DMA Newsletter
Veterans of DRTV understand the laws of pricing like Gloucester fishermen know the bottom of the sea – with or without a map, they can tell you instinctively when you’re fishing in deep and dangerous waters. Therefore, it’s generally wise to heed the advice of the salty captain when you’re warned not to rely on DRTV to sell products priced at more than $200 (or, in terms favored by the locals, “five easy payments of $39.95”).
Of course, just as safely navigating deep waters is often the secret to netting a lucrative sea harvest, negotiating intrinsic DRTV price barriers with big-ticket products can yield tremendous rewards for marketers and their clients. The secret lies in knowing what you’re aiming to catch and how you’re going to catch it. With high-priced products, the economic value of a DRTV campaign is not measured as much by immediate sales as it is by 1) the number of direct marketing relationships established with qualified consumers in your target audience, and 2) your ability to maximize the lifetime value of those relationships through the delivery of quality products and a consistent, high-quality experience.
Beyond $200 – different goals, different measures of success. The first step toward success begins with the basic understanding that even the most clever and persuasive ads will fail to overcome consumer behavior tendencies about price. Knowing that your audience is far less likely to respond to your ad with credit card in hand, the most effective approach for the call to action is to lead with an offer of more information. While it is appropriate and non-threatening to give consumers the option of making an immediate purchase, aggressive pitches reinforce inherent consumer fears about their own decision-making capabilities. The easiest and safest decision of all is to do nothing. Therefore, as a marketer, your first measure of success is to get them to do something.
Requests for more information do not immediately ring the cash registers, but they do offer three important advantages: first, impulsive buyers of expensive products are more likely to take advantage of your obligatory offer to return the product within a limited time-frame for a full refund; second, information requests give marketers permission to send direct mail and reach consumers through telemarketing campaigns that extend far beyond the initial request; and third, and perhaps most importantly, demonstrating patience with the first sale sets the tone for a relationship of trust that is more likely to lead to loyalty toward your brand, yielding both high quality referrals and repeat business.
Focus on the lifetime value of relationships. Bowflex and The Scooter Store are two great examples of highly successful DRTV marketers with the right approach to selling big-ticket products. Whether you’re viewing their infomercials, browsing their Web sites, reading their brochures, or talking with their customer service representatives, the focus is on developing a long-term relationship, not just a one-time sale. Through consistent messaging and commitments to delivering quality buying experiences, these firms have achieved more than impressive sales – they’ve built powerful consumer brands.
So when you’re fishing the DRTV waters for big-ticket buyers, set as many hooks as possible and make sure your boat can handle the catch.
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