ETD: 765 Postcard Marketing Investment Calculator; New Potential Revenue Stream; ShopeCentre

E-Tailer's Digest etd_post at gapent.com
Tue Mar 2 12:11:00 GMT 2004


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0765                     March 2, 2004
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  Postcard Marketing Investment Calculator
  [3]  New Potential Revenue Stream
  [4]  ShopeCentre

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  [1]  Greetings.
==================================================================
Hi All:

For those of you who tried the Postcard Marketing Investment Calculator we 
have some help.  It's a very interesting calculator, which begs the 
question - "What's a good rate of return?"  What do you think?

Jules Kaplan reports on a potential revenue stream for those of us who are 
getting stale and need something new.  Will it work for you?

While in London we were discussing travel.  Somebody mentioned that less 
than 10% of US citizens have passports, which implies they do not travel 
outside their own country (or North America).  I know some folks who never 
traveled out of their small town or neighborhood.  My question is, so 
what?  Does travel make one a better business person or a better person 
period?  What are your thoughts?

Today we have ShopeCentre as a featured list member.  Let's hear about your 
business,  which will remain  for posterity at our  "Members: Who Are You?" 
site. http://etailersdigest.com/resources/members/index.htm And we have a 
form there for you to tell us about you.  As I said when I first proposed 
this idea, we have "known" each other for a long time, yet we often don't 
know anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com

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  [2]  Postcard Marketing Investment Calculator
==================================================================
Hi George:

I was playing with the Postcard Marketing Investment calculator.  In  your 
opinion what is a good rate of return?

Todd Dupey

+++ [Moderator's Comments] +++

I'm also curious, so I asked Martha Retallick to respond. I would also like 
to know which target this works best with.  Can we send them to CEOs of 
Fortune 500 companies?  Consumers?  Students?  Where does it work and where 
doesn't.

Here's Martha's answer to Todd's question...

Although the "industry standard" is 1-2%, I take a different viewpoint. I 
say that any return in which revenues exceed expenses is a positive return.

And for small business selling services that take time, this is especially 
true. Here's a story from the Postcard Marketing Secrets e-zine 2003 archive:

YOU ONLY NEED A FEW

In direct mail lore, there is a rule that states that you can measure the 
success of your efforts by a minimum response rate of 1-2%.

In other words, if you send out 10,000 pieces, you'll have a successful 
mailing if at least 100 recipients respond to your offer. (One percent of 
10,000 is 100.)

Well, that's one view of direct mailing success.

Permit me to offer a different perspective, one from the small business 
world. Specifically, I'm referring to those small business people who work 
by and for themselves. Call them "One-Man Bands," "Working Soloists," "Free 
Agents," or whatever you'd like.

Tucson graphic designer Ellie Leacock falls into this category. We went to 
lunch a few weeks ago, and she shared some wisdom gained from her recent 
"cold-carding" efforts.

Ellie created a list of potential clients in the entertainment industry, 
then did a postcard mailing. She garnered two new clients from that effort. 
Truth be told, the percentage worshippers wouldn't be too
thrilled with that outcome, but Ellie was delighted.

"I don't want to be a victim of my own success," she said. "I'm not selling 
widgets. I'm selling a service that takes time."

So, when it comes to getting new clients from her postcard mailings, Ellie 
says, "All I need is a handful."

So, there you have it. Two very different perspectives on direct mailing 
success. To help you remember these perspectives, let's give 'em a couple 
of catchy names:

1. The "Playing the Percentages" Perspective. This is that "industry 
standard 1-2% response rate on your mailings" perspective you've heard so 
much about. And, as Ellie hinted, this is the yardstick
favored by businesses that are sending large quantities of direct mail to 
sell mass market products.

For example, if I own a pizza parlor, and I'm doing a "use this card for 
10% off on your next order" mailing to all residences within a three-mile 
radius of my business, I might have a mailing list of
10,000 names.

You better believe that I'm going to watch that overall response rate like 
a hawk, and I'm going to be looking at precisely where those hungry 
customers are coming from. If most of them are coming
from a handful of apartment complexes next to a college campus, I'll know 
to send my future mailings to those complexes.

2. The "You Only Need A Few" Perspective. This is the one for those One-Man 
(or One-Woman) Bands who are selling services that take a fair amount of 
time. Like, for example, web design, graphic design, or customized computer 
software applications.

For these folks, a handful of new or repeat clients from a postcard mailing 
is quite enough. After all, as Ellie so aptly put it, we don't want to be 
victims of our own success.

GENTLE SALES PITCH: The above story can also be found (along with other 
success stories) in my Postcard Marketing Master Class e-book. It's 
available for purchase at:

http://www.PassionatePostcarder.com


Martha Retallick, "The Passionate Postcarder"
Post Office Box 43161
Tucson, Arizona 85733 USA
Telephone: 520-690-1888
Get Started With Postcard Marketing:
http://www.PostcardMarketingSecrets.com

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  [3]  New Potential Revenue Stream
==================================================================
Just read an and article that appears that maybe the E-Trailers should 
consider as part of their marketing program.

It is know as "Gift Cards" or aka the old hand delivered Gift Certificates 
that have been around for years but hidden  away in the accounting 
department or cashier office.  With Gift Cards it really become a POS 
situation.  I even have seen Gift Cards being promoted at our major chain 
grocery store.

Maybe some retailers have to get on to this band wagon.

Here is the story on this:

Prepaid Cards Boost 7-Eleven's 2003 Revenues
Dallas Morning News
Feb 25 2004 : US convenience store, 7-Eleven, which increased its revenues 
by 10 per cent in 2003, attributes much of this growth to sales of its 
prepaid cards, which were launched last year as a marketing tool. In 
December 2003, over 95,000 of the cards were sold as gift cards, and USD 15 
million remains on the outstanding cards, which suggests that the store is 
well-placed to benefit from its holiday sales for a few months yet. The 
prepaid cardholders have to return to 7-Eleven to spend their cash, for 
instance, and typically spend USD 1 more than a cash-paying customer, while 
potentially being new, lifetime customers of the chain.

 From December 21 and 25, 7-Eleven sold 18,000 gift cards, versus 15,000 in 
all of November, CEO, Jim Keyes, recently told Wall Street analysts in a 
conference call. These figures validate 7-Eleven's endeavor to become a 
last-minute gift-giving source in the holiday season, even if gift card 
sales are not totaled as revenue until the cards are redeemed for 
merchandise. 7-Eleven's prepaid card program is an example of how the chain 
has adapted its retail model to a changing market, Keyes said this week in 
an interview with the Motley Fool Radio Show, and was validated when 
Starbucks launched its Duetto prepaid card.

7-Eleven had envisioned using a chip-based card for its prepaid program, 
which was in the pipeline for a time before Starbucks announced its 
magnetic-stripe card. On this basis, 7-Eleven "decided it was time to build 
[its] deck" and launch a magnetic-stripe prepaid card program to offer 
customers extra convenience, Keyes said. Going forward, the cards will act 
as a transaction device for 7-Eleven's 7 million customers per day, who 
spend USD 3 to USD 4 per transaction. Keyes also sees the cards as a sales 
driver that will encourage consumers to make repeat visits to the store to 
spend the remaining funds on their cards

Yours truly

Jules Kaplan

Ez Payment Solutions INC (EZP)
Email:  ezpaymentsolutions at pobox.com
480-991-7025  OR 800-220-0468  - FAX 310-362-8746      Accept Payment by 
FAX - PHONE - E-MAIL - INTERNET
E-Commerce Solution that you have to SEE to BELIEVE 
www.onlinechek.com  /  www.ezpaymentservices.com

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  [4]  ShopeCentre
==================================================================
ShopeCentre are shopping portals featuring our "single shopping basket" 
technology.  ShopeCentre creates branded shopping portals for high volume 
Websites. We can match your Websites branding, while providing you the 
access to many top retailers such as CD-WOW, The Gadget Shop, Dixons, 
Direct Cosmetics and many more top retailers, particularly from the UK.

We are the only service on the Internet to allow you to purchase directly 
from many retailers simultaneously, paying for goods with just one 
transaction. For retailers, we give you access to high traffic volumes from 
portal partners such as Ryanair, Vodafone and many major shopping centres.

We started this business in 1999 to provide convenient shopping experiences 
for shoppers.

We market via eMarketing, affiliates, print media and viral marketing.

Contact Robert Whelan on +353-1-2954895. We are particularly interested in 
large retailers who want access to high volumes.

We are also looking for high volume Websites who want an exciting new 
revenue stream.

Robert Whelan, CTO
ShopeCentre
Adare House, Westgate Business Park,
Ballymount, Dublin IE D24
Tel: 0035312954895


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