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In the first part of this two-part series, I took readers on a virtual tour of the markets worldwide available for US direct marketers. Those markets are rich indeed. Tremendous opportunities exist for direct marketers willing to overcome the so-called international “fear factor,” willing to do their homework, and willing to go after only one country at a time. I also stressed that while you may now be thinking of global expansion, you’re also going to have to think locally when it comes to marketing in a foreign country. Just because your DM campaigns succeeded in Dallas, Denver and Detroit, you’re not guaranteed success in Delhi, Düsseldorf or Dublin.
Let’s assume you’re a US-based direct marketer with a solid business, but slowing growth in the domestic US market. While your US sales continue to be strong in this boom economy, you’re looking for additional revenue streams and suspect that international markets are the place to grow. You’ve scanned markets worldwide and have wisely decided on one country for your initial rollout. Exactly where depends on what you’re selling and many other factors particular to your business that we discussed in last month’s article. For simplicity sake, let’s call your target nation, Country “A”. Now comes the next challenge – doing the tactical due diligence. Just how do you convert a direct marketing idea into action? I detail that part below.
Mail Piece Design: One Size Doesn’t Fit All
The first item you’ll need to cover is your mail piece design. Because all marketing is local, what you send into Country “A” must be country-specific. The temptation is to take your existing mail piece or catalog and simply translate it into the local language if it’s other than American English. There’s much more to it than that. The “look” and the “feel” of the piece must work within the cultural context of that target country. For example, some images may be offensive in certain countries. What we Americans would consider run-of-mill images in the US, such as side-by-side product comparisons (BMW versus Mercedes, for example) may be illegal in parts of Europe. In some Asian cultures, for example, the image of someone innocently patting another person on the head might offend certain individuals. Be sure to have as much local input as possible before committing to a final design. It could save you from an embarrassing – and potentially costly – cross-cultural faux pas.
Use Local Translators First
As part of the local “feel,” you’ll need to have your materials – whether print or online – translated into the local language. But again, be careful here as well. If you’re targeting Mexico, for example, it may be tempting to ask a friend from Puerto Rico to translate the materials for you. You may have the same temptation if you’re targeting France and you ask a friend from Quebec to take on the assignment. While this seems to make sense – especially if it might save money – it could be a big mistake. Think about it. As an American, how would you like to read copy referring to a flashlight as a “torch,” the trunk of a car as a “boot,” or where the word “center” is spelled “centre?” It’s definitely English – but it’s British English – and it’s not exactly speaking directly to you in the English you’re comfortable with. Not only are there differences in how major languages are spoken in different countries, individuals coming from target countries – after years of residing in the US – can often lose touch with the present day language use in their home country. Staying current on the latest trends, fads, “who’s-who,” and “lingo” is especially important today where changes now happen at break-neck “Internet speed” and outmoded phrases can make you look woefully out-of-date. My recommendation is to hire local talent for your translations, whenever possible. You can often get a list of recommended marketing and translation service providers in various countries from the local American Chamber of Commerce
( www.uschamber.org/intl/amcham.la.htm) or local marketing trade associations. They frequently keep lists of recommended service providers and are often happy to share that information with you. You could also do the basic translation in the US, but I still recommend conducting a reality check in Country “A” just to be sure. No one wants to repeat the famous General Motors mistake of launching the Nova in Latin America, only to later learn that no va is Spanish for “does not go…”
The major exception to translating your materials into the local language is when marketing to niche groups where American English has tremendous appeal and is widely read and understood. If this is the case in Country “A,” you’ll have to make the strategic decision whether English only is the best vehicle to reach this specific group, use the local language alone, or some combination of the two. Even then, ordering and customer service information is best provided in the local language.
Don’t Assume Standards Are the Same
Next, you’ll have to determine whether the mail piece you’re sending fits Country “A’s” standard dimensions. For example, a Number 10 envelope here in the United States is several millimeters too long for the European automation mail standards and could add unnecessary expenses to your mailings. The standard US 8-1/2” by 11” paper is shorter and wider than most paper dimensions used in Europe. Even after you’ve taken all the steps to insure the graphics are right and the language is flawless, don’t commit the cardinal error of sending it in the wrong format. Well before you commit to a mailing, make sure that the format will fit the standard dimensions in the destination country to avoid wasted time and money. It would be a waste to come that far only to realize everything you’ve done is in the wrong format incurring you needless delays and expense.
Use Local Indicia When Possible
The final element to consider is the indicia. Numerous studies show that local indicia result in significantly higher response rates. For example, a French prospect getting a solicitation with the indicia stamped “Paris” is far more likely to respond than if it were stamped “Peoria.” Same with Germany. Something stamped “Berlin” for a German is likely to get a better response than a piece stamped, “Boston.” One of the few exceptions to this may be the entertainment segment where DVDs and music CDs with US indicia, for example, can garner higher response rates than those indicia within your target country. Do your homework as to which indicia will work best when sending to Country “A.”
Creative List Management and Address Hygiene
Ironically, the best place to start with overseas lists is right here at home. It’s entirely possible that you may already have many foreign addresses in your database. Do your homework and check the list thoroughly. Not only can these names be the nucleus of your larger foreign database list, these individuals may eventually be the core of your international customer base well into the future.
Your next step is to buy a quality international list. There are a number of domestic American sources for such lists as well as sources within select target countries. As in the US, it’s always important to work with a quality list provider. While this may be easier in the US where you have working relationships and experience with list providers, it may be more difficult in a market you don’t know well. Ask around and avail yourself of the services provided by in-country marketing trade associations, AMCHAMs, and similar organizations. Even then, don’t automatically assume that the list you receive is up to your standards. It’s important to inspect and validate new lists thoroughly. If you bought a business-to-business list, be sure it is indeed b-to-b complete with titles and company names. If you bought a b-to-c list, make sure the addresses are indeed residential and not commercial. While some crossover is possible, and indeed likely, too many addresses in the wrong category will dilute your results.
As with all lists, it’s always a good idea to do a merge-purge to keep the list accurate and avoid duplicates. Be careful, though. The way Americans write-out a person’s name is not necessarily the same throughout the world. For example, in much of Latin America, many people use their given name first followed by the father’s last name and then the mother’s maiden name. In many Asian countries, a person’s family name comes first, followed by their given name. For merge-purge to be effective, you must be comparing family and given names in the proper fields, otherwise it’s like comparing “apples to oranges.” Work with someone familiar with the differences so that you can ensure that the one piece of software can speak with the other.
Finally, if you’re receiving list information via e-mail, or if it arrives by disk or CD-ROM, you’ll want to make sure it contains no viruses. Americans are more sensitive to computer viruses since much of our work is reliant on computers and access to the Web. While this is increasingly true in the rest of the world too, the odds of catching a virus from a foreign destination still remain high. Be sure to update – and use – your anti-virus and utilities programs for an extra measure of safety.
As part of your international list inspection, make sure you’re always practicing good address hygiene. Be aware that formats will differ in nearly all countries. Some countries may have eight to nine lines for an address block, while the US has only four. You will need to reconcile that difference.
Be sure also to verify addresses before sending. At a minimum, make sure they have information such as postal codes to ensure proper delivery. Software to ensure that the postal codes listed belong to the cities mentioned is available for most countries. There are also software programs that generate postal codes based on addresses alone.
Also, be sensitive to the fact that some postal codes are strictly numeric such as the US and Germany, while others are alphanumeric. Remember that some postal codes such as Canada’s have a space within the code. Don’t ignore this space. Without it, the code will not be read properly, possibly delaying your mailing.
Be Smart About Postage Discounts
Now that you’ve created your mail piece for Country “A,” – it’s the right size, the right language, it has the right “look” and “feel” for your target audience – it’s time to look for the right postage discounts. Many postal administrations offer discounts especially if your mail is pre-sorted by postal code in either ascending or descending order. Also, as in the US, the larger the volume, the greater the opportunity for a larger discount. In addition, some countries offer discounts for pre-printed indicia and bar codes and this is reflected in your mailing rates.
Know When Your Target Country is “Open for Business”
Your mailing to Country “A” is assembled and waiting to be shipped. Should you send it immediately? Not if your target country is France and it’s August when virtually everyone’s on vacation. Not if you’re sending to Brazil and Carnival is next week. Not if you’re sending it to Canada on Election Day. You should always be keenly aware of major holidays and vacation seasons that will adversely affect your response rates. Work with an international mailer to determine the most realistic drop dates when delays such as these are possible.
In addition, you should be aware of other factors often beyond your control such as strikes or slow downs by airlines, truckers, etc. Since you’ll not likely be able to monitor these types of developments yourselves, again, it’s important to work closely with an international mailing service able to provide you with up-to-date information. In case of such unforeseen events, they should also be able to offer alternatives that work best given your desired timeframe.
Develop an Effective Response Mechanism
You’re almost there. Your mailing to Country “A” may be ready, but you still have more homework. Once the consumer receives your DM solicitation, he or she is going to need a way to respond to your offer. There are many options available including the Internet, phone, fax, or local P.O. box. In each case, the same rules discussed above still apply. If it’s the Internet, the site should be in Country “A’s” local language, including if possible, a URL with a non-US address such as “.fr” for France or “.de” for Germany, instead of “.com” which generally connotes the US. The phone number should also be local, or if possible, a toll-free number. This does not necessarily mean that the individuals operating the call center need to be physically located in Country “A.” In fact, they could be thousands of miles away taking orders. As long as they are able to speak with your customers in their native tongue, distance is trumped by the local “feel” you’re providing. The same goes for local P.O. boxes. A local return address is almost always preferable to a foreign one. But this does not mean you must open a foreign office. For example, your international business reply mail could be automatically couriered to your US office, or to a regional office closer the local destination, should you have one. Talk with your international mail provider about what arrangement works best for you.
Get Return Mail Fast
O.K. You’re ready to go. Just one last detail. On average, most international mailings result in about 5 to 10 percent returns. Despite your best list management practices and address hygiene, it’s almost inevitably the case. That’s why it’s so important to insist on getting your return/undeliverable mail sent back directly to you so you can check the addresses, indicia, postal codes, names, etc. You’ll also want this mail back to confirm that you indeed received the full service you paid for. The faster you make return mail and corrections/deletions part of your everyday list management, the more efficiently and cost effectively you’ll be able to manage your overseas operations.
Now, Close the Sale…
Now that you’ve successfully put all the right elements into place, you’re finally ready to begin your direct marketing campaign to Country “A.” Gaining a foothold in this market and learning from your experiences in this initial foray should help you immensely as you plan your next efforts into Country “B”. Although not all lessons learned from Country “A” will automatically apply to the next country due to cultural or linguistic differences, nonetheless, many of the functional steps you undertook should give you an appreciation of what’s needed as you expand beyond Country “A.”
Globalization in business is here. Whether you embrace it or not, it’s an economic fact of life in the 21st Century. Foreign markets are opening up more rapidly than at any other time in history and the ability to reach new customers – virtually anywhere in the world – will be an essential part of the growth strategy for many US direct marketing firms. And global consumers are eager to buy US products and services. The greatest impediment is not lack of demand. The greatest impediment is fear. More specifically, fear of the unknown.
I hope the steps I’ve outlined above – and in August’s issue – will help allay some of those potential fears and help you get started on the path to successful international direct marketing – your company’s next and perhaps most lucrative revenue stream. Wherever in the world you close your next sale, I wish you great success on the new global playing field.
Deutsche Post GlobalMail, Deutsche Post World Net, Deutsche Post GlobalMail Address Doctor, SmartCharge and the Deutsche Post GlobalMail logo are the property of Deutsche Post GlobalMail Ltd. All other names, brands, trademarks and service marks are the property of their respective holders.
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