1. THINGS IVE LEARNED, RELEARNED AND UNLEARNED BY WILLIAM ZIERCHER (REFORMED MARKETING KNOW-IT-ALL) Copyright 2011 Gabriel Group. All rights reserved. NEXT

2. CONTENTS 3 INTRODUCTION 4 CHAPTERONE I The One Metric That Will Always Be Important: ROI 5 CHAPTERTWO I ROI Is a Team Effort 6 CHAPTERTHREE I The More You Know the Better Youll Do 8 CHAPTERFOUR I Paying Attention to TCOTotal Cost of Ownership 10 CHAPTERFIVE I The One Totally Irreplaceable Resource 12 CHAPTERSIX I One Thing I Learned from My Mom: Its Good to Share 14 CHAPTERSEVEN I More Wisdom from Mom: A Good Scrub Will Solve a Lot of Problems 16 CHAPTEREIGHT I Growing Green by Going Green 18 CHAPTERNINE I Whats Good for Others Is Good for You 19 FORFURTHEREXPLORATION 20 ABOUTTHEAUTHORn WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED PREVIOUS NEXT

3. INTRODUCTION Responsiblemarketing is a relatively new addition to the marketing lexicon, and for some, it has one meaning onlymarketing that is responsible to the environment. But thatsonlypartof thestory.As marketers, we also have responsibilities to our shareholders, our clients or customers, our associates, our communities and our families. And these responsibilities are not mutually exclusive. In fact, like the things that make up our environmentair, water, plants, animalsthey are interdependent. This book is a way of sharing some knowledge and insights on responsible marketing. Its designed to be read in bitesyou can pick and choose whatever strikes you at the moment. I have to confess that old friends probably would not think of me as an environmentalist. But I believe strongly that the time for being responsible to all things on which we depend and which depend on us is necessary and good. After close to 30 years in the field, Iamstilllearning, relearningand,yes,unlearningsome things I was sure would never change. Including my mind.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 3 PREVIOUS NEXT

4. CHAPTER ONE THEONEMETRICTHATWILLALWAYSBEIMPORTANT: ROI If theres one metric you cant downplay, its the importance of ROI. Since were all in business to make money or in nonprofits to advance our missions by raising money, a favorable ROI will alwaysHOWDOYOUFIGUREROI? be the primary goal. It is where responsibility begins. And nice try doesnt cut it. Heres the most commonly used formula: I learned that a long time ago. If I ever forget it, I will need to relearn it ASAP, or there will be some people out of work who wont deserve it. Responsible marketing involves accountability on a (RevenueInvestment) number of fronts: shareholders or partners, employees, clients, the community and the environment. Investment Remember to include all costs ButhereissomethingIrealizedfullyonlyinthelastfewyears:Being associated with the effort. And responsibletothebottomlinedoesnotmeanyouhavetosetasidethoseothertry to have a reasonable projection responsibilities.Infact,takingcareofonemeanstakingcareofall. of the real profit, not all of whichmay be on the books immediately. With positive ROI, your company is more likely to hire and retain great employees. Its easier to justify raises, training, and benefits. And if you deliver positive ROI on the programs you manage, you are much less likely to be looking for a job when youd rather not. The most obvious way to improve ROI is by improvingperformance,often easier said than done. Another is to cutcostsby aggressive shopping and pricing demands. A third is to eliminatewaste.When you cut waste, you are saving money that often goes directly to the bottom line, and your efforts will benefit the environment, too. Responsiblemarketersaddressallthree. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 4 PREVIOUS NEXT

5. CHAPTER TWO ROIISA TEAMEFFORT I suppose there are a few marketing success stories that spring from a single, individual stroke of brilliance, but in my experience far more result from collaborationcollaboration with consumers, agencies, vendors, franchisees, distributors, retailers and most importantly, especially in B-to-B situations, sales. I came up through sales, so I have a bias, but I am totally convinced that salesandmarketing havetoplayasateam.One supports the other, marketing by facilitating sales, sales by providing marketing with input from the ground. It should be one of the marketers key objectives to make life as easy as possible for the sales force, because their fates are intertwined. That involves not just developing good materials, but making them timely, easy to get, and easy to customize. Sales management needs to distill input from the sales force and feed it back to marketing. Theinformationgainedfromday-to-dayinput fromcustomersiscriticaltothedevelopmentofnewproductsandservices, aswellastothebuildingoftherightsales. I have never known a sale to be made while a salesperson was scrounging around trying to get his or her hands on the right brochures. WhatIRelearnEveryDay n Nothinghappensuntilsomebodysellssomething. n AnythingthatdivertsasalespersonfromsellingreducesROI.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 5 PREVIOUS NEXT

6. CHAPTER THREE THE MOREYOUKNOWTHEBETTERYOULLDO Todays marketing executive reminds me of those old-time one-man-band acts, playing five or six instruments at once, and trying to keep everything going at a nice, harmonious pace. It was so much easier back when I started outand I am not THAT old. There was mass media and direct. Print and broadcast. Network and spot. Now the marketing executive has all those cards to play, plus web, email, mobile, social media and whatever tomorrow will bring. Itishisorherresponsibilitytoputthemallinplay, keepthemworkingtogether,andtobeabletojustifythecompanysinvestment ineachofthem. That requires constant measurement and analysis of every effort and its effect on profitability. Welcometotheworldofanalytics. This is an area that has grown, has become infinitely more complex and yet, thanks to our friend the microchip, has become more accurate than ever before. In my early direct response days, we were proud of our ability to measureresponse.Sure those ad guys were creative, but when they figured out they failed, their client was on its way into the tank. Weknewwhatsucceededand when, down to the last block group. But we didnt know at what point the consumer sent our mailing piece to the wastebasket. And we still dont. But we know where he clicks on the website, and how long he stays. And if he puts something in the shopping cart and then abandons it.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 6 PREVIOUS NEXT

7. CHAPTER THREE By analyzing her actions, wecanspottheconsumerwhoisheadingfortheother brand,and head her off before she gets out of the fold. We know which donors have moretogivethan they are giving to us, and when were not getting our fair share of the business buyers wallet. We know whenouremailisopened,and when it is bounced. We can measure and analyzeAnorganizationsability the click-throughs and actions.tolearn,andtranslate We can monitorsocialmediato see what our fans (and those not so friendly) are saying about our latest product release, searching for keywords that indicate for or against.thatlearningintoactionrapidly,istheultimate Ifwearenottakingadvantageofthosecapabilities,weareeitherleavingmoney onthetableorthrowingitaway.Neitheroneisterriblyresponsible.competitiveadvantage. Jack Welch WhatIveLearned n Nobodyexceptagamblerwouldrollthediceformillionsofdollarsbasedonaguthunch. Andresponsiblemarketingmanagersarenotgamblers. WhatIAmAlwaysLearning n Theresalwayssomethingnewtomeasure,andsomenewtoolthatwilldoit. n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 7 PREVIOUS NEXT

8. CHAPTER FOUR PAYINGATTENTIONTO TCO TOTALCOSTOFOWNERSHIP When I started my career selling envelopes, and then direct mail, we ALWAYS over-ordered consumables, usually by about 10 percentless on really large quantities. This wasnt gouging there was a real concern. If you ran short, it was expensive to go back on pressand production could not promise to hit the quantity mark right on. Sooversmadesense. In some areas, overs are still a necessary part of doing business. In processing for mail, there can be spoilage on imaging and inserting equipment, even in the best-run shops. Butover thinkingbecameahabit,anditcanbeanexpensiveone.Heres why: Itcostsmoneytoship,storeandaccountforallthatextrapaper.Andmountains ofunusedpapercanaccumulateseeminglyovernight. AbitofrelearningaboutTCO Technology clients of my company initially taught me the meaning of the letters TCOtotal cost of ownership, including software, training, upgrades, etc. At first, it didnt occur to me that TCO was important to printed materials. But then one day, I walked through our warehouse, and looked at all the paper clients had stored therefor months on end. If your department produces sales sheets, brochures, trade show materials, Id bet good money that you would find all kinds of ancient history on your warehouse shelves. If it were only gathering dust, no big deal, but thecostsmountching! ching!! ching!!!with every month those materials sit.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 8 PREVIOUS NEXT

9. CHAPTER FOUR Beforeyouknowit,thetotalcostofownershipofthoseoverprintedand probablyobsoletematerialsistwicewhatyoupaidtheprinter.Seriously! And that cost could be critically wounding your ROI. Not good. With the advent of capable,high-qualitydigitalimagingsystemstheres an economicalwaytoprintonlywhatyouneedwhenyouneedit.This wont work if you need a million pieces or even 100,000, but its great for quantities of, say, 100 or 1,000 or even 2,000, which are expensive to put on press. WhatIveLearned n TheTCOofmanyprintedmaterialsisdoubletheoriginalcost.Thatcanseriously underminetheROIyouthoughtyouhad. WhatIveUnlearned n Oldprint-buyinghabits.Over-thinkingcanbeacostlyproblem.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 9 PREVIOUS NEXT

10. CHAPTER FIVE THEONETOTALLY IRREPLACEABLERESOURCE Theres a lot of talk about conserving natural resources, and thats a good thing. But theres one resource that is totally irreplaceable, and that is time. We often overlook the time people waste by workinginefficientlylooking for things, duplicating efforts, straightening out accounting snafus and such. These things went on all the time; they were often part of the process. It happened in my own company, and I still see clientsIll never tell who they arewho are even more serious time wasters. Now there are systems to help them manage their digital assets better. Forget all the costly time-wasting double and triple efforts. SetupaneffectiveDigitalAssetManagement (DAM)system.With it, youll get n An instantly accessible repository for the constantly growing collection of digital files every marketing department accumulateslogos, brochure files, sales sheet files, ad files, videos, commercials, you name it n A fulfillment system, capable of accepting orders, initiating production, tracking production and shipping or mailing, and then billing them all with just a couple of clicks n A system for customizing printed or electronic materialsa real time saver for companies who franchise, have retail stores, agents, or even just a large sales force n An inventory management system tracking usage and supplies and alerting when levels are lown WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 10 PREVIOUS NEXT

11. CHAPTER FIVE n A watchdog for branding and complianceit wont allow incorrect use n A truly accurate source of marketing data to feed into your analytics programs Bearinmind,thesesystemsdonttakevacationsorholidaysandcanbe accessiblefromanywhereintheworld. Think about the time a system like that would save your company. Just as importantly, think about the time your people are wasting now, and how much it is costing you. Then dont get sidetracked by thinking about the cost of building and maintaining such a system, because there are ways you can have the cake and eat it, too. WhatIAmConstantlyRelearning n Thereisnovirtueinworkinghardwhenyoumakemoremoneybyworkingsmart. n Peoplehavebetterthingstodothanfightinefficientsystems.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 11 PREVIOUS NEXT

12. CHAPTER SIX ONETHINGILEARNED FROMMYMOM: ITSGOODTOSHARE Mom was thinking about toys and cookies. I am thinking about technologyresources. Making the best possible use of technology resources is a foundation principle of responsible marketing. And in many cases, the way to accomplish this is to share. The Digital Asset Management system I described in Chapter Four is a case in point. Ifyouwere tobuilditfromscratch,it would take monthsokay, yearsof programming time, a small fortune in computer hardware and software licenses, plus weeks of training and retraining. Your investment always ends up being much larger than you budgeted. And its up to you to explain how this happened. Bythetimeyouactuallygotitgoing,itwouldbetoosmall,possiblyunreliable andalmostcertainlyobsolete.Thisisafast-movingworld. Thats the bad news. The good news is that youdonthavetobuy,youcanshare,paying only for what you use. There are companies who specialize in shareable resources for production, fulfillment and distribution of marketing materials (mine is one). These systems are easy and ultimately far less expensive to use. Herearesomeoftheadvantages: n You have no initial investment cost to justify or recoup. n The system is available now. n It is tested and reliable.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 12 PREVIOUS NEXT

13. CHAPTER SIX n It can accommodate all kinds of files, from documents to customizable brochures and sales sheets, to forms and supplies, to sound and video files for commercials and presentations. n There is minimal need for training; the system is user-friendly. n You dont have to worry about the cost of upgrades. n It can handle your companys growing needs easily. n Your staff time can be invested in growth instead of maintaining the status quo. n The system can be customized to your look and to your accounting needs. n You pay only for what you use. n It is usable 24/7 from anywhere, by any authorized staff member, dealer, reseller, etc. n You make the rules of access. Momwasright. WhatIveLearned n Sharingcookiesisgood. WhatIveRelearned n Sharingcookiesisnotnearlyasgoodassharingresources. n Neverbuywhatyoucanlease.Neverleasewhatyoucanrent.Neverrentwhat youcanborrow.Neverborrowwhatyoucansalvage. Ian C. MacMillan, professor of entrepreneurship at Whartons Snider Entrepreneurial Centern WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 13 PREVIOUS NEXT

14. CHAPTER SEVEN MOREWISDOMFROMMOM: AGOODSCRUB WILLSOLVEALOTOFPROBLEMS Mom was thinking more about faces and floors, but her motherly wisdom extends to the world of marketing. DirtydatadestroysROI.If you contact your customers directly by mail, email, phone, text or whatever, you should becomeacleanfreak. Recently,DM Newsreportedthatdirectmailerswastemorethan$6billion ayearonundeliverablemail.Thatswaytoomuchmoneytothrowaway,and thatsanawfullotoftreesthathavegiventheirlivesfornothing. While the cost per contact of email is less than that of mail, the percentage of waste is even higher than the seven-plus percent of mail that is typically undeliverable. If you practice any form of direct contact, data cleanup is the first and usually most productive step to improving your ROI. Cleaning your data house can produce improvements that will not only make your response numberslookbetterbut will result in financialgainsthatgostraighttothebottom line.If the improvements result in fewer printed pieces, youve saved some trees. There are companies that can help you get your data in order (mine is one), and if the cleanup task seems too formidable for your internal resources, call on one of them to cleanand maintainyourdatabase.Their services will be farlessexpensivethanconstantly mailingtothelandfill.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 14 PREVIOUS NEXT

15. CHAPTER SEVEN THINKABOUTTHIS: n You mail 1,000,000 pieces a year. If 10 percent of your database in undeliverable, a duplicate or n The TCO of each piece is $1.50 miscoded (and this is by no means uncommon), you have spent (see Chapter Four). $150,000 mailing directly to the landfill. Reducing that waste and the cost that goes with it directly improves the bottom line. n Your annual cost is $1,500,000. MOMWASRIGHTAGAIN. WhatIveRelearned n Inaccurate,dirtydatadestroysROI.Thatstrueinemail,phonesales,directmail andyourpersonalsalespipeline. n CleaningupadirtydatabaseisakeysteptowardimprovedROI,andoneofthe mostproductive.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 15 PREVIOUS NEXT

16. CHAPTER EIGHT GROWINGGREENBYGOINGGREEN Thereisafairlycommonmisconceptionthatgoinggreenreducingyour impactontheenvironmentiscostly.While there is often an up-front cost, in the long run many environmentally sensitive steps actually protect revenue and save money, and in ways we dont always consider. Lets talk about producing and protecting revenue. Over the past couple of years, I have looked at a fair number of Requests for Proposal, and nearly every one has an environmental question or section: How do you handle waste? Do you recycle? Describe the steps your company takes to protect the environment. Are you and your suppliers FSC certified? FSC is the Forest Stewardship Council, which promotes the use of farmed trees rather than harvesting from wild forests. A few years ago, only nonprofits with environmental causes and perhaps governmental entities would have asked those questions. Now they come from insurance companies, manufacturers, banks, retailers, and the list goes on. Increasingly,businessesandconsumersarelookingatsoundenvironmental practicesasabaselineselectioncriterionforthosewithwhomtheydobusiness. Heres another fact: Wastecreatescostinsubtleways,not just in the cost of the wasted materials. Were paying for those landfills with tax dollars. We all moan about extra costs and taxes. Cutting out waste is a way of doing something about them. Every trashed brochure or mailing piece puts a small dent in your ROI. Added up, they can do some real damage. Cuttingwastecan makearemarkableimprovementof5to10percentprogramcostsandthat goesstraighttothebottomline.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 16 PREVIOUS NEXT

17. CHAPTER EIGHT WhatIveUnlearned n Theideathatenvironmentalequalsexpensive. WhatIveRelearned n Wastenot,wantnot.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 17 PREVIOUS NEXT

18. CHAPTER NINE WHATSGOODFOROTHERSIS GOODFORYOU Doing what is good for your company and the sales force and the environmentall worthy pursuits, no doubt about that. Butresponsiblemarketingisalsogoodforyou.When you respect and build the bottom line, you increase your own job security. Considering the environmental aspect of your activities is rewarding in itself, but it also preserves a better world for those who come after you (like our children and grandchildren). Improving the tools available to your staff encourages better performance and better job satisfaction, and theyre less likely to start looking around. By honoring your responsibility to your programs ROI, you will find that you get quicker, more hassle-free approval for new programs. (Just dont go wild!) The escalator to the executive floor seems a little shorter, and if and when you go looking for a new position, it will be on your own terms. Oh, and youll probably make more money, too. Enoughsaid.n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 18 PREVIOUS NEXT

19. FOR FURTHER EXPLORATION Books Savitz, Andrew, The Triple Bottom Line, available at www.amazon.com Ziercher, Kyle, Kyles Plain American English Guide to Digital Asset Management, available at www.GabrielGroup.com Coming soonResposible Fundraising will be available at www.GabrielGroup.com in March 2011 Websites Forest Stewardship Council www.fsc.org PODi, the Digital Printing Initiative www.podi.orgn WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 19 PREVIOUS NEXT

20. ABOUT THE AUTHOR William (Bill) Ziercher is Chairman of Gabriel Group in St. Louis, Missouri, a company that specializes in helping commercial and nonprofit organizations practice responsible marketing with practical, profit-producing technology solutions. Gabriel Group 3190 Rider Trail South Earth City, Missouri 63045 314.743.5700 Bill.Ziercher@GabrielGroup.com You are invited to visit the Gabriel Group website at www.GabrielGroup.com. While youre there, be sure to visit Moe, Joe and Floand watch their show.FEBRUARY 2011 n WILLIAM ZIERCHER RESPONSIBLE MARKETING: THINGS IVE LEARNED, RELEARNED AND UNLEARNED n 20 PREVIOUS