How Can I Make Direct-Response Television (DRTV) Work for My Business?
Direct response for television (DRTV) can be an effective way to generate valuable leads, and increase sales for your business. Historically, this genre of marketing has produced a wide spectrum of results, with several key variables contributing to the success or failure of DRTV campaigns. The good news is that there are are five key variables that marketers have identified as critical to the outcome of DRTV campaigns: the value of the product or service being sold, the strength and quality of the DRTV commercial (See GreyTV DRTV Methodology), the efficiency and competence of lead management and fulfillment centers, the accuracy and amount of media placement, and the continuity of the product (is there a need for your new customer to keep buying your product?)
The Product or Service Offered
At the heart of each direct response success is the product or service that is being presented to the market. The DRTV marketer must do preliminary research, using market data, focus groups, trade shows, and in-home product trials to determine what needs remain unmet in the market, and if that need is shared across a large enough market. From that point, more research is needed to confirm that the product or service effectively meets that need, and if the price exceeds the value a customer will receive from the product. Product testing and design is an ongoing process throughout the DRTV marketing cycle, but requires the most up-front work, prior to beginning a direct response campaign.
Quality of Your DRTV Commercial
A DRTV commercial must be designed in such a way that it causes the target market to purchase the product or service being presented. Key drivers include buying motivation, strong call to action, commercial credibility, audience relatability, and brand equity. Buying motivation refers to the strength of a DRTV offer, how easy it is for a prospective customer to respond, and a strong call to action, which compels the target audience to act immediately. A direct response commercial’s credibility refers to what the consumer sees on the screen. Does the commercial look old and out of date, or is it worthy of being played on an HDTV? Is the talent performance flat and unrelatable, or do the people in the commercial bring the product or service to life, and resemble how the target market views the world? Relatability is a measure of the acceptance of the DRTV commercial’s message by the target audience. Does the direct response ad present an immediate problem, or is the need unclear and indirect? Does the commercial present a solution that is tied directly to a problem, or is the message lost in the other elements of the presentation? Perhaps most importantly, does the DRTV commercial appeal to the buyer’s emotional decision making processes, causing them to have a visceral reaction that compels them to respond, or does the campaign simply appeal to rational, fact-based decision making?
A Word About DRTV Branding
Typically, direct-response marketers express the desire to expand their product into retail and international markets. To do so, it’s essential that the product or service is properly branded from the start, and that DRTV commercials include key branding elements that will allow for a greater perceived value, and thus price premium in the very competitive retail and international distribution channels. GreyTV recommends that branding, such as tag lines, jingles, and trademarks be included in all direct response commercials, especially when marketing will be taking place in radio, print, and online along side TV. Successful examples of DRTV branding that led to expanded retail distribution include the George Foreman Grill and the Snuggie blanket.
Media Buying for DRTV
Media buying is the practice of purchasing media space for a commercial message. The cost of the media depends on a number of variables including the form of media (TV, Radio, Print, Online, etc.), as well as time, and the channel that is chosen. These choices about media format, combined with demographic and psychographic data about the target market, such as the age, gender, location, attitudes, beliefs and activities, will ultimately determine the media budget and the effectiveness of the direct response campaign. There are numerous media agencies that provide these services, however it is important to understand that media agencies take different approaches to media buying, and often specialize in a specific media form such as television or Internet media buying. Every direct response product or service requires a unique set of expertise, and when choosing a media buying agency, it’s critical to make the connection between their level of DRTV experience, media competencies and the unique attributes of your product or service.
Lead Management and Fulfillment
Lead management and fulfillment refers to the process of collecting leads, closing sales, and fulfilling orders that result from a direct response campaign. Direct marketers must choose whether they will direct leads to a website, a call center, or simply send more information to prospective customers by email or post mail. Often, depending on the product, various combinations of lead management can be tested, to find the optimal mix. A product’s complexity and profit margin are also an important factors in deciding the best lead management strategy. For more complex direct response products, it may make sense to use a highly trained call center staff to close leads over the phone, of course this is more expensive, and must be supported by the revenue from the first sale, as well as ongoing purchases. In the case where a product has a lower margin and/or a more apparent value proposition, a test using both online purchase forms and call center staff with a simple script may match the desired financial results of the product or service more effectively.
Continuity & Repeat Sales
One of the most important factors in the profitability and long term success of any product or service marketed via DRTV is how many times a prospective customer will buy the product after the first purchase. This idea, referred to as continuity in the direct response industry, is critical to increasing profitability over time, by either offering a monthly service, or a product that will be reordered either manually or automatically by the customer. While making just one sale to a large group of consumers can in itself be a worthwhile goal for a direct response campaign, repeat sales increase long term profit margins, and maximize the return on investment (or ROI) spent on creative and media buying. GreyTV assists clients in building offers that focus on long lasting relationships with customers, which in turn promotes repeat purchases and better performance.
Testing and Refining Your Campaign
Although it appears as the last topic in this article, testing should be considered an integral part of your DRTV campaign from start to finish. One of the biggest benefits of direct response marketing is the rich data and market feedback that is available almost daily as a result of running ads, and managing call center activities. Testing is a complex science, where creative, media placement, and lead management are optimized. Since there are many variables in the optimization equation, it often makes sense to conduct several tests, where one variable at a time is adjusted to identify its effect on the results. Combining information from each of these control studies provides direct marketing professionals with detailed insights on the key drivers of success, and identifies key areas of the overall campaign that can be improved.