Marketing Sherpa just published a great case study.
This one looks at a challenge many large companies face and most do nothing about. But the company in the case study, Business Objects, did.
I’m happy about this for 2 reasons: 1) Business Objects is based in Vancouver, where I live (although they were recently acquired by SAP, and 2) the company clearly proved that direct response marketing deserves a seat (if not the Vice-President’s chair) at the main table.
Here’s why …
Advertising Age just ran an article stating that 53% of marketers are preparing to cut back their advertising if they haven’t already begun to do so.
The survey, conducted by the Association of National Advertisers, polled 100 marketers across several industries. While some will surely wonder whether on hundred respondents is enough to make this statistically valid — evidence that this is true is all around us.
You see, every time the economy faces a downturn marketers get wary. They hold back. Waiting. Until the landscape settles.
There are couple of massive problems with this. Read the rest of this entry »
Lobster for everyone!! Come and get it … this time in a most unusual way.
Two brothers in Maine have created a new program where you can own your own lobster trap. Everything that is caught in that trap during a whole year’s season is yours.
They guarantee you’ll get at least 48 delightful crustaceans weighing on average 1.5lbs each.
Plus, you also get clams, mussels, and other wonders from the Atlantic.
Don’t eat seafood? Hey, that’s okay. And I won’t even ask why. But there is a big marketing lesson here.
These two brothers have run with a classic strategy that works. They’ve take the structure and model of “own your own olive tree” or apple, or vineyard section, etc. These biz models are popping up all over the place.
People like to call something their own. It’s impressive, and if you like wine, apples, olive oil, or lobsters it’s a good deal.
They definitely charge you a premium here. In the case of the lobsters they charge $2,995 a year. 48 lobsters minimum at $15/lb (let’s say standard price), that’s $22.50 per lobster and $1080 for 48. But these guys give you so much more, a long list of goodies (see their website here).
When you ad it all up does it equal the $2,995 price tag. Probably not, but you’re getting a piece of “ownership” and this is what people love buying into.
You see, these guys have recognized that they’re better off not just selling a product. They’re selling a whole experience and memories around that … and people are happy to pay good dollars in return.
Ask yourself, can this model be used in my business in anyway?
To your success,
Michael Zipursky
Friends, how are you?
Air Canada has come out with a new service to “ease travellers worries.” Called On My Way the service offers travelers that have had their trip interrupted protection.
Protection in what form and from what exactly? According to the Air Canada website if you’ve been affected by harsh weather conditions that cause delays, flight and plane issues that force cancellations or pretty much anything else that restricts you from getting off the ground…then On My Way will provide assistance.
When you’ve signed up for this service you receive a special number to call. Calling that number a “special customer service agent” will rebook you on the very next flight (so you get dibs on that) and arrange for complimentary accommodations and means (that’s right, they foot the bill).
In case you haven’t noticed more and more companies have been using ‘guarantees’ in their marketing.
The art and power of the guarantee is nothing new. Direct marketers and advertisers the world over have included guarantees in their offers for centuries.
While I surely wasn’t around back then…I’d wager that 200, 300, heck, probably even 500 years ago people tradesmen (yes, I’m sure there were tradeswomen as well, but allow me to keep this simple for now) were offering guarantees of satisfaction on the products and services they sold in one form or another.
No, I’m not implying they all did, likely there were only a few in each town that were brave enough to place a guarantee on that which they sold.
These days there are still only a few in each industry that incorporate a guarantee into their business models. But that is slowly changing.
