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.
If you read this blog on the regular, you might be thinking something like this. “Okay I get that you need to retain customers (we talk about that here). I understand you need to grow within your current client base. But at some point you need to get new customers to grow as well!”
You’re right. Now more than ever…we need to find new ways to create new revenue.
So let’s focus on that now…with Target Accounts. I think this is one of the most powerful ways to grow your business.
Promotional products are most effectively used when they are targeted.
That is why this concept works so well. Let’s start with the concept.
First, you want to create your “target” list. I have also heard this referred to as the Dream list, Bullseye List, and Bucket List. Regardless of the name, you want to create the list of 100 perfect prospects for your company. These are the exact kinds of clients you want to do business with. I base this list on a number of factors. They include proximity, kinds of businesses, reputation for payment, culture and more. You are going to know the factors that are important for your ideal customer. This is the kind of customer where successfully getting just one of them, will quickly affect your sales numbers! If you want to dig into this more, check out our free 5 day marketing course.
This is a powerful step for a couple of reasons.
First, as I just said, this Target Customer is the kind who can REALLY impact your sales. They have the wherewithal to purchase what you are selling…in big numbers. Second, it is MUCH more cost effective to market to 100 people than it is 10,000! You can be much more personal, targeted, and relentless!
Now, DO take the time to get them on paper (or in your CRM if you use one). When getting them recorded, make sure to include all the pertinent contact information. This will keep you from “creating reasons” not to follow up. You will have all the information at your fingertips…so no reason not to call!
By the way, this first step is a huge one. Take some time and don’t skimp on the information. You will be glad you have it right in the long run.
Now that you have your list it’s time to create your plan.
I recommend breaking your Target list of 100 into more manageable numbers, like 5 or ten at a time. This does a couple things. First, by breaking the numbers down, you make the list more reasonable to follow up with. In addition, once you have gone through the first 5 (all the way through the process) you have your next 5 all ready to go. You will be glad you did. On more than one occasion I have made the list of only 5, and then when I got through it, got stalled because I had to start the “target list” all over.
Once you have the Target List created, it’s time to make the impact with these great potential customers with promotional products! Now it’s time to have some fun.
If you have chosen wisely (and in this case, I mean big!) you will need to understand that these are clients that most people would want! So they probably have “everyone” marketing and selling to them. That’s the bad news. The good news is, most people are being lazy when reaching out. They are sending letters, or cold calling or some other “shot in the dark” sales technique.
Since you don’t want to blend in with the other wannabes, you need to create a creative campaign that will stand out. I recommend a “three tier” campaign for that. This means you will send 3 creative mailers—one after another—until the follow up.
You really need to stand out here. Don’t just send a letter. If you want fantastic results, you need to set out to make a fantastic impact.
Let’s go through a fictitious example:
Let’s say my friend Bill has a Home Improvement store that focuses on carpet and paint. Though he certainly wants every “do it your-selfer” to think of him, he can make larger sales AND repeat sales if he focuses his marketing efforts on contractors. They are in the market for his products over and over. So Bill might make his Target List starting with contractors he wants to do business with.
This is when the project can really be fun. Here are some ideas for mailers that he might send:
Mailer 1
He sends a box with a nice measuring tape with his stores logo and phone number on it. It would need to be a nice one if he is sending it to a contractor. They won’t appreciate junk on something like that! With the measuring tape he might include a letter asking if their current supplier is “measuring up” on service and price. He might include other verbiage about having “room for growth,” and their specialty being the “height of service.” You get the idea. Have some fun to tie the letter to the item.
Mailer 2
In the second mailer, Bill might send a Giant Pencil. This is really designed to get his attention and make them smile. The letter might include something about “penciling him in for a meeting” or “having trouble finding time to source carpet.” You really want to get the clients raising eyebrows here.
Mailer 3
Finally he might send a nice travel mug with an offer to buy him a cup of coffee. In the letter, explain how you know they are “on the go” and you respect their time. Bill might also promise to keep the business relationship “hot” by giving leads back to the contractor. Then it’s time to let the prospect know that Bill will be following up (if they haven’t called already). Tell them your intention here. Don’t beat around the bush.
Now you might be thinking, “Wow! This is a lot of money to throw at one prospect.” And you are right. This is probably $40 to $50 per prospect here. But you also need to remember that these are clients that can spend thousands and thousands each and every year. So their impact can be well worth it. It’s also worth noting that you are not going to spend this much chasing each customer…just the Target list!
Now the procedure becomes simple.
First, choose your 3 to 5 first Target Accounts. (Make it a number you KNOW you can follow up with). I tend to choose them based on the ones I am most excited about working with the soonest. This will give me the most motivation to get this process rolling.
Second, once you have chosen the Targets, send out the mailers. I tend to space them out a week apart. This is a bit of a long sales cycle. But it ensures that they will have time to digest the message, even if they are out on vacation, business travel, etc.
Third, just like any business process, the fortune is in the follow up! You must work the phones now to get your appointments with the Target List. If you have done these mailers right (and been creative) you will have a great deal of success.
Be bull-headed in your follow up though.
You have invested a lot of money on these prospects! Work hard to get some time in front them now!
If you have chosen wisely on your promotional items and your themes, you will not only have made an immediate impact with your Target list, but you will also have the chance to have long term advertising with them as well!
This has been true for years. There is an appreciation gap. It’s the gap between how much companies think they show appreciation…and how much employees and customers feel appreciated. It’s probably always been true. Studies show you that 69% of customers that leave you will do so because of perceived indifference. Nearly 70% of them leave because they don’t think you care!
And that was before a pandemic, quarantine, wildfires, racial injustice, murder hornets, and the Big Ten postponing football! So showing your customers and your employees that you really care about them is more important than ever before.
But let’s be honest, it can be harder now. With those challenges, many events have been cancelled. The places where we saw customers have been shut down. So while we need to say “thank you” more than ever, it’s harder than ever before to do it. That is why some companies are thinking outside of the box with appreciation.
Create A Party In A Box
Many companies are looking at the fact that traditional Holiday parties are going to be difficult this year. We want to show our team appreciation, not get them sick! On the other hand, the holidays is when many of us take the time to show appreciation to our employees and our customers. And since we just said, we need to show more appreciation this year, what can we do?
What about a virtual Party In A Box? The idea is simple. While we might not be able to physically get together, what if we did it virtually? We create a Zoom meeting (or pick your platform) and then ship each of your team a box with some amazing items so you can all celebrate together. Depending on your team (and your budget) you can create a branded package that might include an apparel item you want everyone to wear, a bottle of wine, a set of glasses, some sweet treats to eat, and even hand sanitizer! You could create a “party in a box” that really dazzles. And just think, you won’t have to rent a facility or cater a meal…so you can use that budget to build your team, your culture and your brand.
As a side, many of our suppliers are working hard on drop ship programs so you can do this more efficiently and cost effectively than ever before.
What do you think?
If you are interested in exploring an idea like this to show your team or customers that they are special, let us know. You can reach out to your Hasseman Marketing rep…or you can click here to reach out to us!
