Role of branding in direct response

I often hear dyed-in-the-wool direct response mavens decry the emphasis most marketers put on brand-building. They are all about the sale. Their only goal is to persuade and entice buyers to TAKE ACTION NOW.

These folks often don't bother with a logo, or even a company name. Their compelling, detailed and benefit-packed copy; together with testimonials, references and endorsements; coupled with powerful offers, discounts, bonuses and coupons, is all that concerns them.

Well, many of them are successfully making money with this strategy.

But I believe it to be short-sighted.

All direct marketers know that converting prospects into a customers is important because of the life value of those new customers.

It's not the first sale that really matters - many willingly take a loss on the first sale. No, it's acquiring a customer that's most meaningful.

Most have figured out how much business an average customer will do with the firm over a number of years. It's probably an order of magnitude larger than the initial sale because these marketers continually ask their customer to buy more stuff. They send catalogs, sales letters, bargain flyers, e-mails. Continually. Religiously. Obsessively.

All this communication develops in the collective mind of customers a position about the company. Low cost, reliable, great guarantees, whatever.

In cases where companies aren't building brand and establishing a positive position consciously and consistently, their customers will do it for them.

My contention is that paying attention to your brand is important to direct marketing long-term success. Perhaps not as important as a powerful offer backed by a no-holds-barred guarantee in the short-run, but every bit as important over time.

Think of the direct marketing companies in which you have established a relationship. I'll bet nine out of ten will have established and promoted their brand along with their offers. I'll bet they are more successful in acquiring and maintaining loyal customers. I'll also bet their life-time value per customer is higher than their competitors who have disregarded branding.

That's my opinion and I'm sticking to it.

Martin Jelsema
Signature Strategies
Helping smaller companies profit from the power of branding

303-242-5975