When it comes to the hard declines that almost every retailing campaign is going to endure, a forecast of bad debt is always established prior to launch to gain an idea of what the potential profitability will be. For the receivables themselves however, would a competent forecast in order to derive the ultimate work strategy towards recovery be as useful? The answer: Absolutely.
Measuring factors such as demographics, geographies, socio-economics and applying other predictive probability metrics is going to allow the proper strategy for both the lettering and calling to be as effective and impactful as possible. More importantly, if you can say that ten times fast you can surely follow the rest of the formula!
As an example: If I were to take a group of debtors that owe an average balance of $150 each and break down their respective state residence and compare that to historical data on the same type of balance within the same geographic location, I now have a better understanding of who will probably pay what over what time frame. If I further my analysis and add other probabilities such as median income and median debt to income ratio within that geography I can now begin to create a tier-level effect and a resulting rank ordering of a portfolio of debtors. Working that ranking allows more recovery, faster and smarter.
Where this all sounds potentially overwhelming and even almost unnecessary to the untrained eye, I assure you it is a very effective approach towards maximizing recovery of the receivables.Â
A $150 bill may not sound like much, but multiply that by several thousand debtors who have hard declined your campaign and I would imagine a very mathematical, almost scientific approach, towards hundreds of thousands of dollars owed becomes much appreciated. It can make the difference between a 10 percent return and a 20 percent return.
My question always is, if we take so much time to test, analyze and measure the campaign prior to making the bulk of our advertising, manufacturing and operational investment, why don’t we approach the money owed with the same cautious and calculated approach?Â
Come to think of it, this is America. We see the caloric value of the cheeseburger is 1270 but we order and eat it anyway! I say we change our thinking just a little bit; maybe we can shed some pounds and recover more money all at the same time?
When choosing an agency to partner with for the recovery of your receivables, make sure to inquire about the quantitative decision making tools they use or don’t use for their work strategy.
Louis DiGioia is a leading expert and analyst for the recovery of consumer receivables. He can be reached at ldigioia@retrievalmasters.com or 914-592-0055.Â
Mobile devices like the iPhone and G1 are letting consumers take advantage of the growing number of high-speed networks, an opportunity that e-commerce retailers are recognizing as users are increasingly using websites for shopping from mobile devices. Some people are even using their mobile devices as their primary online browser.
Any retailer looking to the growing mobile audience for new revenue should deliver shopping sites that are mobile friendly. This means paring back content – or re-organizing it – so that users can access relevant items more easily.
While wireless devices have come a long way, their screen size limits what can be displayed and still be read by the average user. Features such as panning and zooming can only compensate so much for the smaller real estate available on handhelds.
Most websites are still using cascading stylesheets (CSS) optimized for personal computers. Designing and embedding CSS specifically for mobile users will help ensure that the user experience on handheld devices is high quality. The CSS Mobile Profile 2.0 developed by the W3C (the standard-setting World Wide Web Consortium) is now available, giving retailers a widely supported standard to follow.
Other common shopping features, such as large tables of product images and Flash animation, also need to be rethought. Just a decade ago, many websites were built successfully without these features. As screen resolutions and bandwidth grew, these were added to create richer online experiences. Handheld devices may not support all of these technologies, so the emphasis should be placed on simplicity, clarity and speed. And make sure that commonly accessed features, such as viewing the shopping cart are readily reachable.
While the technical aspects of mobile are important to consider, retailers must also focus on marketing fundamentals, such as understanding the needs of this changing audience. Research and analysis on what users want and how they want to interact with your site are critical. One quick tip: use the mobile device itself to gather research information, rather than relying solely on traditional research channels.
Retailers that can use messaging, web content, e-mail, and social networking in an integrated fashion, centered on the handheld device, let users engage with their brands. A basic practice: rather than just asking for e-mail addresses on your sites, permit users to give you addresses for text messages as well, and let them know about special mobile content.
One last piece of advice: do not let mobile marketing become a new outlet for spam. Mobile devices give unprecedented access to retail customers; respecting your customers’ time will lead to longer, two-way relationships.
David King is CEO of Fulcrum, a leader in advanced analytics, technology and multichannel program solutions for marketing.
Using video on your website is a powerful way to reach you audience. A well-crafted video with a catchy title can quickly go viral and is an excellent way to bring links to your site. In turn, links will help give your site search engine authority and ultimately higher search rankings.
The problem with video is that you can have great content full of all the keywords you are targeting, but search engines are going to have no idea what that content is. Here are some tips to help optimize your video content:
• Transcribe your video. Transcribing your video is a great way to let the search engines know what your video content is. There are many affordable transcribing services that will do this for you.
• Keep it short and sweet. Internet users have a short attention span. Keep your videos under six minutes. If you have a longer video that you can’t edit down to a reasonable time, consider breaking the video into chapters.
• Use catchy titles. Using a catchy title will give you much higher click through rates on your videos. Even if your subject is dry, be creative in how you title your video.
• Understand 3rd Party Hosting. Posting your video on video sharing websites like YouTube, Meta Cafe and Vimeo is a great way to increase your video views, but understand that these sites will have very high authority and will likely out rank your site. If the video becomes popular, the links will point to the hosting site instead of your website. One way to combat this is optimizing the on page factors on your site using the desired keywords. If you decide to post the video on a sharing site, change the titles and tags as not to compete with your site. Also, be sure to include a watermark of your website name as part of the video being posted on hosting sites.
• Offer the option to embed your code. Offering the code so visitors can post the video on their blog or website will help to make your video viral. Be sure to require a link back to your site for people who use the code.
• Use a good thumbnail image. Using a compelling thumbnail will greatly increase the chances of your video being viewed.
Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
As the largest owner of cable networks, which include TNT, Cartoon Network, CNN and HBO, Time Warner has been closely watching broadcasters ABC, CBS, NBC and FOX work through the process of distributing TV online. Bewkes, Time Warner CEO, is planning to provide cable programming on the web in places like Hulu, MySpace, Yahoo TV and even YouTube.
The catch: To view the content for free, you have to be able to prove that you subscribe to pay TV through cable, satellite or Telco.
Free access for those already paying for service. Beweks told Advertising Age, “If you want to watch your favorite TV network or shows through broadband on any device – PCs or mobile – you can do it as long you subscribe to any multi-channel provider.” He goes on to say, “It’s a natural extension of the existing model.”
What’s the benefit? Some media experts are skeptical of Beweks’ plans, but there are also many who feel like a change is in order. After all, a year ago most doubted Hulu would be found appealing to online users. Some fear online programming distribution could soon replace cable TV and destroy the industry.
Time Warner’s cable CEO Glen Britt sees the phenomenon of viewers dropping cable for free content online as a significant growing problem.
What do you think?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Watch as ERA CEO Julie Coons delivers a sneak peak of what attendees can expect from ERA’s upcoming 2009 D2C Convention in Las Vegas September 13-15. Register now!Early bird ends July 1!
The California Supreme Court’s recent decision to uphold Proposition 8, which bans gay marriage, has sparked statewide protests. As discussed on this blog before, social media has changed the way in which people organize their efforts for a united front.
The recent Prop 8 protest in West Hollywood was publicized by blogger Perez Hilton via posts and tweets and brought out not only celebrities, but also readers that may have otherwise been unaware of the protest. As can be backed up by abysmal ratings, the only reason Hilton’s recent spat with Miss California over gay marriage got any traction at all was through social media, not because hordes of people actually watched the Miss USA pageant live. Either way, utilizing social media to organize and reach mass audiences for marketing purposes or otherwise may soon be considered a luxury for U.S. citizens.
Ahead of the 20th anniversary of the bloody crackdown on Tiananmen Square this week, Chinese authorities have rounded up dissidents and shipped them out of town. Now, they’ve even shut down Twitter.
Along with their usual methods of muzzling dissent, the authorities extended their efforts today to silence social networking sites that might foster discussion of any commemoration of the events of June 3-4, 1989.
The action is a new sign of the government’s concern of the potential of such technology in an authoritarian society where information is tightly controlled.
China has the world’s largest online population, and Internet communities have proven increasingly influential in spreading word of events to everything from student protests to group shopping excursions.
People are going outside the normal, controlled channels to set up communities online, spreading information about campus unrest and other potentially subversive activities taking place in this vast nation.
Government Internet monitors have shut down message boards on more than 6,000 Web sites affiliated with colleges and universities, apparently to head off any talk about the 1989 events, according to the Hong Kong-based Information Center for Human Rights and Democracy.
Numerous blogs maintained by edgy government critics such as avant-garde artist Ai Weiwei have been blocked and the text-messaging service Twitter and photo sharing site Flikr could not be accessed within China on Tuesday. Video sharing site YouTube has been blocked within China since March.
Additionally, CNN reports that even the U.S. military is now using social networking sites to reach out to non-traditional audiences by documenting the war efforts in Afghanistan. One thing’s for certain- whether organizing protests or simply shooting marketing messages out to consumers, it will be interesting to see how social media’s role within our lives continues to evolve.
A year from now, if you hear someone say that — and actually understand what it means — Bill Gates will be a happy billionaire. That is because it will be a sign that Microsoft is finally making progress in its quest to challenge Google in the Internet search business. Bing, the name Microsoft gave to the new search service it unveiled Thursday, is its answer to Google — a noun that once meant little but has become part of the language as a verb that is a synonym for executing a Web search. After months of, uh, searching, Microsoft settled on Bing to replace the all-too-forgettable Live Search, which itself replaced MSN Search. Microsoft invested billions of dollars in those services and failed to slow Google’s rise, so a new name certainly can’t hurt. Microsoft’s marketing gurus hope that Bing will evoke neither a type of cherry nor a strip club on “The Sopranos†but rather a sound — the ringing of a bell that signals the “aha†moment when a search leads to an answer. The name is meant to conjure “the sound of found†as Bing helps people with complex tasks like shopping for a camera, said Yusuf Mehdi, senior vice president of Microsoft’s online audience business group. And if Bing turns into a verb like, say, Xerox, TiVo or, well, Google, that would be nice too. Steven A. Ballmer, Microsoft’s chief executive, said Thursday that he liked Bing’s potential to “verb up.†Plus, he said, “it works globally, and doesn’t have negative, unusual connotations.†Some branding experts said choosing the name Bing was a good start, but also the easiest part of the challenge facing the company, since most people turn to Google without even thinking about it.
To read the entire New York Times article, click here.
Please join ERA at the New York Networking Reception on June 18, 2009 from 6:00-8:00 p.m. for cocktails and great networking with senior leaders of the direct response industry. The reception will be held during DM Days at the Manatt, Phelps, & Phillips offices in Times Square.
Immediately following the reception we will be holding our fourth Meet the CEO Dinner beginning at 8:15 p.m. It will be an intimate gathering where you can mingle with our new CEO, Julie Coons, as well as our Chairman, Nathan Fagre, board members, and ERA staff.
To register, please contact Katie White at kwhite@retailing.org or (703) 841-8284.
As I was running through the forest this morning with my writing partner Scout (below), it occurred to me as we stopped along the way 28 times for the pooch, aka “Sir Spritz A lot,” to mark the route by broadcasting his pheromones, that the basic idea of Twitter may have been around for ages, having originated with dogs.
Rick Petry is a freelance writer who specializes in direct marketing. He can be reached at rick.petry@me.com.
As a member of the Twitterati, I’d like to share my thoughts on what using the service can mean to marketers. The ability to send and receive short messages in real time is a logical next step in technological evolution. The service lengthens the list of communication options that includes e-mail, instant messaging, Facebook, LinkedIn, RSS, text messages, even the trusty old telephone. As a public relations and marketing consultant with expertise in Internet-based social media methods, my firm understands the importance of tapping into the newest new thing to reach audiences and hear back from them. So what have I learned about Twitter so far?
Twitter on Main Street
One thing has come across loud and clear: Twitter is much more than just a means to inform others about your activities. Yes, the free messaging service poses the question: “What are you doing?†but effective users don’t waste time on pointless status updates. The Twitter-savvy take advantage of the tool to spread information instantly and add value to a conversation. What do the jet landing on the Hudson River and mayhem in Mumbai along with earthquakes, fires and riots around the globe have in common? They all got immediate attention when eyewitnesses tweeted firsthand accounts. Mainstream media have taken notice that news breaks fast on Twitter so they solicit input and news tips from users. CNN incorporates feedback it gathers via Twitter to shape subsequent broadcasts.
For marketers the ability to reach customers quickly—for free—has obvious merit. Twitter provides a handy way to address customer queries, comments and complaints. It’s a way for marketers to maintain a dialogue with customers that can establish and sustain relationships. It’s a way for marketers to listen and learn what their customers want.
Twitter Quitters
Number crunching by Nielson Media Research indicates 60 percent of Twitter users abandon the service after 30 days, meaning just 40 percent stick with it. That retention rate is far lower than social networking heavyweights Facebook and MySpace experienced when they launched. In fact, when they were emerging networks, their retention rates were twice as high as Twitter’s.
When it comes to the hard declines that almost every retailing campaign is going to endure, a forecast of bad debt is always established prior to launch to gain an idea of what the potential profitability will be. For the receivables themselves however, would a competent forecast in order to derive the ultimate work strategy towards recovery be as useful? The answer: Absolutely.
Mobile devices like the iPhone and G1 are letting consumers take advantage of the growing number of high-speed networks, an opportunity that e-commerce retailers are recognizing as users are increasingly using websites for shopping from mobile devices. Some people are even using their mobile devices as their primary online browser.
Using video on your website is a powerful way to reach you audience. A well-crafted video with a catchy title can quickly go viral and is an excellent way to bring links to your site. In turn, links will help give your site search engine authority and ultimately higher search rankings.
Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
Enjoy these hilarious videos that touch on aspects of the direct-to-consumer industry.
The California Supreme Court’s recent decision to uphold Proposition 8, which bans gay marriage, has sparked statewide protests. 
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As I was running through the forest this morning with my writing partner Scout (below), it occurred to me as we stopped along the way 28 times for the pooch, aka “Sir Spritz A lot,” to mark the route by broadcasting his pheromones, that the basic idea of Twitter may have been around for ages, having originated with dogs.
As a member of the Twitterati, I’d like to share my thoughts on what using the service can mean to marketers. The ability to send and receive short messages in real time is a logical next step in technological evolution. The service lengthens the list of communication options that includes e-mail, instant messaging, Facebook, LinkedIn, RSS, text messages, even the trusty old telephone. As a public relations and marketing consultant with expertise in Internet-based social media methods, my firm understands the importance of tapping into the newest new thing to reach audiences and hear back from them. So what have I learned about Twitter so far?
