Carpe Diem

Despite the economic slow down, mixing perspiration and inspiration yields growth 

By George Linkletter

Almost 30 years ago BusinessWeek Magazine published the results of a landmark study on the effectiveness of advertising in an economic downturn. The key finding?

Firms that increased advertising expenditures in a recession experienced an average growth in sales of more than 250 percent.  

Admittedly, BusinessWeek was not a disinterested party in the issue.  And the bottom-line claim is a little vague: for example, which companies and industries were involved, or benefited the most; how much was the increase in advertising spending; what was the time period; and how much of the added revenue actually flowed into profits?

But the fundamental premise is still valid: connecting with customers is always a good thing.  If advertising and marketing expenses are justified in 'good' times, as a way to cut through the clutter and reach willing buyers, then they are certainly justified in 'bad' times, so you can stand a part from your ‘silent’ competitors and connect with even reticent buyers.  

Future-oriented managers of print/mail finishing shops are doing exactly that.  Despite the economic slowdown, managers who are focused on their customers and the future are investing in new products and capabilities.  They are stepping up their marketing efforts to retain existing customers and attract new ones.  And they are reaping significant rewards for their efforts. 

Here is a brief account of two savvy managers who are blending inspiration and perspiration.  They are staying strong now -- and gaining position to grow even more in the future.

Red Rose Mailing

“Never take ‘no’ for an answer.”

Rosy Jedlicka, the founder and owner of Red Rose Mailing, is an unabashed believer in: 1) the effectiveness of direct mail to reach customers, especially in the B2C world; 2) the need to regularly upgrade her firm’s capabilities; and 3) the importance of continually reaching out to secure new business.

You’ll never hear her say phrases like ‘standing pat’ or ‘status quo.’  Those words are just not part of her vocabulary.  The 15-year industry veteran started her own business almost five years ago and has doubled her volume every year.  Her contacts at the Tampa, FL Post Office praise her efforts, saying Red Rose Mailing is the fastest growing mailer in the region.

Rosy searches for and serves customers nationwide.  She invested early in RISO digital color printers – for their speed, versatility and low-cost output and operation -- to bolster her firm’s color capabilities (even doubling her investment in digital color print just last fall), and is relentless in pursuing new customers.

A key part of her success in attracting new business is her tenacity.  She never really accepts ‘no’ for an answer.  What she hears is, ‘not right now.’  She pursued one key client in the retail business for several years via personal notes, regular holiday greetings and telephone calls.  She gently and repeatedly asked for the opportunity to bid on projects.  The effort eventually paid off -- with a high six-figure contract. 

Rosy devotes a portion of every day to new business development.  That includes making telephone calls, even the dreaded cold calls.  (She has also been known to place her business cards on the windshields of cars parked outside businesses late at night.  Her theory?  “If they are working late, I want them to know I am working, too!”)

As for those telephone calls, she says she hits on about one in every 40.  “New clients really like the idea that the owner of the business is the one making the call and asking for the business,” she says.

Rosy is also undeterred by the economic slowdown.  “Businesses always need new customers.  Direct mail is a huge -- and hugely successful -- marketing channel.  It is easily measured, offers pinpoint accuracy, features an impressive ROI, and when done right, is the most cost-effective way to find new customers.”

Rosy believes that “direct mail and Red Rose Mailing will be around for a long time.”

American Printing

Change and grow.

Paul Carroll thinks and acts like an entrepreneur.  He is nimble and willing to take a reasonable risk.  As a result, he operates one of the most successful print and mail shops in Providence, RI. 

Early on Paul recognized the shift in the industry, from static print-only-on-paper and only in a one-to-many mode, to a more dynamic print-on-anything and in a highly customized one-to-one fashion.  He became an early adopter and proponent of digital printing and has benefited as a greater percentage of printing migrated to the newer format.

More recently, he relocated his digital printing capability into a newly acquired building to separate it from his traditional printing business.  The rationale?  He wants the digital operation to be unencumbered by the ‘traditional’ ways of printing -- so workflows are simplified, customer response is faster, and the business can grow faster.

He also established a large-format printing capability, which he has employed with great success in developing a retail signage and poster component to his business. 

Paul is loath to let his capacity lie idle.  He just has too many ideas worth pursuing.  For example, he stays in regular contact with both existing and potential customers by periodically sending out self-promotional mailings.  These illustrate the quality of his work and demonstrate how other customers are utilizing his range of services – and help keep him ‘top of mind.’

He likes to have some fun, too.  Occasionally, he sends out a mailing, or even a series of mailings, that have no overt tie to his business.  It is his way of gaining attention from busy managers.  Then he follows up the mailing with a call, saying, “Did you get that mailing about x?”  Invariably, the recipient responds, “Oh, you’re the one who sent that to me.  I was wondering about it.”  And a conversation about creativity and capability generally ensues. 

Previously, he ventured into printing collectables, such as trading cards featuring professional athletes, cartoon characters, and even holograms for children.  More recently, he launched a large-format digital-image product that capitalizes on the youth athletic craze.

He both follows and modifies the accepted wisdom.  He frequently encloses ‘statement stuffers’ with his invoices to highlight some aspect of his business.  Conventional wisdom says that such inserts won’t work in a B2B environment because they often go to an accounts payable person rather than a marketing person who makes buying decisions.

No matter.  Paul believes the stuffers offer the recipient valuable information about his business.  And he has learned they eventually find their way to the ‘right’ person, who makes a mental note of the capability.  Occasionally, the stuffers even trigger interest in using the same technique in the client’s mailings.

Paul is a big believer in frequency of contact.  “The demands of everyday life just make it tough to get marketing messages through to consumers,” he says.  So he frequently advises clients – especially those with big-ticket or high lifetime value products -- to pursue a rifle rather than a shotgun approach. 

The technique involves ‘reducing and sequencing’ mailings.  First, he suggests reducing the number of possible recipients by two-thirds or three-quarters, to identify the best possible targets.

Then, he suggests modifying the creative slightly, to enable the client to drop three or four related mailings in sequence.  He says the more targeted and frequent approach can yield a better response and ROI.

Comments?  Contact georgelinkletter@charter.net.