Archive for Cash Flow

Had to go into the city today for an adjustment at my chiropractor.  On the way back I had to pop into a supermarket to pick up some groceries (ah…the exciting life of a freelance copywriter).  Because it was lunchtime, there was a huge queue and I ended up having to wait about 10 minutes to get to the checkout.

Now, I generally hate queues (that’s ”lines” for my North American readers) and avoid them if possible.  However, if I’m stuck, then I’ll aim to make the best of the situation.

The first thing I tend to do is have a look around at the products on offer, looking for new products, any special offers and that kind of thing.  I’ll also look for any ads and closely look at the magazine rack to scan the covers for headline and bullet ideas (You copywriters reading this did know that popular magazines are a great source of headline ideas? There’s a reason why many “A-list” copywriters are avid readers of the “National Enquirer” and the like).

The second thing I do is observe people in the queues and see what they do. As copywriters, it’s essential for us to be students of human behaviour and to understand what makes people tick.   Today, I was absolutely fascinated to watch a lady in front of me as she checked out various products on the shelves that we passed, and added quite a few of them to her shopping basket.  There must have been at least 5 or 6 extra items she bought simply because of the time she spent in the queue.

I’ve got to admit, I did the same, although to nowhere near the extent that the lady in front of me did!  The lady behind me, on the other hand, didn’t seem to buy anything extra.  Might have been because she didn’t have a shopping basket, only having picked up a couple of items.

So what’s the lesson for copywriters here?  Well, supermarkets have long figured out that the more traffic there is passing a given spot, the more sales they are likely to make.  That’s why the milk and other staples are always at the back of the store.  Plus, of course, people are prone to make impulse buys while in a queue or line so the magazines and confectionery are always on display at the checkouts.

So, there are times when people are more disposed to making a purchase.  If you can figure out when they are, then you have a good time to present an offer.  For Direct Response marketers and copywriters, the “upsell” is an example of this.  Once someone has already decide to make a purchase they tend to be receptive to making further purchases.

And airports?  Well, people often have time on their hands waiting for flights so they are often quite open to some “retail therapy”.  Years ago when I used to work in banking, I was involved in the financing for a bid for an airport.  I was astonished to discover that something like 60-70% of the airport’s revenue and cash flow came from retail operations and things like car parking fees.  Providing air services was, in effect, merely the opportunity to offer a range of other lucrative goods and services to the traffic generated.

So, if you’ve got captive traffic, what else could you offer them?

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Of course, the answer to my somewhat provocative headline is “Neither” if you are practicing Direct Response Marketing!  The beauty of Direct Response Marketing is that when you test and track your campaigns, you know exactly what’s working and hence the value you’re getting from any particular piece of advertising or marketing.

If an advertisement isn’t producing an adequate result, you stop doing it!

There’s a well known quote that many ad folk and marketers are aware of.  It’s…

 “I know half the money I spend on advertising is wasted, but I can never find out which half.”

It was said by John Wanamaker, an American businessman and department store pioneer.  And I was reminded of this quote today when I was browsing through a fascinating book called “This Day In Business History”.  For every day of the year it provides a collection of….

 “Great corporate tales, commercial milestones, colorful titans, captivating quotes  and calamitous blunders”

…that occurred on that day in years gone by.

So for today (March 12) in 1877, John Wanamkaker opened “a new kind of store” in  a converted railroad depot in Philadelphia.  It was one of the world’s first department stores and soon became of of the largest.

Among the many firsts introduced by Wanamaker was the use of full-page newspaper advertising on a regular basis.  It was his experience with this that apparently led to his quip about “50% of advertising is wasted”.

What most people don’t know about Wanamaker is that he wasn’t the kind of man who was happy to waste money and that he was one of the early pioneers of what could be called “Direct Response Marketing”.  He hired a man by the name of John E. Powers to write his copy and advertising.  One can only assume the marketing was a success because Wanamaker paid Powers an annual salary of $10,000 – an astonishing sum at the time.

Powers himself is regarded as one of the first great copywriters and pioneered a number of early innovations.  But, that’s a story for another post.

So, keep in mind Wanamaker’s quip and test and track the effectiveness of your advertising.  You’ll be amazed at the difference that simple step can make to your bottom line and cash flow.

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Quick post to alert you to a new and very worthwhile special report relevant to marketers and copywriters from Rich Schefren and Jay Abraham.

It’s called the “Maven Matrix Manifesto” and, in a nutshell, it’s about how to position yourself as the authority or the “Go-To Guy” (or “Gal”, of course!) in your market.  Haven’t read it all yet (it’s 83 pages) but quickly looking through the report I’ve spotted 2 or 3 really valuable items already.  I’ll post a further update when I’ve read the whole thing.

Look, some of this stuff isn’t really new.  Jay Abraham has long talked about his “Strategy of Pre-eminence” and the idea of “Positioning” has been a key strategic marketing idea for decades since Al Ries and Jack Trout published their classic book “Positioning”.

However, Rich and Jay have put this idea in a clear and coherent structure and added some new insights.  If you’re new to this idea, this report will be an eye-opener.  Experienced marketers and copywriters will find it a useful reminder of an important idea and get some new insights to apply.

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OK, I admit it, I’m a Starbucks junkie!  There’s a Starbucks near where I live. My morning walk takes me past it and I almost always grab a coffee (Venti Flat White, for those who are interested).

Anyway, even on my morning walk my little brain is working away looking out for marketing lessons.  Recently I noticed something interesting in Starbucks.

First a little background.  I live in the Sydney Metro area, near North Sydney, which is a satellite business district to the main CBD in Sydney proper.  One of the main businesses in North Sydney was a big telco company called Optus.  Recently, they decided to relocate their offices out to a business park in one of the suburbs.

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Categories : Cash Flow, Marketing
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