I was sitting at my desk, with the feet up, listening to Mike Michalowicz speaking at a recent Commonsku at Home event. Mike is one of my favorite speakers, thought leaders and authors in the business space. He has written several must read business books including The Pumpkin Plan and Profit First. When he said he is working on a new book about marketing, he had my attention. It was then that he told us about the most powerful word in marketing.
Mike’s new book (still in production) will be called Different is Better. The concept is simple. When there are thousands of options in nearly every business space, how do you stand out? It’s not just about being better (though that is great). It’s about being different. You must do something to differentiate in the customers mind.
Simple right? As we know, simple is not the same as easy.
While I am excited to dig into the book and try many of the tactics Mike discussed, there was one thing that caught my attention. One way to stand out in a sea of competitors is to use the most powerful word in marketing. What is that magic word? What simple word can you put on a piece of marketing that will wildly increase the likelihood that your customer will not only read the piece, but maybe also KEEP it? Let me give you the word…
It’s your customer’s name.
As Mike suggested, we are all attracted to our own name. If we are in a conversation with someone in a crowded room, and someone mentions our name, it will break through the noise. We will hear it. Our name is special to us. It gets our attention. It makes our customer feel important…because they are! If you want a simple way to make your marketing more effective, personalize it. It’s the marketing equivalent of listening to Beyonce and “putting a ring on it.”
The implications of this are simple and powerful. If you are going to create a direct mail piece, you are more likely to get it opened if it actually says the customer or prospect’s name rather than “current resident.” And if you are created a piece of branded merchandise to say thank you to your customers (and you should), what if you personalized that as well? If you create a vacuum tumbler with your logo on it, how much more would it mean if each customer, team member and board member had their own name on it? The effect will be powerful.
And as a side note during this pandemic, it’s safer. If each person has their own tumbler (or other branded piece), then there is a much lower chance of someone drinking out of the wrong tumbler and getting sick.
So now that we are in appreciation season, consider using the most powerful word in marketing to increase the value of your branded gift. Use your customer’s name and personalize your gift for even more affect!
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The fact is, each business owner and marketer have very difficult choices to make when deciding how to market their business. No one I know, or have ever worked with, has unlimited budgets and resources. So you have to be smart and do your best to get the most “bang” for your advertising buck! We all do!
So let’s discuss the best use of YOUR advertising dollars.
How? I want to do this by comparing Promotional Products to other forms of advertising. But before I do, I want to point out my intentions.
It is NOT my intention to take shots at other forms of media. There is a time and a place for all of these advertising forms. But it is imperative that you understand that Promotional Products should be in your mix.
There are lots of different forms of advertising in the world today. Some of these include TV ads, Print Ads, Radio Ads, Online Ads and many more. One of the common themes with all of these is they are Interruption based ad models. In other words, the advertiser is consuming some form of media and the advertiser needs to interrupt that consumption so they can promote their organization, company or product.
This is the model that has been used for hundreds of years. Philosophically, I think Promotional products are different. With the use of Promo, you are providing value on the front end (with lasting impact) in order to gain customers long term. You probably already know this. You might be asking, “What is new?”
So first let’s establish how marketing and advertising effectiveness is measured.
I have talked before about the “3 R’s” of a successful business. I told you that every business wants “Repeats, Retention and Referrals.” These “3 R’s” are sure to create a long term successful business. It turns out that the best way to measure advertising effectiveness also includes 3 R’s.
These 3 R’s are Reach, Recall and Reaction!
Reach, Recall and Reaction
These 3 R’s of advertising are very important to consider. But in my humble opinion, not all R’s are created equal!
Reach
How many people do you reach? Obviously this is important…right? Sure it is. You want to reach as many people as you can for the amount of money you spend. The problem with this “R” is that it can be manipulated. Some advertising sales people will point out that 100,000 have access to this channel, or read this paper, or drive by this sign every day!
Wow! Impressive number!
But just because they could listen to the channel, drive by the sign or watch the show doesn’t mean they do! And even if they do…did they actually see it? Okay…let’s say they did see it. Great! But what you really want is…
Recall
How many of those people actually recall you and your message? Isn’t that one of the real goals of advertising? You want people to remember the ad! Studies show that at any given time about 3% of the population is actually in the market for your particular good or service. That’s a small
percentage! So when they have decided that they need your help, you want to make damn sure these folks remember you!
But the real holy grail of business success lies in…
Reaction
How many react (in a positive way) to the message. You want to reach them, yes. You want them to remember you, sure. But at the end of the day you want them to pick up the phone and call! You want them to go to their phone and email. You want them to go the website and buy! You (and your business) want a positive reaction!
It’s the 3 R’s of advertising. Let’s see how this study says each advertising media fares. Here is an honest evaluation.
Reach: Let’s face it. Reach is the “R” that promotional products are at the disadvantage. When you, as a business owner, invest in a TV spot, you are going to reach more people than with one promotional product. No doubt about it. Reach is a numbers game. Nearly all “mass” media is going to win the reach game.
The problem is, many business marketers stop measuring (or thinking) after they hear the reach numbers. That’s an issue. Because let’s face it, not all of those people are prospects. Not even a little bit. You are likely reaching lots of people that are not really prospects at all. And more importantly the study shows that not everyone is listening!
Recall: Not to be crass, but really who gives a crap about how many people you have reached if no one remembers! So now let’s dig into the numbers about how the advertising media fare when it comes to recall.
TV Ad Snapshot: 6 out of 10 respondents remembered the company/brand being promoted in the ad.
Print Ad Snapshot:55% of the respondents remembered the company/brand being promoted in the ad.
Online Ad Snapshot: 31.3% of respondents remembered the company/brand advertised in the ad.
Promotional Product: 82.6% of participants remembered the company/brand advertised with promotional product.
Okay…so in this study we can honestly say that the actual “recall” of the ad is better for the promotional products campaign. Great! Recall IS important. But as I mentioned earlier, the magic is in making people act.
And Reaction is where the real magic happens.
Reaction: You have spent advertising dollars. You want the phone to ring, the mouse to click, and the opportunities to open. What creates the most impact? Let’s look at this same 2009 study. This is simply based on what happens after…
TV Ad Snapshot: 3.1% of respondents said they reached out to the company after seeing the ad. 7.1% said they purchased from the advertiser after seeing the advertisement.
Print Ad Snapshot: 4.5% of respondents said they reached out to the company after seeing the ad. 13.4% said they purchased from the advertiser after seeing the advertisement.
Online Ad Snapshot: 4.8% of respondents said they reached out to the company after seeing the ad. 4.6% said they purchased from the advertiser after seeing the advertisement.
Promotional Product: 14.7% of respondents said they reached out to the company after seeing the ad. 20.9% said they purchased from the advertiser after seeing the advertisement.
Let’s take this all as a snapshot.
What does this mean to you? Well if I were you, I would want potential customers to remember my ad, and react to it. I am a numbers guy so I am going to point something out you. The number of respondents that said they picked up the phone and reached out the advertisers was 3 TIMES HIGHER with promotional products than with these other forms of advertising! That is a HUGE number people!
So as I mentioned at the beginning of this post, this is not an indictment of other media. But in so many areas of the business marketing world, promotional products are dismissed as a “throw away.” This kind of thinking is harmful to YOUR business! You need to understand that if you hope to be truly successful in the world of business, you better know your numbers!
And if you are using promotional products to promote your business (wisely), your numbers can be pointing UP!
On Thursday October 15th, Hasseman Marketing is hosting our first ever online marketing conference (register here). We are super excited about the event. We even wrote about 5 reasons you (and your team) should attend. But I think people are struggling to picture what the event will look like. Let me assure you, the MasterClass is not just another Zoom meeting.
In order to explain, I created this short video to go over what to expect.
The event starts at 2pm, but we are recommending everyone start to log in around 1:45.
We are asking this for a few reasons. First, we have all had that experience of trying to log into a new software for the first time. It can be confusing, and waiting until the last minute causes stress. We will also use that time to make announcements, talk about the flow of the day, and give attendees the chance to introduce themselves via the chat!
The program will begin at 2pm and we will welcome Bill Petrie to the stage. Bill is a great speaker and we are blessed to have him join us. He will be talking about how to make real connections in a virtual world. Bill (and his partner Kelsey) just launched a new company called brandivate during this pandemic…and they did it right. (I even wrote about it here). Bill will talk about that experience…and more.
At 2:30 we head into Breakout sessions.
During the breakout sessions, you will have several different topics to choose from. You will click on the sessions button on the left and see the options…and then enter the room. These will be quick topics with people living in that space designed to bring you real value. Oh…and at 2:50 we built in a 10 minute break!
At 3pm we are back on the Main Stage
Bobby Lehew is one of the most thoughtful content creators in the marketing industry and an amazing storyteller. Bobby has graciously agreed to join us to talk about how to tell your story more effectively. This will be a session you do not want to miss.
What About The Trade Show Floor?
One thing we heard from our customers when we started to plan this event was “we want to see suppliers.” Our Customer Appreciation event features some of our favorite supplier partners each year. And our customers have learned to use that as a tool for planning for next year. Don’t worry. We listened. We have an “Expo Area” built into the platform so you can go into vendor booths just like an in person trade show.
As you can see, we have a lot planned for this day and we are fired up to share it with you. Please join us. If you have not yet registered, there is still time. Please head here to get signed up for a great day. Oh…and if you have to plan any virtual meetings then you should check out the platform we are using. It’s called Hopin and I think you will enjoy it.
So as I hope you can see, this is not just another Zoom meeting. We want this to be a fast paced, full day that will help springboard you into a strong finish to 2020 (and beyond).
Hasseman Marketing is growing, and we need a solid entry level designer to help us with the work load. We’re looking for someone with experience in the Adobe Creative Suite, specifically Photoshop, Illustrator, and InDesign. The position will likely be part time to start but will have the possibility to grow.
Responsibilities will include:
• Creating vector art from raster image files
• Creating Mockups of Logoed merchandise to assist the Promotional Products sales team
• Basic layout and design to assist the Print Division
• Basic Logo creation for clients
• Occasionally assisting with Print and Bindery
• Other related responsibilities as they come along
This position is ideal for someone just breaking into the field that wants to gain experience with the nuts and bolts aspects of design, and develop a stronger understanding of the programs and practices of design, both for web and print.
Our company prides itself on our culture, and work hard to hire candidates that fit in well. We are happy to help the right candidate refine their skills in design, as well as the use of the tools of the trade.
For more information about us, please head here. If you are interested in submitting a resume, please email us at [email protected].
While promotional products are a wonderful way to reach your customers, there are problems with buying promotional products too. We get that. So we wanted to address some of those challenges here…and hopefully give you some ideas on how to deal with them!
The Problems with Buying Promotional Products
Let’s just start with the idea that no one likes surprise charges. And as you will see as we go through some of the industry challenges, surprise charges are one of the biggest sticking points when purchasing branded merchandise.
Your promotional product sales pro comes to you and says “Great news! I have a special on coffee mugs. They are $1 and you have to buy 500 of them.”
“Great,” you might say. “This it will cost me $500?”
With a hesitant look on their face, your promo pro will say, “Well…” Then they will tell you about the setup charge, the art charge, the proof charge, and the shipping (and don’t forget tax). It’s about then that you realize that your 500 $1 mugs will cost you about $750.
It’s easy to feel frustrated, and sometimes mislead when this happens. So let’s dig into why each of these fees exist.
Setup Fee
When you are buying an item in retail, that item was created in bulk. Each one is essentially the same. So when it comes time to purchase a pair of shoes on Amazon, they can pick up any size 11 and ship it your way. The same is not true when it comes to promotional products. Each order is customized with your logo (and often contact information) on it. That means with every order, there is custom handling on the order. Whether that means creating a traditional screen, setting up the art, getting the machine ready to print the job (or many other ways these items are imprinted) there is handling.
The order has to be “setup” to run. This setup is done by someone that needs to be paid. It’s a bit of an oversimplification, but this is when “time is money” is real. Generally, this is a fee charged by the supplier that is “passed through” to the customer.
While you may be saying, “I don’t want to pay set up charges,” or you might be thinking that “my distributor doesn’t charge me for set up,” I would caution you. Someone is paying for it. Sometimes the supplier will waive it (so they pay their person and eat the charge). Every once in a while your distributor might pay it. Or maybe they are building it into the cost of the item (so you are paying it).
It’s a little like ‘free shipping.” Most of the time, you are paying for it somewhere.
Bottom line: A setup fee is a real thing. The best way to combat this is communication. Make sure you are asking about any setup fees on the front end. Whether you like them or not, you want to know about them on the front end!
Art Charges
While there are exceptions to every rule, this is one I think falls under the “legit” charge. Why? Because generally speaking, an art charge comes when the customer is not providing quality, vector art. Want to know what that means? Check out this blog.
This usually happens because of one of two reasons. Either they simply don’t have good art, or they are being lazy (I say this with love, of course). If you don’t have good art, no problem. But it does take the work of a professional designer to create that art. Trust me. You don’t want to create a branded item with a bad imprint. That’s not good for anyone and it does your brand a disservice. So paying a nominal art charge (think between $25 and $65 depending on complexity) is well worth it.
The lazy reason is simple. The organization probably has the art (they had it created at some point), and the person does not feel like looking. That’s cool too. But again, it takes time to recreate it. It’s amazing how often, when an art charge is brought up, the vector art magically appears.
Bottom line: Want no art charge? The answer is simple. Provide good art.
Proof Charges
This is probably my biggest pet peeve in our industry. To me, this is a charge to you to make sure we got your imprint correct. This is nonsense.
This is generally a fee charged by our supplier partners (love you guys). My take on this is, our suppliers are being beat up to the penny on nearly every item they sell, so they are looking at ways to create margin on their product without (technically) affecting the “per piece” price. It helps them as they fight to show up with a good price in search. But customers do not understand (nor should they) that they have to pay extra to make sure the imprint is what they want. So many distributors like us, simply eat that cost in order to help the customer experience. As I said above, someone is paying it. Generally, it’s us on that one.
The one caveat to this is the customer that asks for proof after proof after proof. Don’t get me wrong, an occasional change is totally cool and makes sense. But when we proof your order 5 or 6 times, charging for the time does start to make sense. At that point, you are using the supplier as your art department, and that’s not cool either.
Bottom line: If you send good art and are using the proof just to make sure everyone is on the same page, I don’t think you should be charged.
Shipping Charges
The best thing about Promotional Products is that we have a very physical media. When done right, branded merchandise can affect all 5 of the senses. But when you have a physical marketing piece, you have to physically get it there! That is where shipping comes in. We have to ship the items to get them to you, your customers or your employees. That costs money.
For the most part, your distributor (or even the supplier) does not set those fees. We are at the mercy of UPS, Fed Ex and USPS. But here are a few things to consider when shipping promotional products.
When do you need them? Just like anything else, if you plan ahead you can save money. If you wait until the last minute, it will cost more!
Where are they coming from? One of the things your distributor should tell you (but if not, you should ask) is where are these items coming from. Sometimes the item you are ordering only comes from California and you are stuck. But often, there are different suppliers that have similar (or the same) products. If so, you can order from the one closest to you for speed and cost efficiency.
How heavy (or big) are they? There are certain things that are heavy to ship. Paper products are heavy. Drinkware is not that heavy, but it takes a lot of space. So you are ultimately paying to ship air. These might be non-negotiable, but if they are, then this consideration might save you some time and money!
Bottom Line: Shipping is real cost. But when you can (and most of the time you can) ask for a shipping estimate. This can help you know on the front end how much shipping will affect your overall bill.
These are real problems you can run into when ordering promotional products. But once you understand these, you will come to find that, as a marketing tool, promotional products are still totally worth it. The antidote for nearly all of this, as you might suspect is communication. One way we are working to remove some of this friction is to provide you a sales order to approve in advance. This way you have the ability to see all of the charges in one place. While we are not perfect, this helps to alleviate some of the confusion on the back end.
