- 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 2 | Highland Marketing Sampling Solutions 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. 3 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. 4 | Highland Marketing Sampling Solutions 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. 5 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: 6 | Highland Marketing Sampling Solutions 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: 7 »»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 8 | Highland Marketing Sampling Solutions 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. 9 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. 10 | Highland Marketing Sampling Solutions 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. 11 935 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