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Direct Marketing 101
According to the most recent industry poll numbers, factors
generate 51% of their business from networking and relationship building.
That means that 49% of all factoring business is still the result
of traditional Direct Marketing.
Direct Marketing is also known as response marketing
and this is where it
differs from advertising. Advertising builds "brand
awareness" and if successful, will lead to purchases of a product
over time. Setting aside the fact that advertising tends to
be quite costly, brand awareness is also something we as brokers
generally care little about. Direct Marketing,
however is always designed to sell NOW...not to build brand
awareness for a possible sale at some time in the future.
And that, is something we always care a great deal about.
Direct Marketing is all about "lead generation" or as it is
sometimes referred, "two-step" marketing. The goal in
"two-step" marketing is to convert a suspect into a
prospect and then to convert a prospect into a
client. The process we use to convert a suspect
(a demographic name) into a prospect (someone with interest
in your services) is universally known as direct marketing.
The process we use to convert a prospect into a client
is universally known as prospecting.
Offers...the "Key" to
Response Marketing
Direct Marketing is always
"interactive". For example, you could build a list of a
thousand staffing companies and email that list a comprehensive
report on factoring and its benefits. The cost is "0".
But how can you then separate those with an interest in your
brokering services from those without? You basically would
need to call all 1,000 suspects to ask the question "Are you
interested?"
It is therefore much more efficient to send an email "announcing"
the availability or offer of a FREE report on "How
factoring can help you grow your Staffing Company".
Direct those interested in the FREE report to go to your website,
complete a form, and request it. Because you created an
"interactive" marketing campaign, you now will only have the task
of calling (prospecting) those that requested your report
and who show a true interest in talking with you. All
true direct marketing is interactive and all true direct marketing
includes an offer.
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List Building and Database
Management...the 800 Pound Gorillas in the Room
Any modern definition
of direct marketing will include some reference to
"database marketing". The fact is, they are now one in the
same. What is a database? It is simply a list of
suspects, prospects, or clients that is typically managed by
specialized computer software called a database
manager. Thirty years ago, a database was a list of
prospects on 3x5 cards that a salesperson filed in a shoe box and
guarded with his/her life. Today it is a powerful
computer-based electronic filing system with endless management
and organizing capabilities.
For new brokers and consultants, list building will be your
starting point in business development. It is the next
progressive step after you have set up your office and stocked it
with envelopes, brochures, mailers, etc. But how do you
manage your lists? You can, for example, build a list of
1,000 suspects for factoring quite easily in one weekend.
But how do you manage that list? That is the job of the
database manager.
Direct Marketing
Tools
Over the next
several weeks we will be discussing the "essential tools" which
are most commonly employed in direct marketing (lead generation)
for factoring brokers. These will include:
• Newsletters
• Classified / Classified Display Ads
• Email Marketing / Websites
• Direct Mail
• Radio and Television
Database
Management Software
Though some IACFB
members are simply looking at factoring and alternative commercial
finance as a "minimal" opportunity that might add a few thousand
dollars to their yearly income as a result of being in the "right
place at the right time" armed with some product knowledge, others
are seeking a more active participation in the industry or even
focusing on a full time career.
Those serious about the process of business development should
already have database management software or be looking into its
purchase. You cannot effectively market without it.
End of story. As you build your knowledge of direct
marketing, list building, and lead generation
over the next few weeks, you will find the process to be simply
overwhelming without a database manager. In addition
to FactorMax Guerrilla (www.factormaxbds.com),
we can recommend ACT
(www.act.com)
or Goldmine (
www.frontrange.com ).
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