#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
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.
40% offer and 20% everything else."
All Emphasis Is on 40% Lists (Snooping)
I'd rather spend my money and time on Grey Goose vodka and Viking cruises.
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.
Denny - I believe that Dusenberry is correct, however his statement hasn't compelled me to switch careers! Best to you and your lovely bride.
ReplyDeleteThe 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!"
ReplyDeleteRichard,
DeleteThank 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.”
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.
ReplyDeleteRichard! 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!!!”
DeleteI LOVE IT!
Do keep in touch.
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:
ReplyDeletehttp://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.
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.
DeleteNOTE FROM DH: Long-time reader Brad gave met the okay to share his email about today's post.
ReplyDeleteTo: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.