February/March 2013
ame YourCoN m Your
pany
Microbranding: Some brewers are using a local flavor with their branding strategy. So how might it help you?
INSIDE The Inbox | 4 Microbranding | 6 Lean into Your Fear | 10 From Where I Sit | 14 Imprint | 15
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Publisher ’s Letter
Resolve
T
3
imes have changed forever. What we produce and how we operate are different. And, while many people cling to the past and pine away for the “good ole’ days,” the ones who will succeed are not married to the way things used to be. At every juncture throughout history, you
will find game changers: The kind of people who make things happen.
The future lies in the hands of the creators. These are the marketing types who understand that people don’t buy what you do; they buy why you do it. The The successful successful companies always endeavor to motivate, inspire and educate markets with which they identify. companies always They won’t sit idled and hope things get better. They endeavor to will be in a position to make things better. It has been said that you cannot feel grateful motivate, inspire and fearful at the same time. One way to become and educate afraid is to feel trapped by any situation. The remedy is choice. In other words, creating multiple almarkets with ternatives and trying new ideas creates action, and which they identify. action cures fear. Superstars know how to embrace fear and make things happen. In addition, they realize that being known is a lot better than knowing. They understand that if they define themselves by others, they can overcome fear and do great things. In our inaugural issue of 2013, we are proud to share two very insightful and thought–provoking features. Our cover article, “How to Brew a Brand,” is a fun way to show the power of microbranding and the power of niche marketing. These companies understand how important it is to be known. Our second feature, “Lean Into Your Fear,” examines how great marketers embrace uncertainty and turn it into progress. It is a timely article as we move forward in an unfamiliar environment. We are so proud to bring you the kind of content that is impor-
Publisher Gina M. Danner Managing Editors Rosanne Kirn Chris Lakin Art Direction Brent Cashman • Creative Director Jaime Mack • Graphic Designer Connect is published bimonthly by Mail Print 8300 NE Underground Dr, Pillar 122 Kansas City, MO 64161 copyright 2013 All rights reserved
tant to you. We continue to believe that we must define ourselves by the communities we serve, and that those relationships must be accompanied by great sincerity. We are, in fact, sincere in wanting the best for you this year. In the meantime, we will continue to research the kind of topics that matter most to you and present it in a way that you enjoy. Happy New Year & warmest regards,
Gina M. Danner
Contents 3
Publisher’s Letter
10 Lean into Your Fear
4
The Inbox
14 From Where I Sit
6 Microbranding
15 Imprint
For more information contact www.mailprint.com 866.938.3607
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4
The Inbox
‘ Are you entertained?’ W ith 1.8 billion millennials expected to comprise 75 percent of the workforce by 2025, you cannot afford to ignore them anymore. And, according to the “8095 Live” survey by Edelman Berland, if you are going to interact with them, you had better be prepared to entertain, help and guide them. The survey says that some 80 percent want to be entertained, while 40 percent want the brands to let them influence products via co-creation. Interestingly, only 31 percent want brands to create online content such as videos, photos, games and blogs. And even fewer – 19 percent – want brands to entertain them through celebrity partnerships. The good news: Only 3 percent say advertising is boring.
Direct mail has the highest rate for new customer acquisition at . The next highest is email at .
34% 25%
Source: Target Marekting, 2012
98% of consumers fetch their mail every day and 77% read it immediately.
Source: Deliver Magazine, 2012
52%
Direct mail represents of total mail volume in the United States.
Source: Deliver Magazine, 2012
63% of adults have responded to a
direct mail piece that offered a percentage discount. Source: Leads360, 2012 February/March 2013 • Connect by Mail Print
It’s a guy thing
W
omen may be more active on social networks than men, but men are more responsive to branded messages on social sites, according to a Resolution Media analysis of 65 billion Facebook ad impressions. The study, “Men Are Cheap,” showed that male subjects had a click volume of 60 percent and an impression volume of 58 percent, versus a 40 percent click response and 42 percent impression volume for women. That makes marketing to men more cost-effective, with a costper-click of 51 cents, compared with 68 cents for women.
The Inbox
51 78 80 72
The percent of marketers that believe their marketing tools do not provide enough analytics in order to improve campaign performance or predict outcomes.
Source: ExactTarget, 2012
The percentage of marketers that believe cross-channel marketing is important or very important.
Source: ExactTarget, 2012
The percent of marketers that cited data driven marketing as “Most Important,” “Very Important” or “Important.” Source: Print In the Mix, 2012
The percent of adults that respond to “Buy one, Get one” offers in direct mail. Source: Leads360, 2012
5
Point, aim, shoot … Y
ou want higher returns; you need a better game plan. According to a study by multichannel marketing company Epsilon, more companies are using triggered messaging to drive higher open and clickthrough rates. The report, “Q3 2012 North America Email Trends and Benchmarks,” found the use of triggered email messages sent automatically as a result of some online action by a user was up 19.1 percent in the third quarter, compared with the same period last year. In addition, triggered messages yielded 75.1 percent higher open rates and 114.8 percent higher click rates than non-triggered emails. But triggered emails as a marketing tactic still is rare, as they account for just 2.6 percent of all emails sent, the study reported.
That’s what he said …
“ We want to migrate to a world in which the 140 characters can serve as a caption for additional functionality. We’d like that to include things like real-time data, even an application functionality.” –– Twitter CEO Dick Costolo on his company’s commitment to remain a neutral, interactive platform, rather than become a media company
Dialing up the ads J
ust how important is your mobile device? According to a Cowen and Co. survey, eight to 10 ad buyers plan to increase mobile-ad purchases during the next 12 to 18 months. The survey, “Internet and New Buying,” also says that at least three-quarters expect to spend 5 percent or more of their total ad budgets on mobile by the end of that period. Seventy percent of respondents believe the fast adoption of smartphones and tablets is the main factor driving the rising price of ads. Read: Mobile penetration is the most important factor determining your advertising value.
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ame YouurrCoN mpan Yo
y
Microbranding:
Some brewers are using a local flavor with their branding strategy. So how might it help you?
February/March 2013 â&#x20AC;˘ Connect by Mail Print
7
I
n the craft beer scene, local is going large. Whether at restaurants, food pairings or the garage fridge,
customers are looking for local flavor and local companies to support. â&#x20AC;&#x153;People are starting to realize that
Some brewers are using a local flavor with their branding strategies. So how might it help you? By Graham Garrison
there are more than just a couple of beer makers out there,â&#x20AC;? says Ryan Libby, marketing director and co-founder of Minneapolisbased 612 Brew.
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Microbranding
This makes connecting these customers with the brand of a local brewer imperative. While national companies have the marketing dollars and reach, local companies have some inherent, built-in advantages of their own, says Brian Hoffman, co-founder of Minneapolisbased Fulton Brew. “Our ability to differentiate ourselves as a brand is easier to do at a local city or state level, than at a national one.” What are some of those differences? We spoke to brewers about the right mix of ingredients needed to make a successful, local brand.
“ When you’ve got a great as much time and energy making it as great as you
People
If you happen to be one of the 2,000-plus people each week who tour and sample products at Atlanta-based SweetWater Brewery, there’s a good chance you’ll bump into one of the company’s brand makers. It didn’t come from an outside source, like a marketing/advertising agency or think tank investment group. Steve Farace, director of marketing for SweetWater Brewery, says that the brand is essentially an extension of the people who work at the brewery. “It’s so true to the people who work here. We can be responsive, be small, be fun and be open. People can walk in the door, and in two seconds they can see the folks who are making the beer and running the show. They can have conversations with us. They can come to the tours. “Half of us are down there ourselves, sampling the beer regularly.” Farace continues, “That kind of openness and access to us as people is great, because there is a face to go with the brand. It’s not just some brand that people don’t know who is making the beer. For most people who want to know, it’s pretty easy to find out who we are, and come talk to us about beer.”
Community
Fulton Brew’s Hoffman says a face-to-face presence is important in the marketplace. “While we continue to have more and more accounts, and can’t be everywhere, we take the time to set up events a few times a month, and when we do an event, we do the event ourselves, rather than sending outside sales reps or beer girls. For one, this is one of the best parts of the job: getting out to a bar, having a few and talking about beer. Also, this helps continue to make the four founders a big part of the brand. We can tell the story ourselves, how we came up with the beers, why we did what we did to start the business, how we met, etc.” Jeremy Ragonese, director of marketing for Kansas City-based Boulevard Brewing Co., says craft brewers in general are connecting with consumers on
“A faceto-face presence is important in the marketplace.” – Brian Hoffman, Co-founder, Fulton Brew
February/March 2013 • Connect by Mail Print
a personal level that the large multinational corporations can’t. “Simply by being smaller and having fewer resources, our brand is much more approachable and product-centric, and less about selling the idea of good times or a specific lifestyle through the use of national media. The more interactions or experiences we can share with a consumer, the better our chances in gaining their loyalty – our brand must resonate with them on an emotional level, and our tactics largely reflect that.”
Local flavor
What’s popular on the West or East Coast may not play well in the Midwest or the South. National companies are at a disadvantage, because there is such a wide range of pallets in different markets. They’re not able to be as specific in their product offerings or as flexible, should a local market change tastes. “For us, we can make a ‘hoppyer’ beer, and as the Minnesotan taste buds change, we can do something different,” Libby says. “We can take more risks. We can push the envelope. We can focus on individuals and not markets. Our placement within this market is great, because
9
product, you put into continually possibly can.” – Steve Farace, Director of Marketing, SweetWater Brewery
it’s a growing market in the Midwest. We can break it down to know who our consumer is, who is going to enjoy our beer.” Even a perceived limitation – distribution – can work toward a local brewer’s favor. For example, because SweetWater doesn’t pasteurize its beer, it has a shorter shelf life than the national labels, which can ship their product across the country or ocean. But pasteurizing beer also leads to a loss in flavor, something SweetWater won’t compromise. “We’re a small brewery and our beers are packed with flavor,” Farace says. “We want that fresh beer to come across. When people open up a bottle or get a draft, we want that fresh taste that we know and love ourselves here at the brewery. We want that to be the experience folks have, regardless of where they have the beer.”
Product
The success of a craft brewery comes down to the beer, and whether its taste catches on with consumers, Hoffman says. Quality matters. “If the beer isn’t good, you will have a hard time creating a fan base.” It all starts and ends with the product, Farace says. “When you’ve got a great product, you put as much time and energy into continually making it as great as you possibly can. Then the rest of the stuff can take care of itself. Obviously, good design and good local partnerships are great. People like supporting what is in their backyard, regardless of whether you make beer, ground beef or widgets. People are looking to support the local. But local doesn’t always mean good, so if your products are not good, you can be local all day long, but it’s not going to help.”
Taste Taste of of a a winner winner Customers can taste a winner. The following ingredients will help you build your brand
Be consistent: “If you start with the right elements in place, the importance of consistency cannot be overstated,” says Jeremy Ragonese, director of marketing for Kansas City-based Boulevard Brewing Co. “Allow your brand’s voice to grow and become louder over time, but keep the message consistent. It’s one of the hardest things in marketing to achieve, because everybody around you seems to be changing the rules and, often, people come and go that make those decisions. But time after time, the brands that have staying power are the ones that have remained true to themselves, and every consumer can identify the brand by the singular message they’ve received.” Be approachable: SweetWater deploys a “beer in hand,” grassroots approach to its marketing. “We go out to the festivals and events,” says Steve Farace, director of marketing for Atlanta-based SweetWater Brewery. “We’ve got 2,000 people a week who come to the brewery for tours. We go out to 50 festivals a year where we’re personally standing at our booth, pouring the beer and talking to people about it, and letting them know who we are.” Be helpful: “ We feel that a company has as much of a responsibility to its community as an individual does,” says Brian Hoffman, co-founder of Minneapolis-based Fulton Brew. “We think that, in business, doing good and doing well should be one and the same. We donate as much as we can each month to local non-profits’ fundraising events, although we can’t give to every request. We also set up the Ful10 fund. The Ful10 fund arose after we struggled with starting a small business. We quickly realized how important cash flow is, and that a bank cares less about whether or not you have a great idea than they do about how fast you will be able to pay them back with interest. The idea behind the Ful10 fund is that we will put 10 percent of our profits into a fund that we can use to try to help out our local community. We hope to be able to provide micro loans to other local businesses, to help them get their dreams, their small businesses, up off the ground. If we can help others in our community do the same thing we did, we’ll all be in a better place.”
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February/March 2013 â&#x20AC;˘ Connect by Mail Print
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See how you can channel the emotion into a successful catalyst for your business By Lorrie Bryan
T
hink of the most courageous person you know: a soldier defending his squadron while pinned down under enemy fire, a bystander dashing into a burning house to rescue someone, a 14-year-old Pakistani girl defying the Taliban. They are fearless, right?
Wrong. From accomplished athletes to seasoned performers, even the most successful and courageous among us frequently experience fear. Parents often encourage their children not to be afraid. But there is no shame in being afraid. Fear is a neutral emotion, neither good nor bad. But how you choose to react to fear shapes your life and defines your character. Fear can be an opportunity to channel that extra energy into something positive, or it can be a paralyzing stumbling block. It can be a catalyst for innovation, growth and change, or a disabling deterrent and a detriment.
“The greatest mistake you can make in life is to continually fear you will make one.” – Elbert Hubbard, 19th Century author Lara Lee, chief innovation officer at Continuum, a global innovation and design consultancy, says that fear is one of the most powerful emotions that we have. “I think when we embrace our biggest fears, we achieve our most significant growth. Fear can be detrimental when it deceives us and distorts our thinking. It has the potential to make us rethink things and motivate us or to over-think things and paralyze us. But it’s even more detrimental when we choose not to deal with it – just ignore it and pretend it’s not there.”
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Lean into Your Fear
“Whether you are trying to change the world, innovate your company or connect with a new customer – whatever your situation – whenever you encounter that inevitable fear, lean into it.” – Lara Lee, Chief Innovation Officer, Continuum
February/March 2013 • Connect by Mail Print
Lee says we are socialized to be fearless. “We are taught that it’s our job as leaders to be rational, rather than emotional. Actually, it’s our job to be courageous. That means you accept and confront your fear and push beyond it. Courage uses fear as fuel.” Lee, who has spent her career leading change and pioneering new territory, says most business leaders and marketers frequently experience three basic fears: fear of failure, fear of the unknown and fear of the truth. Successful, innovative businesses not only acknowledge these fears, but also create a culture that enumerates, explores and embraces these fears. Says Lee: “We can use the tools of design and innovation to overcome these fears to spur positive change for our organizations and for people in our world.”
“The best way to predict the future is to invent it.” – Alan Kay, American computer scientist
Fear of Failure
Innovative businesses factor failure into the equation: In order to succeed, you must be willing to fail. “None of us are smart enough to get a big idea right the first time,” Lee says. “Look at Thomas Edison.” One of the most prolific inventors ever, Thomas Edison, made hundreds of unsuccessful attempts before perfecting the light bulb. As he said, “I have not failed 700 times. I have not failed once. I have succeeded in proving that those 700 ways will not work. When I have eliminated the ways that will not work, I will find the way that will work.” Lee, one of Businessweek’s “25 Masters of Innovation” in 2006, says innovative businesses should replace the fear of failure with the fear of failing to learn. “We are led to believe that we should not fail. However, failure is how we learn. It’s a valuable part of the creative process. Fear of failure is what traps us into making small moves and not taking bigger calculated risks.” Failure definitely is part of the culture at Liberty Group, says Patrick Shine, VP of marketing and business development for the U.S. hotel industry leader. “Marketing in traditional ways is losing its effectiveness. So we are constantly brainstorming and encouraging our marketers to think outside the box. We encourage them to be creative, and they understand from the beginning that failure is part of the creative process. They are encouraged to learn from their mistakes and move on. The opportunities are there, and they can’t let fear of failing get in the way. They need to be constantly adjusting and moving forward, often outside of their comfort zones.” Shaun Schooley says often, large high-margin businesses deliberately cultivate a culture of fear. “At companies that are very successful it’s not unusual for them to protect their core revenue driver rather than innovate,” says Schooley, VP of digital strategies at CooperVision. “On the other end, start-ups and innovators are anti-fear. Small companies tend to cultivate a culture that allows people to take risks – all up
13 “When you try to push your boundaries, you start to get that sense of discomfort and want to back down. But that’s when you need to recognize your fear.” – Shaun Schooley, VP, Digital Strategies, CooperVision
and down the organization. They encourage people to take chances and to fail with grace – celebrating their failures and learning from them.”
Fear of the Truth
you don’t know – the unknown. And that’s usually the thing that you should try and lean into. It’s a difficult concept to teach. But if you’re inactive and do nothing, whatever is around the corner is going to influence you. If you are active and push back, you can control the outcome, rather than the outcome controlling you.” Schooley worked at Amazon for awhile with CEO and founder Jeff Bezos. Fortune magazine recently named Bezos its “Businessman of the Year for 2012,” acknowledging his innovation of the book market and management style, which includes asking his employees to submit new ideas through a six-page written narrative. “Throughout my career, I’ve noticed that the people like Bezos, who are the most successful, are the ones who push through and are unconcerned with the unknown outcome or failure,” Schooley says. Bezos tried to build what he thought the market would react to and didn’t recoil when he was criticized. “He sometimes failed, but he was not afraid to keep trying,” Schooley says. “That freed him to be innovative, and he stepped off the edge daily.”
“Veritas vos liberabit” is the motto of numerous schools across the world, including The California Institute of Technology and John Hopkins University. The term means, “The truth will set you free.” All of us have had trouble accepting a difficult truth. It’s human nature to see what we want to see, especially when the truth makes us uneasy. But acknowledging and exploring the truth can liberate us and lead to greater opportunities. “Fear of the truth sounds paradoxical, because most of us believe that truth is a good thing, but we all know that sometimes it’s hard to face the truth – as when slumping sales are blamed on the weather or impending elections,” Lee says. “The challenge is how to learn as an organization to confront difficult truths, to accept them as valid feedback from the marketplace, to It’s not dealing with difficult embrace that feedback, and then to internalize it clients or even public and decide how to move beyond it.” speaking that scares workers Lee says this often means taking a different the most. In a recent path than the one you initially started down. Accountemps survey, more “But that doesn’t mean you should stop and not than one in four (28 percent) push forward. It’s only by confronting a stark respondents said making a reality that you can begin to push beyond it. mistake on the job is their The answer is to dig deeper, reframe the chalbiggest workplace fear. lenge and find the hidden opportunity. Having the courage to let customers shine a light on what is holding you back reveals the big unexpected opportunities.”
Did you know?
Fear of the Unknown
The big challenge with the fear of the unknown is that our natural instinct is to continually try to predict and know what the future holds. But as Lee points out, the antidote to that fear is to stop predicting the future and begin charting your own course. “If you design a future with your customers at the core, you move from uncertainty to creating your own destiny.” “When you try to push your boundaries, you start to get that sense of discomfort and want to back down,” Schooley says. “But that’s when you need to recognize your fear; you’re afraid of what
Whistling Past the Graveyard?
Some people feel the fear, lean into it and dance on the edge. Other people whistle past the graveyard; they distract themselves, ignore the tightening in their guts and hope that their fears will subside. The tightening in the gut will likely pass, but waiting for fear to subside usually is not the most successful long-term strategy. Suppose, as Schooley suggests, that the fear is a signal that a window of opportunity has opened for you. As Seth Godin, international best-selling author and marketing guru, says by the time the fear subsides, it will be too late. “By the time you’re not afraid of what you were planning to start/say/ do, someone else will have already done it, it will already be said or it will be irrelevant. The reason you’re afraid is that there’s leverage here, something might happen. The fear can be your compass; it can set you on the right path and actually improve the quality of what you do. Listen to your fear, but don’t obey it.” Says Lee: “Whether you are trying to change the world, innovate your company or connect with a new customer – whatever your situation – whenever you encounter that inevitable fear, lean into it.”
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Q&A
MLT Creative’s Billy Mitchell on the new age of marketing
From Where I Sit B
illy Mitchell loves solving problems, especially when a roomful of creative, likeminded marketers can generate an original idea and mold it into shape. As the president and senior creative director for MLT Creative in Atlanta, Mitchell’s advice to live by on the marketing side is to “Never let yourself be a prisoner of your own routine.” We recently sat down with Mitchell to get his take on some of the opportunities and challenges marketers face in today’s ever-evolving landscape. Investment. The planets are aligned. Budgets are back, as are the tools for market research, automation, content development, conversion, lead nurturing and customer relations. These are some of the biggest opportunities marketers will have in 2013.
You need a strategy, a good analytics dashboard and a commitment to test, take risks and never quit learning for the investment to pay dividends. Honesty is one of the biggest challenges marketers face today. Focus on weaknesses as much as strengths, and commit to constant improvement. That includes each individual responsible for marketing and a professional development, passion and shared purpose in serving your customers and growing your business. Develop an insatiable desire to learn and feed it daily. Find others smarter than you and follow them. Learn, test, share and refine your knowledge by taking risks and keeping an open mind. Never outsource your core competency. Your culture is your brand. Service that WOWs translates to great marketing. These come from the book “Delivering Happiness” by Zappos CEO Tony Hsieh. I sleep quite well. But I sometimes have ideas that wake me up. If you’re fortunate enough to have a great idea in your sleep, write it down right away, or it will evaporate like a good dream.
Billy Mitchell
February/March 2013 • Connect by Mail Print
I’m partial to great B2B marketing campaigns. One of my long-time favorites is from BASF: “At BASF, we don’t make a lot of the products you buy. We make a lot of the products you buy better.” I think it inspired a more
recent favorite from SAP: “We don’t make the beer; we make the power that makes the beer.” The one thing you should expect from every marketing campaign is empathy for the customer, especially in B2B. It can be conveyed through humor, provocative messaging and imagery or simple and straightforward conversation. But if it doesn’t address, “What’s in it for me?” it’s just noise. Customers aren’t looking for hype; they’re looking for help. The keys to running the ultimate marketing campaign are simple. A well-planned strategy. Clear objectives. Integrated media with both inbound and direct marketing components. Compelling messaging and imagery. Clear call to action. Conversion and lead-nurturing mechanisms. Product and services that deliver on promises. Great service before, during and after the sale. Multivariate testing, analytics and commitment from which to keep learning and improving on efforts. Every marketer should have a passion for telling the story of his company in a way that’s meaningful to his customers. There’s no place to hide in today’s marketing world. You must be accountable for your marketing. And that’s a good thing. Lazy marketing executives need to either change their ways or change jobs. Many marketers are afraid of salespeople. Others consider themselves above sales or just avoid them as much as possible. That’s a huge mistake. Marketing investment should be the topic that’s trending right now. The time for timidly testing the waters is over. Be bullish with your budget if you expect to grow your business.
Before You Go
Imprint
15
Whoâ&#x20AC;&#x2122;s spending what for marketing in 2013 If you want to know how to budget and prioritize your marketing dollars in 2013, (direct mail, email marketing or cross-channel marketing solutions) we have you covered. Here are some insights into 2013 marketing trends for you to consider.
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The percent of business leaders who plan to increase or maintain marketing spend in 2013 Source: StrongMail, 2013
The percentage of marketers that stated direct mail as delivering the best ROI. Source: Print In the Mix, 2012
M ai l Prin
The percent of businesses that plan to increase spend on email marketing. Source: StrongMail, 2013
t
The percent of marketers who believe data integration will be the primary email marketing challenge in 2013
The percent of businesses that say increasing subscriber engagement is the most important email marketing initiative they will conduct in 2013 Source: StrongMail, 2013
The percent of marketers that included direct mail in their marketing campaigns. Source: Print In the Mix, 2012
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