Tuesday, April 6, 2021

#123 Blog Post - Snoop Marketing

#123 Blog Post - Tuesday, April 6, 2021

 http://dennyhatch.blogspot.com/2021/04/123-blog-post-snoop-marketing.html

 

Posted by Denny Hatch

 

ALL ABOUT SNOOP MARKETING

                                                                          Official Photo

The 122-word Warning to Direct Marketers from
The CEO of the World's Most Valuable Company

Technology does not need vast troves of personal data stitched together across dozens of websites and apps in order to succeed. Advertising existed and thrived for decades without it. And we’re here today because the path of least resistance is rarely the path of wisdom.

 

“At a moment of rampant disinformation and conspiracy theories juiced by algorithms, we can no longer turn a blind eye to a theory of technology that says all engagement is good engagement, the longer the better. And all with the goal of collecting as much data as possible.

 

"If a business is built on misleading users, on data exploitation, on choices that are no choices at all, then it does not deserve our praise. It deserves reform."
    —Tim Cook, CEO, Apple
     January 28, 2021, Data Privacy Day Speech

 

In 1984 Peggy and I launched WHO'S MAILING WHAT! a cranky little newsletter and archive service for professionals who marketed by direct mail. Mail was Top Dog—larger than TV, radio, print advertising, telemarketing, billboards and skywriting COMBINED!

 

Every now and again I would get a phone call from a reader asking how often a customer should be contacted.

 

When we sold the business to Target Marketing magazine where I became editor and publisher, I had roughly 20 times the number of readers. Whereupon I got a lot more calls asking how often a customer should be contacted.

 

My answer from the beginning:

"Contact your customer when you have something important to say that would be of interest to generate revenue—a great benefit, an exciting new product or service, news of a 'Buy-one-Get-One FREE!'" offer.

 

"What about software that keeps track of how often a customer is contacted? What is the best product? And does it work?"

 

My answer:
Put yourself in the customer's shoes. Would you want to hear from a vendor who was calling or writing with nothing to say just to see if you are still alive? 

 

A (Very) Short History of Data Collection

Anybody out there remember when lists were kept on Addressograph plates? Imagine tens of thousands of these metal things—each with one customer's address. Imagine tens of thousands of these metal things and the monstrous clattering machines that stored them, sorted them, inked them and addressed envelopes with them.


Enter primitive computers in the late 1940s and 1950s when the data collection industry graduated from tin plates to these paper punch cards.

In the 1960s—when I took over the Better Homes & Gardens book clubs, the heart of our business was the vast computer room that looked like this with dozens of magnetic tape reels and addressing machines that could spit out many thousands of envelopes, invoices and personalized rejection slips in an hour.
 
Remembering Ed Mayer (1907-1975)
   From 1939 to 1945 Mayer was a senior consultant to the State Department advising on propaganda. He set up a wartime system of dropping leaflets behind enemy lines from planes and balloons. After the War he went on to a distinguished career in the practice and teaching of direct marketing and authoring "How to Make Money in Direct Mail." Mayer's Rule—absolutely true today:
 "Success in direct marketing is 40% lists,
40% offer and 20% everything else."
 
Translated into Today's Lingo:
40% lists = Finding the right people to contact.
40% offer = Whaddya got to sell and what's the deal? 
20% everything else = Copy, design, website, guarantee, etc.
 
After 60 Years in the Business I Believe
All Emphasis Is on 40% Lists (Snooping)
For some reason today the lion's share of direct marketers have become besotted by the giddy world of creating high-tech electronic dossiers and scraping up every scintilla of gossip and professional information on every person in the English-speaking world. These creeps comb news, social media, personal correspondence by and about every human being from birth to death—and including it in the dossier. Whereupon they use it to "market" via A.I. (Asshole Intelligence.)
 
A personal aside: the 40% lists and list research always bored the hell out of me. My fascination was (and is) what you say to prospects and customers and how you say it so they will part with their money.
 
My Rude Awakening, May 16, 2018
That day I mentioned in a blog post I had lower back pain. A long time caring reader named Stan sent me a comment suggesting I look into a nationwide consortium of physical therapists. Precisely at 11:00 a.m. I replied via my Yahoo email:
     Aaah, Stan...
     Thank you.
     I'd rather spend my money and time on Grey Goose vodka and Viking cruises.

At 11:15—a quarter hour later—I received a message in my Yahoo in-box touting Grey Goose vodka! Here's the link to the blog post and the story:

http://dennyhatch.blogspot.com/2018/08/20-all-your-emails-are-being-stolen-and.html

 

Think of that! Yahoo had sold the private contents of my personal email to Bacardi/Grey Goose who immediately sent me a Grey Goose ad. The message was stupid as hell for two reasons:

 

• The jerks at Yahoo alerted me the contents of everything I write is being is being sold to outsiders all over the world.

 

• I was (and am) a Grey Goose customer who did not need an ad for Grey Goose. I was doubly pissed off—at both Yahoo and Grey Goose for their seedy duplicity.

 

Circling Back to Tim Cook's Lede to This Post

"Technology does not need vast troves of personal data stitched together across dozens of websites and apps in order to succeed. Advertising existed and thrived for decades without it. And we're here today because the path of least resistance is rarely the path of wisdom.

 

"At a moment of rampant disinformation and conspiracy theories juiced by algorithms, we can no longer turn a blind eye to a theory of technology that says all engagement is good engagement, the longer the better. And all with the goal of collecting as much data as possible."

 

Takeaways to Consider

•  What makes direct marketing elegant—the aristocrat of the advertising profession is that—when done right—results are precisely measurable.

  

• When I got into direct marketing the basic information needed before spending on prospecting or marketing to customers.
   —Name and address.
   —Can they afford to do business with you?
   —Do they pay their bills?
   —What are their interests, hobbies, professions and behavior patterns?
   —Do they respond to offers made from a distance?
 
• Whereupon you tailor and test powerful offers of specific interest to them.
 
• Snoop Marketing is emphatically NOT elegant. The seedy, venal low-life that steals your emails, history of searches, downloads, purchases, trysts, travels, travails,  browsing habits, every scintilla of dust, data and dirt by and about you, your family, your children, friends, business associates, enemies, even your pets—and put it up for sale all over the world. 
 
• "I have always believed that writing advertisements is the second most profitable form of writing. The first, of course, is ransom notes."
—Phillip Dusenberry, Chairman, BBDO Worldwide 
 
If you're gonna practice Snoop Marketing, for Pete's sake have a delay system in place—say a couple of weeks at least—so your disgusting thievery isn't instantly thrown up in my face.  
 
###  
 
Word count: 2005  
 

8 comments:

  1. Denny - I believe that Dusenberry is correct, however his statement hasn't compelled me to switch careers! Best to you and your lovely bride.

    ReplyDelete
  2. The answer to the age-old question, "How often should I mail my list" is, of course, "Keep mailing it as often as you can until your mailing loses money!"

    ReplyDelete
    Replies
    1. Richard,
      Thank you for taking the time to comment.
      “Yes! Keep mailing until your mailing loses money.” Old rule, probably good today:
      If you repeat a mailing to the same list—say 6 months later—you’ll get half the response of the first shot. Mail again in six months and you’ll get half that. Ad infinitum. Thus a 20% response on the first effort would generate 10% response the second time around. Thence 5%. 2.5%. 1.25%. I’ll give you that.

      What these people would call me about—“How often should I contact my customers?—was based on the dictum consultants’ come up with, “You Have To Keep in Touch with Your Customers.” What they were really saying, “How often should I contact my customers to let them know we’re alive and still in business.”
      In the immortal words of Bob Hacker: “The customer or prospect doesn’t give a damn about you, your product or your business. All that matters is, ‘What’s in it for me?’” Put another way: Always listen to W-I-I FM.”

      Delete
  3. The fault, dear reader, lies not within the data but in the inept ways in which it is used. I do believe in the 40/40/20 guidance. I've seen too many great offers killed by misdirecting to the "wrong" list. However, I also consider TIME to be part of a good list. Back to the old RFM days, timing is a critical component of creating the best list in the moment. Sadly although we are floundering in a tsunami of data, many perpetrators of marketing are nothing more than serial data abusers. Too much reliance on relatively unsupervised algorithms, too little human marketing oversight. Why do I get recommendations for products from Amazon which I have already purchased from them?? Much like the forced delay that you seek, there should be product stoppages as well. Sorry for the lengthy rant. Peace.

    ReplyDelete
    Replies
    1. Richard! Great comment! Great post. I actually don’t mind Amazon reminding me what I bought. For my Covid-19 pre-lunch tipple of 2oz Dry Sack Sherry I bought a set of 4 mini-snifters (5-oz). Busted two of them. Amazon sent me a reminder and I ordered. But yeah, you are right. Direct markers have become “serial data abusers.” “SERIAL DATA ABUSERS!!!”
      I LOVE IT!
      Do keep in touch.

      Delete
  4. I have to pick on you a bit on this one, Denny! I recall this article here about the people who were fed up with junk mail:

    http://dennyhatch.blogspot.com/2020/01/81-junk-mail-pr-campaign.html

    You kind of sound a bit like them on the Grey Goose comment :) It was targeted, and heck, you even spread the word about them a bit more. I wasn't thinking about Grey Goose until now! Three years later, their ad got another impression, lol. All they did was sell your data to Grey Goose just like

    Seriously though, it isn't any different than it was in the days of direct mailing. Data was collected, harvested, bought, and then sold. And even you will have to admit there were some sleazy players in the data broker business. I got stung a few times with outdated off-target lists back in the '90s. We received more complaints when we mailed catalogs as we do now using electronic advertising. Calls of "Don't mail me any more of your stupid catalogs!". "Where did you get my info from? I demand to know!?" At least nowadays, with reputable companies, all you have to do is click the unsubscribe link and all set. If our customers don't want to hear from us again, click a link, and all set. Back in the direct mail days, it was a hassle to stop unwanted mail, even from reputable companies. Some you had to write a letter! Imagine that!

    The truth is nothing has changed. It's the same old business buying and selling data, just delivered in a different format.

    ReplyDelete
    Replies
    1. Alas Brian, you don’t “get it!” THESE PEOPLE ARE FUCKING READING MY E-MAILS AND SELLING THE PRIVATE CONTENTS WORLDWIDE!!! Would the country and the U.S. Government okay this kind of behavior by the USPS??? Yeah, on second thought maybe. Scanning the contents of all First Class and Priority Mail and selling it worldwide would do wonders for the sad sack Post Office budget.  

      Delete
  5. NOTE FROM DH: Long-time reader Brad gave met the okay to share his email about today's post.

    To:dennyhatch@yahoo.com
    Tue, Apr 6 at 10:25 AM

    OMG:

    Those Metal Plates!!! Did that take me back to my childhood. My father Sherwin I Glazer and his two brothers owned a furniture and appliance retailer and used those plates. I can still remember seeing them. And this is a business that close more than 30 years ago, so it shows how far back it goes.

    As Bob Hope might have said, thanks for the memories Denny.

    ReplyDelete