Generating Customers Using DRTV, Part 2
Two weeks ago I provided you with the needed cautionary information about the pros and cons of direct response TV as a new customer generation vehicle. So what do you need to pull off a successful DRTV campaign?
(To read part 1, click here.)
First, you need the right product. DRTV is much more mass-targeted than direct mail. While you can do some targeting of audience by choosing stations wisely, you’ll need a product from your stable that is or has the following:
1. Mass appeal. Can your product be sold to a mass market?
2. Uniqueness. Are you the only company selling your product?
3. Tested. Have you tested this product in your catalog? Do you have a proven winner?
4. Margin. Is your COGS ratio at least 4-to-1? A ratio of 5-to-1 or more is recommended for DRTV. Think into the future. If your product takes off, you’ll likely be able to get a better deal from your vendor. If this is the case, you could test at as low as a 3-to-1 if the product is a hit for your catalog.
5. Does your product lend itself to demonstration? TV visuals are perfect for this.
6. Does your product solve a problem?
7. Can your creative appeal deeply to peoples’ emotions?
Items five through seven are the key drivers for TV response. If said product lends itself to demonstration, solves a problem that someone otherwise can’t fix and (mostly) appeals to emotions — and there are many gee whiz products that appeal to logic, too — you have a good argument for testing TV.
Additionally, the selling price is a strong factor. Does your product retail for less than $40? The rule of thumb here is the lower the selling price, the easier it is to get response. If you have a product that goes for more than $50, you may want to consider breaking up payments — you know, the proverbial, “just two easy payments of $X.XX.”