March 2010 – Channel Crossing: Teleservices

Beyond Call Center Metrics

It is easy for call centers to forget the importance of ROI (return on investment) to prospective clients. Many centers fail to realize that their services are not limited to answering calls and offering customer support. In fact, despite the significance of call center metrics, this alone does not tell the entire story.

In order to sustain client relationships, call centers need to think beyond call center metrics. They must strive to understand their clients’ exact needs. Besides inquiring about call volume and hours of operation, centers should ask questions such as: What are your outsourcing objectives? Do you have any sales targets/goals for us? Who are your competitors? What are your current sales/support targets? What can we do to create the best ROI?

PRACTICAL STEPS
While utilizing the call center’s calls for new thinking on the client’s part, the call center must also understand each client’s unique needs. Here are some practical steps for success:

• Stay abreast of new marketing strategies.
• Attend trade shows and develop contacts with other vendors.
• Provide business consulting, especially for clients new to using call centers.
• Provide current data on the client’s competitors.
• Offer a clear picture of what the client can expect.
• Help each client understand their goals and how to achieve them.

Not every business is looking for the lowest cost option. Many clients are willing to invest in a call center that fully understands their business needs and creates profit. They need a call center with a track record of producing great ROI. More importantly, they need a center that is fully committed to their success and strives to exceed their expectations on all levels.

It is the call center’s responsibility to frequently update clients on its progress. The center should devise incentive programs to reward customer loyalty and attract new customers. Surprisingly, clients often fail to inform the call center of their concerns. If call centers do not communicate with clients regularly, they may lose their client base. So every call center must take the initiative to communicate with clients regularly, even if things are going well.

The call center can also use service calls to gauge customer satisfaction. This can mean asking:

• What can we do to make things better?
• Are you interested in any other product of ours?
• Was the infomercial interesting?

When this information is passed on, clients can make improvements and be more competitive.

Choosing the right call center can be confusing for any client. So it is very important that call centers be prepared to go the extra mile for their clients. Any good call center understands the importance of call center metrics. But not many are willing, or even able to go the extra mile.

It’s the call center’s responsibility to be committed to its clients’ success and increase their bottom line. For any call center that fully understands this commitment, it means going beyond call center metrics. This ensures the most coveted prize–success.

Suresh Dakshina is senior marketing manager at InSO International Call Center. He can be reached at (626) 531-6080, or via e-mail at suresh@inso.us.

March 2010 – Cover Story: ShopNBC Revisited

CEO Keith Stewart Breathes New Life Into What He Calls An “18-Year-Old Startup.” The Industry Veteran Talks About Changing The Company Culture And Restoring Customer Confidence In The Brand.

By Vitisia Paynich

For years, ShopNBC had been struggling to capture market share, while its rivals vied for the No. 1 and 2 spots. To differentiate itself from the competition, this $517-million multichannel retailer, headquartered in Eden Prairie, Minn., focused its energy on more high-end product categories with a high pricepoint to match. The average selling price was around $200. However, this business model proved too challenging, leaving the company with mounting debt and growing customer dissatisfaction. And in the past 18 months, the company has had three CEOs.

ShopNBC, owned and operated by ValueVision Media, was determined to shift the tide and transform itself into a formidable adversary in the electronic retailing space. In 2008, the company coaxed Keith Stewart out of retirement and convinced him to take on the role of COO.

Stewart joined the company with impressive credentials. He spent 20 years in retail, 15 of which were with QVC in merchandising and operations. In 1998, he relocated to Germany where he successfully launched QVC Düsseldorf. Prior to his retirement, Stewart had created the largest international televised retailer outside of the U.S.

Why did this industry veteran come out of retirement? “Because I’m a lousy golfer,” quips ShopNBC’s CEO. Although Stewart was self-effacing when first asked this very pointed question, he insists that he was up for the challenge. In fact, he believes in the company so much that he elected to forego his first year’s salary to prove it.

In addition to jewelry, ShopNBC now concentrates on other product categories like apparel and home goods.

Stewart was named president and CEO one year after coming on board. And in the time he has taken the reins, ShopNBC has turned the corner by not only broadening its customer base to 1 million but also increasing its online business by 38 percent–a number that continues to climb. In addition, he’s aligned himself with other seasoned home shopping experts including fellow QVC alums Randy Ronning, who serves as ShopNBC’s chairman, and Bob Ayd, who was promoted in January to president.

Electronic Retailer caught up with Stewart to learn more about how he’s been able to put ShopNBC on the right path.

Electronic Retailer: When ShopNBC approached you to come on board nearly 18 months ago, how would you describe the company’s financial state at the time?

Stewart: It was tenuous at best. You have to be candid with yourself if you’re going to take a big step like that and you have to take a very objective look. At that point in time when I was interviewing, the balance sheet was OK. They had a very long list of strong assets, but the company had been losing thousands of customers every month. And for almost 18 years, the company did not deliver a profit. So, that’s an immense change to have to make, not only in business results but also in the overall culture of the organization. But there was just an awful lot of opportunity in front of us.

ER: Did this cause you to reconsider joining the company?

Stewart: No. I’ve spent considerable time at a startup in Germany and I viewed this as an 18-year-old startup. They have plenty of opportunity and with the right business decisions, the right direction, and the right team, success is imminent.

ER: During that time, about two-thirds of ShopNBC’s distribution agreements were due to lapse at the end of 2008. How did you turn that around?

ShopNBC crew members prepare the set for the next show.

Stewart: I wish it were just the distribution agreements; it would have really simplified everything. Looking at it from an employee’s perspective and vendor’s perspective, there were three CEOs in 18 months. The morale was very low among the organization. As I mentioned, the company was losing thousands of customers every month for quite some time. The business operations itself really drove high return rates and low customer service ratings. We were focused primarily as a jewelry retailer, and we had looming debt of $44 million coming due very soon. On top of that, we had distribution contracts that were set to expire. So, there was an awful lot going on all at once.

Carving out the distribution footprint, what we did was put together an affiliate relations department. Secondly, we knew we had complete control of the negotiations with the MSOs and satellite companies and we approached this very much as a win-win situation. They knew from our requests that we had to lower our costs. They also knew it was important that we continue to provide content for them and for their customers. Fortunately, we did renew 100 percent of those contracts. And not only were we successful in re-upping the distribution, but we also dropped $24 million out of the expense line. In many of the larger markets, we improved our channel positioning.

ER: Part of your new business model includes recruiting what you’ve described as the “Gold Standard” of executives. How does their experience factor into the restructuring process?

Stewart: Their experience complements the larger group of employees at ShopNBC. And that mix is a very powerful one. Many of these people you are referring to have seen the movie. It’s a very competent group of people who are focused on business results and on customer centricity.

ER: When Electronic Retailer interviewed ShopNBC in May 2007, the company was on the path toward becoming more multichannel-oriented. Does this remain part of your current marketing strategy?

Stewart: It’s central to our marketing strategy. We’re going to serve the customer any way he or she wants to be served. So, those portals–as technology grows–go beyond the platform of merely television. It is a dot-com platform. It is a mobile platform. And we were the very first electronic retailer to launch on a mobile platform with the iPhone. While we continue to improve that technology, one needs to bear in mind that the customer is everywhere. If it’s on Facebook, MySpace or Twitter, we need to continue to service them in the many ways that they want to be serviced. So, we’ll continue to broaden the ShopNBC strategy as part of our multichannel distribution efforts.

ER: What is ShopNBC’s unique value proposition?

Stewart: The unique value proposition starts with our positioning in the market as the premium lifestyle brand. At the end of 2008, our average selling price was over $200. And we knew we had to lower that average selling price to open up access to more and more customers. Our stated goal by the end of 2009 was right under $100 and we did hit that goal. However, that is not about lowering quality–it’s about opening pricepoints and broadening our appeal to our customers. We continue to offer big brands like Movado, Sony and Samsung. And we will continue to build new product categories with notable brands and intellectual properties. Recently, we launched Ted Gibson hair care, Vapour color cosmetics and Via Spiga handbags. Ed Hardy is very timely and profitable and we’ve been very successful with that brand. It’s about offering different products that are meaningful and relevant to the customer.

ER: So, with a lowered average pricepoint of $98, you’re not going after a completely different customer but broadening your customer base?

Beauty is just one of the product categories that ShopNBC intends to expand by offering top name brands.

Stewart: That’s exactly the point. We’re broadening our customer base and in fact, our customer base in 2009 grew 36 percent amid some very difficult economic times for retail. Our new customers grew over 520,000–that’s 60-percent growth in 2009. When we hit the milestone of 1 million customers at the end of December, it was an immense change in the overall structure of this organization. So, we’ll continue that torrent customer growth as we continue to successfully turn this company.

ER: The jewelry category was once a mainstay of the company’s overall product mix. Going forward, will this still be the case?

Stewart: Jewelry is still an important part of our business and will continue to be, but it won’t be the only business in which we operate. We’ll be a general merchandise retailer offering many different product categories to our customers. As I mentioned, we’ve gotten very serious in the beauty category with hair care and color cosmetics. We’ll continue to grow our apparel business. We’ll continue to expand our home business with our domestics and textiles. We’ve been very successful in launching gourmet foods. As we continue to launch different product categories and expand our existing ones, it’ll be a complement to jewelry. But we certainly aren’t planning at all on doing anything but growing that business and making it productive.

ER: Prior to you joining the company, ShopNBC was plagued by high return rates on merchandise. What changes have you made to reverse those numbers?

In 2009, Suzanne Somers joined ShopNBC with her full product line and loyal legion of fans.

Stewart: The first thing we had to do was change the culture. We had to say our high return rates were bad because the customer didn’t want to keep the product, and thus, returned the product. Now that may sound over-simplified but it’s something you really have to look at as a culture of an organization. We started with customer centricity. What does he or she want from ShopNBC as it relates to product and services? Second, once we changed and accepted that, we had to install systems that allowed us to measure the business results specific to cancellation and return rates, productivity and the like. We did install those systems and put in place benchmarks for each product category. We also installed rigorous QA and QC standards and systems in our business process. Now we have total transparency as it relates to our overall goals and targets. Again, these goals and targets are not merely financial. This is all to benefit the customer and it’s not only about creating customer centricity, but connectivity to the customer. So, our goal is to offer that customer a meaningful and relevant product that she likes. If she opens the box and we exceed her expectations when the product arrives at her home, then we’ve done our job.

ER: Given your vast experience in the international marketplace, are there plans for global expansion?

Stewart: This is in our future without question. However, we have much to do domestically before we start to lay the plans for global expansion. We are focused on driving shareholder value, growing our customer accounts, improving our customer service metrics, leading connectivity with our customer, and delivering consistent results each quarter. And as this business continues to be more consistent and predictable, we will start to lay the foundation for additional, organic growth opportunities.

ER: What is your personal stake in ShopNBC?

Stewart: I think the more important question is: What is the insiders’ stake? And, that means the management, the employees and the board. Of the total economy, insiders are 12 percent. So, certainly you can see this organization is very much aligned with the shareholders and the stakeholders like our vendors. As it relates to my personal stake, it’s a little less than half of that.

ER: You’ve set a goal of three to five years in which ShopNBC will double its sales. Given that the economy is still struggling to recover, is this a realistic timeframe?

Stewart: The economy does not control our future. This is an 18-year-old startup. If you look at the productivity, we are about $7 in sales per home. That contrasts with others that are $58 in sales per home. So, there is a lot of opportunity with our existing distribution to become more productive. I would say certainly, a three- to five-year time period is more than reasonable.

February 2010 – Channel Crossing: Teleservices

The Little-Known Key to Profitability: Save The Sales!

You have your product, you have great marketing, you’ve bought your media, you have customers and you are well on your way to being a direct marketing success. But will you be profitable?

WHAT IS THE KEY TO MAKING A DM PROFIT?
You need to keep the product in the hands of the customer. Save as many sales and keep the rate of product returns to the lowest rate possible.

It sounds easy, doesn’t it? But as anyone who has been in the direct marketing business will tell you, it’s a major challenge facing each and every one of us. And, it can make the difference between a profitable year and operating at a loss.

Customer service and sales become, in many ways, the keys to your profitability. Here’s the scenario: You reach your customers by TV, radio, web and/or social networking and they buy your product. Not only do they buy your product, they buy add-on features or services. You are thrilled and your numbers start to climb.

But then, within your return time, the customer wants to return the product for a full refund. She didn’t have time to try it before the guarantee ran out, she didn’t like it, it didn’t work, she can’t afford it anymore, or any of a hundred other reasons. She wants her money back–now.

But wait…there’s more. She also wants you to reimburse her for shipping and processing, and if you want the product back, she wants you to pay for the return shipping, as well.

Not only are you now looking at returning the merchandise price, but you are having to fork over the hard costs associated with shipping and processing, maybe even both ways. You would have to sell more products, just to pay for that additional cash outlay!

IT GETS WORSE
If the customer has opened the item, you not only are looking at the loss of the sale, you are also looking at an additional loss of the hard wholesale price of the product.

It could be the triple whammy! But if you act now, you can save this sale!

HELP IN FIVE STEPS
So, how do you save this sale? Following are a few key tips that will assist you:

Step 1: Require customer service contact. It is important that your customer service facility becomes a key part of your marketing team. By requiring the customer to contact customer service for a return, you have one more chance to try to identify the problem and satisfy the customer so that the product stays in the customer’s hands.

Work with your customer service facility to identify the best ways to address the most common customer concerns. For instance, if the customer has not had time to try the item and is returning it out of caution, consider giving the agent the power to extend the return period so that the customer has time to try the product (and hopefully like it). It costs you next to nothing and may keep products in the hands of the customer and out of your return pile.

Step 2: Offer a money-back guarantee. Clearly and consistently state your return policy in your ads and on your website, packing documents and other materials. If you give a 30-day money-back guarantee on the merchandise price only (not on shipping and processing) have this clearly printed in a place where your agent can refer the customer. In this way, your agent can take away the argument about shipping and processing as well as return shipping costs quickly and efficiently. This allows the agent to move on to the more important effort of trying to keep the product in the customer’s hands. If the customer understands that they can get their merchandise price as promised, but that they will have to absorb the shipping and processing charges as well as any charge to return the product, many will think twice about sending the product back. The agent can work with them to try to get them to further try the product or give it as a gift to another person who might become a new customer.

Step 3: Establish a clear RMA Policy. Require the use of a Return Merchandise Authorization to return the product. It is very important for the customer to receive and use the RMA number in order to make sure that correct and timely reimbursement is made to the right customer. If the customer writes return to sender on the package, the cost of the return will be yours and it will be more difficult and time consuming for your returns processing facility to process returns on a timely basis. Delays can cause additional costs through more customer service calls.

By having a clear RMA policy set in your publications (including packing materials and website), you can keep greater control of this process and lower your costs if returns do occur.

Step 4: Analyze reasons for returns. Determine why the customers are returning the product. This allows you to understand and adjust your program, if possible, to lower the number of customer returns.

It may indicate that you need additional demonstration or information in your ad. Maybe you need to speed up your shipping or additional instructions in the packaging. This information may allow you to adjust your marketing program to make it even more effective.

Alternative continuity schedules also allow your customer service group to be at their best–getting more products to the customer on a timely basis and encouraging the customer to keep the product and stay active.

Step 5: Develop alternative offers for your customer service team. Once you identify the problems, you will be able to find a wide variety of ways to encourage your customers to keep your products.

If they are returning due to problems with use, you can train your customer service agents on how best to explain the product’s use. If they are returning due to dissatisfaction with perceived value, determine what discounts you can give to keep the product in the customer’s hands or what continuity alternatives might work to keep ongoing sales.

Do you have inventory of other or related products or services that you could use as an incentive for a customer to keep a product or, more importantly in many cases, to stay in a continuity program? Make the most of your assets and keep as many products as possible with your customers and off of your return shelves.

FINAL STEPS
Your priority should be to find an experienced and high-quality customer service center that can provide you with the best customer service possible. Customers who are treated well when they call customer service, even if they don’t get everything they want, are far more likely to keep a product.

Second, find a facility that focuses on being a profit center, not just a cost center. Customer service is no longer just a place for complaints. Why waste your time with a cheap, bare bones call center that cannot help you become as profitable as possible? Find a place that can add value in not just customer service, but as a valued member of your marketing and customer retention programs, as well.

Third, work closely with your customer service center. Don’t make customer service an afterthought. You have worked hard to bring in customers and you don’t want to lose them; if at all possible, keep them happy and coming back for additional products and services.

There’s been a revolution in customer service. No longer is customer service just a place for unhappy customers to vent. It is a place to find ways to keep those customers happy and to bring in additional value to direct marketing businesses. In this day and age, none of us want to lose customers if we can help it.

Effective customer service and sales is your key to profitability.

Bruce Stone is president of Applied Perceptions LLC, a full-service, bi-lingual call center based in Simi Valley, Calif. He can be reached at bstone@apcrc.com.

January 2010 – Feature: Getting to ‘Yes’ Over the Phone

Practical advice for finding and training skilled call center agents who can generate those much-needed sales

By Lee Swanson

At a time when consumers are more reluctant than ever to part with their hard earned money, getting the phone to ring isn’t just a preamble to taking an order–it’s often the first step in closing or losing a sale. The ability to reach across the telephone line and maintain a dialogue with a consumer that results in “yes” is both an art and a science that requires special skill. This ability is perhaps best described as emotional intelligence, a term popularized by former New York Times writer, psychologist and science journalist Daniel Goleman in his watershed work, “Emotional Intelligence: Why It Matters More Than IQ.” Goleman describes emotional intelligence or EI as the keen ability to sense, understand and react to the emotions of others; what some would call gut instinct. And while it is easy to appreciate why this capacity would be so valued in a consultative call center environment, hiring, training and maintaining this coveted skill requires a rigor all its own.

The first step in the hiring process for such individuals often involves psychological testing such as the Meyers-Briggs test or various EI tests readily available online as well as a résumé scan for past sales and/or telemarketing experience. Nonetheless, there is no substitute for one-to-one engagement. This is where one can get a sense of critical intangibles and answer key questions: Does the candidate possess high energy? Do they convey empathy? Are they articulate? The next two important steps help separate the wheat from the chafe.

THE LITMUS TESTS
Applicants are given a telephone and a calculator and asked to choose one and sell it to the interviewer. If the interviewee begins by probing for needs and then sells to those needs, one immediately senses that the basic ingredients of a consultative salesperson are present. If they immediately start selling to features without any understanding of the interviewer’s motivations, it is a good indication that they may not possess the fundamental skills to succeed in such a Darwinian environment.

Next we test applicants on the telephone with no script to determine how quick they are on their feet and if they are able to answer questions confidently. If we are screening for a dedicated operator group, we look for relevant experience that will give the agent the ability to address the subject at-hand, first-hand. For example, we’ve used recovering stress and anxiety sufferers for a self-improvement program because they have real experience that allows them to engage with consumers around a sensitive subject in an authentic and credible way. Similarly, a fitness buff is going to be the best advocate for workout equipment and a woman who actually uses an anti-aging regimen is obviously going to be the best representative for a skincare line. It may seem simple, but divining for this powerful combination of abilities isn’t an easy task–less than one in 10 is actually hired.

TRAINING DAYS
Once hired, operators are subjected to a meticulous Call Certification Test that poses questions about the product they will be representing to ensure they are armed with the proper knowledge to represent a particular brand and product. Next, agents are trained in a multi-step selling process as follows:

Introduction - Once a call comes in, an operator has only a matter of seconds to establish a connection with the caller based upon their energy level, voice inflection and the degree of confidence they convey. Agents should be warm, enthusiastic and helpful so that the consumer feels good about their decision to call. It is during this initial exchange that the operator needs to ascertain what sort of individual is phoning.

Profiling the caller type - Broadly categorized, there are four primary types of callers. Operators need to immediately determine what type of caller is making the inquiry so that they can respond in a manner that is sensitive to the caller type. These general classifications are:

• The Social Personality - This individual is often a mother or father figure, nurturing in their disposition. They want to feel good about their decisions and need to be treated as an individual; rote scripting will not do here. Think of the sort of person who calls into live home shopping to give a testimonial.
• The Driver - The opposite of the Social Personality, the Driver wants “just the facts, ma’am.” They want quick answers to their pointed questions that will allow them to make an educated decision. Agents need to tell them the benefits and features of a product and give them the case for why they should buy. Drivers tend to be predominately male.
• The Analyst - This type of caller may require more detail and time to understand those features and benefits, so patience is the watchword when dealing with this type of personality. However, since time is money, the operator needs to keep the conversation on point to ensure it is not too meandering, thus a sharp sense of balance is required.
• The Non-Decision Maker - This group needs advice and counsel. The operator acts as a friendly ally or consultant to help non-decision makers arrive at a decision that may be more of a risk for them than the other groups.

Probing – Once the agent has established initial rapport and generally surmised what kind of caller they are speaking with, they should ask a series of open-ended questions to determine what the caller’s specific needs are. What are they trying to accomplish and why? For example, if they are phoning about a weight-loss program, is there a particular event they are preparing for, say, a wedding or a cruise? This will establish the caller’s principle motivation.

Build value - In most consultative telesales propositions, the consumer doesn’t know the price of the product or service they are calling about. It is, therefore, imperative that the agent seamlessly connects product benefits to the emotional needs of the consumer so that the latter is focused on value and not simply cost.

Discuss price – Inevitably the discussion will lead to price, but there is power in positioning the price with positive selling words and avoiding negative ones. Positive words and phrases include value, savings, “payments as low as,” “the price was x, but now it’s y,” “if you act today,” “special promotion,” etc. Words to be avoided include price or cost. This may seem basic, but embedding the right words can reap powerful returns.

The Close – If you think about it, a good percentage of your inquiries are phoning really looking for permission to buy. It is, therefore, your telemarketers’ job to convince them by giving them the information they need to feel good about their decision. So every time throughout the dialogue that you ask a question and get an affirmation, it nudges the consumer closer to getting out their credit card. That is why there is profound strength in the assumptive close. This takes the form of questions that tie the product’s promise directly back to the needs the consumer identified in the beginning. Some examples might include, “Isn’t this exactly what you’re looking for, Mrs. Jones?” “Wouldn’t this be ideal for your son or daughter?” “And which credit card would you like to use?” If you can get to three “yeses,” your closure rates will improve exponentially.

Rebuttals - Despite all best efforts, many consumers will want to delay their decision and that is why it is so important that operators be trained to handle rebuttals. Given the generous trial periods for most direct-marketed products, telesales professionals have ample ammunition to try and deflect such objections. However, it is important to couch the rebuttal in an agreeable way so that the consumer is not put on the defensive. For example, an agent might say, “I agree that it’s important that your spouse agree with the decision, but don’t you agree that the best way for the two of you to experience the ">product benefits is to get it into your home? That’s why we give you 30 days to try it risk free…”

By employing tried-and-true techniques for getting to “yes”–and an operation committed to the training and skill required to leverage them–marketers can turn telephone inquires from a consumer touch point into much more: a handshake complete with an order.

Lee Swanson is president of Triton Technologies and the current chairman of the Board of the Electronic Retailing Association. He can be reached at (508) 205-4132, or via e-mail at lswanson@tritontechnology.com.

November 2009 – Feature: Santa Claus is Coming to Town

Keys to maximizing your direct response revenue this holiday season

By Leo Gorcey

Upsells roasting on an open fire,
Multiples flying out the door,
Holiday sales being sung by your ads,
Free S&H makes room for more!

What will direct response marketers find under the tree this holiday season? Well, with a little holiday marketing savvy, perhaps a gift-wrapped package of profit.

Most of us are familiar with the usual direct response holiday advertising challenges: Higher media costs and more advertising hitting the airwaves than snow at the North Pole. And on top of it all, a year of rough economic sledding.

The exciting news is that in direct response, we offer the best and most useful products at the lowest prices. The holiday season is the perfect opportunity for us to do what we do best.

In spite of a cloudy economic climate, this holiday season will once again find millions of Americans travelling, decorating, attending holiday parties, eating, spending time with family and friends and–of course–shopping! So how do we in the electronic retailing business seize the hidden opportunities for prosperity this holiday season? Electronic retailers can come to the rescue of holiday-harried shoppers everywhere and simplify the lives of thousands of gift givers this holiday season while increasing conversion, average order values and revenue. We are perfectly positioned to help holiday shoppers keep the joy–and reduce the stress–of gift-giving.

Let’s explore some holiday selling tips. As with any laundry list of suggestions, some you will find helpful and others might draw either a chuckle or a yawn. But I’m hoping that the following suggestions will trigger your own brainstorming–and that you’ll come up with ideas I haven’t even mentioned here.

Holiday Sales Tip #1: Tweak Your Media Offers
Look at your media offers and CTAs and identify opportunities to tweak DRTV, radio, print and web offers, too. Plant the seeds of gift-giving in your holiday media, which is the first message your prospective customer will see or hear. Create offers and CTAs that arouse desire in the minds of consumers to purchase additional products as gifts for friends and family. Try creating “multiple sets” offers under the banner of “Limited Time Holiday Specials.”

Free shipping and handling is another way to increase your response rates over the holidays. Free holiday bonus gifts (”stocking stuffers”) usually work to draw attention to holiday ads.

I can almost hear you thinking, “Yeah, we tried that one year and it had no impact on our bottom line.” Which is exactly why I recommend that seasonal holiday media offers be closely coordinated with adjustments to call-center scripting to drive the seasonal message home to the caller, resulting in both higher conversion rates and average order values (more about call center scripting in Tips 3, 4 and 5).

“Seeding” your holiday season advertising with gift-giving language and planting the suggestion that your customer can save both time and money by purchasing an additional product as a gift for a friend or family member, and linking that strategy with well-crafted call-center scripting can give you a nice bump in holiday revenue.

Holiday Selling Tip #2: Multiple Sets Combined With “Scarcity”
The holiday season is a great time to bring out specials on multiple sets (items) of almost anything–even if you’ve tried multiple-set offers and they’ve performed sluggishly in the off-holiday season.

The best multiple set upsells generally discount 20 to 50 percent off of additional sets. You can also feature additional sets at the same discounted price. For example, if you’re offering two Magic Paint Rollers for the one-unit price of $19.95 (two-for-one), you can offer an additional set of two more Magic Paint Rollers for $19.95.

You can ratchet up the urgency for callers to take action today by employing the principle of scarcity. “We have a limit of two items per household,” is an example of scarcity applied. This principle automatically suggests a higher value assigned to your product and added urgency to order “before supplies run out.” Home-shopping networks use the principle of scarcity to sell thousands of additional products by featuring a digital display which shows how many products have been sold and how many remain available at the advertised price.

Any announcement to your potential customer that this opportunity is “seasonal” can trigger the impulse part of the brain where buying decisions are made and tap into the gift-giving spirit of the holidays. Combined with a call-center script that echoes your media message, this strategy can be an effective avenue to access consumers’ buying impulses and enhance the customer experience.

Holiday Selling Tip #3: Enhanced Holiday Call-Center Scripting
Spice up your call-center scripts with phrases designed to entice shoppers to purchase additional products by building value with the use of the emotional benefits of purchasing additional DR products as gifts. For example, try adding a phrase to your seasonal call-center script like, “Why not shorten your holiday shopping list by one or two, while I have you on the phone? The Super Sweeper makes a perfect gift. While supplies last, I can add an additional Super Sweeper to your order for the special holiday promotional discount of 40 percent off. That’s an instant holiday savings of $35. And as part of our holiday savings promotion, you’ll get free shipping and handling on that second unit.”

On multiple unit upsells, I recommend the “alternate-choice” close. I’ve seen many a multiple sets upsell fail because the non-assumptive close went something like this: “Would you like to add another ‘Joyful Juicer’ to your order today?” That’s what I call a “Say No” question. It makes it far too easy for the customer to say, “No, that’s fine. I’ll just take one.”

Instead, I recommend the alternate-choice close in your call-center scripts whenever possible. When you script something like, “Do you want one or two additional units at that holiday savings price?” it makes it much easier for the caller to say yes. Whether the caller answers one or two, that’s a sale.

Holiday Selling Tip #4: Probing seasonal Questions
The holiday season is the time to throw a few probing questions into your call-center script to get your callers thinking about holiday gift-giving from the beginning of the call. The fifty-cent expression for this is “neuro linguistic programming.” The words we choose have an emotional impact on the listener/caller.

If an agent starts out the conversation with a holiday season caller by asking a question like, “So, (caller name), is this for yourself or a holiday gift for someone else?” that agent is planting a seed in the mind of the caller from the beginning of the conversation that this is the season for giving. Taken one step further, the agent becomes the caller’s personal holiday shopper–and it all starts with a single probing question.

If I’m a call-center agent, I’m also making an assumption from the beginning of the call that the caller is in the holiday gift-giving spirit. I’m assuming the holiday sale. This makes it easier for me to introduce the idea later in the call that the item the caller just purchased would make a great gift and that ordering an additional unit on this call will not only be convenient, but will save the customer money, as well. Or, as the saying goes, “Why not kill two birds with one stone?”

This is easily accomplished through a “holiday tweak” in your call-center or web scripting and a little follow-up coaching.

Holiday Selling Tip #5: “Season’s Greetings!”
Try having your call center agents answer the phone with a “Happy Holidays” or “Season’s Greetings.” This is an often-overlooked area in call centers. A simple holiday greeting at the beginning of a call can set the tone for callers to get into the gift-giving mode, making them more receptive to the idea of ordering additional units of your product(s) as gifts for family and loved ones.

Holiday Selling Tip #6: Raid the Warehouse
Now’s the perfect time to raid your warehouse and come up with creative upsells and cross-sells for holiday shoppers in the mood to buy. Items that may not seem appealing during the rest of the year may generate significant incremental revenue during the holidays. Some holiday-specific items can even be used as free premiums to increase response rates.

I recall one of the most successful DR campaigns in the last 20 years. A group of us were gathered in a conference room with the president and the CEO of the company and I asked the question, “What’s in the warehouse?” That simple question led to the president pulling out an item that had been gathering dust for who knows how long. That item was dusted off and presented as a holiday premium–a free bonus for “calling now.” The result? A huge increase in call volume which led to a handsome increase in revenue.

In summary, a dash of creative thinking mixed with a dollop of well-crafted seasonal call-center scripting to put callers in a gift-giving mindset–along with a pinch of common sense–can result in a delicious holiday confection of shopping convenience for your customers–and a surprising end-of-the-year lift in incremental profit for you.

Leo Gorcey is a direct response performance specialist with expertise in training call center teams, crafting profit-building call-center scripts, coaching DR leadership teams and partnering with direct marketers to increase revenue. He can be reached at (541) 531-7419 or via e-mail at leogorcey@leogorcey.com.

October 2009 – Feature: Tale My Customer–Please!

Who was the weirdest DR customer you ever talked to? Hey, it’s a question that somebody had to ask. So we did.

By Jack Gordon

Every direct-response advertiser wants that 800 number to ring. So do the call center agents who pick up the phone–except when they wish they hadn’t because the caller appears to be dialing in from the Twilight Zone.

Yes, every caller is a potential customer and must be valued, cultivated and–blah, blah, blah. But the truth is, not all customers are created equal. You know it, we know it and the agents on the front lines of your campaign certainly know it.

They know something else, too. A call from the Twilight Zone just might be the best one they’ll get all year.

In the spirit of scientific inquiry, we asked veteran call center executives and agents to tell us about the funniest, the weirdest and the most obnoxious encounters they have had with DR customers. These are their stories. We will say only this: If you think you’ve heard it all, you’ve never encountered The Ram God.

“Bet you’re glad to hear from me!”
Direct-response commercials attract some calls from deliberate pranksters, plying their art in the time-honored tradition of “Do you have Prince Albert in a can?” Juvenile? Sure. But some of them can brighten an agent’s day.

“I took a call about the Hooked on Phonics reading program from a guy with a detectably fake Indian accent,” recalls Lee Swanson, president of Triton Technologies, a call center company with locations in South Easton, Mass. and Phoenix. “I asked who the program was for and what reading help was needed. He told me it was for himself. He said he had a problem with the letter “o”–he kept writing it upside down. He laughed and hung up.”

Genuine customers aren’t above slipping in a zinger from time to time, either. Swanson remembers another Hooked on Phonics call from a guy who wanted the program for his son: “I asked his name and then asked him to spell it for me. He said, ‘You’re the phonics expert. You spell it for me.’”

Then there are callers you’d think must be kidding–but aren’t. For one thing, not everyone grasps the concept of a “call center” or the fact that the 800 number on the television screen will be answered by an agent who works at one. “We get callers who assume that the actual product owner will be available to personally answer the phone and assist them with any questions,” says Craig Handley, CEO of Listen UP Espanol, a U.S. Hispanic call center based in Portland, Maine.

Some of these calls are pranks, no doubt. But Handley swears that when a customer begins by asking, for instance, “Hi, is Jack there?” the agent often is talking to an individual who sincerely expects that fitness legend Jack LaLanne will come to the phone to explain the features of a juicer he just demonstrated in an infomercial.

The most memorable customers, however, are those who can only be described as one-of-a-kind. Ranae Hill, an agent facilitator for LiveOps of Santa Clara, Calif., says she once got a call from “a very pleasant woman” in response to a DR advertisement for a home-fitness program. “When we started the call,” Hill says, “she said that she wasn’t able to talk very loud and that she needed to complete her order quickly. We went through the offers, she asked questions, and she said yes to all of the items, including three magazines.

“After I thanked her for her order she said, ‘Do you mind if I tell you something? I’m actually at the doctor’s office. The reason I can’t talk loudly is that I am in the exam room, lying on the table in a paper gown. I’m here because of my weight, and I figured that if I have my new fitness program ordered, I can honesty tell the doctor I am doing something about my weight.”

Some products create farcical situations that have nothing to do with the callers. The name of a product or its sponsor, for instance, can be a tongue-twister for agents. Scott Richards, CEO of Dial 800 Communications in Los Angeles, a tracking service that sends calls to call centers through a routing program, has a DR client called Car Cash Loans. “The agents at a call center we routed to kept messing up the name,” he says: “Cash Car, Cash Car Loans and, worst of all, Car Crash Loans.”

“Have a bad day!”
By and large, the most obnoxious customers agents face are the ones that Handley calls “control buyers.” He describes them like this: “They believe they know it all. They assume right from the get-go that we’re operating underhandedly or that we’re going to try to cheat them. So they’re combative right out of the gate. ‘All right, what’s the gimmick?’ they’ll ask.”

Tamara Hoff, a senior agent facilitator for LiveOps, recalls one such control buyer in particular. She once took a call for what she describes as “a well-known kitchen device.” As she was offering the upsells–some extra bowls–”the caller completely lost it,” she says. “He started yelling at me and accusing me of trying to swindle him out of more money. Finally, he told me to cancel the order and hung up.”

Hoff doesn’t know what happened in the immediate aftermath of the call. Our own pet theory is that the guy’s wife was the one who wanted the kitchen device in the first place, and she represented to him–in even stronger terms than he had employed on the phone–that she wanted the bowls, too. At any rate, Hoff continues, “About two hours later I took another call for the same product, and it was the same man. He recognized my voice. He apologized for his behavior earlier and took every upsell. It turned into a great sale.”

Dial 1-800…Better make that 911
Sometimes an agent gets a disturbing glimpse into a stranger’s troubled life. Will Fritcher, vice president of sales for O’Currance Teleservices in Salt Lake City, remembers one such occasion. “A woman called in on one of our direct response products,” he begins. Just after the agent answered the call, the woman’s husband came home. “He apparently was not very happy with her. Our agent heard him yelling at the woman. He grabbed the phone from her. Then he started to physically abuse her. Our agent could hear her crying for help. The agent alerted her supervisor, and he called the local police while she stayed on the line. Luckily, the police arrived quickly, in time to restrain the man and diffuse the situation before the woman was seriously hurt.”

That’s one customer, Fritcher says, who was very happy with the service she received from a call center.

But the prize goes to…
Let’s just kick back and let CenterPoint’s Chris Carlisle tell this one, shall we?

“A few months ago,” he begins, “a customer called to discontinue her monthly subscription to a health newsletter. When I asked why, her response was almost childishly enthusiastic: ‘Well, I won’t be needing this anymore when I get my new body. I’m so excited!’

“OK, I see. Wait…what?” It took a few moments to sink in, Carlisle says. “I thought maybe she had said ‘new hobby,’ like she had taken up jogging or something.” Wrong.

“‘My new body, silly! I’m married to The Ram God and he’s giving me a brand-new body as a nuptial gift.’

“Now, I’m no stranger to prank calls. No one in our industry is,” Carlisle says, “but the complete lack of snickering, sarcasm or irony in her voice brought my communicatory skillset to a screeching halt: ‘Um, OK. So your…new body…won’t be in need of, you know, information regarding how to stay…healthy?’

“‘Oh, Lordy, no. When my old body is burnt up in the coming rapture, I’ll rise like a phoenix from the ashes in a brand-new body that’s impervious to disease! Also, I’ll be wearing golden armor bearing the names of the demons I’ve slain. The Ram God is a generous deity. Praise be to him!’

“That’s…wow. That’s great.”
A call center pro to his very bones, Carlisle says that after he hung up the phone, he spent the next 20 minutes racking his brain for cross-sells and rebuttals that might have enabled him to sell something to the golden-armored paramour of a supernatural being.

“To this day,” he says, “I wish I had asked her if she wanted to switch her subscription to The Ram God’s American Express card.”

September 2009 – Column: Industry Insight

The Time is Now for Social Media

By Chris Rosica

Are you wary of social media? Put your mind at ease. Social media is nothing more than a modern version of word-of-mouth marketing–and a tool to protect your image and reputation online. So, whether you feel ready or not, the time has come to embrace what the digital world has to offer. Once you understand the two primary benefits of social media, you might be surprised to discover how your products, services, brands, company and CEO can benefit from this powerful medium.

Managing a CEO’s, Company’s or Brand’s Image
The major search engine algorithms rank social media as highly relevant and important. It’s no wonder that when you put my name–Chris Rosica–into a Google search, you’ll find LinkedIn and Facebook (two social networking sites), a blog I write for ERA (blogs are another form of social media) and my Twitter account (Twitter is a micro or mini blog–again, social media) near the top of the results. This shows how social media can be used to bolster your Search Engine Optimization (SEO) efforts and manage what is being said about a CEO, brand or company.

We often create individual profiles that are professional and credible for executives and company principals. This can help manage online content regarding his/her name and ensure that the right image is portrayed. Similarly, company and brand profiles and Facebook Fan Pages can be employed to manage the online conversation regarding the corporate entity.

You’ll Sell More Product
There is no disputing that Search Engine Optimization is one of the most underutilized tools in the direct response space. It’s curious, considering that SEO–aided by social media–can not only protect reputations, but also get product information atop the search engines without paying for key words (e.g., Google Ad Words). This can be for phrases that relate to brands, company searches and for those that are general product descriptions, such as “ab workouts.” This visibility from SEO can measurably convert visitors into orders or sales.

Consider social media as a means to protect your online reputation and support your SEO efforts. The evidence is clear. Google places too much emphasis on these outlets to ignore this powerful channel.

Chris Rosica is author of “The Authentic Brand” (www.TheAuthenticBrand.com) and CEO of Paramus-NJ based Rosica Public Relations (www.Rosica.com), which specializes in online and traditional public relations and marketing, including online reputation management. He works extensively in the direct response, consumer products, beauty and lifestyle categories. Rosica is also a featured Inc. Magazine blogger. He can be reached at Chris@Rosica.com.

July 2009 – Super Size It

How upselling and cross-selling are giving
DR revenues an added boost

By Leo Gorcey

Do you want fries with that? Wanna super size your order today? Care to try one of our new cranberry scones with your latte? Let’s look at some earrings that would go great with that skirt you just bought. If you’re going to protect your new, car you really need undercoating. I’ll just go ahead and include that for you. It’s only $100 and we can do it while you wait. Hey, let me show you some really nice carrying cases for your new laptop. And while we’re at it, I would highly recommend the extended warranty protection.

If you’ve purchased anything in the last 20 years, chances are, you’re well aware of upselling.

Banks, cell phone companies, retailers, credit card companies and restaurants, to name just a few, are all taking the art of the upsell and the cross-sell to new heights. Grocery store checkout lanes and gas stations now sport video screens to upsell and cross-sell you while you wait to pay for your groceries or stand idly pumping your gas. All to the tune of multiplying profits.

For the purpose of this article, I’ll focus on upselling, as many of the principles I discuss here are common to both upselling and cross-selling save for the fact that a cross-sell is generally an outbound call or e-mail contact (a two-step process) and, for that reason, merits a treatment of its own.

SUPER SIZING REVENUES THROUGH UPSELLING
Upselling got a big boost in the DR world with the arrival of 800 numbers and gathered a good head of steam through the ’80s and ’90s. Now, in the new millennium, you’d be hard pressed to purchase any DR product without being offered anywhere from one to six upsells (Rush Shipping is now a commonplace upsell earning marketers a nice incremental profit). If you’re among those who count continuity, full-pay conversion attempts and third-party live revenue reads as upsells, then add a couple more upsells to the mix.

According to some direct response white papers, marketers will close a staggering 1.2 billion upsells this year. With the average upsell ticket estimated by some sources to be around $50, DR forecasters are estimating that upsells will add over 30 percent to DRTV (and other direct media) orders in 2009.

For some campaigns, the main offer barely covers the cost of product, media, call center and fulfillment. The upsell is the profit center. In short, upselling increases your average order value on a lead you already paid for.

On the other hand, we are all too aware of the challenges presented by upselling and cross-selling. As marketers face these challenges and inquire together into creative solutions, they can look forward to even more profitable DR campaigns.

WHAT MAKES A GOOD UPSELL?
A good upsell or cross-sell product is a useful accessory (or more fully featured model) that adds to the original purchase in some value-enhancing way and goes further toward creating a satisfying and complete solution to the customer’s problem. An effective upsell complements the main offer and makes it work even better.

“You like that blender? You’ll enjoy it even more with the six additional party mugs!”

A good upsell is also an irresistible bargain. “Those six party mugs are a $30 value, but if we go ahead and include them in your order today, I can give them to you for $14.95. That’s an instant savings of 50 percent. And, of course, the mugs are covered under our money back guarantee. I’ll just go ahead and add those to your order today.” Good upsell products make it easy for the customer to say “yes” without too much thought.

A POUND OF CURE
One of the biggest missteps I’ve seen in upsell scripts over the years is the failure to tie the upsell to the main offer. I’ve seen some first-position upsell conversions double, and sometimes even triple when this error was corrected (talk about leaving money on the table).

Sometimes, increasing your upsell conversions can be as simple as adding a probing question before the upsell.

A question like, “How much entertaining do you normally do?” is a great lead-in to the party mugs mentioned above and ties the upsell to the customer’s emotional ‘hot button’ of wanting to show off her new magic appliance to her friends.

Another common error in upsell scripts is the failure to re-connect with the customer after the main offer purchase is complete, making the upsell appear as an afterthought. A simple remedy for this is either a probing question to re-engage the customer or a simple transition phrase like, “I’d like to take a second to recommend you take advantage of our deeply discounted additional weights for your exercise machine…” and go into the upsell from there.

Using the word “because” has been shown to increase upsell conversions. “Because you told me earlier that you entertain a lot, I recommend we go ahead and include the extra set of color-coded party mugs because I can save you 50 percent by including them in your initial order. Will the set of six or the set of eight work better for you?”

Another ‘pound of cure’ for flagging upsells is to shorten them up. Your customer’s trust may have skyrocketed after that main purchase, but his patience can wear thin and he’ll just tune you out. Remember, an upsell is not a product the consumer was planning on purchasing. So keep the upsells and cross-sells brief and assumptive.

EFFECTIVE UPSELL POSITIONING
I’ve heard upsells read both before and after the credit card information is taken.

The results speak for themselves. Customers tend to say, “yes” two to three times more often when the upsells are presented after the credit card information is collected. This is because it’s practically effortless for a trained call center agent to make incremental sales in a “By the way” assumptive manner after the work of making the initial sale is done.

Even if your main offer is a lay-down, trust increases 400 percent after the caller plunks down that credit card. Trust is the No. 1 reason people buy. It also helps that your customer has made a strong psychological commitment by handing over the credit card and that every decision after that is easier to make.

How you position your upsells can make a big difference in conversion. It generally works best to put your most expensive upsell in the first position. Typically, the first position upsell will close highest. Then put the rest of your upsells in descending order by price. Free shipping on upsells is an effective tool for increasing upsell conversions.

Bundling upsells is another way to increase average order value (AOV). Take a couple of your mediocre or low-performing upsells and bundle them with a price point that’s less than what the customer would pay for the items separately. Many customers just can’t resist the “bundle bargain.” If the customer says “no” to the bundle, you can downsell incrementally. Bundling also cuts down the number of upsells.

Finally, the well-worn maxim of DR: “Test, test, and then test some more,” applies to upsell and cross-sell positioning in a huge way. Monitoring your upsell and cross-sell calls and metrics daily and proactively testing new and different upsell and cross-sell products–as well as different positioning, price points, premiums, scripting, configuration and training strategies–will ensure the highest and best results for your upsell campaigns.

CONTINUITY AS AN UPSELL
Many offers now include upsells with continuity (the exercise machine with a Protein Powder/Auto-Ship). The continuity upsell requires more skill than many call center staff members are equipped to impart to their agents. Having said that, the growth opportunities are considerable and revenue can be enhanced measurably with script editing and agent coaching.

An entire article could be devoted to the subject of continuity conversions.

Suffice it to say that the focus of the continuity conversion and the continuity upsell needs to be on the customer’s needs (quality, value and convenience) and on how we word conversations about continuity. For example, many marketers have replaced the phrase “auto-ship” with the softer “auto-delivery” and introduced phrases like “Smart Shopper Discount” and “locked-in low prices” to create additional value in continuity programs.

DOWN-SELLING
No conversation about upselling would be complete without a few words about down-selling. Down-selling is a great strategy if you offer RFTs with continuity, high price-point main offers (as in the case of high-end exercise equipment), continuity upsells or high price-point upsells.

For example, some campaigns now downsell from negative option continuity programs (where continuity is a part of the main offer). A typical negative option downsell will add 20 percent or more to the cost for a one-time shipment of the product thereby encouraging the caller to “…go for the continuity offer and save the 20 percent since you can cancel any time.”

This downsell, when handled skillfully, kills two birds with one stone. It serves as a second attempt to the main offer and an effective strategy to keep your caller from walking away empty handed. Another example is the downsell from a high-end exercise machine to a reconditioned model or floor model–typically for about half the price.

Good downsells can keep your agents from leaving money on the table and get your product out to the customer who is interested, but needs a lower level entry point to take action.

THE BOTTOM LINE
Upselling is easy when you remember that your main business is helping the customer. As you focus more on the problems your customers bring to you and what it really takes to offer the most satisfying and complete solution, you can open up avenues of growth and design strategies that will deliver the most desirable results for everyone. Marketers will enjoy more profitable campaigns, vendors will experience happier clients, call center agents’ jobs will be made easier, Customers will receive added value and convenience, and the electronic retailing industry will be better poised to reap the fruits of the new economy.

Leo Gorcey is a direct response performance specialist with background and expertise in training call center teams, crafting profit building call center scripts, coaching DR leadership teams and partnering with direct marketers to increase revenue. He can be reached at (541) 531-7419, or via e-mail at leogorcey@leogorcey.com.

July 2009 – ERA Directs Summer Blockbuster

With a new CEO at the helm and a redesigned format, ERA’s 2009 D2C Convention may just be the surprise hit the direct response industry has been waiting for.

By Pat Cauley

Let’s say you just walked out of a mediocre movie. This movie had many scenes that you truly enjoyed. However, it also had some scenes that could use some serious editing or even cutting. Imagine if you had the ability to go back and change whatever it was about the movie that was just so-so. This is the approach that ERA President and Chief Executive Officer Julie Coons took when looking at ways to revamp the annual ERA convention.

A LOOK BEHIND THE SCENES
“I think that if members and participants take a look at the conference as it’s now designed, they will see that their voices have been heard. From the time that I’ve been on board, both the board of directors and myself spent a significant amount of time talking to and listening to members, exhibitors and sponsors. And what you see now is a direct result of member engagement and input, and this is a plan that was well vetted and approved by the board, which I think is very much a reflection of what the members wanted to see and will see this fall,” says Coons.

She went on to describe a number of areas where feedback was taken into account when planning the D2C Convention. “This year, the trade show has a no-cost or low-cost access, to obviously enable all participants and members of the industry to be able to engage with our exhibitors, which is a tremendous value to everyone. We have adjusted the show floor to accommodate more seating and meeting space, and there are private meeting rooms on the floor that are available on a standalone basis. Free lunch will be served both days on the show floor. We’re taking that buzz that we know exists in the hotel property and moving that onto the show floor in a way that’s accessible and affordable,” says Coons.

One major change off the bat was the show’s theme. “This is a revamped show with new pricing, a new look and feel, new show-floor activities, and new excitement and buzz. We are taking the bull by the horns and we’re not letting up,” says Dave Martin, vice president of marketing at ERA.

Coons concurs, explaining that she’s most excited about the new D2C (direct to consumer) brand that ERA has adopted. “The reason that the brand is important is because I think it speaks to a much broader community of our members and broader community within the industry,” she says. Coons is also keen on the expanded education platform available for attendees. “We’ve built out education in such a robust way that we need to start the education a day earlier than in years past. The opening night party is also a day earlier on Sunday, September 15. Everything is almost happening a day earlier this year because we just have so much more to offer,” she says. And the offerings begin with a unique spin on the traditional trade show floor.

2009 ERA D2C Convention Education Tracks:

Track One–Direct Response Each of these presentations and panel discussions will prove valuable to both the veteran direct response marketer and those just testing the waters of DR. Whether it’s a discussion on how to refine under-performing campaigns, how to craft the perfect offer or when the use of celebrity endorsers justifies the expense, each session will provide actionable, real-world information from industry experts at the top of their games.

Track Two–Digital Marketing The online and mobile marketing landscape is constantly shifting, with new platforms, technologies and marketing techniques emerging on a seemingly weekly basis. Rather than explore the latest online fads, industry thought leaders will help you separate cutting-edge best practices from the hype. Each session will identify proven techniques for leveraging those digital platforms that matter–those that generate revenue. Speakers will provide three to six tangible takeaways that you can immediately put into practice in your own business to better leverage this incredibly powerful marketing medium.

Track Three–Operations and Profitability It’s an overlooked subject area, but one with perhaps the most immediate impact on your bottom line: how to operate your direct-to-consumer retail business more efficiently and identify those tools and services that can truly increase profitability. You’ll learn how to organize and harness the power of your data, getting the most out of your media buy or how the new economy will affect your business. It’s a can’t-miss track for the business owner or C-level executive.

ROLLING OUT THE RED CARPET
One of the biggest concerns about exhibiting or attending a conference is a lack of action on the trade show floor. Coons is looking to transform the show floor into a true marketplace of buyer/seller engagement. Martin stresses that pricing is key. Free show-floor-only passes, reduced pricing for additional exhibitor staff, a cyber café and an international lounge are all elements brought forward this year to elevate traffic.

“The D2C Catwalk will be very exciting, as well as the return of the new product showcase and inventors as part of the product theater,” says Martin. Coons sees the trade- show-floor dilemma as a two-part question. The first being: how do you get people on the show floor?

“Well, the first thing you do is make it lower cost and accessible to both members and non-members alike. The board has approved it and that’s at no small cost to the association, but the return is, obviously, satisfied members, exhibitors and sponsors and that will over the long run be so important to the strength of the association,” says Coons. The second question is: how do you keep people on the show floor once they’re there?

“The way you keep folks there is you have accessible seating to encourage people to stay on the show floor and really use that as a meeting space. We have standalone meeting rooms for people who want that greater degree of privacy. We have a catwalk that will be scheduled with all kinds of fun and exciting short activities, such as fashion shows and Pitchmen duels,” says Coons.

In the end, Coons says the main objective of the floor is to create a dynamic environment that attendees want to stay in. “We’re going to have an Internet café near the show floor and also have food and beverages available in and around the space. We really want to create a great cocoon where this industry will be able to bump into everyone they want to see,” she says.

CAPTURING NEW AUDIENCES
While the goal of the entertainment industry is to attract moviegoers from all walks of life, ERA is looking to expand its attendee base far beyond the usual suspects.

“We are using D2C video interviews within social media to drive new blood, a D2C blog and Twitter. We’ll do a TweetUp at the show and use Twitter beforehand on a regular basis to spread the word. We also have the use of video overviews of the education tracks, with the goal of going viral. We’re also working on targeted partnerships,” says Martin. The D2C Convention’s microsite has more features and detailed information for attendees, exhibitors, sponsors and the media than ever before.

ERA is also looking to new arenas within its own industry, which may have been left out of the fold before. “We’re having a new focus on the financial aspects of the industry, which I think is new for ERA. We’re really emphasizing the financial dynamics of this industry. This will be evolutionary for us and also bring us new audiences,” says Coons.

EDUCATION OFFERS BONUS FOOTAGE
Although ERA’s membership is comprised of well-seasoned experts in the DR profession, with the way media is rapidly changing, there is always room for a little further education. “We’ve expanded our education offerings so that we have a greater variety not only for new comers to the industry, but for veterans as well,” says Coons.

In keeping with the theme of revamp and change of an old formula, ERA is delighted to announce Montel Williams as the keynote speaker for D2C. Courtesy of Tristar Products, Williams will bring his unique formula to the table explaining to attendees how he revolutionized conventional direct response by combining elements of the infomercial with his well-known talk show format to form what he calls the “Talkmercial.” ERA Executive Vice President, Gina Mullins-Cohen, couldn’t be happier.

“This year’s education program provides attendees with a comprehensive package that covers just about every discipline imaginable representing the direct-to-consumer market. And to make it more worthwhile for attendees, we’re presenting tracks, power sessions and keynotes that range from the basic fundamentals to more advanced practices,” she explains.

To accommodate the many educational offerings, ERA has made some significant adjustments to the schedule. Among the biggest changes is the move to Sunday. While there will be educational sessions on Monday and Tuesday, the majority will take place on Sunday. This is when the tracks will be held. Mullins-Cohen adds, “The tracks are another noticeable change that will make education available to all parts of the industry–all positions and all facets.” The three tracks are direct response, digital marketing, and operations and profitability.

It’s Your Industry–Get Involved!

“The D2C event’s primary purpose is for the industry to come together in a business development oriented-environment. Having said that, it’s important that our participants understand that the association is active not just those three days, but all year long,” says Julie Coons, ERA president and chief executive officer.The ERA Leadership Dinner on Monday, September 14, is where the ERA PAC (political action committee) raises significant funds each year to give the industry the ability to go out and work with legislators on a year-round basis to help advocate for and educate them about the great things that this industry brings to consumers. For more information, contact Bill McClellan at (703) 908-1032, or via e-mail at bmcclellan@retailing.org.

SHINING A SPOTLIGHT ON DR
Another difference this year, as opposed to years past, isn’t necessarily coming from ERA, but from outside influences. The perfect storm scenario of Madison Avenue’s respect coupled with an economic downtown and the rise in popularity of affordable As Seen on TV products has heightened awareness levels in ways the industry has never seen.

Even CNBC recently had an hour-long special on the industry that portrayed it in a well-deserved, good light. So, aside from the benefits of business development, education and networking, the industry also has a reason to come together just to celebrate!

ERA and the industry know how to celebrate in grand style with its annual Awards Gala. “This year, we’re turning the awards up a notch with a more refined program along with a high-style production that will certainly shed a well-deserved spotlight on those who are fortunate enough to be called upon to step onto the stage and accept this prestigious honor,” says Ashley Cavell, ERA’s director of education.

Although ERA does not want to reveal all that it has in store for attendees at the D2C Convention, there is much speculation out there. “I think there is absolutely a heightened awareness and recognition among not only the marketing and advertising industry, but also the public to the power of direct-to-consumer marketing. ERA, as an association, is at the forefront on a year-round basis advocating for this industry. There’s no question that in these hard economic times and with the maturity of this industry, which is incredibly bottom-line oriented, the D2C is a great opportunity for the industry as a whole and ERA to be well recognized in this arena,” says Coons.

In this day and age, the very idea of a trade show can sometimes seem obsolete, especially with the advent of new technologies that make it easier for people to connect. However, this is not the case with the direct response industry. This is an industry built on personal trust, connections and relationships. “The D2C Convention is the annual place where the industry leaders and the broadest cross section of our industry come together to meet, learn and collaborate, and each one of us does it in a variety of different ways and so that’s why you see the mix of networking, business development and recognition, which you’ll continue to see with the ERA Awards Gala,” says Coons. Hopefully, you’ll register for the convention and see what all the fuss is about.

To learn more about ERA’s 2009 D2C Convention, please visit www.d2cshow.org.

July 2009 – Cover Story: Breaking Barriers in Canada

A look at how ERA’s new Canadian Council will bring new awareness to members and global marketers about the opportunities that lie to the north of the United States

By Vitisia Paynich

Five years ago, Mike Moreau was a virtual stranger to the direct response world. He had just begun working for a Canadian-based inbound call center, IMI, and he knew no one in the industry–let alone anyone at the Electronic Retailing Association (ERA). IMI had garnered great success in Canada but when it came to the States, like Moreau, no one had ever heard of the company, which is why he was brought on board.

In a previous industry, Moreau had conducted business in the U.S. and was familiar with some of the obstacles that went along with a Canadian company trying to penetrate the U.S. marketplace. Much of it had to do with the fear of the unknown about their North American neighbors–an issue that Moreau had also experienced in the DR business. “When I started to sell IMI to a DR marketer in Texas and he asked, ‘Legally and logistically, how do my calls flow into Canada and how will my fulfillment company in Chicago get the orders?’ I realized there was still that barrier. And of course, you could take that order in Timbuktu and send it anywhere, because it was all done electronically.”

This prompted Moreau to become actively involved with ERA, which began with his participation on the Membership Committee. At that point, Moreau had left IMI to form his own company, Dream Team Direct, a campaign management company and supplier agency based in Winnipeg. “The thought of creating a Canadian Council came from my work on the Membership Committee and then when I became [its] chairman and was voted onto the board of directors, I thought now this would be a good opportunity,” he explains.

Thus, in 2009, ERA officially launched the Canadian Council with Moreau as chairman and fellow board member, Steve Edelstein, CEO of The Logical Step in New Haven, Conn., serving as co-chairman.

“The mission of the Canadian Council is to educate and inform our American and international friends, as well as our ERA members, about the robust direct response market in Canada,” notes Moreau. “When you’ve got a successful program operating in the United States, the next best thing is to come up to Canada. And when you think that almost $2 billion a day in trade and services are going back and forth between Canada and the United States, it’s just amazing.”

Edelstein, who brings a U.S. perspective to the council, says, “a few things need to take place.” The first is to gain an understanding and appreciation for what this market and the Canadian consumer can generate for marketers in terms of revenue. “Also, I think it’s very important to really educate the general ERA membership and direct response constituency on cultural issues,” he says, “because one of the things that I certainly have found while marketing products in Canada is there are, albeit slight, cultural differences in terms of how the product is presented, the call to action and the overall message.”

While Moreau and Edelstein are leading the charge, other Canadian members are elated that the association is taking notice of its members to the north.

“I think it’s great,” says Ed Crain, CEO of Kingstar, a Toronto-based DR agency.

“I’ve been working in Canadian DRTV for approximately 15 years and we’ve tried to work through the CMA (Canadian Marketing Association). They tried at different times to have a DRTV panel, but I just felt that the mindset wasn’t as established as it is with ERA.”

Leaders in the Canadian DR Market

		Council Co-chair: Steve Edelstein, CEO, The Logical Step	Amir Tukulj, CEO of Thane Direct Inc.	Mark Goodale, VP and General Manager, Torstar Media Group TV	Rob Woodrooffe, chairman, Interwood Direct
Canadian Council Chairman: Mike Moreau, CEO, Dream Team Direct
		Ed Crain, CEO, Kingstar	John Dickson, owner and president, Automated Fulfillment Systems	Jean-François Quevillon, DRTV and sales manager, TVA Sales & Marketing	Richard Stacey, CEO, Northern Response (Int’l) Ltd.

EXPLORING THE MARKET
According to 2006 Census figures, Canada has a population of nearly 32 million people–comparable in size to California. The country is comprised of 10 provinces and three territories.

“Canada has a relatively strong GDP and a high consumer-spending index,” says Mark Goodale, vice president and general manager of Torstar Media Group TV, one of Canada’s largest media companies based in Toronto.

Amir Tukulj, CEO of Thane Direct in Toronto, adds that Canada is a natural extension of a U.S. marketer’s business. “You gain access to a marketplace of about 32 million affluent customers whose behavior is very similar to those in the U.S. and whose purchasing power is the same.”

While the two North American countries share certain traits, Richard Stacey, CEO of Northern Response (Int’l) Ltd–a distribution company based in Toronto–cautions that marketers must still recognize Canada as a foreign country. “Although Canada is on the same continent as the U.S. and not overseas, it still has its own issues such as currency, shipping, customer service and regulations, as well as cross-border operational issues.”

Rob Woodrooffe, chairman of Interwood Direct, a distributor in Toronto, says, “It just drives me nuts to see American companies selling products in Canada in U.S. dollars, because the currencies aren’t the same. I mean, would an American ever buy a product from a marketer in the U.S. using Canadian dollars?”

Another major difference between the U.S. and Canada is language. There are two official languages in Canada: English and French. The Quebec market, which is French-Canadian, represents more than 35 percent of total DR sales in Canada, according to Jean-François Quevillon, DRTV and sales manager at Montreal-based TVA Sales & Marketing.

DISPELLING THE MYTHS
Why are some U.S. marketers wary about this market? John Dickson, owner of Automated Fulfillment Systems located near Toronto, says they often think it’s too much trouble to bother with, and therefore, stay away. “I’ve talked to many U.S. marketers who have said, ‘Yeah, we’ve looked at Canada for a number of years and as a matter of fact, we get cross-border responses from Canadians to our U.S. advertisements, but we don’t bother to fulfill them because it’s a hassle; there are border clearances and hold-ups and when we try to fulfill from our facilities in the U.S., we get customer complaints,’” he says.

Dickson says that some U.S. marketers also believe they must pay Canadian income tax, set up a bank account and a business presence in Canada, which is untrue. “We’ve explained many times that all they have to do is register in Canada for GST (Goods and Services Tax), which we help perspective clients do and it’s quite easy to set up,” he says. “Marketers also just need to form a relationship with a good Canadian customs broker. We just happen to know one that we work with often and after that happens, all a DRTV marketer has to do is just make sure the goods come over to us in quantities that will last for a while.”

If you are considering entering the Canadian market, Stacey strongly advises conducting your due diligence before making that big leap, which means consulting with a number of key players in Canada such as distribution companies, DR firms and media agencies. This will help you decide if you’re going to approach the market on your own and establish a long-term presence in the country, team with a Canadian partner to handle a few channels of distribution, or in some cases, not enter the market at all.

Woodrooffe says, “By doing it yourself, you have all the risks and you make all the profits. By having a distributor, you share the risks and the profits.”

U.S. PRODUCTS FIND SUCCESS UP NORTH
Still not convinced that Canada is a viable market? “Everything in Canada is about one-tenth of what it is in the States,” says Goodale. “Toronto is the fourth largest market in North America–Chicago, New York and L.A. are the only three that are bigger.”

Thus, he points out if you are spending most of your energy in the fifth, sixth and seventh largest markets and bypassing Toronto, then you’re leaving a big market on the table.

And if you’re wondering what DR products do well in this marketplace, look no further than IMS or Jordan Whitney–as many of the top-ranking products in the U.S. have also found success in the Canadian marketplace. Popular household products like the Swivel Sweeper, ShamWOW and Snuggie are cleaning up in this market, while fitness items like Hip Hop Abs, TurboJam and P90X are bulking up sales. One U.S. product set to roll out in Canada in July is the Dual Saw.

TAKING TO THE CANADIAN AIRWAVES
When it comes to navigating the media landscape in Canada, one must remain cognizant of regulations.

The Quebec television market comprises three conventional channels that make up 52 percent of the market share, 24 specialty channels capturing 41 percent of market share, and a few American channels that own 1.7-percent market share.

TVA, according to Quevillon, is the largest French broadcaster in North America with 59 percent market share. The other two channels, SRC and TQS, own 29 percent and 12 percent, respectively.

Quevillon adds that most of the media time on TVA is sold on a long-term basis, therefore, the majority of DR media agencies and distributors will book 52-week contracts. Yet, Quevillon points out that while inventory may seem limited, there’s room for different clients–especially with its 24-hour, seven-day-a-week infomercial station.

ShopTV Canada also has a 24/7-infomercial station. “We have 25.5-percent of all media inventory available in Canada through [that station],” notes Goodale.

“I think the significant thing that we’ve been able to do on the media side,” says Crain, “is really secure two-minute time for our marketers and run them successfully on a consistent basis. If we’re booking two-minute time, we’re clearing 75-85 percent of our schedule. Whereas, there are periods of time in the U.S. where two-minute marketers are only clearing 25-30 percent of their schedule.”

Although stations like TVA and ShopTV Canada embrace DRTV, infomercials are not welcome on every station. For instance, the Canadian Broadcasting Corporation (CBC), the country’s national public radio and television broadcaster, is not allowed to air infomercials.

Other types of restrictions that marketers should keep in mind are with regard to product claims and testimonials that appear in a marketer’s show. “You are required to obtain a Telecaster approval number from the Television Bureau of Canada (TBC),” notes Quevillon.

“The biggest restrictions I think are around ingestibles,” says Goodale. “We and a few others are working with Health Canada to try to make that process easier and more transparent for people.” Although the process may seem daunting, Goodale says TV standards and regulations tend to be commonsense things that promote good business practices and truth in advertising.

SPEAKING THE LANGUAGE
When it comes to the English-speaking market in Canada, U.S. marketers can take comfort in knowing that they can keep their shows nearly intact with the exception of some minor tweaking perhaps to the offer or even the 800 number. However, if they want to air their programs in the Quebec market, French translation is a must.

Marketers who want to penetrate the Quebec market must not only consider translating the show on the front-end; they must also consider the logistics on the backend as well. For instance, if you have a show that is translated in French, having a French-speaking call center is just as critical.

“The average U.S. marketer doesn’t realize that if you want to get a DR product into Canada, and hopefully end up on retail shelves, you must have French on the packaging,” notes Dream Team’s Moreau. “You just can’t wing it.” In addition, product instructions also must be translated into French.

THINK MULTICHANNEL
These days, marketers know that it’s not enough to simply rely on a single distribution channel when conducting business in the U.S., and the Canadian market is no different. “I think in any market today, especially in markets that are most competitive, you have to have a multichannel strategy,” Thane’s Tukulj affirms. “Your television, Internet, credit-card syndication, catalog and retail strategies all have to work together.”

If you are running a DRTV campaign, it’s imperative to also have a supporting website.

“Over the last couple of years, we’ve seen 60 percent of television orders coming from the web and we’re running a couple of products in two-minute spots where it’s as high as 500 percent,” says Crain.

Retail is another critical channel. In fact, many experts believe taking a product to retail in Canada is a bit easier than in the U.S. Thus, it makes for a good testing ground. Stacey says the P90X is not only doing well on television in Canada, but it’s also highly successful in retail even though it isn’t available in retail in the U.S.

SEEING BEYOND A BORDER
As U.S. and other global marketers consider new ways to expand their overall business, the Canadian Council hopes they will look north.

As Moreau puts it: “We want marketers to realize that Canada is the next logical step, and that there’s enough opportunity for everybody to share in this growing market.”