Comments on: Beanies to Full Power! http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/ The personal web site of Brendon J. Wilson, a software developer, technologist, and entrepreneur living in Vancouver, British Columbia, Canada. Wed, 18 Jan 2012 10:11:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David Smith http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/comment-page-1/#comment-30 David Smith Wed, 30 Nov -0001 00:00:00 +0000 http://www.brendonwilson.com/blog/?p=94#comment-30 But by definition this is bulk mail, meaning that the company spends tremendously less (I'm guessing) to send it because it doesn't have to be routed to specific addresses and therefor it is handled only by the end mail carrier. Not only that, but the company doesn't have to do any culling of data, rather, they just look at an area that needs a little boost and uses the shotgun approach. I could be wrong, but I'd say that the direct mail avenues have been explored and probably appear to have less of a "bang for the buck" than the bulk system. Given a choice, people will likely choose the laziest method of doing something, which is unfortunate environmentally (and for the poor postal carriers in this case). But by definition this is bulk mail, meaning that the company spends tremendously less (I’m guessing) to send it because it doesn’t have to be routed to specific addresses and therefor it is handled only by the end mail carrier. Not only that, but the company doesn’t have to do any culling of data, rather, they just look at an area that needs a little boost and uses the shotgun approach.

I could be wrong, but I’d say that the direct mail avenues have been explored and probably appear to have less of a “bang for the buck” than the bulk system. Given a choice, people will likely choose the laziest method of doing something, which is unfortunate environmentally (and for the poor postal carriers in this case).

]]> By: Brendon J. Wilson http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/comment-page-1/#comment-31 Brendon J. Wilson Wed, 30 Nov -0001 00:00:00 +0000 http://www.brendonwilson.com/blog/?p=94#comment-31 Right - this is bulk mail, so it does cost less to send on a per-item basis. However, a more effective campaign could be designed for the same cost, using smaller flyers customized for a smaller group of potential customers - resulting in campaign that costs the same, but is more effective. This technique has been shown to work, most notably with those "pre-approved credit card" offers. Normally, those things are blasted at a geographic area with a particular demographic trait. "Success" rates, judged by number of signups, are low - less that a 1-2%. A credit union that used this technique to combine customer information with other mail databases to enable them to use addressed, rather than bulk, mail to target a smaller group of people. In the end, they achieved success rates of greater than 10% for about the same cost and less waste. Right – this is bulk mail, so it does cost less to send on a per-item basis. However, a more effective campaign could be designed for the same cost, using smaller flyers customized for a smaller group of potential customers – resulting in campaign that costs the same, but is more effective.

This technique has been shown to work, most notably with those “pre-approved credit card” offers. Normally, those things are blasted at a geographic area with a particular demographic trait. “Success” rates, judged by number of signups, are low – less that a 1-2%. A credit union that used this technique to combine customer information with other mail databases to enable them to use addressed, rather than bulk, mail to target a smaller group of people. In the end, they achieved success rates of greater than 10% for about the same cost and less waste.

]]> By: Guillaume http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/comment-page-1/#comment-32 Guillaume Wed, 30 Nov -0001 00:00:00 +0000 http://www.brendonwilson.com/blog/?p=94#comment-32 Then the postulate that the business world is efficiency or productivity driven would be wrong? Arghhh... :) Then the postulate that the business world is efficiency or productivity driven would be wrong?

Arghhh… :)

]]> By: Brendon J. Wilson http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/comment-page-1/#comment-33 Brendon J. Wilson Wed, 30 Nov -0001 00:00:00 +0000 http://www.brendonwilson.com/blog/?p=94#comment-33 No, not wrong - companies are still driven to lower costs while attempting to capture a premium for their product. It's just not always clear to them where their costs come from or where more value can be captured. In the case of junkmail, I think it's simply a case of "it's the way we've always done it". The companies have chosen to look elsewhere for efficiencies. Often the most mundane and boring areas of the business are the ones that can be most improved - just look at Walmart. Walmart's success comes from tuning the supply chain to squeeze every cent of value out of their inventory and store space. The difference between Walmart and other retailers in sales per square foot and other retail industry metrics is usually 1% or less. But that's what makes all the difference. Any idiot can spend a bunch of money on a lot of advertising to attract customers. The smart companies spend less money, and spend it in the right place. No, not wrong – companies are still driven to lower costs while attempting to capture a premium for their product. It’s just not always clear to them where their costs come from or where more value can be captured.

In the case of junkmail, I think it’s simply a case of “it’s the way we’ve always done it”. The companies have chosen to look elsewhere for efficiencies. Often the most mundane and boring areas of the business are the ones that can be most improved – just look at Walmart. Walmart’s success comes from tuning the supply chain to squeeze every cent of value out of their inventory and store space. The difference between Walmart and other retailers in sales per square foot and other retail industry metrics is usually 1% or less. But that’s what makes all the difference.

Any idiot can spend a bunch of money on a lot of advertising to attract customers. The smart companies spend less money, and spend it in the right place.

]]> By: Jason LaBarbera http://www.brendonwilson.com/blog/2003/06/03/beanies-to-full-power/comment-page-1/#comment-34 Jason LaBarbera Wed, 30 Nov -0001 00:00:00 +0000 http://www.brendonwilson.com/blog/?p=94#comment-34 Touchpoint, Inc, located in Emeryville CA is all about personalized direct mail. Through the use of our digital printers and middleware, companies such as Safeway can now send out highly targeted, highly personalized direct mail to their customers. Sending targeted mail has been very difficult in the past, and companies don't seem to spend much time and effort to sell directly to their customer's buying patterns. Things will be changing as the adoption of our solutions becomes wide-spread. Please call me if you have any questions. 510-595-6168. Touchpoint, Inc, located in Emeryville CA is all about personalized direct mail. Through the use of our digital printers and middleware, companies such as Safeway can now send out highly targeted, highly personalized direct mail to their customers. Sending targeted mail has been very difficult in the past, and companies don’t seem to spend much time and effort to sell directly to their customer’s buying patterns. Things will be changing as the adoption of our solutions becomes wide-spread. Please call me if you have any questions. 510-595-6168.

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