In this Issue:

Dealing with Customers Based on Their Value   past Best of Show winners... deadline approaches
Labels -- They're Not Just for Nonprofits Anymore
A Great Blogger is a Great Conversationalist
The Best Way to Choose the Wrong Agency
B2B Boot Camp at Forrester Research
NEDMA Membership News
     1. Member Promotions and Appointments
     2. Members on Stage and in Print
     3. Member Milestones
     4. New Members
Upcoming Events
From NEDMA

Dealing with Customers Based on Their Value

The entry at Wikipedia (en.wikipedia.org) for "database marketing" says, "Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. The method of communication can be any addressable medium, as in direct marketing."

It's a businesslike and serviceable description, but it conveys very little of the magic. Compare it to Don Graumann's description of BeNOW's mission at the December 7 NEDMA meeting:

"To enable our partners to treat customers, leads, and prospects based on their value."

Graumann is the Vice President/General Manager of the Agency and Commercial Division of BeNOW, and the statement of mission was part of his presentation on "Getting Business Results Through Strategic Database Marketing."

Imagine the results you might enjoy by investing in each customer only the effort that customer is worth. It's a tantalizing proposition, but it's not the only reason for strategic database marketing. "If you don't differentiate treatment," said Graumann, "you have no relationship. Without a relationship, you're just doing transaction-based selling."

In order to differentiate treatment, he explained, you have to log every customer interaction. The data from these interactions goes into a data refinery, where it is "normalized" so you can ask questions of it. The answers to your questions allow you to determine the optimum treatment for each individual customer. For some customers, this optimum treatment might be something like a personal relationship. For some, it might be encouragement for them to take their business elsewhere. And there are lots of strategies between those two extremes.

BeNOW has worked with its clients, which it calls "partners," to develop systems for achieving this utopia. In the second half of the NEDMA session, Paul Weiss, Vice President of Strategic Services, explained the agency's approach. BeNOW calls its approach "MVP," for "marketing to value and potential," and it has helped to implement systems for Four Seasons Hotel, Tower Records, the Gap, Radio Shack, and other iconic marketing organizations.

BeNOW goes into an organization's customer data and uses it to produce a Customer Value Chart, which segments customers by value from the best all the way down to lapsed. Most organizations will get value from eight to twelve segments. The chart provides insights into the business such as, "Average order values and units purchased have remained steady, but an increasing length of time between orders has resulted in a decrease in average weekly spending."

With an insight like that, according to Weiss, BeNOW might recommend a frequency-driving program calculated to reduce time between orders.

Most organizations now routinely collect enormous amounts of data, from retail outlets, the web, kiosks, loyalty programs, and so forth. Graumann and Weiss gave NEDMA members a view of how all that data can be used to shape strategy and marketing efforts.

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Awards for Creative Excellence seeks past Best of Show winners... deadline approaches

NEDMA's Awards for Creative Excellence will be handed out during the annual dinner and awards show at the Roxy in Boston on April 6, 2006.

But you can't win if you don't enter, and the final deadline for entries is approaching fast! All entries must be received by end of day, January 17, 2006. For more information, and to download your entry form, visit nedma.com/events.html#awardsanchor.

Also, if you're one of the two dozen Best of Show winners from previous competitions, NEDMA wants to talk with you! The Awards Committee wants to include your story in this year's Silver Anniversary Award Winners Book. So, if you've won Best of Show, or know someone who has and can provide a connection, and we haven't heard from you, please contact the NEDMA office at 781-237-1366 as soon as possible!

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Labels -- They're Not Just for Nonprofits Anymore
by Bob Cargill

Direct mail marketers rely on a host of techniques to get people to open, read and respond to their communications, but perhaps no other as obvious -- and effective -- as the practice of giving away something for nothing.

Indeed, whether it's actually included in the mail piece or promised on the back end, a so-called premium -- such as a free decal or t-shirt -- more often than not improves response and pays for itself.

This is no secret to direct response fundraisers, of course. In fact, most studies suggest that more than half of all direct mail solicitations sent by nonprofit organizations make use of premiums in some way, shape or form.

A premium helps an organization command the attention of constituents who might otherwise not give it the time of day.

A premium gives a mailing a high perceived value, leading donors and prospects to lend their financial assistance not just out of generosity, but out of guilt as well.

There are countless premiums from which nonprofits can choose to use as incentives to give, but the most ubiquitous of them all appears to be the name and address label.

In just the past couple of months alone, I have seen more than a handful of label packages in the mail from such organizations as the American Heart Association, The Humane Society of the United States, The Greater Boston Food Bank, the March of Dimes, the Cystic Fibrosis Foundation, the United States Olympic Committee and the Anti-Defamation League, just to name seven.

Yes, everyone loves labels, both the senders and those on the receiving end. That's why they continue to be used so heavily -- and successfully -- in the nonprofit world. And perhaps why direct marketers on the commercial side, too, seem to be catching on to their tendency to boost response.

For instance, included in a large, 9" x 12" direct mail package I received earlier this year from American Express Publishing (promoting SkyGuide, a "reference guide for the busy traveler") was a handsome set of personalized name and address labels for me to keep and use on my own outgoing mail.

The company went so far as to use one of these labels as an "involvement device," asking me to affix it to the return address area of the enclosed business reply envelope, a clever way of jumpstarting the ordering process.

But that's nothing compared to how creatively Maker's Mark Bourbon Whisky uses labels as a way of involving potential customers in a full-page ad in the December issue of Esquire magazine.

"In this electronic age of Internet and e-mail, you can share your thoughts with friends at the speed of light," reads the text of the ad. "There are times, though, when sending a letter shows you care enough to actually sit down and put pen to paper. Taking time to do things right. It's the way we craft each bottle of Maker's -- slowly and by hand."

"So here's a way of combining your love of keeping in touch with your friends with your love of Maker's Mark," the text continues. "Sign up as one of our ambassadors, and we'll ship you a set of customized return address labels. Each label will prominently display your name, plus the classic Maker's 'red-wax' logo design."

Maker's Mark even suggests how to use the labels, adding, "You can stick them on cards, letters, phone company bills and discreetly on your friends' backs. Folks across the country (maybe even your pen pals overseas) will know you take pride in spreading the word about the bourbon handcrafted in small batches."

Maker's Mark knows that labels can not only give your response a lift, they can also serve as an inexpensive, albeit powerful, viral marketing tool, helping you extend the reach of your brand.

Indeed, whether you're a nonprofit or not, consumers love labels so much they'll not only part with their hard-earned money -- in support of your products and services -- for them, they may even do some of your advertising for you, giving you back much more in goodwill than you could ever give away in such tchotchkes.

Bob Cargill is Vice President/Creative Director at Newport Creative Communications in Duxbury, MA. "Labels -- They're Not Just for Nonprofits Anymore" was first published on November 28, 2005, in Bob's blog, A New Marketing Commentator, which you can read in its entirety -- and subscribe to -- at www.anewmarketingcommentator.com.

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A Great Blogger is a Great Conversationalist

According to Stephen Turcotte, who writes the "Backbone SEO Blog," the best way to benefit from doing a blog is to do it without pursuing the benefits, or at least without seeming to pursue them. "What I'm saying to you," he writes on his blog, "is that if you want to get all the great benefits of blogging you need to be a great blogger. And being a great blogger is not about great SEO or PR or DM or Advertising. It's about being a great conversationalist within your corner of the blogosphere."

You can expect Turcotte to reiterate this point and expand on it when he appears as part of a panel discussion on blogs at NEDMA's first meeting of 2006.

"The Pros -- and Pitfalls -- of Blogging" will be moderated by Bob Cargill, whose blog you've been reading for some months now. NEDMA News regularly reprints entries from it. (See the previous article.) He will be putting questions to Turcotte (president and founder of Backbone Media), Julie Woods (Executive Vice President of Product Strategy, Cymfony), Ted Demopoulos (Principal of Demopoulos Associates), and Steve Ustaris (Associate Media Director, Media Services of Carat Fusion).

Their discussion will show you how blogging builds trust and credibility and why it just may be the key to marketing in the opt-out age. And you'll also get a lot of great pointers on how to get started with it or how to develop it if you're already doing it.

"Direct marketers," wrote Cargill recently on his blog, "should appreciate as much as any other communications professionals the importance of having an open, honest dialogue with their customers and prospects. There are many ways to carry on such a conversation, of course, but blogging is one of the newest."

A reception for networking with your colleagues begins at 5:30, the dinner and program begins at 6:30. It's on Thursday, January 19 at the Hilton Garden Inn in Waltham, MA. Directions to the meeting can be found at the NEDMA website: nedma.com.

Check the NEDMA website for registration information. You can register by January 16 and take $10 off the regular fee of $50 for members and $60 for nonmembers. See you there!

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The Best Way to Choose the Wrong Agency
by Mary Hutchinson

Once upon a time, I was a Creative Director at Epsilon. Back then I would work long hours in my cube, and from time to time I would be called into a meeting and assigned a new account.

I had nothing to do with sales. I was a worker bee blissfully unaware of the grueling process of landing new business.

Then in 1994, I left and joined Newport Creative Communications, then a tiny agency with a staff of five. The agency was poised to grow, and the growth plan was to hire senior people and have them sell and manage their own new book of business.

During my tenure there and in the two years I have run my own agency, sales has been the difference in hamburger or steak for me, so I have tried many different methods of attracting and landing new business.

Some of these approaches work ...and shouldn't. And some of them shouldn't work ...but do.

There are many ways to hire the wrong agency. One of my favorites is hiring on the basis of a successful test package.

Coming up from the creative side of the business, I have more than a healthy respect for great creative.

However, the fact is, any Creative Director that knows the difference between a postal meter and a reply envelope can beat any organization's annualized control. Just once.

As the agency flying in with the "S" on its chest and the big red cape, leaping over this building only requires a few techniques and an aggressive price. The problem is, some of the techniques employed for this one time boost can have terrible effects on the health of the file long term.

Let me give you an example. A charity in the south employed a local agency for one mailing. The goal was a huge financial windfall that would amount to double the net income the charity usually saw during the mailing window.

The urgent letter was crafted, the design was complete, and the agency mailed this package Certified Mail.

After 30 days, the charity was dancing in the streets. The cash was flowing in as they had never dreamed. The goal was more than exceeded and the agency was hired for a year of service. The silent message was: "do it again, do it again!"

But alas, it was not to happen. In fact, for the six months that the agency kept the account, the monthly results never came close to the average returns before the certified mailing.

It soon became obvious that the certified mailing had inspired some, but angered many others. The percentage of people lapsing off the file soared. The damage to the file would be felt for years.

Admittedly, that is an extreme case. However, in the quest of a prospect that is hiring based on a one time test, most of us "agency types" have reached into our own bag of tricks to achieve that up tick and give us the win.

The point is, just like almost anyone can impress on a first date, you'd better know what your agency is really like long term before you present the ring.

The direct response world is small. Forget their references, spend the time to check them out with long term clients (and former clients).
Also, don't bother looking at their creative (though it pains me to say it) or how many awards decorate their conference room, all that matters is increased long term value of the donors.

If the agency has provided that sustained increase, then hire them -- quickly.

Mary Hutchinson is Founder and President of CreativeOne Direct, Inc.

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B2B Boot Camp at Forrester Research

SAVE $250 ON FORRESTER RESEARCH's UPCOMING B2B BOOT CAMP
Mark your calendar for Forrester Research's upcoming Boot Camp, Making B2B Marketing Work, in Cambridge, Mass., on January 19, 2006.

Making B2B Marketing Work is a full-day session during which Forrester experts Elana Anderson and Shar VanBoskirk will help B2B participants assess the maturity of their marketing programs and learn ways to take them to the next level. This Boot Camp will address:
• The current state of B2B marketing.
• Lead management and budgeting strategies.
• Data management best practices.
• Measurement and technology options.
• Integrated marketing best practices for B2B.

Hands-on exercises will teach marketers how to use Forrester's lead management maturity model assessment tool and Forrester's marketing alignment and planning tool. View a detailed agenda.
Date: Thursday, January 19, 2006, from 8:00 a.m. to 4:30 p.m. Eastern time. Forrester will host a networking wine and cheese reception following the afternoon panel.
Location: Forrester Research, 400 Technology Square, Cambridge, Mass.

Cost: $2,250 with $250 discount for current NEDMA Members
How to register: Please email Jennifer Joseph at: or visit Making B2B Marketing Work for more information. Be sure to mention NEDMA to receive your 10% discount.

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NEDMA Membership News

1. Member Promotions and Appointments

Hill Holliday Relationship Marketing has hired Jennifer Spencer as Senior Art Director. She was most recently running her own firm, Snipes Design, in San Francisco.

Carol Christopher has been named Group Leader for Listability.com. Listability provides online counts and ordering for the leading business and consumer files in the U.S. In her new role, Carol will spearhead business development, working with resellers and other frequent mailers who prefer the convenience of processing their own counts and orders.

Bob Lodi has joined DataProducts USA as a Senior Account Executive. Bob brings over 10 years experience in the Direct Marketing Industry, and will be working with direct mailers and List Brokers in regards to their list needs. Bob was previously employed at CMG Direct, MSGI Direct, and MKTG Services. His roles included Compilation Manager of CMG Direct's K-12 Database, List Manager for all of MSGI's list properties, and Product Manager for MKTG Service's Infobuyers Database.

2. Members on Stage and in Print

Hill Holliday Relationship Marketing Executive Creative Director Nancy Harhut has an article in this month's Target Marketing Magazine. "Make the Sale" features B2B lead conversion tips and shows samples of work from HHR clients Dell and Cognos.

3. Member Milestones

Robert Rosenthal announces that Passaic Parc is now Mothers of Invention. "We've added exciting capabilities, including word-of-mouth marketing, a testing center, programs for super high-value prospects, lead nurture, and search marketing. And I've launched a Reverse Hunger Strike, to call attention to problems in our industry that get in the way of successful innovation. During the Strike, I'm writing a daily blog. All the details are on our new site: www.themothersofinvention.com."

Newport Creative Communications recently volunteered its services to help South Shore Habitat for Humanity with its annual fund campaign. Newport developed an appeal that was mailed to over 10,000 homes on the South Shore. The 2005 Annual Appeal asked friends, including 600 of the organization's most loyal donors, to renew their commitment and "help us provide more families right here in our community with simple, decent, affordable homes." South Shore Habitat, which was founded in 1986 and began building homes in 1992, recently built its 38th house -- for Aimee and Joe Bradford, along with their two children, Samantha and Joseph.

Pamela Sullivan, President of Sullivan Creative, was recently appointed to the Board of the National Ghost Ranch Foundation. Ghost Ranch is an education and retreat center in Abiquiu, NM that offers a wide variety of courses and seminars in art, culture, and nature. "I first became aware of Ghost Ranch on a trip to New Mexico. I have been taking silver jewelry making classes there every summer for the past five years," said Pam. As a volunteer member of the Board, Pam will be working to expand awareness of Ghost Ranch's history and legacy of learning and community involvement in the Northeast.
Pam also recently completed a fundraising certificate program at Boston University, adding to her firm's capabilities in that area.

The healthcare products and services marketer PolyMedica Corp. has hired the Mullen agency to develop long-term customer acquisition and customer relationship programs. Mullen will be responsible for creative development, media strategy and buying for direct mail and online marketing. The agency is expected to work in tandem with other PolyMedica agency partners, including A. Eicoff & Co. to executive new direct marketing programs.

CreativeOne Direct, Inc. says it is honored to have been chosen by the American Leprosy Missions (ALM) as their direct response agency of record. ALM is located in Greenville, SC and focuses most of its work in India and Africa. CreativeOne will be assisting their staff with a variety of direct response vehicles, including new donor acquisition, renewal, major gifts, and newsletter. Most Americans are unaware that 500,000 people a year, a number roughly equal the population of Boston, contract leprosy every year. Worldwide, over 3 million people suffer from its effects. The good news is that there is a cure when it is caught early.

OHO has announced it received four awards from the notable MarCom Creative Awards. The OHO entries were chosen from a pool of over 4,600. OHO won awards in Creativity/Design/Web Site (a Platinum award on behalf of Homes For Good), Web Site/Overall Site (a Gold award on behalf of Homes For Good), Web Site/Overall Site (a Gold award on behalf of Children's Health Fund), and Magazine/Non-Profit (a Gold award on behalf of Cambridge Friends School). OHO has won 26 awards this year and was a finalist for the prestigious MITX Awards. The MarCom Creative Awards is an international competition for marketing & communication professionals. Its mission is to honor excellence and recognize the creativity and hard work of professionals in these fields (more information at www.marcom.com).

Katharine Barr is now a licensed Realtor in the state of Massachusetts, in addition to her direct marketing projects. If you, or anyone you know, who lives in the north suburban area, is either planning to buy or sell, she'd love to hear from you! Katharine is a Past President of NEDMA and a former NEDMA Direct Marketer of the Year.

ListPerfect Direct Marketing Services of Lincoln, RI, has added several national accounts to its extensive list of clients. Thanks to a push in sales and accumulation of new accounts in the third and fourth quarters, the firm is actively looking for experienced Sales Executives, Account Managers, Data Processing Professionals, and Lettershop Personnel. Interested applicants please email or fax resumes to (401) 334-5050.

Collette Vacations is reinstating two of its popular New Orleans and the Deep South tours, beginning in the spring of 2006. All profits from Collette's 2006 tours will be donated to The Hurricane Katrina Relief Fund of the American Red Cross. Collette Vacations, in business since 1918, is one of the oldest and largest US tour operators -- and the first to re-enter the New Orleans marketplace.

Am-Pro Mailing List Company is merging with DataProducts USA in order to improve direct marketing data service offerings. DataProducts USA will focus on expanding data services nationally along with usage for its flagship product, Listability.com. DataProducts USA will continue to offer complete list brokerage services in the Am-Pro tradition.

DS Graphics Inc. of Lowell, MA has expanded its already robust digital print services group through the addition of a new Xerox "iGen3." The Xerox "iGen3" is considered best-in-class of advanced digital color production equipment.

Search engine marketing company @Web Site Publicity has announced the signing of a new client, Stonewall Kitchen, the national award-winning specialty food manufacturing company. The search firm will assist York, Maine-based Stonewall Kitchen to drive sales and reinforce its brand online through a comprehensive Search Engine Marketing campaign.

4. New Members

NEDMA welcomes Monster Worldwide as a Corporate Member at the Platinum level. Monster Worldwide, Inc. (NASDAQ: MNST) is the leading global online job and career network and has sites in 23 countries. Its website lets job seekers search thousands of jobs online and post their resumes for review by prospective employers. It also offers thousands of pages of articles and advice about career management and job-seeking. It also offers hiring tools to employers. In addition to its career services, Monster offers services for movers. You can get mortgage rates, find a mover, reserve a storage facility, or transfer your utilities through Monster.

Keep an eye open at meetings for these Monster staffers and say hello and thank them for their support of NEDMA:

• Tracy Ahern, Creative Director
• Tharon Cottrell, Associate Director of Agency Relations
• Rachel Kraus, Copywriter
• Laura Laemmle, Senior Creative Copywriter
• Ryan Libby, Direct Marketing Specialist
• Glenn Paradise, Copy Manager
• Matt Resteghini, Senior Manager, Relationship Marketing
• Tim Weldon, Senior Copywriter
• Laura Wooley, Manager, Consumer Campaigns
  

NEDMA welcomes Conservation Services Group as a Corporate Member at the Gold level. Founded in 1984, CSG is a nonprofit corporation that specializes in the design, development, and delivery of energy efficiency and renewable energy programs for utility companies, public housing authorities, public agencies, and private clients. Its service offerings promote energy efficiency, health and safety, building durability, comfort, appliance recycling and environmental responsibility in residential and commercial buildings. Headquartered in Westborough, Massachusetts, CSG also has regional offices in California, Florida, Iowa, New York, Oregon, Texas and Wisconsin.

Keep an eye open at meetings for these CSG staffers and say hello and thank them for their support of NEDMA:

• Kathleen DeVito, Director of Corporate Communications
• Chris Gagnon, Senior Designer
• Carol Harley, Marketing Communications Coordinator
• Erin Pickering, Designer
• Lisa-Anne Pyman, Senior Marketing Communications Coordinator
• Barbara Smith, Marketing Communications Coordinator

NEDMA Welcomes new Individual Members:

• Anne Bradnick, Marketing Communications Specialist, BOC Edwards
• Diane Boulanger, President, Boulanger & Associates
• Amanda Johnson, Direct Marketing Specialist, Keurig, Inc.
• Brittany Jordan, Director, Marketing & Communications, MarketModels, Inc.
• Steve Kirstein, Principal, SK Marketing
• Steve Levy, ACT! Consultant, Steven A. Levy
• Martha Paynter, Art/Production Manager, MIS Training Institute
• Kursten Synesael, Assistant Marketing Manager, Analysis Group
• Jim Whitney, CEO, Woodland Power Products, Inc.

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January 17 - Final deadline for NEDMA's Awards for Creative Excellence Entries. For an entry form, click on http://nedma.com/2006awards/awardsforms06.dot.  Click here for "Insiders' Tips for a Winning Entry."

January 19 -Dinner Program - The Pros -- and Pitfalls -- of Blogging
Moderator: Bob Cargill, Vice President/Creative Director, Newport Creative Communications
Panelists: Stephen Turcotte, President and Founder, Backbone Media; Julie Woods, Executive Vice President of Product Strategy, Cymfony; Ted Demopoulos, Principal, Demopoulos Associates; Steve Ustaris, Associate Media Director, Media Services, Carat Fusion
Networking Reception 5:30-6:30pm; Dinner and Program 6:30-8:30pm - Hilton Garden Inn, Waltham, MA

January 25 - Half-day Seminar - What is Stopping You? The Inside Game of Selling Success
Seminar Leader: Carl Harvey, founder of Success & Self-Esteem
8:30am - 12:30pm  Microsoft Seminar Facility, Waltham, MA

January 31 - February 1, 2006
14th Annual DMA Catalog-on-the-Road Conference
Hyatt Regency Cambridge, Cambridge, MA
www.dmacatalogontheroad.org

Don't miss out on one of the industry's top programs for 13 years running. Come hear leading catalog and multichannel experts openly share their secrets of success, as well as their strategies for managing future challenges. This full-day program promises to provide you with critical information that will enable you to plan your year.

February 15- Dinner Program - "77 Truths About Marketing to the 50+ Consumer" as presented to a standing-room only crowd at the Fall 2005 DMA Conference. Speaker: Kurt Medina, Medina Associates
Networking Reception 5:30-6:30pm; Dinner and Program 6:30-8:30pm - Hilton Garden Inn, Waltham, MA

April 6 - 25th Annual Awards for Creative Excellence Gallery, Show & Banquet at the Roxy, Boston

June 14 -15 - "NEDMA '06 - It's a Brave New World" - Annual Conference & Exposition, Bentley College, Waltham, MA

Health Insurance Benefits and Dental Discount cards. NEDMA small business members can access HMO, PPO and Health Savings accounts and avoid the standard joining fees typically associated with these plans. Visit www.insurance4members.com -- linked from NEDMA.com -- to learn more. You may save hundreds of dollars on joining fees alone!

Also, NEDMA members can have free, in-depth discussions of their specific situation with these health insurance experts. As health insurance costs rise, you can explore all your options with this free consultation member benefit.

NEDMA members can now access a dental discount option offered by DENTAL for ME.

Unlike dental insurance (which this is not), this program has no deductibles, annual maximums, employee participation requirements or paperwork.

Instead you or your employees purchase a dental discount card, and then receive 10%-40% off the usual dental fees at hundreds of participating Massachusetts dentists. Dental discount cards cost $79/year for individuals and $139/year for families.

Details, including participating dentist list, sample savings examples, FAQs and enrollment forms at www.DentalForMe.com. Or call DENTAL for ME at 508-297-1408.

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