80/20 Rule for Transpromo– It’s Not All or Nothing
By Denise Davert, Elixir
Now more than ever we’re faced with doing more with less. If you’re considering how best to improve the bottom line using transpromo or other targeted marketing techniques then here’s some good news.
We’ll start with something we all know: 20 percent of our customers provide about 80 percent of the revenue. That fact begs the question: “Why not start the transpromo initiative targeting that high-performing 20 percent?”
This makes total sense and would be a good decision even if the economy was booming. The whole idea of targeting marketing is to sort out who gets what message. I’m not suggesting that 80 percent of your customers should end up on the cutting room floor but instead, keep sending them the current standard statements and business correspondence and take the other 20 percent and formulate a transpromo/targeted marketing strategy just for them. The costs associated with this approach will be less than trying to integrate transpromo across the board as your initial project. Here’s a few of the benefits in adding transpromo in this fashion:
- Faster Results
With a smaller-scope implementation the results can be measured in a shorter amount of time and modifications can be made immediately.
- Setting Your Own ROI - Refine the Process
Sure, this process costs more on a per-piece basis but not in the long run if done correctly. This allows you to test and refine your transpromo approach. Once you get the ROI up to your goals then consider expanding out to an even larger number of customers. One idea would be to take the next 20 percent of the remaining group and start the process again.
- Utilize More Equipment
A wider range of printers can be used to produce the overall volumes needed. After all, this is focused on a smaller group so you can use lower speed printers. In fact, in this scenario you can easily trade speed for quality to make that targeted message something to remember.
- Utilize Wider Range of Distribution
Thinking of integrating multi-channel output such as wireless notifications or personalized URLs? Again, trying this out on a smaller group is faster, less expensive and easier to manage.
This approach can give you the best of both worlds. Lower-cost implementations that can serve as a type of test for the technology while marketing to the most valuable market segment you have.
At the end of the day you’ll be doing a lot more …. with less.
Visit www.elixir.com to learn how Elixir can help you target the 20 percent and everyone else!