Archive for September, 2011

What is new in local marketing? Direct Mail and it is working!!!

September 10, 2011

What is the newest thing in local and national marketing that is working? Direct Mail, yes really direct mail. It is seeing a great surge in volume for the local advertiser and the national advertiser. Why, because it works, it always has and always will work. Though we spent the whole first half of this year and last year talking about social media. Thousands of “experts” should up and wanted to tell you how it is the next “shiny new object” everyone tweeted, posted, poked, linked, and friended. But nothing happen, no new customers were found and the time that was spent can never be brought back.

So now we are back to what works and what needs to be done to drive business to our door. Direct mail, response driven advertising, the tried and true basics that work and have worked for the ages. use them to drive business to your doors, keep doing the other stuff is you like, but remember it is media not strategy. All media is good and bad the key is how you use them.

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What is happending to daily deal sites… Part 2

September 6, 2011

Last week I forgot to mention that Yelp also cancelled their daily deal sites.  I usually do not pay attention to anything to do with Yelp for many reason, look to later posts, but this one they got right.

Their CEO stated that he did not see a sustainable business model where you are given away half the revenue. I could not agree more.

What is happening with Daily Deal Sites? Like we did not see this coming…

September 3, 2011

This week, Facebook Closed down their daily deal site and services, the Chicago Tribune closed down their daily deal site. Living Social and Groupon saw limited visits to their sites. Groupon stated that they will cut their marketing expenditure to $0.00 to get to profitability in 3 year??? Really cutting your sales and marketing expense to nothing is going to get you to profitability.  Are daily deal sites a passing fad. Were they ever really a business model

Now don’t get me wrong, I think some of the deals were great for the customers, and probably a great way for cash infusion for cash strapped small business. But the downstream consequences of these deals needed to be thought through. What was our acquisition cost per customer. What was the long-term position of this to our business and our brand. Will we keep the customer that we acquire, if so what percentage is acceptably for me to make money.

For the business that were started what is the long-term strategy? What is our competitive distinction and differention? How will we make money in this competitive environment? How will acquire new customer and build our consumer database?

At the end of the day, the daily deal site was a great idea but the question is for who. And was it ever really more than a lead generation model or sampling for the year 2011.