get old schooled

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GET OLD SCHOOLEDThe 5 Timeless Marketing Rules Startups Need to Know

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The World Has Changed

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The World Has Changed

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The World Has Changed

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But People are (Surprisingly) Still the Same

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Some Rules Change,Others Remain

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5 Timeless Rules of Marketing

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5 Timeless Rules of MarketingRule #1: 40/40/20

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40/40/20• 40% of the success of a campaign is due to the audience• 40% is due to the offer• 20% is due to the creative• Developed by Ed Mayer in the 1960’s

List, 40%

Product/Offer, 40%

Creative, 20%

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40/40/20• Why it’s still relevant

• You’re still market to people. Market to the right people and you will have the best chance for success• How well defined are they?• Do you have permission?• Can you locate them?

• Your products and offer is what people care about• Groupon’s humor does not translate to success

• Spend your time and money accordingly

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40/40/20

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5 Timeless Rules of MarketingRule #1: 40/40/20Rule #2: RFM

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RFM• Recency, Frequency, Monetary Value

• Recency: When was the last time they purchased?• Frequency: How many times have they purchased?• Monetary Value: How much money have they spent?

• Used to determine relative value of customers

R F M Total104556  Jones, John 5 4 5 14106225  Brown, William 5 4 4 13103044  Martin, Howard 4 3 2 9104788  Long, James 3 1 3 7

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RFM• Why it’s still relevant

• Customer value helps you optimize your marketing• No matter what business you’re in, customers are NOT equal• If you segmented your customers based on value, some type of RFM

would be the discriminating variables• Spend your time and money on the people who matter

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5 Timeless Rules of MarketingRule #1: 40/40/20Rule #2: RFMRule #3: 80/20

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80/20• Pareto Principle• Applied to business, 80% of your revenue (and/or profits)

comes from 20% of your customers• It may apply to your products as well

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80/20• Why it’s still relevant

• It still applies somewhere to almost every business• Think about social media

• 80% of your outbound posts (blog, Facebook, Twitter) are read by 20% of your audience

• 80% of your inbound communications (replied, posts) are from 20% of your audience

• Think about email marketing• 80% of opens come from 20% of audience• 80% of clicks come from 20% of opens

• Use it to continuously improve your marketing efforts• Identify your top 20% and learn as much as you can about them• Keep the top customers happy• Identify customers in the bottom 80% who have the best potential

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5 Timeless Rules of MarketingRule #1: 40/40/20Rule #2: RFMRule #3: 80/20Rule #4: AIDA

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AIDA• Attention, Interest, Desire, Action• Over 100 years old• Tracks the steps needed to make marketing work

• Attention: Creative message that attracts attention of the target market (example: AdWords)

• Interest: Engage prospect with benefits and solutions• Desire: Convince prospect that your product is the solution• Action: Make it easy to buy (example: sales funnel)

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AIDA• Why it’s still relevant

• UX has AIDA in its DNA• Human behavior has not fundamentally changed

• The AIDA process can happen within seconds or months• Know your customer and their needs

• Bonus! Great article on the application of AIDA to web design and app design• http://www.noupe.com/design/the-aida-marketing-model-in-web-

design.html

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5 Timeless Rules of MarketingRule #1: 40/40/20Rule #2: RFMRule #3: 80/20Rule #4: AIDARule #5: $>%

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$ Off > % Off• Dollars off beats percent off• Direct mail rule since the 80’s• If value is relatively equal, dollars off will prevail• People still don’t like to think (and we’re still lousy at math)

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$ Off > % Off• Why it’s still relevant

• No matter the channel or tactic, people like simplicity

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$ Off > % Off

4000+ 304030+ 204050+ 404090+ 104100

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Summary

The Rules Behind the Rules

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1. The audience and the message is most important 2. All customers are not created equal3. The minority accounts for the majority4. There is a buying process for your product5. People don’t like to think (KISS)

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Questions?

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Thanks for listening!312-447-0414 x1Skype: jayweinbergjay@thejaygroup.comwww.thejaygroup.com

Jay WeinbergThe JAY Group444 N Wells St. Ste 304Chicago, IL 60654