Creating Trial – a Mathematical Perspective

As the Media Director at The Brandon Agency, I prefer numbers to words.  So for this blog entry, I decided to appeal to the other numerical nerds out there in the world wide web and blog about the  1,2,3’s.

Recently, I became a mom to a healthy baby girl.  And like all new moms, I signed up for every email newsletter, “fanned” every Facebook page, and researched every website that had anything to do with babies, baby health, baby products, baby foods, baby needs – you get the point.  Suddenly I started receiving the most amazing thing in my mailbox – free samples.  I got Enfamil and Similac formulas, Huggies and Pampers diapers, Bordeaux’s and Desitin rash cream.

When it was time for me to come back to work, I needed to start supplementing some formula into her routine.  I chose to try the Enfamil because it was a pretty large container and it was right there in my house – I didn’t need to run to the store and pour over all the different kinds.  It was easy.  And because I started using it, I just decided to stick with it since it was working how I needed it to work.

The package that magically appeared at my doorstep from Enfamil had two 8 oz. containers of powdered formula inside. My guess is that it probably cost them $6 to mail and all the materials including the product inside may have cost them $4.  Im estimating here.

Cost to company = $10

When it was time to go and purchase at the grocery store, a 24 oz container of the powdered formula costs $23.  I buy two containers every other week since Im just supplementing it and I need one for home and one for her daycare. 

Monthly formula cost = $92

Babies typically get formula for the first year of life and we started supplementing when she was 2 months old.  A family who solely uses formula would have a decrease in monthly formula cost after 6 months, but we don’t use that much of it so Im keeping the cost the same.

Cost of formula for 2-12 months = $920

Essentially Enfamil made about $900 (give or take) from just my family alone.  Now lets say that they send out 5,000 samples to expecting families.

Cost to send 5,000 samples = $50,000

And lets say that 2.5% of expecting families use the formula sample and decide that they like it and go to the store to purchase it.

5,000 samples * 2.5% = 125 families

125 families * $920 for yearly formula (assuming all families are like mine, which realistically they would probably purchase a lot more formula) = $115,000

So for them to actually send the formula it cost about $50,000 and they made about $115,000.  This doesn’t take into account the mark up that the grocery store receives, however they made about double what they spent.  Not too shabby. 

I believe that with a targeted mailing list, and a strategic plan – sampling can really work in a companies benefit.  Nevermind the fact that now I am an advocate and endorse the product via word of mouth, I fanned the facebook page and joined their email newsletter.  In my opinion, creating trial really adds up.

Resurgence of Print

A year ago everyone I know jumped on the “Print is Dead” bandwagon.  I kind of laughed a little to myself because although subscriptions were decreasing and some newspapers ended up folding – I still continued to place media buys in print.  WHY WOULD I DO THIS you are probably asking yourself!!  Well, as I pick up the local newspaper I see 5 ads.  I would much prefer for one of my clients to be one of those 5 ads then not be.  Don’t get me wrong, content marketing on the web is here to stay – but I believe in a media mix that is going to get the message out.  So, why not try it?  And honestly, it works.   All you have to do is add a coupon, a text code or a website and you can easily have a tracking system to measure your progress.   This approach also trickles over to direct mail.  Be honest, how many direct mail pieces are you getting in the mail now-a-days.  Not too many, right?  Personally my mail has dwindled to non-existent unless it’s a no-fun bill to pay.  Less competition in the mailbox is going to warrant the consumer less frustration flicking through the stack and to pay more attention to your message.  Less competition and more attention… sounds like a winner to me.  I also would like to say BRAVO to magazines like “People Magazine” that give free ipad access to subscribers.  Maintaining or growing your subscription database while building consistent brand loyalty through their online tools is pure marketing genius.  Whoever came up with this idea – I hope you got a raise. 

Lastly I would like to add – how many of you have ipads, smartphones, laptops, computers, ipods, facebook, twitter, foursquare accounts, etc, etc, etc.  Isnt it nice to unplug once in awhile and settle down with a magazine?  Speaking of which – I have a “Real Simple” to read.

Some last minute thoughts on why you should include print in your media mix:

·         Magazines create deeper connections and relationships then digital media.

·         Magazine readerships in the 18-34 segment continues to grow.

·         Magazines and newspapers have become the ideal complement to their digital counterparts.

·         Magazines continue to be the #1 item for last minute purchase at the check out counters.

·         Newspapers remain strong in the 35+ demographic.

·         Magazines and newspapers are tangible mediums to distribute coupons or sale papers.

·         Direct Mail gives you the ability to specifically target a demographic without the clutter of competitors.

Tips and Tricks to Maximize TripAdvisor

Tripadvisor is the must have marketing tool for any hotel.  It is the largest online travel community where you can read information and opinions from other travelers while you are planning your next vacation. 

One of the free marketing tools that Tripadvisor has to offer is the reviews.  The reviews are honest and helpful  with ratings and recommendations based on a 5 star scale.  Don’t be nervous if all reviews arent stellar.  Trends in social networking have opened consumers eyes to the review process and if you have mostly positive reviews, then you should be in the clear.  Consumers now know to take into consideration that there are some people you just cant please, as well as looking at the time frame of the review.  For example, reviews that complain about noise and parties in a spring break area during spring break, are obviously individuals that didn’t plan that well.  Also, you can message back to those individuals who didn’t have a great experience to try to fix the relationship.  If you don’t have mostly positive reviews, take into consideration what your guests have said and try to fix the problem!  The reviews are one of the best customer service marketing tools in your arsonal.

Another free tool that you can utilize are the photos and videos.  If you are listed on Tripadvisor, go to your hotel page. Scroll to the bottom past all of the reviews where it says “Do you own “So and So” hotel”

You can add numerous photos and videos to aid your past and future guests in their decision making process in a relatively easy manner.  It’s one of the fastest ways to show people what amentities you have, or what updates you have made. 

When you actually get to the point where you are ready to purchase advertising space on Tripadvisor, there are several different items that you can buy, Im just going to go through the basics and what has a proven track record. 

You can purchase both CPM (cost per thousand impressions) or banners and CPC (cost per click) or text link programs.  Tripadvisor won’t allow you to purchase CPC without a CPM buy, and the minimum on the CPM is about $10,000.  The CPC tends to have a better ROAS with about  a 5:1+ ratio.  We have experienced clients with as high as 16:1 ROAS.  The highest grossing portions of the CPC elements are the check rates section.  This allows you to place your hotel name to check prices with Bookit.com, Priceline.com, Expedia.com, Hotels.com and Travelocity.com.

In this instance, MyrtleBeachHotels.com owns the Breakers.  The checkbox automatically fills, the consumer adds their check in dates, number of adults and they hit the “Check Rates” button.  When someone hits the check rates button, it counts as a CPC, and the benefit is that the consumer gets to check your hotel rate against the other online travel agencies (OTAs).  If you are the least expensive, and hopefully you are, chances are that the consumer is going to book direct with you and save you the 30% or whatever you are paying with the OTAs.  Your text links will also show up within the destination pages where your hotel resides.

The CPM version of the ad buy will be the standard banners that you are used to seeing.  The banners help drive traffic to the hotel website, but do not  tend to generate a large return on ad spend.  We lend this to the fact that consumers rarely purchase directly from a banner, they research and purchase at a later date.  These banners are normally placed within the destination pages of where your hotel is located.  So, if your hotel is located in Myrtle Beach, you will see your banners when you are searching within the Myrtle Beach pages of Tripadvisor.  This includes other hotel properties pages. 

A personal theory that I have is that Tripadvisor is so powerful that it will actually move the needle on your other advertising media buys depending on your Tripadvisor rank.  I have seen evidence that supports this theory on other advertising platforms.  

So there you have it, a few tips and tricks to store up your sleeve to get heads in beds.