Newsletter: Farrier Industry Report | December 2008

Six Creative Ways to Build Your Business | by Datadog Marketing
Using E-mail: Like the telephone, microwave oven, and cell-phone before it, email has woven itself into the fabric of our day-to-day life and has become a critical channel for mainstream communication. E-mail’s use as a marketing channel has also expanded as more and more companies have discovered its ability to quickly and affordably communicate with customers with more relevant messages.

In its infancy, email marketing techniques were adapted from traditional direct mail methods whereby everyone on a list was blasted with the same message. Today, segmentation strategies have taken hold, and companies are sending “similar but different” messages to segments of their databases, all in the quest for greater relevancy and higher rates of response. And, whereas the first adopters of email marketing were consumer companies sending discounted offers, B2B businesses are finding that email can be a powerful way to generate increased revenues from their customer base without discounting price.

At Data Dog Interactive, we’ve focused on helping consumer and B2B companies use email in new and innovative ways. For those companies that want to go beyond the basic (and not always appropriate) company email newsletter, we’ve compiled several methods for using email that step outside the dotted lines. We invite you to go there with us.

Note: If your company has not yet collected the email addresses of your customers along with permission to email them, please contact us about our proven data capture programs. All examples in this document were developed using “opt-in” email lists compiled under our guidance by the various companies that have used our services. For obvious, confidential reasons, no company names are provided.

1. Cross Selling Other Products and Services to Current Customers

As a result of the recent economic downturn, many companies have placed greater emphasis on cross-selling their current customers the various other products and services they offer. Research has shown that it costs less to up-sell and cross-sell your current customers than to acquire new ones.

Cross-selling customers is a known strategy, but the challenge of executing it effectively can be daunting for two reasons:

• First, customers often “pigeon hole” a vendor as selling only the products they currently purchase, and as a result, they’re resistant to considering new offerings.
• Secondly, salespeople often take the easy road with customers and don’t proactively suggest the other products and services their company offers.

One Milwaukee printing company recognized the importance cross-selling and is using email marketing to generate more out of their current customers.

The company first identified what products their customers were buying and which ones they were not. Then, by segmenting the database, they initiated tailored email marketing campaigns against each of the segments. For example, if a customer had never purchased 4-color printing, they were sent a lucrative, first time buyer offer to stimulate an initial purchase. Customers only received ads and offers for the products they weren’t buying, so cannibalization of business was kept at a minimum. Measuring response to the e-mails also helped the printing company identify those customers who were expressing “interest” but might not be ready to purchase. Those leads were also followed-up.

When the printing company was originally setting-up their database, they also tagged each customer record indicating what “type” of customer it was, such as graphic designer, office manager, owner, secretary, etc. As one can imagine, selling to graphic designers requires a different approach than selling to office managers or business owners. This segmentation strategy came in handy when the company started to promote its quarterly printing seminars (half-day events, with informative speakers, prizes, etc) using e-mail. Different executions of the same invitation were sent to the different “type” segments of the database – so that each segment’s invite was more appealing.

This targeted approach to marketing was backed-up with broad-based printed postcards and mailers that added a tangible aspect to their marketing efforts. The combination of both email and snail mail was very powerful.

2. Helping Sales Reps Manage and Proactively Sell Large Account Lists

In the gift and collectibles industry, manufacturers will often hire a rep firm to sell-in their products to the scores of gift shops, garden centers, department stores, card shops, and other retail outlets throughout the country. These rep firms have offices
and showrooms at the major merchandise marts in New York, Chicago, Dallas, Atlanta, etc. where twice a year buyers come to see the latest items and place orders.

Throughout the rest of year, as many as 15-20 reps will travel their territories visiting accounts and selling the various lines they represent. Like most sales organizations, the rep firm encounters the 80-20 Rule, whereby salespeople spend 80% of their time focusing on the 20% of their accounts that buy things on a regular basis.

Short of a periodic letter or catalog insert, the remaining 80% of the accounts rarely get any proactive attention because there simply isn’t enough time…

If these customers need a particular product, hopefully they call in and order it from the main desk.

A monthly database-driven sales “e-flyer” (a brief, quick-read HTML graphic email piece) was developed for the rep firm to increase the frequency of contact with customers and generate more proactive sales activity. Here are two key details about the monthly flyers:

• First, several similar versions of the e-flyer were created each month, each containing different combinations of gift products more likely to be carried by the recipient retailer. The e-flyer that was sent to garden centers contained garden products among others and the flyer sent to gift stores contained collectibles and some table top; three other versions were developed for a total of five.
  
  
• Secondly, each e-flyer contained a small photo of the recipient’s sales rep along with his/her direct contact telephone numbers, home office address, etc. The photos and contact information were automatically added to each e-flyer by the database, so the e-flyers also worked to market the sales reps to their customers as much as promote the various products the company wanted to push. This personalized element added a human aspect to the communication piece and placed a real person behind it.

The different versions of the sales flyer were all created “on the fly” from data in the database. A salesperson’s photo was inserted only in flyers being sent to his customers, so the appearance was that SHE was sending the flyer. It helped to build her brand awareness as well as the company’s.

3. Manufacturer Uses Email Technology to Generate Leads

A manufacturing company with 3,500 people in its customer database wanted to use email to promote a new accessory product it was releasing to the marketplace. The add-on product had several features that would substantially reduce maintenance costs and would also extend the life by three years of an existing machine series manufactured by the company. A small investment for the accessory today would pay-off big tomorrow.

Response to the campaign was excellent, but the story only begins there.

Using pixel-tag technology, the company was able to identify by name which of their customers had clicked on the link to “learn more” about the new accessory, but had gone no further.

These people may not have requested a quote, but by clicking on the link, they expressed interest in the new product when they read further about it.

Not only did the company know how many customers had clicked on the link, it knew who had clicked on the link expressing “greater interest” in the new product. The technology had created a list of leads! With this key information, the company had its sales people follow-up with a phone call three days after the email blast.

The Pixel Tag technology allowed the company to concentrate its first telephone follow-up efforts on those customers who had “expressed interest”, rather than calling everyone in the database who hadn’t specifically requested a quote.

Email is the only medium that allows marketers to track and measure results and leads, and to identify when a recipient takes an action.

Want More Ideas?
At Data Dog Interactive Marketing, we’ve developed a complete library of creative ideas and techniques for using email as a marketing medium. Whether your company is a B2B heavy equipment manufacturer, a healthcare provider, or a retailer looking to get closer to your customers, we can provide you with solid advice for improving your business with e-mail.

This is Part One of a Two-Part article. For tips #4 – 6 make sure you catch the next newsletter!

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Board of Directors
Your Board of Directors is busy working on budgets and changing our fiscal year. In the past FIA membership has always been on a calendar year but our fiscal year has not. Your Board recently voted to change our fiscal year to a calendar year. This will enable FIA to better plan its resource allocation as the dues monies and the MarketPlace monies will be collected in the first quarter of each new fiscal year. Budgets are currently being worked on and a full report will be presented at the members meeting during the MarketPlace.

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Letter from the President
As we approach the end of 2008, it is common to reflect on the year ending as well as to look toward the year ahead.

Economically and politically this year has been a challenge. If President–elect Obama is correct, it may get worse before it gets better. So all businesses, even the FIA, must look for ways to adjust to the economic realities of the day.

That is why we have tried to deliver all communications via e-mail. It is more immediate and more cost effective. But that means that our e-mail list must be current.  So, please double check to make sure that we are reaching you with your correct, direct e-mail address.

During this past year we have been blessed with an outstanding group of elected Officers, Board of Directors and Committee Chairs. I want to personally thank each and every one of them for the commitment of their time and talent.

Looking ahead, I am very excited about the future of the FIA. We are working well with the AFA and are forecasting a terrific Convention and FIA MarketPlace in Chattanooga this February.

We are exploring a variety of new member services while freezing dues and booth fees. The value of your FIA membership and MarketPlace just keeps going up!

Speaking of value and the MarketPlace, we do have a few booths left. They are going fast, so I urge you to contact the FIA office and choose your space soon.

Finally, in this time of great uncertainty, I urge each and every one of you to be grateful for what you have. Be grateful for living in the greatest country in the world. Be grateful for the chance to do what truly makes you happy.

On behalf of the FIA Officers & Board of Directors, we wish all our members and their families a most safe and joyous holiday season and a successful and prosperous New Year.

Bob Bachen
President, Farrier Industry Association

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MarketPlace Committee Report
We are less than 3 months away from the AFA Convention and the FIA MarketPlace – Chattanooga,  TN. We’ve kept our promise and have blanketed the horse world with advertisements and promotional items to ensure you an unforgettable FIA MarketPlace – 2009.

The marketplace packets have been sent to you at least twice and are posted on the FIA web site.  Thus far, we have received many booth applications and expect the numbers to continue growing. We encourage you to take a moment to complete the booth application and submit yours today by contacting either Tom Conley (847-416-7220) or Pat Alterio (847-416-7218) at TSO.
As a reminder booth space numbers will be assigned after terms & conditions and payment have been received and on a first-come, first-served basis.

We are excited about the 2009 AFA Convention and FIA MarketPlace and look forward to seeing you all in Chattanooga.

Emily Schwarz Bull
(803) 685-5101
emily@monettafarrier.com

Marguerite Page
(866) 668-7642 ext. 126
marguerite@capewellhorsenails.com

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New FIA Members
Baggett Custom Hoof Knives
Bishop, GA, USA
Contact: Neal Baggett
Years Involved in the Farrier Industry: 30+

Edward Martin’s Products
Solano, NM 87746
Contact: Bob Bachen
Years Involved with the Farrier Industry: 33

Happy Hoofwear
Sarasota, FL, USA
Contact: Sylvia Norris
Years Involved in the Farrier Industry: approximately 2

Hardcore Horseshoers
Pine Grove, PA 17963
Contact: Cody J. Holden
New Business

Hoof Wizard
Flint Ridge Enterprises Inc.
Winchester, VA, USA
Contact: Phillip Bushman
Years Involved in the Farrier Industry: 35

KB Horseshoes
Grover Beach, CA, USA
Contact: Kim Angell
Years Involved in the Farrier Industry: 27

Rafter V Farrier Supply
Parowan, UT, USA
Contact: Traci Von Kaenel
Years Involved in the Farrier Industry: 40+

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Farrier Industry Association Meeting Minutes
Membership Meeting & Breakfast, Friday, February 29, 2008, Lexington, Kentucky

Michael DeLeonardo welcomed the members to Lexington.

Marketplace Report:
Richelle Hochstatter gave a marketplace report. There are 146 booths. Chattanooga is the site of the 2009 convention and Portland will be the 2010 convention. Rupp Arena has been good to work with and the security has been tight.

AFA Report:
Andrew Elsbree thanked the FIA for all the association does for the AFA. He also announced the AFA has signed on as the official farriers of the World Equestrian Games.

Secretary’s Report:
The minutes were accepted as presented by Alice Musser.

Membership Report:
The current membership of the FIA is 203.

Treasurer’s Report:
Steve Hoselton presented the treasurer’s report and said we currently have $157,062.26 in our account, but there are many bills coming in conjunction with the marketplace. He also said we will be having an external audit this year.

Business Conference Report:
Bob Bachen reported that last year we decided to hold a business conference in Lexington, but it was cancelled due to length of the week and a number of comments from members. There will be an off-site meeting bi-annually. During the conventions, we will have a short business talk. The business conference committee is investigating regional conferences.

Marketing Committee Report:
A new contract with Dirt Road Media has been signed for the creation of a new Web site. The redesign should bring the members some new business.

The AFA and FIA are forming a joint committee, providing matching funds to market next year’s convention. The committee will put together the ideas to market the convention to surrounding businesses and farriers.

Election Results:
President: Bob Bachen; Secretary: Alice Musser; Directors: Frank Dugan, Molly Franco.

Open Floor Discussion:
Michael DeLeonardo presented the pre-certification sponsorship option for members. The cost is $500 to sponsor the clinic, which is for the instructor and tester. This allows a company to directly show support for continuing education for farriers in their region.

Bob Peacock reminded everyone to find a way to show support for the World Equestrian Games in 2010.

It was recognized that Michael DeLeonardo has done so much to help this association re-establish relations with the AFA.

Meeting adjourned at 9:50 a.m.