February 19, 2010
Fire Your Customers?
It's a lesson often taught but easily forgotten. For the benefit of direct response radio advertisers and others, here's a reminder...
Back in the days when Dell was a slightly more admired computer direct marketing company, there was a lot of talk about customer segmentation. Dell specifically and consistently re-segmented the market and targeted the customer segments that were the most profitable. Those were, by the way, the ones that cost less to support. Lower support costs, higher margins.
This post by Mr. Godin taps into some of that same thinking. While this topic is a bit tricky, the bottom line is that all customers are not equal. Some are a better fit for your business than others. We see over and over again that customers who call simply to get something free aren't as interested in a mutually beneficial long term relationship. Yet a free trial or free information can be the strongest expression of a company's confidence in its expertise, product or service. And confidence - if it's authentic - is good for sales.
Choose wisely, direct response marketers.
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Outliers: The Story of Success, Malcolm Gladwell
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The Power of Persuasion, Robert Levine
Influence: Science & Practice, Cialdini
Words That Work, Frank Lutz
My Life in Advertising and Scientific Advertising, Claude C. Hopkins
Or Your Money Back, Alvin Eicoff
Being Direct, Lester Wunderman