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PERMISSION
MARKETING
CHAPTER
ONE
THE MARKETING
CRISIS THAT MONEY WON'T SOLVE
YOU'RE NOT PAYING ATTENTION. NOBODY IS.
It's not
your fault. It's just physically impossible for you
to pay attention to everything that marketers expect
you to-like the 17,000 new grocery store products
that were introduced last year, or the $1,000 worth
of advertising that was directed exclusively at you
last year.
Is it any
wonder that consumers feel like the fast-moving world
around them is getting blurry? There's TV at the airport,
advertisements in urinals, newsletters on virtually
every topic, and a cellular phone wherever you go.
This is
a book about the attention crisis in America and how
marketers can survive and thrive in this harsh new
environment. Smart marketers have discovered that
the old way of advertising and selling products isn't
working as well as it used to, and they're aggressively
searching for a new, enterprising way to increase
market share and profits. Permission Marketing is
a fundamentally different way of thinking about advertising
and customers.
There's
no more room for all these advertisements!
I remember
when I was about five years old and started watching
television seriously. There were only three main channels-2,
4 and 7, plus a public channel and UHF channel for
when you were feeling adventuresome. I used to watch
Ultraman every day after school on channel 29.
With just
five channels to choose from, I quickly memorized
the TV schedule. I loved shows like The Munsters,
and I also had a great time with the TV commercials.
Charlie the Tuna, Tony the Tiger and those great board
games that seemed to magically come alive all vied
for my attention. And they got it.
Growing
up, it seemed like everyone I met was part of the
same community. We saw the same commercials, bought
the same stuff, discussed the same TV shows.
Marketing
was in a groove - if you invented a decent product
and put enough money into TV advertising you could
be pretty sure you'd get shelf space in stores. And
f the ads were any good at all, people bought the
products.
About ten
years ago, I realized that a sea change was taking
place. I had long ago ceased to memorize the TV schedules,
I was unable to keep up with all the magazines I felt
I should be reading, and with new alternatives like
Prodigy and a book superstore, I fell hopelessly behind
in my absorption of media.
I found
myself throwing away magazines unopened. I was no
longer interested enough in what a telemarketer might
say to hesitate before hanging up. I discovered that
I could live without hearing every new Bob Dylan album
and that while there were plenty of great restaurants
in New York City, the ones near my house in the suburbs
were just fine.
The clutter,
as you know, has only gotten worse. Try counting how
many marketing messages you encounter today. Don't
forget to include giant brand names on T-shirts, the
logos on your computer, the Microsoft start-up banner
on your monitor, radio ads, TV ads, airport ads, billboards,
bumper stickers and even the ads in your local paper.
For ninety
years, marketers have relied on one form of advertising
almost exclusively. I call it Interruption Marketing.
Interruption, because the key to each and every ad
is to interrupt what the viewers are doing in order
to get them to think about something else.
INTERRUPTION
MARKETING-THE TRADITIONAL APPROACH TO GETTING CONSUMER
ATTENTION
Almost
no one goes home eagerly anticipating junk mail in
their mailbox. Almost no one reads People magazine
for the ads. Almost no one looks forward to a thre
minute commercial interruption on Must See TV.
Advertising
is not why we pay attention. Yet marketers must make
us pay attention for the ads to work. If they don't
interrupt our train of thought by planting some sort
of seed in our conscious or subconscious, the ads
fail. Wasted money. If an ad falls in the forest and
no one notices, there is no ad.
You can
define advertising as the science of creating and
placing media that interrupts the consumer and then
gets him or her to take some action. That's quite
a lot to ask of thirty seconds of TV time or 25 square
inches of the newspaper, but without interruption,
there's no chance for action, and without action,
advertising flops.
As the
marketplace for advertising gets more and more cluttered,
it becomes increasingly difficult to interrupt the
consumer. Imagine you're in an empty airport, early
in the morning. There's hardly anyone there as you
leisurely stroll towards your plane.
Suddenly,
someone walks up to you and says, "Excuse me,
can you tell me how to get to Gate 7?" Obviously,
you weren't hoping for, or expecting, someone to come
up and ask this question, but since he looks nice
enough and you've got a spare second, you interrupt
your train of thought and point him on his way.
Now, imagine
the same airport, but it's three in the afternoon
and you're late for your flight. The terminal is crowded
with people, all jostling for position. You've been
approached five times by various faux charities on
your way to the gate, and you've got a headache to
top it all off.
Same guy
comes up to you and asks the same question. Odds are,
your response will be a little different. If you're
a New Yorker, you might ignore him altogether. Or
you may stop what you were doing, say, "sorry,"
and then move on.
A third
scenario is even worse. What if he's the fourth, or
the tenth, or the one hundredth person who's asked
you the same question? Sooner or later you're going
to tune out the interruptions. Sooner or later, it
all becomes background noise.
Well, your
life is a lot like that airport scene. You've got
too much to do and not enough time to get it done.
You're being accosted by strangers constantly. Every
day, you're exposed to more than four hours of media.
Most of it is optimized to interrupt what you're doing.
And increasingly, it's getting harder and harder to
find a little peace and quiet.
The ironic
thing is that marketers have responded to this problem
with the single worst cure possible. To deal with
the clutter and the diminished effectiveness of Interruption
Marketing, they're interrupting us even more!
That's
right. Over the last thirty years, advertisers have
dramatically increased their ad spending. They've
also increased the noise level of their ads-more jump
cuts, more in-your-face techniques-and searched everywhere
for new ways to interrupt your day.
Thirty
years ago, clothing did not carry huge logos. Commercial
breaks on television were short. Magazines rarely
had three hundred pages of ads (as many computer magazines
do today). You could even watch PBS without seeing
several references to the "underwriter."
As clutter
has increased, advertisers have responded by increasing
clutter. And as with pollution, because no one owns
the problem, no one is working very hard to solve
it.
CONSUMERS
ARE SPENDING LESS TIME SEEKING ALTERNATIVE SOLUTIONS
In addition
to clutter, there's another problem facing marketers.
Consumers don't need to care as much as they used
to. The quality of products has increased dramatically.
It's increased so much, in fact, that it doesn't really
matter which car you buy, which coffee maker you buy,
or which shirt you buy. They're all a great value
and they're all going to last a good long while.
We've also
come a long way as consumers. Ninety years ago, it
was unusual to find a lot of brand name products in
a consumer's house. Ninety years ago, we made stuff,
we didn't buy it. Today, however, we buy almost everything.
Canned goods. Bread. Perked coffee. Even water. As
a result, we already have a favorite brand of almost
everything. If you like your favorite brand, why invest
time in trying to figure out how to switch?
We're not
totally locked in, of course. It wasn't too long ago
that cake mix was a major innovation. Just a few years
ago, we needed to make major decisions about which
airline was going to be our supplier of frequent flyer
miles. And today, if you're going to get health care,
you've got to make a serious choice. But more often
than not, you've already made your decisions and you're
quite happy with them.
When was
the last time someone launched a major new manufacturer
of men's suits? Or a large nationwide chain of department
stores? Or a successful new nationwide airline? Or
a fast food franchise? It can be done, certainly,
but it doesn't happen very often. One of the reasons
it's such a difficult task is that we're pretty satisfied
as consumers.
If the
deluge of new products ceased tomorrow, almost no
one would mind. How much more functional can a T-shirt
get? Except for fast moving industries like computers,
the brands we have today are good enough to last us
for years and years. Because our needs as consumers
are satisfied, we've stopped looking really hard for
new solutions. Yet, because of the huge profits that
accrue to marketers who do invent a successful new
brand, a new killer product, a new category, the consumer
is deluged with messages. Because it's not impossible
to get you to switch from MCI to Sprint, or from United
Airlines to American Airlines, or from Reebok to Nike,
marketers keep trying. It's estimated that the average
consumer sees about one million marketing messages
a year-about 3,000 a day.
That may
seem like a lot, but one trip to the supermarket alone
can expose you to more than 10,000 marketing messages!
An hour of television might deliver 40 or more, while
an issue of the newspaper might have as many as 100.
Add to that all the logos, wallboards, junk mail,
catalogues, and unsolicited phone calls you have to
process every day and it's pretty easy to hit that
number. A hundred years ago, there wasn't even a supermarket,
there wasn't a TV show, and there weren't radio stations.
MASS MEDIA
IS DEAD. LONG LIVE NICHE MEDIA!
Technology
and the marketplace have also brought the consumer
a glut of ways to be exposed to advertising. When
the FCC ruled the world of television, there were
only three networks and a handful of independents.
Networks made a fortune because they were the only
game in town. Now there are dozens, and in some areas,
hundreds of TV channels to choose from.
The final
episode of Seinfeld made media headlines. Yet thirty
years ago, Seinfeld's ratings wouldn't have made Neilsen's
list of top 25 shows of the season. With an almost
infinite number of options, the chances of a broadcast,
even a network broadcast, reaching almost everyone
are close to zero.
Even worse
is the World Wide Web. At last count, there were nearly
2,000,000 different commercial web sites. That means
that there's about 25 people online for every single
website...hardly a mass market of interest to an interruption
marketer.
Alta Vista,
one of the most complete and most visited search engines
on the internet, claims to have indexed 100 million
pages. That means that their computer has surfed and
scanned 100 million pages of information, and if you
do a search, that's the database you're searching
through.
It turns
out that in response to people who do searches online,
Alta Vista delivers about 900 million pages a month.
That means that the average page that they have indexed
in their search engine is called up exactly nine times
a month. Imagine that. Millions of dollars invested
in building snazzy corporate marketing sites and an
average of nine people a month search for and find
any given page of information on this search engine.
This is
a very, very big haystack, and interruption marketers
don't have that many needles.
Marketers
have invested (and almost completely wasted) more
than a billion dollars on web sites as a way of cutting
through the clutter. General Electric has a site with
thousands of pages. Ziff-Davis offers a site with
more than 250,000 pages! And a direct result of this
attempt to cut through the clutter is the most cluttered,
least effective marketing of all.
THE FOUR
APPROACHES TO KEEPING MASS MARKETING ALIVE
A quick
look at the newsstand at Barnes & Noble will confirm
that the problem of clutter saturation isn't limited
to electronic media. There are enough consumer magazines
(ignoring the even larger category of trade magazines
for a moment) to keep a reader busy reading magazines
full time, 24 hours a day, seven days a week.
Obviously,
the mass market is dying. The vast splintering of
media means that a marketer can't reach a significant
percentage of the population with any single communication.
That's one reason the Super Bowl can charge so much
for advertisements. Big events are unique in their
ability to deliver about half the consumers watching
TV, so they're the perfect platform for Interruption
Marketing aimed at the mass audience.
Other than
buying even more traditional advertising, how are
mass marketers dealing with this profound infoglut?
They're
taking four approaches:
(1) First,
they're spending more in odd places. Not just on traditional
TV ads, but a wide range of interesting and obscure
media. Campbell's Soup bought ads on parking meters.
Macy's spends a fortune on its parade. Kellogg's has
spent millions building a presence on the World Wide
Web-a fascinating way to sell cereal.
Companies
have seen that a mass market broadcast strategy isn't
working as well as it used to, especially when targeting
the hard-to-reach upper income demographic. As this
lucrative audience spends less time watching TV, marketers
are working overtime trying to find media with less
clutter, where their interruption techniques can be
more effective.
Marketers
hire Catalina Corporation to print their coupons on
the back of receipts at the grocery store. They buy
ads on the floor of the cereal aisle. There are ads
atop taxis in New York City and on the boards around
the rink at the hockey game. Fox even figured out
a way to sell the rights to the small area over the
catcher's shoulder, so TV viewers would see the ad
throughout an entire baseball game.
(2) The
second technique is to make advertisements ever more
controversial and entertaining. Coca-Cola hired talent
agency CAA to enlist top-flight Hollywood directors
to make commercials. Candies features a woman sitting
on a toilet in its magazine ads (for shoes!). Spike
Lee's ad agency did more than fifty million dollars
in billings last year.
Of course,
as the commercials try harder to get your attention,
the clutter becomes even worse. An advertiser who
manages to top a competitor for the moment has merely
raised the bar. Their next ad will have to be even
more outlandish in order to top the competition, not
to mention their previous ad, to keep the consumer's
attention.
The cost
of making a first-rate TV commercial is actually far
more, per minute, than a major Hollywood motion picture.
Talking frogs, computer graphics and intense editing
now seem to be a requirement.
A side
effect of the focus on entertainment is that it gives
the marketer far less time to actually market. In
a fifteen second commercial (increasingly attractive
as a cost-cutting way to interrupt people even more
often), ten or even twelve seconds are devoted to
getting your attention, while just a few heartbeats
are reserved for the logo, the benefit and the call
to action.
Take the
interruption challenge! Write down all the companies
who ran commercials during your favorite TV show last
night. Write down all the companies that paid good
money to buy banners on the Web during your last surfing
expedition. If you can list more than ten percent
of them, you're certainly the exception.
(3) The
third approach used to keep mass marketing alive is
to change ad campaigns more often in order to keep
them "interesting and fresh." Tony the Tiger
and Charlie Tuna and the Marlboro man are each worth
billions of dollars in brand equity to the companies
that built them. The marketers behind them have invested
a fortune over the last forty years, making them trusted
spokesmen (or spokesanimals) for their brands.
Nike, on
the other hand, just ran a series of ads without the
swoosh, arguably one of the most effective logos of
the last generation. Apple Computer changes its tagline
annually. Wendy's and McDonald's and Burger King jump
from one approach to the other, all hoping for a holy
grail that captures attention.
In exchange
for these brief bits of attention (remember the hoopla
when they replaced Mikey on the Life box?) these marketers
are trading in the benefits of a long term brand recognition
campaign. It's a trade they're willing to make, because
Interruption Marketing requires it. Without attention,
there is no ad.
(4) The
fourth and last approach, which is as profound as
the other three, is that many marketers are abandoning
advertising and replacing it with direct mail and
promotions. Marketers now allocate about 52% of their
annual ad budgets for direct mail and promotions,
a significant increase over past years.
Of the
more than $200 billion spent on consumer advertising
last year in the US, more than $100 billion was spent
on direct mail campaigns, in-store promotions, coupons,
free standing inserts and other non-traditional media.
Last year alone Wunderman, Cato, Johnson, did more
than $1.6 billion in billings for its clients (folks
like AT&T).
The next
time you get a glossy mailing for a Lexus, or enter
an instant win sweepstakes at the liquor store, you're
seeing the results of this trend toward increased
direct marketing efforts. Advertisers are using them
because they work. They are somewhat more effective
at interrupting you than an ad. They're somewhat more
measurable than a billboard. Best of all, they give
the marketer another tool to use in their increasingly
frustrating fight against clutter. After all, there
are only five or ten pieces of junk mail in your mailbox
every day-not 3,000. And another few feet of shelf
space at the supermarket can lead to a dramatic upturn
in sales.
Direct
marketing breaks through the clutter, temporarily
Even though they work better than advertising, these
techniques are astonishingly wasteful. A 2% response
for a direct mail campaign will earn the smart marketer
a raise at most companies. But a 2% response means
that the same campaign was trashed, ignored or rejected
by an amazing 98% of the target audience! From the
perspective of the marketer, however, if the campaign
earns more than it costs, it's worth doing again.
Of course,
just as suburbanites learned when they fled the city
to avoid the crowds, if a strategy works, other people
will be right on your heels. That bucolic countryside
rapidly fills up with other people looking to get
away from it all. Correspondingly, as each of these
promotional media becomes measurably effective, every
smart marketer rushes to join in. Finding a unique
approach that cuts through the clutter is usually
very short lived.
Virtually
every supermarket now charges a shelving allowance,
for example, which manufacturers pay for if they want
more shelf space for their products. Every liquor
store is already jammed with promotions. Every mailbox
in the country is brimming with catalogs for clothes,
gardening equipment and fountain pens.
Direct
marketers are responding to this glut by using computers.
With access to vast amounts of computerized customer
information, marketers can collate and cross-reference
a database of names to create a finely-tuned mailing
list, and then send them highly targeted messages.
For example, a direct marketer might discover that
based on past results, the best prospects for its
next campaign are single women who are registered
Democrats, who make more than $58,000 a year and have
no balance on their credit card. This information
is easily available, and marketers are now racing
to make their direct marketing ever more targeted.
Of course,
database marketing is a weapon available to any marketer,
so like all trends in Interruption Marketing, this
one will soon lose its edge. When others jump in as
well, the clutter will inevitably catch up.
The last
frontier of Interruption Marketing appears to be exemplified
by the movie Titanic. James Cameron showed the world
that outspending any rational marketer will indeed
cut through the clutter. Hollywood has jumped on this
bandwagon with marketing campaigns for Godzilla and
other films that at first glance, can't possibly bring
in enough ticket sales to justify the expense.
Nike uses
the same approach to sell sneakers, and now this radical
overspending strategy is being used by others, especially
on the internet. The thinking behind it is based on
an all or nothing roll of the dice. Basically, because
clutter is so pervasive, anyone who can successfully
break through and create a new mass market product
will reap huge rewards. And betting vast amounts of
other people's money on that breakthrough is one way
to play.
Of course,
once there's a proven pattern that big spending can
win, others in the category will jump in as well.
The bar will be raised yet again, and the only winners
will be the media companies that sell the air time
and ad space in the first place.
Why ad
agencies don't work to solve the problem What about
the ad agencies? With so many talented people, why
aren't they working to solve this problem?
Unfortunately,
the clutter wars are taking their casualties at the
agency side as well. The big agencies, the ones who
could afford to take the lead in this challenge, are
faced with three dismal problems:
(1) First,
clients are giving the agencies a much shorter leash.
Leo Burnett used to keep clients for twenty or thirty
years. Levi's stayed at FCB for 68 years. That's so
long that not one person at either company was probably
born when the account work was started on Levi's.
Today,
however, it's not unusual for a marketer to change
agencies after two or three years. Companies that
fired their ad agencies in the last year include Bank
of America, Compaq, Goodyear, and many more.
(2) The
second problem is that the stock market has been conducive
to agency consolidations. The best way to make money
in advertising today is to buy ad agencies and take
them public. As a result, some of the best minds in
the business have been focusing on building agencies,
not brands.
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order the book at: http://www.amazon.com/exec/obidos/ASIN/0684856360/permissionmarket
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enjoying it, please feel free to post a review on
Amazon or on Barnes & Noble. Thanks!
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(3) And
last, the commission structure that every ad agency
was built upon has been dramatically dismantled. Traditionally,
agencies were paid by media companies.
They got
to keep 15% of all the ad money that the client spent
on ad space in the form of a commission from the magazines
and TV networks where they ran their ads. This meant
that big clients could generate huge profits for the
ad agencies, which funded work on new approaches to
advertising as well as the innovative ads for new,
smaller clients. But now the big guys have decided
to put a stop to this subsidizing, and it's rare to
find an ad agency who still gets a straight 15% commission
on media buys for their big clients.
INTERRUPTION
MARKETERS FACE A CATCH 22
To summarize
the problem that faces the Interruption Marketer:
1. Human
beings have a finite amount of attention. You can't
watch everything, remember everything, or do everything.
As the amount of noise in your life increases, the
percentage of messages that get through inevitably
decreases.
2. Human
beings have a finite amount of money. You also can't
buy everything. You have to choose. But because your
attention is limited, you'll only be able to choose
from those things you notice.
3. The
more products offered, the less money there is to
go around. It's a zero sum game. Every time you buy
a Coke, you don't buy a Pepsi. As the number of companies
offering products increases, and as the number of
products each company offers multiplies, it's inevitable
that there will be more losers than winners.
4. In order
to capture more attention and more money, Interruption
Marketers must increase spending.
Spending
less money than your competitors on advertising in
a cluttered environment inevitably leads to decreased
sales.
5. But
this increase in marketing exposure costs big money
Interruption marketers have no choice but to spend
a bigger and bigger portion of their company's budgets
on breaking through the clutter.
6. But,
as you've seen, spending more and more money in order
to get bigger returns leads to ever more clutter.
7. Catch-22:
The more they spend, the less it works. The less it
works, the more they spend.
Is mass
marketing due for a cataclysmic shakeout? Absolutely.
A new form of marketing is changing the landscape,
and it will affect interruption marketing as significantly
as the automobile affected the makers of buggy whips.
CHAPTER
TWO
PERMISSION
MARKETING-THE WAY TO MAKE ADVERTISING WORK AGAIN
POWERFUL
ADVERTISING IS ANTICIPATED, PERSONAL AND RELEVANT.
What if
you could turn clutter into an asset? What if the
tremendous barriers faced by Interruption Marketers
actually became an advantage for you and your company?
The truth is that even though clutter is bad and getting
worse, Permission Marketers turn clutter to their
advantage. In fact, the worse the clutter gets, the
more profitable your Permission Marketing efforts
become.
In this
chapter, I'm going to outline the core ideas behind
Permission Marketing. Every marketing campaign gets
better when an element of permission is added. In
some cases, a switch to marketing with Permission
can fundamentally change a company's entire business
model and profit structure. At the very least, the
basic concepts of Permission will help you formulate
and launch every marketing campaign with greater insight
and success.
Interruption
marketing fails because it is unable to get enough
attention from consumers. Permission Marketing works
by taking advantage of the same problem-there just
isn't enough attention to go around.
WE ARE
ALL RUNNING OUT OF TIME
Two hundred
years ago, natural resources and raw materials were
scarce. People needed land to grow food, metal to
turn into pots, and silicates and other natural elements
to make windows for houses. Tycoons who cornered the
market in these and other resources made a fortune.
By making a market in a scarce resource, you can make
a profit.
With the
birth of the industrial revolution, and the growth
of our consumer economy, the resource scarcity shifted
from raw materials to finished goods. Factories were
at capacity. The great industrialists, like Carnegie
and Ford, earned their millions by providing what
the economy demanded. Marketers could call the shots,
because other options were scarce.
Once factories
caught up with demand, marketers developed brands
that consumers would desire and pay a premium to own.
People were willing to walk a mile for a Camel, and
they'd rather fight than switch their brand of cigarette.
When brands were new and impressive, owning the right
brand was vital.
But in
today's free market, there are plenty of factories,
plenty of brands and way too many choices. With just
a little effort and a little savings, we can get almost
anything we want. You can find a TV set in every house
in this country. People throw away their broken microwave
ovens instead of having them repaired.
This surplus
situation, or abundance of goods, is especially clear
when it comes to information and services. Making
another copy of a software program or printing another
CD costs almost nothing. Bookstores compete to offer
50,000, 100,000 or even 1,000,000 different books-each
for less than $25. There's a huge surplus of intellectual
property and services out there.
Imagine
a tropical island, populated by people with simple
needs and plenty of resources. You won't find a bustling
economy there. That's because you need two things
in order to have an economy: people who want things,
and a scarcity of things they want. Without scarcity,
there's no basis for an economy.
When there's
an abundance of any commodity, the value of that commodity
plummets. If a commodity can be produced at will and
costs little or nothing to create, it's not likely
to be scarce, either. That's the situation with information
and services today. They're abundant and cheap. Information
on the web, for example, is plentiful and free.
Software
provides another example. The most popular web server
is not made by Microsoft or Netscape. And it doesn't
cost $1,000 or $10,000. It's called Apache, and it's
created by a loosely knit consortium of programmers
and it's is totally free. Free to download, free to
use. As resources go, information is not scarce.
There is
one critical resource, though, that is in chronically
short supply. Bill Gates has just as much as you do.
And even Warren Buffet can't buy more. That scarce
resource is TIME. And in light of today's information
glut, that means that there's a vast shortage of ATTENTION.
This combined
shortage of time and attention is unique to today's
information age. Consumers are now willing to pay
handsomely to save time, while marketers are eager
to pay bundles to get attention.
Interruption
Marketing is the enemy of anyone trying to save time.
By constantly interrupting what we are doing at any
given moment, the marketer who interrupts us not only
tends to fail at selling his product, but wastes our
most coveted commodity, time. In the long run, therefore,
Interruption Marketing is doomed as a mass marketing
tool. The cost to the consumer is just too high.
The alternative
is Permission Marketing, which offers the consumer
an opportunity to volunteer to be marketed to. By
only talking to volunteers, Permission Marketing guarantees
that consumers pay more attention to the marketing
message. It allows marketers to calmly and succinctly
tell their story, without fear of being interrupted
by competitors or Interruption Marketers. It serves
both consumers and marketers in a symbiotic exchange.
Permission
Marketing encourages consumers to participate in a
long-term, interactive marketing campaign in which
they are rewarded in some way for paying attention
to increasingly relevant messages. Imagine your marketing
message being read by 70% of the prospects you send
it to (not 5% or even 1%). Then imagine that more
than 35% respond. That's what happens when you interact
with your prospects one at a time, with individual
messages, exchanged with their permission over time.
Permission marketing is anticipated, personal, relevant.
Anticipated-people look forward to hearing from you
Personal-the messages are directly related to the
individual. Relevant-the marketing is about something
the prospect is interested in.
I know
what you're thinking. There's a catch. If you have
to personalize every customer message, that's prohibitive.
If you're still thinking within the framework of traditional
marketing, you're right. But in today's information
age, targeting customers individually is not as difficult
as it sounds. Permission Marketing takes the cost
of interrupting the consumer and spreads it out, over
not one message, but dozens of messages. And this
leverage leads to substantial competitive advantages
and profits. While your competition continues to interrupt
strangers with mediocre results, your Permission Marketing
campaign is turning strangers into friends and friends
into customers.
The easiest
way to contrast the Interruption Marketer with the
Permission Marketer is with an analogy about getting
married. It also serves to exemplify how sending multiple
individualized messages over time works better than
a single message, no matter how impressive that single
message is.
THE TWO
WAYS TO GET MARRIED
The Interruption
Marketer buys an extremely expensive suit. New shoes.
Fashionable accessories. Then, working with the best
databases and marketing strategists, selects the demographically
ideal singles bar.
Walking
into the singles bar, the Interruption Marketer marches
up to the nearest person and proposes marriage. If
turned down, the Marketer repeats this process on
every person in the bar.
If the
Marketer comes up empty-handed after spending the
entire evening proposing, it is obvious that the blame
should be placed on the suit and the shoes. The tailor
is fired. The strategy expert who picked the bar is
fired. And the Interruption Marketer tries again at
a different singles bar.
If this
sounds familiar, it should. It's the way most large
marketers look at the world. They hire an agency.
They build fancy ads. They "research" the
ideal place to run the ads. They interrupt people
and hope that one in a hundred will go ahead and buy
something. And then, when they fail, they fire their
agency!
The other
way to get married is a lot more fun, a lot more rational,
and a lot more successful. It's called dating.
A Permission
Marketer goes on a date. If it goes well, the two
of them go on another date. And then another. Until,
after ten or twelve dates, both sides can really communicate
with each other about their needs and desires. After
twenty dates, they meet each other's families. And
finally, after three or four months of dating, the
Permission Marketer proposes marriage.
Permission
Marketing is just like dating. It turns strangers
into friends and friends into lifetime customers.
Many of the rules of dating apply, and so do many
of the benefits.
THE FIVE
STEPS TO DATING YOUR CUSTOMER
Every marketer
must offer the prospective customer an incentive for
volunteering. In the vernacular of dating, that means
you have to offer something that makes it interesting
enough to go out on a first date. A first date, after
all, represents a big investment in time, money and
ego. So there better be reason enough to volunteer.
Without
a selfish reason to continue dating, your new potential
customer (and your new potential date) will refuse
you a second chance. If you don't provide a benefit
to the consumer for paying attention, your offer will
suffer the same fate as every other ad campaign that's
vying for their attention. It will be ignored.
The incentive
you offer to the customer can range from information,
to entertainment, to a sweepstakes, to outright payment
for the prospect's attention. But the incentive must
be overt, obvious and clearly delivered.
This is
the most obvious difference between Permission Marketing
and Interruption Marketing. Interruption Marketers
spend all of their time interrupting strangers, in
an almost pitiful attempt to bolster popularity and
capture attention. Permission Marketers spend as little
time and money talking to strangers as they can. Instead,
they move as quickly as they can to turn strangers
into prospects who choose to "opt-in" to
a series of communications.
Second,
using the attention offered by the consumer, the marketer
offers a curriculum over time, teaching the consumer
about the product or service he has to offer.
The Permission
Marketer knows that the first date is an opportunity
to sell the other person on a second date. Every step
along the way has to be interesting, useful and relevant.
Since the
prospect has agreed to pay attention, it's much easier
to teach them about your product. Instead of filling
each ensuing message with entertainment designed to
attract attention, or with sizzle designed to attract
the attention of strangers, the Permission Marketer
is able to focus on product benefits -- on specific,
focused ways this product will help that prospect.
Without question, this ability to talk freely over
time is the most powerful element of this marketing
approach.
The third
step involves reinforcing the incentive. Over time,
any incentive wears out. Just as your date may tire
of even the finest restaurant, the prospective customer
may show fatigue with the same repeated incentive.
The Permission Marketer must work to reinforce the
incentive, to be sure that the attention continues.
This is surprisingly easy. Because this is a two-way
dialogue, not a narcissistic monologue, the marketer
can adjust the incentives being offered and fine tune
them for each prospect.
Along with
reinforcing the incentive, the fourth step is to increase
the level of permission the marketer receives from
the potential customer. Now I won't go into detail
on what step of the dating process this corresponds
to, but in marketing terms, the goal is to motivate
the consumer to give more and more permission over
time.
Permission
to gather more data about the customer's personal
life, or hobbies, or interests. Permission to offer
a new category of product for the customer's consideration.
Permission to provide a product sample. The range
of permission you can obtain from a customer is very
wide, and limited only by its relevance to the customer.
Over time,
the marketer uses the permission he's obtained to
change consumer behavior, that is, get them to say,
"I do." That's how you turn permission into
profits. After permission is granted, that's how it
becomes a truly significant asset for the marketer.
Now you can live happily ever after by repeating the
aforementioned process while selling your customer
more and more products. In other words, the fifth
and final step is to leverage your permission into
a profitable situation for both of you. Remember,
you have access to the most valuable thing a customer
can offer - attention.
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