and its effect. The OHO feedback sessions raised
many issues and these were addressed by management and
improvements were made. After a period of only 6 months
OHO has already had a marked effect, according to FNB’s
internal measurement of their staff’s “average happiness
scores” which have reached a record high of 75%. Most
significantly, FNB has deemed Operation Hands On to be so
successful that they have extended it into 2007 and beyond –
along with substantially more backing from the bank.
fnb
 [case study: mweb ]

We allocated an account manager to every target and put a

letter in each box explaining who this person was and inviting a
personal contact. We added an incentive of R100 in free calls to
‘try’ out our service!
The creative concept was to enable the customer to answer the
phone – in a box. The front of the box promised the potential
client: mweb business savings. When the box was opened, the phone inside rang – and
campaign: adsl voip recruitment campaign who can resist a ringing telephone? On answering, a voice
agency: primaplus explained to recipients that they’d just experienced how easy it
Voice-over IP (VOIP) is relatively new in SA. As an Internet was to use VOIP to save money. It then directed them to the
Service Provider servicing the medium-sized business sector, brochure and the account manager’s card for more info.
MWEB Business knew that VOIP could really save money for results:
their high-usage ADSL customers (primarily medium-sized The rollout was planned as a staggered mailing and to date we
businesses), which would benefit from savings of up to 60% on are looking at a 60% response.
Telkom’s call costs.
Research indicated that the market was sceptical. They associated
VOIP with Skype and either thought that headphones were
needed or that you would need to talk through your computer.
They weren’t sure about the quality or installation procedure
and they were afraid of hidden installation costs. They needed
to be reassured and the product benefits explained in a way
that broke through the clutter of daily offers. We also needed
to create urgency and talkability and demonstrate the immediate
value of VOIP.
solution:
The strategy was to create a pack that was substantial enough
to get to our targets without being intercepted en route. It had
to demonstrate the benefit of VOIP in the most non-threatening,
untechnical way possible, as well as promise a direct contact.
(These customers don’t want to speak to a call centre and one
person was needed to explain everything to them.) We also
decided to throw in an incentive. Clearly we needed a 3D pack
– something startling enough to cut through our targets’ it’s
too complicated, don’t tell me about it attitude, yet simple
enough to show them the immediate benefits and allay
their fears!
We decided that the best way to demonstrate that VOIP was
simple to use, was to do so literally. We included a phone in the
box to take the emphasis away from computers, head-sets and
technology and focused on two key take outs: I’ll save money
and it’s so easy.
mweb
direct > 2007 55
 [ case study: fnb/sasko]
fnb
client: fnb homeloans
campaign: crm campaign
agency: action ambro’s
FNB Homeloans needed to capitalise on the opportunity presented
by reduced interest rates to get their existing home loan customers
to spend more, re-advancing their home loans against a higher value
in the process. They also wanted to get non-FNB Homeloan
customers to consider an FNB home loan at the time of the purchase
and approval stage, as well as getting non-FNB Homeloan customers
to consider switching their home loans to an FNB account.
solution:
A multi-channel contact customer relations programme was
structured, through which customers could be enticed and
rewarded throughout the different stages of the customer
experience and buying process. The industry norm was to
structure a points-based programme that could track and reward
customer behaviours. This was quickly discarded due to the
upfront financial investment required.
Instead, the concept was turned on its head and partner discounts
and value-added offers were negotiated with national home
focused suppliers. Customers were then offered UP FRONT
rewards that they could take up immediately through a range of
different communications that addressed different objectives i.e.
client: sasko flour
campaign: mara & friends
agency: mo-B
Mara & Friends was a new TV show conceived to bring Sasko
Flour’s message of ‘better tasting baking’ to life. The combi-
nation food/chat show is hosted by the hugely popular lead
star in Muvhango, Mara Louw, who invites her celebrity
‘friends’ into her subtly branded Sasko Flour kitchen to talk
about food, themselves, and their work in general. Mara and
her guests bake, chat about and eat the results of favourite
recipes created with the help of Sasko flour.
The programme targets Sasko Flour’s largest market: black
females with families, LSM 4-6, with exposure to new recipes,
strong appetite appeal, an emotional connection to the
kitchen and providing tasty food for family, as well as the
obvious attraction of big local celebrities. Sasko Flour wanted
to get viewers interacting with the brand.
solution:
Sasko Flour produced 20 000 Baking Recipe booklets as giveaways,
and organised other contextually appropriate gifts, such as guest
Marc Alex CD, and Defy fridge
and stove. From episode six, Mara
invited viewers to send in their
request for the giveaways by
SMSing in their names and
address. A lot of care was taken to
handle the thousands of entries
56 direct > 2007
take-up (bond app. stage); Re-advance (conceptual mailings to
existing base) and Retention (newsletters & mailings).
results:
The bank and suppliers received brand awareness and both
got a foot in the door by having their products exposed to
a large base of home-owners. FNB benefited by having
existing home loan customers take up further bonds in
order to facilitate the purchase of new kitchens, paving etc,
thus entrenching them as FNB customers. New customers
were enticed by discount offers for carpets, kitchens and
moving from one home to another etc. The Re-advance
campaigns made payouts, on average, to 3 400 customers
off a base of 17 500, with a 19.45% response annually.
The total payout for year one was 400% ahead of the
targeted figure. The Retention segment of this programme
targeted 3 500 customers who were identified for the part-
ner offers. The average payout per customer on identified
discount offers was R50 000+. The partner offers and
rewards were also included in newsletter statement runs
and are an ongoing part of the marketing mix.
and to isolate name and addresses. Once the contact details
were captured, Mara sent an SMS reminder every Wednesday,
addressing the viewer by name and letting them know which
celebrity guest would be joining her in the kitchen and on
occasion details regarding the show’s recipes using Sasko Flour.
results:
Viewers were personally touched by the connection made
with Mara Louw and Sasko Flour. Comments such as
the ones below these prove the power of building a
relationship through celebrity marketing and a relevant mobile
communication strategy: “Your one to one comms makes a
person feel truly special and I thank you for that. Tremendous
marketing strategy.”
“Will do- thanx for the personal touch- much appreciated.”
“Thanx u 4 sms me.I keep all u’re sms so that l can brag and show
my friends that u know me by name. They all watch u’re show .”
“I loved the idea of sending sms’s i felt important... Thanks”
Sasko Flour gave away all their recipe booklets in exchange
for the opportunity to talk to their customers personally and
directly on their cellphone. What’s more, now, knowing
where in South Africa they are, Sasko Flour can target future
in-store promotion with SMS notifications, area by area, on a
one-to-one basis leading the viewers to buy a Sasko Flour
product in their closest store during the promotional period.
sasko
sponsors