Issue #7 — Wednesday, May23, 2018
Posted by Denny Hatch
Getting Your Prospects to Say "YES!"
Posted by Denny Hatch
Getting Your Prospects to Say "YES!"
Check
out these small ads from HARRY’S that have been blitzing my iPad since
the weeks before Christmas, 2017.
Each
reads like the title of business article—either about Gillette or the razor
industry.
Click
on HARRY’S Read More >> in the
Gillette ad above and you are buried in 833 words whining about Gillette, lawsuits, ownership, market cap and the mean things Gillette said about poor little HARRY’S.
Here’s HARRY’S lede paragraph:
Since we launched HARRY’S in 2013, we have
certainly attracted the attention of Big Razor. First, Gillette came after us
immediately after we launched with a 'front pivot' patent lawsuit (later
dismissed by Gillette). Then, more recently they created an entire advertising
campaign claiming that most guys leave HARRY’S after trying us (false).
Yawn.
HARRY’S
founders—Jeffrey Raider and Alex Katz-Mayfield—are not interested in telling
you how they can make the daily nuisance of shaving blissfully easy, more
convenient and save you a ton of money to boot.
Rather
they seem to be saying… oh, maybe… gee, let’s start some kind of relationship
so we can engage with you about the razor business.
“I don’t want a relationship with the
guy who sells me aspirin. I just want my headache cured.”
—Emily Soell, CEO, Rapp & Collins
Denny
Hatch’s Test Ad for HARRY’S
Years
ago, Direct magazine (now defunct)
had a fascinating column by master copywriter Tom Collins of Rapp & Collins. He would take a so-so ad currently running and
turn it into a marketing jewel.
Competing
agencies were, of course, pissed off mightily, but Tom was a lot of fun and very
instructive.
With
55 years in direct marketing, I’m taking a page from Tom’s playbook. Here’s a
test ad written and designed by me to run against HARRY’S sphincter-tight corporate
efforts.
Takeaways to Consider
• Old rules
for print absolutely apply to digital.
• “You
must appeal to emotions and self-interest.”
—Pat Farley, Freelancer
• Always make an offer.
• "The offer should be so attractive only a lunatic would
say no." —Claude Hopkins, legendary copywriter
say no." —Claude Hopkins, legendary copywriter
• “Make it quick and easy to order.”
—Elsworth Howell, Howell Book House
• “The prospect doesn’t give a damn about you, your
product or your company. All the matters is: 'What’s
in it for me?'"
—Seattle Guru Bob Hacker
product or your company. All the matters is: 'What’s
in it for me?'"
—Seattle Guru Bob Hacker
• Always listen to W-I-I FM.
• Is it a good idea to tell the prospect what dirt the competition
is spreading about you?
is spreading about you?
###
Word count: 400
Denny - Great piece. My guess is the Harry's display ads aren't there to win a single customer. They're for corporate PR -- especially to promote a buyout offer by a CPG company, a la Dollar Shave Club's $1B purchase by Unilever. This would be the big paycheck for Harry's investors and they're probably worried it's taking so long to happen. (Dollar Shave deal was in 2016.)
ReplyDeleteLook, the mail order razor blade biz is likely to be spectacularly unprofitable, what with the cost of acquisition and fulfillment. How many continuity offersare profitable at $8 a month incl. S&H?
Evidence: Have you noticed how the Dollar Shave Club ads have all but disappeared now that Unilever owns them? Once you're part of a real business you can't lose money on every ad you run. Horrors!
According to Crunchbase, VCs have already pumped $475 million into Harry's. When you add in the equity still held by the superstar co-founders, the business HAS to sell in the $1B range just to make everyone whole. My guess is the whole thing might blow up. Look, we're talking about Mail Order here; only difference from Book of the Month is the ads are mostly (but not all) online. That does not translate into a quantum leap in acquisition and fulfillment efficiency.
ReplyDeletePeter, Great hearing from you. And thank you for taking the time to create these informative Posts! You and I come out of the world of direct marketing.
Delete“There are two rules and two rules only in direct marketing,” wrote the late Malcolm Decker. “RULE #1: Test everything. RULE #2: See Rule 1.”
The idea that direct marketing ads are used to impress VCs and investors I find dumbfounding. Teeny ads on my iPad hoping to generate $1B investment is staggering. To quote the late Tom Wolfe, “It boggles the mind, baby.”
FORBES values Gillette as of May 2018 at $17.1 billion market cap. The description:
“The Gillette product line of razors and personal care products became part of Procter & Gamble when P&G bought the company in 2005. Razors are one of the most profitable businesses for P&G. The company's razors are used by 750 million men in more than 200 million countries, according to Euromonitor. But online sellers like Dollar Shave Club have dinged Gillette in the U.S. Market share is down six straight years and was 54% in 2016 versus 70% in 2010, per Euromonitor.”
How long would it take—and how much investment needed—to build a razor business from scratch that will (1) pay off the investment and (2) knock off Gillette?
I cannot get my head around this!
“Imitation is the sincerest form of collective stupidity,” said Bill Munro, VP of Pepsi one night at a barbeque.”
Thank you again. And do keep in touch!
It seems I purchased their razor early, before all the little ads. The ads offer little consumer benefit yet the product is a winner. Plus the back-end, customer service, makes one feel special. They treat you like a real person. Good product and packing design. I use their little boxes and razor holders in the tool shop. Taking on the big boys has my admiration. Let's hope they stay the same if and when they do get bought for billions.
DeleteThis may be about direct mail or it may be about corporate pr, but Harry's products are in Target next to Gillette at a lower price. I think their campaign was about branding so they could get their products in bigbox stores.
ReplyDeletePutting your direct-marketed brand into stores is nothing new. Witness the "As Seen on TV" logo in drug and houseware chains. The problem is that Harry's can't compete with the economies of scale of the likes of P&G, Edgewell and private label suppliers.
Delete"Old rules for print absolutely apply to digital." I heartily agree. However, in the old paper-and-ink days, the rule of thumb was to touch your prospective customer once every 28 days. Today, it seems like email marketers and web advertisers feel the need to touch a prospect much more frequently. Like, some mail nearly every day. I hate the kind of personal commitment this would entail. Makes me long for the mailing once a month days...
ReplyDeleteThanks for taking the time to write.
DeleteWhen I was running Target Marketing Magazine, I used to get two or three calls a week from (young) readers asking how often they should contact their customers.
My answer: Whenever you have something special to say, such as a real good offer, a real good price or a wonderful new product or service. Or, of course, for renewals.
Thanks again.
Hi Denny,
ReplyDeleteYour aspirin quote reminded me of this oldie-but-goodie from Theodore Levitt:
"People don't want to buy a quarter-inch drill, they want a quarter-inch hole."
I've also seen the Harry's ads non-stop for about 2 years, and your mockup is the only one that made me want to try one.
Chris,
DeleteThanks for taking the time to write.
I am fascinated by Peter Blau’s Comment that HARRY’S doesn’t want orders but rather is nosing around for investors.
In the immortal words of the King of Siam/Yul Brynner: “Is a puzzlement!”
Do keep in touch.
Cheers.
Denny, Chris and "Unknown" - I didn't mean that Harry's doesn't want customers; I would guess that the majority of the $475 million invested so far went to customer acquisition. What I meant was the Gillette-tweaking ads were pushing a corporate message promoting their business to investors/buyers.
DeleteThey may be little ads on your iPad, but you've seen them, I've seen them and corporate execs see them. A VC funded business that's fast-growing but unprofitable has only 3 options: 1) go public, 2) be acquired; 3) close down. So, stakes are very high in convincing investors and execs that your business will be highly profitable.
To me, the biggest reason to doubt Harry's viability is that Dollar Shave has gone quiet since its acquisition by Unilever. This isn't just my imagination. See: https://www.1010data.com/company/blog/dollar-shave-club-sales-flatline-immediately-after-1b-unilever-acquisition/
Peter,
DeleteThank you for stirring the pot. This is fun—and informative!
I would love HARRY’S to test my little ad. But these guys are so weird—and probably secretive—that they would not share results.
Do keep in touch.
Cheers.
No surprise about the "quiet" of Dollar Shave. A good friend of mine started hitting the market hard here in Florida with his "Never Add Chlorine to Your Pool Again" solution.
ReplyDeleteOnce he hit traction, he was purchased by a hidden subsidiary of the "big boys" - one of the pool chlorine behemoths. He pocketed a cool 20 mil and called it a day.
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