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Lee Marc Stein Lee Marc Stein   Bio
05.24.06

Good Gravy

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Gravy isn't good for your arteries, but it is good for direct marketing efforts....

It bubbles up naturally from your "cooking." Lots of times, gravy can't be tracked to specific promotional efforts, but all of a sudden there's an increase in profitability.

Here's an example of gravy from the old days. Way back when, we used to run print ads to sell books. For every coupon we received (before use of 800#s and the Internet), we would also generate from one to four sales of the book through bookstores. Your P&L was based on how many coupons came back. If you received enough, you continued advertising and everything else was gravy.

In today's world, we have a lot more ways to sop up the gravy. We send out direct mail with a response form, fax number, 800# and a specific URL. The prospect opts for the latter, clicks onto the landing page, but is distracted. Later on, the prospect returns to the site (but not the landing page), clicks on a few different pages, finds a different product than that offered in the mail, and purchases. You have no way to track this back to the mail unless you compare recent customers with your mail promotion tapes.

Conversely, suppose your Web site offers a free e-newsletter for prospects. Naturally, you try to convert those prospects to buyers online. You don't have postal address for most of them. Now you do direct mail to rented prospect lists. Response is higher than you ordinarily encounter. Many of those prospects were really sold online, but they ordered through the mail, and you have no way of knowing without installing very expensive tracking. Gravy is great.

In the b2b arena, there are several different varieties of gravy. One is obviously pass-along of a direct mail promotion or email blast within a company. Then there's the effect of trade show marketing. Prospects go to a show, they see your booth and maybe even talk to you, but don't go any further. A month later they see a direct mail package and respond. The gravy - higher response - comes from your presence at the trade show, but you can't track that.

So direct marketing is measurable and accountable, and sometimes it isn't… and if it produces gravy, that's good.



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Comments

Lee, very intresting post. I think attaching the name gravy to the concept says it all.

We are getting better though at tracking in certain scenarios. In your example of clicks to landing page and goes away and comes back some place else to buy, now we can track that through cookies etc know that the person came back and bought B when we had sent a campaing for A. Cookies are 75% reliable but the point is we are getting there.

We have also had success with management to fund "gravy things" (say tradeshow) by doing qualitative research and measuring impact of some of those things (where did you read about us, what was the most influencing factor in your visit/purchase etc). Again not perfect but getting there.

The world of tracking and analyzing on the web is delightful (something I cover in my blog at www.kaushik.net/avinash).

Thanks again for a great post.

Posted by: Avinash Kaushik | 05.24.06

Avinash, thanks for your comment. Certainly tracking has become more sophisticated. With big budget marketing programs, it had better be. The cost of the tracking (and especially of qualitative research) is amortized and the tracking means smarter budgeting. With smaller programs, however, the investment in sophisticated tracking may not be worthwhile.

Posted by: Lee Marc Stein | 05.24.06

Hmmm, gravy. I love it too...

And I love the way the Web spreads it around. Publishing an article online may be the meat; the new traffic is the gravy. Or writing a new case study for your collateral kit can be the meat; then posting it on your website where the spiders can find it is the gravy.

For clients who need to stretch their dollars, maybe we should call this the "Gravy Train Strategy": investing in marketing options that deliver value and results in multiple ways.

Posted by: Jonathan Kranz | 05.24.06

"Gravy Train Strategy": Love it, Jonathan!

"When You've Already Loaded Up with Meat and Potatoes, Cover It with Gravy."

Posted by: Ann Handley | 05.24.06

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