The Whys and Hows of Prospect/Customer Self-qualification

Being relevant is of increasing relevance. It is in our own best economic interest, in the best interest of our prospects and clients, and, at least in the medium of direct mail, it is in the best interest of the environment.

To achieve relevance, we need information about suspects, prospects, and customers. Getting that information from third parties has never been easier technologically. While credit-focused files are being withdrawn, the major consumer database purveyors are compiling and sharing more and more information.

There are two problems with this:

1. Consumers don't necessarily distinguish between manipulation of sensitive financial data and proper use of non-financial data for the sake of relevance.

2. Even if the information is behavioral, too many assumptions have to be made to get to individual relevance.

Expensive as it is, getting information directly from prospects and customers may be the best long-term solution. How much money does L.L. Bean save every year by asking new buyers which types of new catalogs they'd like to receive? It can be as simple as that.

There was an old axiom that the more questions you asked on a response form, the worse the response would be--and of course there's some truth to that. But asking some questions in most cases turns out to be a better response tactic than asking no questions. At Business Week more than a dozen years ago we tested dropping the three or four qualification questions. Nearly 20 percent of response was lost by doing so, and those questions were not really asked to gain relevance.

The benefits go beyond getting relevant answers: consumers want to be part of the marketing process from the beginning, and answering questions makes them a part of this process. Nonprofit organizations (and the editors of Cosmopolitan) know how involving questions and quizzes can be.

For example, a recent mailing for the Coalition to Stop Gun Violence uses a 30-second, 7-questions opinion survey as a means of focusing the reader's attention on critical issues. After a long and passionate letter, the survey acts as a lightning rod.

Of course, if we want to capture information for incorporation into a database, the questionnaire must be filled out by the consumer and sent back. A survey to Acura owners asked questions about the most important factor in shopping for a car, types the recipient would consider the next time, models that might be considered the possibility of leasing, and when the next purchase might be made. Recipients of the survey were clearly told the information would be used to provide information about the 1994 Integra "that is most important to you about this new car." This kind of mail qualifies and builds relevance at the same time.

Consider though that an interactive questionnaire, while it provides marketers with information, may not be as effective a qualification device as a self-reflexive questionnaire. A "self-reflexive" questionnaire is one which has consumers spend more time thinking about themselves and the product/service than about the politics of answers that will be judged by someone else (even a computer). These questionnaires aren't returned, and, in fact, prospects don't respond at all unless they pass the self-administered test.

Here's an example of a self-reflexive questionnaire that worked extremely well. The mailing was for a major financial institution's investment management service. The target was individual investors with a substantial net worth who had neither the time nor the skills to manage their own investments. The objective of the mailing was togenerate qualified leads--either appointments for a consultation or requests for more detailed information.

A card in the package with the head "Personal Investor Quiz" asked the prospect "Could you profit from the disciplined one-on-one approach offered by...?" Then it suggested "Before you decide, ask yourself the following questions."

The questions not only probe the prospect's psyche, but bring out the differentiating benefits of the investment management service. The seven questions included:

"Are my investments guided by a professionally-developed plan that lets me feel I'm in control of my investments and my future?"

"Could I benefit from access to some of the country's top independent money managers, and help in selecting the ones that are right for me?"

"Will I have at least $50,000 available to invest within the next 12-24 months?"

In focus groups conducted prior to mailing, investors loved this last question. Based on the previous packages they viewed, they thought the service was meant only for those with portfolios in excess of $1 million. So the dollar amount actually set their mind at ease.

One of the secrets of success of this package was that it allowed investors to take any step they wanted--either sending for detailed information, or asking for a consultation. Most opted for the former. In many financial services marketing situations, self-qualification works only if you don't ask for too much of a commitment at once.

IDS Financial Services understands this principle. They don't use questionnaires or surveys, but always make an information offer before ever mentioning an appointment or consultation. One package invites investors to send for a "Free 3-part Retirement Planning Kit." Copy in the letter is a full two pages. At the heart of the letter are questions about retirement that will be answered by a booklet in the kit.

About the Author

Lee Marc Stein is the co-editor of Financial Footnotes and is a direct marketing consultant specializing in financial services, Long Island, NY.
:To contact see details below.


lmstein@leemarcstein.com
http://www.leemarcstein.com/