- Highland Marketing

Transcription

- Highland Marketing
Sampling Solutions
Helping to build awareness and customer
loyalty through sampling programs
M A R K E T I N G
Table of Contents
Introduction3
1. Understanding and Minimizing Costs
1.1. Postage
3
1.2. Product Properties
4
1.3. Packaging
4
1.4. Geographic Concentration
5
1.5. Planning
5
2. Data Management
5
2.1. Secure Receipt of Data 5
2.2. Duplicate Checking
6
2.3. Silly Checking
6
2.4. Restructuring of Data
6
3. Options for Personalization and Targeting
6
3.1. Personalized letters
7
3.2. Generic, targeted letters
7
3.3. Personalized cards, coupons or buckslips
7
3.4. Generic, targeted cards, coupons or buckslips
7
4. Multiple Choice Sampling
7
5. Better Control of Your Delivery Times
8
6. GMP Compliance and Security
9
7. Key Team Members
9
Dave Ward, President
9
Allen Pengelly, Manager of Technical Services
9
Matt Ward, Creative Director
9
8. Case Study
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3
10
Introduction
Highland Marketing has been helping clients implement successful sampling
programs since 1996, supporting and deploying campaigns for some of the most
trusted and recognizable brands in the market. Through our 16 years of experience
in the sampling field, we have implemented programs and procedures which:
»»establish better control of delivery times
»»provide multiple sample selections for consumers
»»deploy varying degrees of personalization
»»secure, cleanse and manage your consumer data
»»reduce costs through batching and packaging
»»maintain strict security and GMP compliance
This document is intended as a brief overview of how we can leverage our skills
and experience to assist you in developing and deploying sampling programs that
provide an excellent experience for the consumer, at a reasonable cost to you.
1. Understanding and Minimizing Costs
There is no doubt that one of the biggest questions surrounding any given sampling
program is that of price. Unfortunately, there is no hard-and-fast answer as to exactly
what a campaign should cost. We have worked on projects with a final cost-perpiece ranging from around $1 all the way up to $18.
Obviously, costs can be impacted by any number of factors, but our experience has
shown that there are certain key factors which can have an impact—either positive
or negative—on the cost of your sampling campaigns.
1.1. Postage
Most samples and novelty items in Canada are mailed as Addressed Admail or
Dimensional Addressed Admail (each of which have two separate size categories).
Estimated average postage costs (for items up to 50 grams) at each category level
are as follows:
»»Short/Long Addressed Admail
$0.48
»»Dimensional - Small Addressed Admail
$0.85
»»Oversize Addressed Admail
»»Dimensional - Large Addressed Admail
$0.61
$0.98
As you can see, there is a dramatic difference between the Short/Long Addressed
Admail and Dimensional - Large Addressed Admail. The immediate reaction might
be to always opt for the $0.48 option, but there are some factors that can limit which
options you are able to use, the most important of which is your product sample
itself.
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1.2. Product Properties
The product that you are sampling has a huge impact on the associated costs of a
mailing. First and foremost, there is the physical cost associated with the production
of the product. A 7 mL sample of moisturizer is probably going to cost less than a 50
mL sample.
Moreover, size can also have a dramatic impact on the mail product required to
deliver the sample. For example, to qualify as Short/Long Addressed Admail, the
thickness of a finished piece cannot exceed 5 mm. If the product itself is thicker than
5 mm, it might be shipped as Oversize Addressed Admail, which can be up to 20
mm in thickness. This increases the cost-per-piece by about $0.13—or $1,300 on a
10,000 piece mailing—simply based on the size of the product.
Of course, many sample products that come in tubes or vials are thicker then 20
mm. This means that they cannot be mailed as Oversize Addressed Admail and need
to be bumped up to the Dimensional Addressed Admail categories, which have a
maximum thickness of 45 mm. This results in another cost increase of $0.25—or
$2,500 on a 10,000 piece mailing (based on moving up to the Dimensional – Small
category).
Several of our sampling clients have experienced prior challenges in these areas, and
now generally talk to us during the planning stages of their campaigns. Often, they
will send us a sample of the product they want to use and we will use the physical
properties to help calculate the associated postage costs. We can then discuss
these costs to determine whether or not sampling the product will be viable.
1.3. Packaging
Packaging can also have a significant impact on the cost of sampling, in a number
of ways. First, the cost of the packaging itself comes into play. We have fulfilled
samples using all kinds of different packaging, from simple paper envelopes to
elaborate, full colour presentation boxes. Obviously, there is a huge difference in the
cost to produce the box over the envelope.
There can also be higher associated prep costs. The longer it takes to put a mailing
piece together, the higher the prep costs are going to be. As such, a complex
presentation box that needs to be assembled, filled with product (and, optionally,
literature), closed and sealed has a much higher prep cost than something stuffed
into a simple envelope.
Of course, the dimensions of the package itself can also impact the postage costs.
We had one large project where we were working on a box containing multiple
samples. Based on initial discussions, it seemed as though the package would need
to be mailed as Dimensional Addressed Admail - Large. However, once we were
able to work with actual samples, we were able to design a box that fit into the Small
category, saving the client in the range of $12,000 in postage.
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1.4. Geographic Concentration
Lastly, geographic concentration has a strong influence on the cost-per-piece of a
mailing. Without getting into too much technical detail, if you send more pieces into a
given geographical area, you will generally enjoy somewhat better postage rates.
This is a direct result of the way we are required to sort your mail before delivering it
to Canada Post. The automated sort tries to do as much of Canada Post’s sortation
work as possible. The more pieces there are in a given area, the finer we can make
the sort, resulting in better postage rates.
As such, geographic concentrations are often a contributing factor in how a sampling
program is run. This is especially true for ongoing campaigns, which may delay
deployment for a week or two in order to increase overall numbers. This generally
helps to increase concentration, driving down the cost-per-piece of the mailing.
1.5. Planning
Clearly, there is a wide range of important factors that contribute to the overall cost
of a sampling campaign. However, having a solid understanding of these factors and
taking the time to carefully plan out a campaign can help minimize extra costs and
prevent any unpleasant surprises.
Highland Marketing has a great deal of experience in these areas, having been a part
of numerous planning teams over the years. We would only be too happy to assist
you in this area.
2. Data Management
Like any other form of direct marketing, all the work that goes into planning and
executing a great sampling campaign can quickly come undone through bad or
improperly managed data. Highland Marketing is highly experienced in this area,
and we have a number of procedures and services to help manage and maintain the
integrity of your sampling data.
2.1. Secure Receipt of Data
Most sampling programs that we work with today are driven by data collected
through websites. The data is captured and stored on a secure server. Records are
packaged and made available for secure download to Highland Marketing, where the
data is normally cleansed (using services outlined below) and used for the fulfillment
of samples.
For ongoing sampling programs, the period of time between downloads is often
two weeks. This allows volumes to build to a reasonable level, while still maintaining
an acceptable turnaround time between the initial request and the final delivery.
Occasionally, as some programs are winding down, the time between downloads will
be extended in order to allow for higher mailing volumes.
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2.2. Duplicate Checking
Virtually every sampling program that we have ever worked on has had some sort of
sample limit. It may be one sample per email address, or one sample per household.
Despite these limits—and the built-in validation checks used to enforce them—it is
not uncommon for some consumers to try creative tactics to receive more than their
allotted share of samples.
Highland Marketing has developed sophisticated software for detecting and purging
these duplicate records.
2.3. Silly Checking
In addition to multiple sample requests, we have experienced numerous instances
in which unscrupulous individuals submit their requests using rude (and sometimes
downright vulgar) pseudonyms. Obviously, our clients do not want their samples
being mailed with these sorts of obscenities, so we have developed a process that
we call silly checking. Key fields on the file are carefully checked for any vulgar or
otherwise inappropriate content. Any records that are found are flagged and purged
from the list.
While the vast majority of sampling programs that we have worked on are only valid
in Canada, the data we receive frequently contains requests with bogus addresses
from individuals trying to receive samples in other countries. Silly checking can also
be used to flag and purge these records.
2.4. Restructuring of Data
Occasionally, we may receive data that is incomplete or improperly formatted. Most
often, this is the result of consumers failing to provide information, providing only
partial information or entering the wrong information in specified fields. This can
cause a variety of issues, especially where some form of personalization is involved.
Again, we have the tools and expertise to help protect you in these areas. With
our extensive experience, we are able to quickly assess the quality of the data we
receive, diagnose any problems or issues that may exist and work to restructure and
realign data, as may be required.
In cases where key data is missing, we are more than happy to assist in establishing
generic placeholders, as may be required.
3. Options for Personalization and Targeting
One common but effective direct marketing technique is to make use of ever-
evolving variable print technologies in order to add a personal touch to your mailing
piece. At Highland Marketing, we are seasoned experts in this area.
When it comes to sampling, we have found that there are four main types of
personalization that are normally employed:
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3.1. Personalized letters
The personalized letter is a traditional but effective technique, which allows you to
include a personalized greeting—or other tasteful variable substitutions—in order
to establish a connection with the recipient. The longer format of the letter provides
plenty of room for marketing copy, which can also be carefully tailored to the
individual recipient.
3.2. Generic, targeted letters
Although it may sound contradictory, using generic letters to target different
customer groups can actually be very effective. When using this technique, you
break your mailing list down into different streams, based on relevant criteria—such
as age, gender, purchase history, brand loyalty etc.—and send a different generic
letter to each stream. This still allows you to use highly targeted copy, while still
enjoying some of the price benefits of volume printing.
3.3. Personalized cards, coupons or buckslips
Sometimes you may not need to send a full letter along with your sample, but still
want to include a brief message. Personalized cards or buckslips can be a great way
to achieve this, while still maintaining that personal connection with the recipient.
Personalizing a coupon can be another great technique, which offers the additional
benefit of being able to track redemption rates.
3.4. Generic, targeted cards, coupons or buckslips
The same concept that we saw with the generic, targeted letter also applies here.
Break out your list and send a different generic card, coupon or buckslip to each
stream. This can be an excellent and very affordable way to include a targeted
message with your samples.
Each of these formats has its own advantages, and selecting the most appropriate
form of personalization—if you chose to use personalization at all—is generally
based on the goals and nature of your campaign.
4. Multiple Choice Sampling
Historically, most sampling programs have focused on a single product sample.
Recently, however, there has been increased interest in allowing consumers to select
multiple samples from a range of different (though often related) products.
In response to this increased interest, Highland Marketing has developed a system
that will accommodate selections from a mix of samples and coupons on a client
website. Provided that any resultant Addressed Admail mailing consists of packages
within the same category and weight class, Canada Post will permit the mailing of
mixed packages deposited on behalf of the same client.
While this may not be appropriate for all of your sampling programs, it can afford
opportunities for “either/or” situations. Some examples might be:
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»»consumers selecting from either an acetaminophen or ibuprofen product to
experience different pain relief remedies
»»consumers picking from a variety of different products belonging to a single
brand, in order to try different experiences with that brand
These types of programs do require considerable planning to:
»»select products that will fall into the same size and weight category
»»design packaging that will accommodate various samples
Again, we have experience in these areas and would be more than happy to assist
you. For more information on these types of projects, please refer to the case study
included on pages 10 and 11 of this document.
5. Better Control of Your Delivery Times
One of the biggest challenges with sampling programs can be finding the balance
between providing an excellent consumer experience—including minimizing delivery
times—while still maintaining the lowest possible postage costs. At Highland
Marketing, we have developed an effective program for establishing and maintaining
this balance.
The crux of this challenge stems from the fact that delivery times for Addressed
Admail—the preferred product for mailing samples—can range from 3 days to 3
weeks, depending on the distance your samples need to travel. This is because
Addressed Admail is transported by ground, and it can take several weeks to truck
mail across Canada and/or into many remote locations. Clearly, this can have an
adverse effect on delivery times and the overall consumer experience.
The much faster alternative—at least for pieces up to a maximum thickness of 2
cm—is to mail your samples as Lettermail. Commonly known as First Class, pieces
mailed using this product have a much quicker delivery time. Unfortunately, they also
have higher postage costs, especially for some heavier items.
This is where our unique 9-Day program can really help bridge the gap between both
products, striking a manageable balance between cost and efficiency.
Through an analysis of delivery times for postal codes right across the country, we
have determined that there are relatively few instances where delivery will take more
than 9 business days for Addressed Admail mailed from Southern Ontario. Based
on this, we wrote a computer program that analyzes your mailing list, flagging any
records that will require 9 or more days for delivery. Generally speaking, the flagged
records account for less than 7% of files with relatively even national distribution.
As an example, if we were deploying 10,000 samples right across the country, 7% of
the file would account for only 700 records. If we mail these 700 pieces as Lettermail
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at $1.34 each and the other 9,300 records as Oversize Addressed Admail, at an
average cost of $0.61 each, our total postage cost will be $6,611. This comes out to
an average cost of $0.6611 per address for the 10,000 records.
Mailing all the pieces as Addressed Admail would cost somewhere in the range of
$6,100, and delivery for all pieces would take up to 3 weeks. Using our program, we
are able to improve the overall consumer experience by bringing delivery times for all
of the samples into the 9 day range, all for just an extra $511.
6. GMP Compliance and Security
Every day, we operate under detailed guidelines and standard operating
procedures that are compliant with the Good Manufacturing Practices (GMP) of the
pharmaceutical industry.
These procedures cover all facets of receiving, storage and allocation of fulfillment
samples. This also includes logging Lot Numbers by consumers, should a recall
of any kind be required. Additionally, these procedures control all facets of plant
operations and ongoing Quality Assurance.
We also operate under a wide range of security policies, which help to ensure
the safety of both your product samples and consumer data. Security measures
include motion-based security system, a network of interior and exterior surveillance
cameras, firewalls, strong encryption on sensitive data and strict procedures for the
destruction of data and decommissioned computers.
Highland Marketing undergoes periodic audits and reviews to not only ensure that
we are in compliance with our standard operating and security procedures, but that
our procedures also continue to support current GMP requirements.
7. Key Team Members
Dave Ward, President
Dave spent 12 years in the insurance industry working as a Programmer, System
Designer, Senior Business Analyst and Project Manager, and has also designed
integrated sales and marketing application software.
Allen Pengelly, Manager of Technical Services
Allen has worked for several Ontario-based businesses as a Database Programmer
and Analyst, designing sophisticated programs and data solutions.
Matt Ward, Creative Director
Though known to most clients for his graphic design and creative contributions,
Matt also has extensive experience in programming, application design and web
development.
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8. Case Study
High Volume Pick & Pack Campaign
In the spring of 2012, we worked on an exciting pick & pack (multiple choice)
campaign, in which consumers could select any 5 items from a combination of
six product samples and six coupons featured on a website. Our role was to fulfill
100,000 packages with contents varying by consumer selections, while working to
ensure the highest possible rate of delivery within a given timeframe.
Campaign Considerations
Like all effective sampling projects, there was significant project planning at all levels.
From our perspective, we were involved in:
»»the physical design of a presentation box, ensuring it met the criteria for the
Dimensional - Small product, while still maintaining the structural integrity that
kept it looking great when it arrived in the consumer’s mailbox.
»»developing a data strategy to ensure that all packages were delivered within
the specified timeframe, and at the best possible postage costs
»»ensuring that we had processes in place to manage all facets of the project,
delivering the right items to the right consumers
Design of Presentation Box
After reviewing a variety of sample box designs from other campaigns, the client
opted to go with a high-end presentation box.
The first step was to design a mock-up that would house the mix of sample products
representing the largest physical volume – and to keep this within the Dimensional Small size. Interestingly, if the piece had been mailed as Dimensional - Large, it
would have increased overall postage by about $12,500.
The dimensions and design characteristics were forwarded to the box manufacturer
for construction of a prototype, prior to making the die for the boxes. After the
physical design was approved and finalized, the die line was sent to the graphic
designers, who created the final look for the packaging.
Delivery Logistics and Data Analysis
As noted in section 5 of this document, delivery times can have a dramatic impact on
sampling programs. As this project had a stated timeline of 4 – 6 weeks for delivery,
it made sense to fulfill requests from the furthest destinations first.
Once the website went live, we began to recieve data at regular intervals. Upon
receipt, we analyzed the mix of selected products and coupons, along with the
geographic distribution. As expected, there were some commonalities that allowed
us to segment streams, mailing to some of the furthest destinations first, without
affecting postage costs. Not only did this help to keep overall postage costs below
budget, it also helped in our efforts to meet all delivery times.
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Package Assembly and Selection of Contents
This was a complex project, with a combination of over 500,000 product samples
and 600,000 coupons to draw from. To be successful we recognized that:
1.All consumers needed to receive the selected mix of product samples and
coupons
2.Assembly workers would need ongoing station replenishment so that there
would not be any work stoppages in production
3.We would require an orderly flow of work-in-process and finished items
staged for shipping
To simplify the assembly process, we used custom stations that had separate bins
for each of the product samples and slots for each type of coupon. Additionally,
every piece was coded with a combination of the letters A – F and the digits 1 – 6,
representing to the selected combination of samples and coupons.
A key part of the assembly process included filling the presentation boxes with the
requested items. All of the boxes were pre-built and delivered to the final assembly
stations along with product samples and coupons, ensuring that there were no
stoppages in production.
Here is a photograph of one
of the custom-built assembly
stations that we developed for
this project.
Once addressed and assembled, the packages were sealed with a two-inch round
wafer seal. We went with a non-perfed seal so the package would not accidentally
split open during assembly or transit.
Conclusion
Projects like this are very exciting. We are firm believers in the value of product
sampling and enjoy being part of a process that helps our clients win new customers
and maintain customer loyalties.
As you might expect, the campaign itself was highly successful, and we were
thrilled to be a part of such an exciting and innovative sampling project. From
our perspetive, the key to this success was a careful balance of rapid production
and quality assurance, making sure that the right items were shipped to the right
consumers, within the specified timeframe.
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935 Gartshore Street
PO Box 160
Fergus ON N1M 2W8
Local: (519) 787-2905
Toll-Free: (800) 422-1309
M A R K E T I N G
Fax: (226) 383-2907
www.hiland.com
Direct Marketing - Linking it all Together
We offer creative, data-driven concepts that allow you to deliver uniform, engaging
and targeted messages to your customers through a blend of conventional direct
marketing and emerging technologies.
Trust & Experience
We have mailed samples for each of the following major brands during one or more
campaigns over the last 12 years:
Tylenol
Zantac
Imodium
Motrin
K-Y
Nizoral
Pepcid
o.b.
Nicorette
Neutrogena
Carefree
Johnson’s Baby
Aveeno
Stayfree
Acuvue
Evian
Reactine
One-Touch
Band-Aid
Clean & Clear
G·U·M
Splenda
Reach
Listerine