MIDWEST DIRECT MARKETING ASSOCIATION

4248 Park Glen Road Minneapolis MN 55416

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MDMA CALENDAR OF EVENTS

March 9:
Workshop: Adopt-a-Student Day/ DM Job Fair Program: Personalize

Your Email Marketing by Jane Westlind, Director, Commerce Solutions, Net Perceptions. International Market Square 12:00 pm - 1:30 pm

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Printing & mailing of Direct Hit courtesy of General Litho and PGI Companies, Inc.

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April 4:
2000 ARC Awards at Earle Brown Heritage Center, Brooklyn Center 5:00 pm - 9:00 pm

April 5-6:
Direct Marketing Conference & Expo at Earle Brown Heritage Center, Brooklyn Center

May 11:
Program at International Market Square (TBA)

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Midwest Direct Marketing Association Board Members 1999-2000

PRESIDENT ARC AWARDS EDUCATION

Who should be Direct Marketer of the Year? Who deserves the Holes Long-Term Achievement Award?
The answer is: someone you know. Nominate them today! Fax the form below to 612.929.1318 or mail it to the MDMA: 4248 Park Glen Road, Minneapolis, MN 55416. For more information call 612.928.4643.

Donna Wald
Sterling Software 612.833.3717 donna.wald@sterling.com
PAST PRESIDENT

Jeanne Fischer
Norwest Corporation 612.667.6991 jeanne.r.fischer@norwest.com
EXECUTIVE DIRECTOR

Lucia Schmitz
612.496.0692 luciaschmitz@aol.com
SPONSORSHIP

Dennis Bell, Jr.

Wisconsin Label 612.938.7327 bellm@wlgroup.com
DIRECT HIT/PRESIDENT ELECT

Al Anderson
Minnesota Public Radio 651.290.1279 aanderson@mpr.org
SECRETARY/TREASURER

Michael V. Thiesen
The Harrington Company 612.928.4643
mtheisen@harringtoncompany.com
PROGRAMS

SEND YOUR NOMINATION TODAY!

(photocopy form for multiple nominations) Nomination for: s Direct Marketer of the Year NOMINEE'S INFORMATION
Name: ___________________________________________________________________________________________________________________________________________ Company (If applicable): ________________________________________________________________________________________________________________ Address: _______________________________________________________________________________________________________________________________________ City:
_____________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________

s Holes Long-Term Achievement Award

John G. Olson
West Group 651.687.5514 john.olson@westgroup.com
WEB PAGE

Christine DeKam
BI Performance Services 612.844.4122
MEMBERSHIP

Dag Von Ruden

DynaMark Marketing Services 651.486.4648 dagvonruden@dynamark.com

&

CORPORATE RELATIONS

Dawn Stasney
Express Messenger Intl 651.628.3208 emi@winternet.com
ADVERTISING

Frank Terrance
The Instant Web Companies 612.470.3231
DIRECT MARKETING CONFERENCE

Marty Smith
Lutheran Trust, Inc. 612.340.4401 smith.marty@luthbro.com
HISTORIAN

Phone:

NOMINATOR'S INFORMATION
(If your nominee is selected we will contact you to arrange for the award which is given out at the DM Conference in April.)

Sharon Hockers
Experian 612.525.5376

Jolee Molitor
Welsh & Associates 612.317.9231 jolee_molitor@bkdirect.com

Joanne Clark
Merkle Direct Marketing 612.833.0812 jclark@merklenet.com

Name:

__________________________________________________________________________________________________________________________________________

Helen Gotter
Donnelley Marketing 612.541.6526
helen.gotter@donelleymarketing.com

Company (If applicable): ________________________________________________________________________________________________________________ Address: _______________________________________________________________________________________________________________________________________ City:

_____________________________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________________________

State:

(Attach any relevant documentation to support your nomination.)

April 2000

Special Edition! Conference and Expo 2000 Preview

Issue Number 7 April 2000 www.mdma.org 612.928.4643

A publication for direct marketing professionals of the Upper Midwest

Keynoter Speaker Perspective

One key to customer satisfaction online: let them step behind the counter
By Arthur Middleton Hughes
Editors note: Arthur M. Hughes will deliver the opening keynote address at the MDMA Annual Conference and Expo on April 5, 2000 at the Earle Brown Heritage Center in Brooklyn Center, Minn. His message will be titled Crossing the Bridge from Traditional to Internet Marketing. For full details on the Conference and Expo, see pages three and four.

Inside at a Glance
Editors Note Presidents Note

Conference and Expo 2000 Preview

directmarketing.com

The Internet has grown so fast, and is so immense today, that no one (including me) really knows what to make of it. Most of the common wisdom today is probably wrong. From my perspective, here are some observations: s The Web will continue to expand rapidly into all businesses and into more and more households. It will be as common as the telephone or television in a few years. s The fact that less than 1% of retail transactions today are on the web is unimportant. For commerce, the web is primarily a business-to-business vehicle, and will probably remain so. Many consumer retail web sites being launched today will probably fail or be absorbed. s The Web is the greatest direct marketing vehicle ever invented. It makes one-to-one marketing a serious possibility. s Any marketer who ignores the Web today is making a big mistake. s The real money to be made right now in the Web is in customer relationship management. Let me explain the way it works. In the 1980s all mid-sized and larger businesses acquired toll free numbers so that customers could contact them. At first, they had no idea what to do when the customers actually called. Anyone who doubted this had only to dial up the toll free numbers on the products that they bought in the early days. They got a bewildered customer service rep who didnt know what to say. Eventually firms found out what customers wanted to

know. They equipped their customer service reps with computers that had access to the relevant information. FedEx pioneered it with their package tracking system so that any customer could call the toll free number to find out where their package was. Soon, database marketers realized that these customer calls were ideal vehicles for building customer relationships. They added individual customer purchasing history to the reps screens so that they could know who they were talking to, what they had purchased. Banks went one step further. They computed customer profitability on a monthly basis and segmented customers into five categories, from gold down to lead. They discovered that more than half of their customers were unprofitable. But they also began to realize that their gold customers were terribly important to the banks future. They added Caller ID, linked to their customer database, so when their customers called, they could route gold customers automatically to a dream team. They soon understood that customer retention was partially a function of the number of products Arthur M. Hughs owned. So they added Next Best Product to the customer reps screens so they could have something profitable to talk to the customers about when they called. Catalogers did the same. Talking to customers became big business. But toll free numbers are expensive. The main costs are not the phone calls, but the salaries of the agents who manipulate computers to find the answers to customers questions, reading the answers off their screens. Then along came the Internet. FedEx was one of the first
continued on page 6

A Copywriters Journal

Direct mail math is for creatives too!

Direct Connections
By Tom Meyer

Calendar of Events Welcome New Members

As a copywriter, I used to avoid direct mail math and numbers because I thought they had little to do with promotional creativity. But one day I realized you CAN be creative with numbers and Im NOT talking about tax returns or expense reports! That day I was wondering if I could beat an existing direct mail control package by adding a premium offer to it. How much would a premium test package have to pull to beat the control mailing? I created a way to determine how much you have to lift response for a free gift to be cost effective. Let me illustrate this with the following example: Lets say youre selling a $30 newsletter subscription. The control mailing produces a 2% paid response, and you want to offer a desk clock worth $4 fulfilled: P = The price of the newsletter or $30. G = The fulfilled gift cost or $4. C = The control packages paid response or 2%. T = The test packages paid response needed to break even with the profitability of the control.

OK creative types, Ive drawn you into getting involved with a formula. It is: T=PxC P-G Lets plug in the numbers from the example: T = 30 x 2% 30-4 The fraction in the middle equals 1.153. This means that the premium test package has to pull 1.153 times better than the control package. In other words, response has to be over 15% better to beat the control, since you have to recoup the cost and fulfillment of the premium offered in the test mailing. When you multiply 1.153 by 2% (the response rate of the control package) you get 2.307%. This is the response rate you need to break even with the control. The equation assumes that the in-the-mail costs of both mailings are the same. No added buck slip for the premium test package or any extra production expense. However, if you added $20 per thousand for a premium buck slip to the test package, it would have little effect upon profitability in this example.
continued on page 6

EDITORS NOTE
Why the DMAs Email Preference Service will fail
By John G. Olson

When it comes to the policy on email marketing, the Direct Marketing Association is in a no-win situation. They want to appear to be doing something about SPAM, and still preserve the direct marketing possibilities of reaching consumers online. In January, it launched its Email Preference Service (E-MPS). This is an opt-out list service where consumers can register to be excluded from email solicitations. Patterned after the Telephone Preference Service and Mail Preference Service, it requires DMA members to drop registered names and addresses from their DM Internet lists. It wont work for three reasons. First, politics and opinion polls. There is such a groundswell of pressure from Congress, the states and consumer advocacy groups that election year politics will probably squelch hopes for self-regulation. The Wall Street Journal reported in a recent poll that Americans cite loss of privacy as their top concern about the 21st Century, ahead of global warming, overpopulation and terrorism. Faced with this reality, some industry advocates of self-regulation are rethinking their opposition to privacy regulation, according to the WSJ. Second, the opt-out approach is fundamentally wrong for the online world. When online, optin/permission rules. Direct mail list strategies dont

apply to the Internet. Internet Marketing pioneer Seth Godin preaches that online marketing messages must be personal, relevant and anticipated. Traditional DM prospecting and selling tactics, which he calls interruption marketing dont work on the Internet. His book, Permission Marketing, is the must-read for marketers who want to understand the new rules for Internet Marketing. The third reason E-MPS wont work is compliance. How can the DMA ever hope to enforce its use by nonmembers? Take for example, QPI Marketing in Kansas City, Mo. probably not a DMA member. They SPAMMED me this offer for a product called Eye Spy Internet Investigative Software: Find out SECRETS about your relatives, friends, enemies, co-workers, neighbors even your spouse! Locate a past lover who broke your heart! Get anyones name and address with just a license plate number! Driving records too! Send anonymous email completely untraceable! Get a satellite photo view of YOUR neighborhood! Get any unlisted phone number! Find out where to obtain Credit Reports! This is the kind of SPAM Marketing that drags respectable direct marketers into the mire of privacy

abuse. Its the kind of thing the E-MPS wont stop. Merchandising such sensitive information which could be used by stalkers and other malevolent snoops is outrageous and indefensible. I tried to send them a reply saying so. But of course they used one of those anonymous, untraceable email addresses. Consumers hate this. And direct marketers cant fight it. Regulators and political opportunists will ultimately institute a government solution. Adios E-MPS.

PRESIDENTS NOTE
Change Is it a good thing or a bad thing?
By Donna Wald

We see it all around us. CHANGE. We have to change the way we market to our customers. Companies have to change when they are acquired by other companies. Forms of communication are constantly changing around us. Our job requirements and sometimes even our careers themselves are constantly mutating as we strive to keep up with the demands of the marketplace. So why are people so averse to change? I would put forward that people are averse to change because

we are creatures of habit. We are creatures of habit because we are educated that way. (It cant be genetic). From the first day you enter school, you go to the same classroom, you go from class to class with the same people, you are taught from well structured-texts and basically, things are pretty predictable. We are taught to have long-term objectives and we derive satisfaction and are rewarded for achievement of those objectives. We value our communities of coworkers and the long-term contributions we have all made together. So I have to laugh just a little when major changes take place and the change authors write

books about how to embrace change and have a new view about change. Unfortunately, most of them are leaving out the human element. The environments in which we have all been brought up and educated have not taught us to be flexible. They have not taught us to be elated when we wake up to find we no longer have a job. People want to feel that they can provide for their families, people like the groups of people they work with, and people are proud of the long term achievements they have made. So for all of you out there undergoing change, mergers, acquisitions, restructurings, etc. hang in there. I still maintain that its a 50/50 world. Change can be a good thing or a bad thing.

Issue Number 7 April 2000

MIDWEST DIRECT MARKETING ASSOCIATION

4248 Park Glen Road, Minneapolis MN 55416 612.928.4643 www.mdma.org Direct Hit is the member publication of the Midwest Direct Marketing Association, Inc. (MDMA). Any opinions, expressed or implied, are not necessarily those of the Board of Directors or general membership. Direct Hit is published ten times per year to bring members news of meetings, activities, local and regional events, pertinent articles and changes in legislation and postal requirements that affect the direct marketing industry. 2000 Midwest Direct Marketing Association. All rights reserved. EDITOR IN CHIEF PRINTING

John G. Olson
john.olson@westgroup.com
DESIGN EDITOR

General Litho
612.535.7277
MAILING SERVICES

April Wollmann Brush

studio.mostly@mciworld.com
ADVERTISING MANAGER

PGI Companies, Inc.

612.933.5745
CONTRIBUTORS

Jolee Molitor
jolee_molitor@bkdirect.com
ASSOCIATE EDITOR

Patricia Landers
tricia.landers@nmb.norwest.com

Carol Larson Jean Haskell Al Maleson Kara Thornton Bill Johnson

April 2000

Special Edition! Conference and Expo 2000 Preview

This years conference events add a touch of history
By Patricia Landers

Each year as part of the Annual Conference and Exposition, there is a presentation of two distinguished awards: The Direct Marketer of the Year Award, recognizing one outstanding organization; and the Holes Long Term Achievement Award, recognizing one individual who has made significant contributions to the industry over their career. It adds a sense of history to the proceedings. This year, even more so. Along with the arrival of a new millennium, the year 2000 marks the fortieth year for the MDMA. This years awards presentations on April 6, will be hosted by Joanne Clark, the MDMA historian and last years recipient of the Holes Award. (The award is named for MDMA founding father and first president William W. Holes). To commemorate this auspicious anniversary, Clark will give a retrospective

of highlights from the past 40 years of MDMA history. Its a great way to celebrate the big four-oh! Another long-standing event will take place the evening of April 5 at 5:00 p.m.: the Casino Night Party sponsored by Fair Isaac. This perennial social event is a great mixer and prize giveaway. Attendees are eligible to win many prizes with the grand prize being a 27-inch color television. Hors doeuvres and a dessert bar will be provided courtesy of Fair Isaac. Be sure to attend and bring your lucky rabbits foot. The Conference and special events could not be possible without the generous contribution of individual time and in-kind sponsorships and cash donations of MDMA members. Volunteers are still needed. If youd like to volunteer door prizes or sponsorships, call Jill Tokarcyzk at 612.831.8480 (for door prizes) or Meg Borman at 612.541.6547 (for sponsorships).

Meet the Exhibitors!

Exhibitors sure to deliver excitement and DM solutions! Over 40 booths will be featured in this years exhibit hall. To help you meet them, a promotion centering on this years theme, The Direct Marketers Toolbox for the Next Millennium, will bring you to various exhibitor booths to collect the direct marketing tools for success in the new millennium. This promotion is combined with twice-daily prize drawings at the MDMA booth. Free popcorn will be provided courtesy of Express Messenger, Inc. 3M Post-it Canada Post Corporation ALDATA Ad Track Bolger Concept to Print DB Direct, Inc. Drop Ship Express Express Messenger International (EMI) Econ Marketing Fair Isaac Gage Marketing Support Services General Litho Services, Inc. IC System, Inc. infoUSA Japs-Olson Company Laser Images Lorton Data MDMA Mackay Envelope Corporation Mail Handling Services Mail-Well Envelope Merit Printing Merkl Direct Marketing Moore Response Marketing Services NBS Data Management Group Personalized Graphics, Inc. PGI Companies, Inc. Post Haste Prime Net Marketing Services Scoville Press, Inc. Tension Envelope Corp. Tidewater Publishing Corp. Volkart May & Associates, Inc. Williams Kincaid Group Webcraft Technologies, Inc. Wisconsin Label World Distribution Services, Inc. ZIP Sort, Inc.

Conference 2000 Intinerary

Tuesday, April 4th
ARC Awards

Media Mixing Strategies that Work

A case study from a leader in direct marketing through multiple channels. We will get an up-close look at how to integrate traditional paper and postal advertising with telemarketing and the new e-commerce media. Speaker: Willie Doyle, Fingerhut Companies 4:30 pm 5:00 pm 5:00 pm Exhibit Hall Fair Isaac Sponsored Event

Wednesday, April 5th

8:00 am 9:00 am 8:30 am 9:00 am 9:00 am 10:00 am Registration & Exhibit Hall Breakfast Opening Keynote

Crossing the Bridge from Traditional to Internet Marketing

As we cross into the 21st century, we see a fascinating new array of advertising options. What lessons can we take with us from traditional media, and what new lessons must we learn? Mr. Hughes will offer the unique perspective of a pioneer in both traditional database marketing and marketing on the Internet. Speaker: Arthur Middleton Hughes, Executive Vice President, Database Marketing Institute 10:00 am 10:30 am Break & Exhibit Hall

Thursday, April 6th

8:00 am 9:00 am 8:30 am 9:00 am 9:00 am 10:00 am Exhibit Hall Breakfast Break Out Session IV

L.L. Beans Privacy Standards

Doug Faherty will talk about how L.L. Bean addresses consumer privacy issues. This is a rare opportunity to get an inside look at how privacy is managed at L.L. Bean, a catalog company that is widely known for its ethical integrity. Speakers: Doug Faherty, Vice President, L.L. Bean

10:30 am 11:30 am Break Out Session I

Postal Practices & Challenges

Keeping pace with the ever-changing rules and policies of the United States Postal Service is nearly impossible. Mr. Yapuncich will give us the latest postal updates, plus valuable information on how to manage your mailing process more efficiently and profitably. Speaker: Mike Yapuncich, Vice President of Product Development, Experian/Direct Tech

Impressions on the Future of Printing

Mr. DeWese will discuss the future of the printing industry from an insiders perspective. A widely published writer on trends in the printing industry, Mr. DeWese will identify the key factors that will shape the printing industry. Speaker: Harris DeWese, Principal, The Compass Group 10:00 am 10:30 am Break & Exhibit Hall

Customer Loyalty Models that Work

We have all heard claims that your most loyal customers make up a large percentage of your profits. Is this claim true? Mr. McLeod will describe a new way to measure customer loyalty, and how to establish the link between loyalty and profitability. Learn how to measure and quantify the monetary value of loyalty. Speaker: Jeff McLeod, Chief Scientist, ParaMetrica 11:30 am 12:00 noon Break & Exhibit Hall 12:00 noon 1:30 Lunch with Guest Speaker

10:30 am 11:30 am Break Out Session V

How to Build a Prospecting Database

As list rentals began to show disappointing results, many direct marketers turned to prospecting databases as a new way to acquire customers. Dawn Blanton from Experian will give a hands-on account of what prospecting databases are, and how they are built. Moderator: Dawn Blanton, Director of Database Services, Experian

measure customer behavior on your site and turn it into a strategic advantage? Jane Westlind will discuss some of the newest, most exciting, and most effective ways of marketing on your own web site. Speaker: Jane Westlind, Director Commerce Solutions, Net Perceptions 2:30 pm 3:00 pm Snack Break & Exhibit Hall Last Chance to visit the Exhibit Hall. Exhibit Hall closes at 3:00 pm. Session VII

Business in 2000 and Beyond

Harry Freedman offers an inspiring motivational philosophy on avoiding clutter and confusion in our lives. He shows us how to replace old ways of thinking with fresh, clear and insightful ways. Speaker: Harry Freedman 1:30 pm 2:30 pm Session II

Understanding Generational Marketing

This session will talk about the look and lifestyle of the new consumer. The next generation of consumers has come of age. Meet an expert in generational marketing, and learn how to reach the next generation through images, creative, and copy. Speaker: Brian Jersey, Founder, i-birthday.com 11:30 am 12:00 noon Break & Exhibit Hall 12:00 noon 1:30 Awards Ceremony & Lunch

3:00 pm 4:30 pm

How to Build and Run a Successful E-Commerce Business

If you want to start an online business, or if you want to know how your site compares to other e-commerce startups, you will find this session indispensible. A panel of ecommerce professionals will talk about how to get up and running in e-commerce. Topics will run the spectrum from how to design a web page that works, how to take orders over the Internet, how to market on the web, which products work, and which products do not work on the Internet. Speakers: Brian Jersey, Founder, i-Birthday.com Corbin Grant, Founder Stimuli Brand Development Brant Palazza, Sr. Director of Marketing, Digital River Greg Bassett, Carlson Companies

Changes to Come in the Direct Response Economy

Mr. Anton will speak on the forces that will shape the advertising economy in the near future. We will get a guided tour of how both businesses and consumers may change, and the possible ways in which such economic changes might affect direct response marketing and advertising. Speaker: Paul Anton, Chief Economist, Anton Lubov & Associates 2:30 pm 3:30 pm 3:30 pm 4:30 pm Snack Break & Exhibit Hall Session III

Holes Award Presentation Direct Marketer of the Year Award Presentation

1:30 pm 2:30 pm Session VI

Direct Marketing on Your Website

Now that direct marketers have embraced the Internet, a whole new set of challenges and possibilities arises. How do you get the buyers attention before they click-through to someone elses website? How can you harness the ability to

April 2000

Special Edition! Conference and Expo 2000 Preview

Conference and Expo 2000 Registration Form
Name _______________________________________ Title ________________________________________ Company ___________________________________ Address _____________________________________ City_____________________State _____ ZIP ______ Phone_______________________________________ Fax _________________________________________ Email _______________________________________
Method of Payment:
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Full Program Registration

Includes: All sessions, luncheons, and Exhibit Hall admission.

s MDMA

Member, $245.00 $295.00*

s Nonmember,

*includes membership for remainder of 2000.

Exhibit Hall Pass Only

Includes: Exhibit Hall admission.

s MDMA

We Know Envelopes.
We have been making envelopes for the Direct Mail industry for over 40 years, so we know the importance of communication. We know the importance of having specialized equipment for innovative envelopes. We know the importance of economically producing small quantities for test marketing and large quantities for full response. We know the importance of timing and personal service. We Know Envelopes.

Member, $50.00 $65.00

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Enclosed (made payable to MDMA)

Luncheon, Keynote, and Exhibit Hall Pass Only (either day)

Express

Includes: One day pass for luncheon, keynote, and Exhibit Hall admission.
s MDMA

Card No. ____________________________________ Expiration Date: ______/______

Mail or fax your completed registration form to:

Member, $125.00 $135.00.

s Nonmember,

Student Registration

Call Today Toll Free at 1-800-622-5299

Minneapolis 612-331-9311 Fax 612-331-3460

Midwest Direct Marketing Association (MDMA) c/o The Harrington Company 4248 Park Glen Road Minneapolis, MN 55416 Fax: 612.929.1318 Or register online at www.mdma.org
Early Bird Registration Deadline: Friday, March 17, 2000

Includes: All sessions, luncheons, and Exhibit Hall admission. Must show current fee statement.
s $125.00

Registration At The Door

Includes: All sessions, luncheons, and Exhibit Hall admission.

s MDMA

Member, $300.00 $350.00*

(Prepayment required for reduced rate) Includes: All sessions, luncheons, and Exhibit Hall admission.

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*includes membership for remainder of 2000.

Mackay Envelope Corporation

2100 Elm Street SE Minneapolis, MN 55414

s MDMA

Member, $220.00 $270.00*

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*includes membership for remainder of 2000.

www.mackayenvelope.com

For More Information, Contact Us: MDMA at 612.928.4643 Fax: 612.929.1318 Email: mdma@mdma.org Website: www.mdma.org

Meet the Program Speakers!

Arthur Middleton Hughs
Arthur M. Hughes has been designing marketing databases for Fortune 500 companies for the past fourteen years. He is the acclaimed author of Strategic Database Marketing and The Complete Database Marketer: Tapping Your Customer Base to Maximize Sales and Increase Profits, as well as editor-in-chief of Relationship Marketing newsletter. Hughes, a much sought-after national speaker, is also Executive Vice President of the Database Marketing Institute. elected to the Board of Directors of the National Association of Business Economists. In 1981, the National Association of Business Economists chose Mr. Anton as one of the four outstanding young business economists in the United States. He received his Bachelors degree in economics and mathematics at the University of Minnesota, where he also earned his Ph.D. in Economics. He is a member of Phi Beta Kappa and an honorary Woodrow Wilson Fellow. Maana Man. DeWese takes credit for inventing taking the afternoon off without your boss suspecting a thing in Miami in 1971. When carefree afternoons became popular among salespeople, Harris invented taking the whole day off while on a business trip to Memphis in 1974. Harris also claims to have perfected the art of making sales calls while totally unprepared. Harris DeWese is the author of several books including Now Get Out There and Sell Something, How to Write Profit-building Sales Letters and wrote a chapter for the Dow Jones Capital Budgeting Handbook. DeWese serves on the board of several printing companies and is Chairman of the Board of Compass Capital Partners. He was formerly a senior manager with General Electric and the American Management Associations. He has a BBA and an MBA from Emory University.

Paul A. Anton
Paul A. Anton is President and Chief Economist of Anton, Lubov & Associates, a Minneapolis-based consulting firm. He is an economist with over twenty years experience in economic forecasting, financial market analysis, corporate economic strategy, industry analysis, and government policy advising. Prior to entering consulting, he worked for what is now USBank, first as Money Market Economist and later as Director of Economics. Before joining USBank, he was an economist in the Research Department of the Federal Reserve Bank of Minneapolis. Antons views on economic issues have been widely quoted in the Wall Street Journal, the New York Times, London's Financial Times, the Minneapolis Star Tribune, the St. Paul Pioneer Press, and the Los Angeles Times. His remarks have also been carried on Cable News Network, CBS Radio, and National Public Radio. Anton is also a member of the Star Tribunes Board of Economists and a member of the Governors Council of Economic Advisors for the State of Minnesota. He is a former member of the Economic Advisory Board of the American Bankers Association and was twice

Harry Freedman
Harry Freedman is the nations leading expert on forecasting business trends. Having been an executive in both the public and private sectors, Freedman has seen it all and wants to share his insights. He has been a national speaker and a consultant to numerous Fortune 500 companies for the past decade. Freedmans candor, combined with a large grain of salt, routinely challenges his audiences business and marketing assumptions.

Harris M. Dewese
Harris DeWese has been described as a man for all seasons or maybe it was just spring, summer, and maybe autumn. He is a principal in the firm of Compass Capital Partners, Ltd. of Radnor, Pennsylvania. Harris provides investment banking and financial advisory services to the printing industry in the United States. Harris has written a regular monthly column for Printing Impressions since November, 1984. Although hes never missed an issue, hes been late for nearly every deadline. His tardiness coupled with his assertion that, I invented all the great sales mistakes, has earned him the pseudonym, The

April 2000

directmarketing.com
The key to online privacy could be digital certificates
By Kara Thornton

You cant open a newspaper or magazine without reading about public concern over privacy on the Internet. Most policymakers advocate legislative solutions. But at least part of the solution could actually come from the technologists who gave us the Internet to begin with. Im talking about digital certificates. As we move forward into a wireless society, it becomes more and more difficult to authenticate people using ATMs, palm pilots and cell phones for business and financial transactions. Thats why encryption is so important. A digital certificate (a.k.a. digital identification) is your drivers license in the Internet world. It provides a way to validate your unique identity. And when combined with encryption technology, it gives you a secure environment in which to transact. Whats encryption, you ask? Encryption is a process that assigns a unique character or code in a message that can only be read by someone who has the ability to decrypt the information. Here is a simple example of how an encryption message works:
Dear Bob Thanks for your proposal. I will forward to the President today. Inghlsientgbaoytntr baojndbaondnapoi dmfnbgoimanpam dkmngfo9gpamdn Dear Bob Thanks for your proposal. I will forward to the President today.

An encrypted message contains both a private key and a public key. The public key is made available to anyone who wants to communicate with you. It verifies messages signed by your private key and encrypts only messages that can be accessed by a private key. A digital certificate has a key pair assigned to a users name (a public key and a private key). When installed on a Web browser, the digital certificate functions in a manner that allows verification of other users of certificates or protects against unauthorized use. All digital certificates are signed by the Certification Authority that brings the "Good Housekeeping" seal of approval. Digital certificates house data such as: s Your name s Your public key s Expiration date of your public key s Name of the issuer s Serial number of the digital certificate s Digital signature of the issuer Some of the companies involved in secure ecommerce solutions include CyberTrust.com, VeriSign.com, SmartTrust.com-Wireless, CertCom.com and Entrust.com. Digital certificates offer web users a high level of security and privacy in their online transactions that could defray todays hypersensitive climate about personal privacy .
Kara Thornton is Retail Internet Segment Manager, Online Services for USBank. Contact her at kara.thornton@usbank.com

Make an impression at the ARC Awards Ceremony

The 2000 ARC Awards Ceremony is a perfect liftoff for the Annual Conference and Expo. Register today for a gala evening recognizing the top direct marketing work from the past year.

April 4, 2000
Earle Brown Heritage Center, Brooklyn Center, Minn

5-6 p.m. Registration/Social Hour (Cash Bar) 6-8 p.m. Awards Ceremony 8-9 p.m. Dessert & Coffee Buffet (Cash Bar)
Members: $45 Non Members: $55 Students: $30

Name _____________________________________________ Company _________________________________________ Address ___________________________________________ City_________________________ST____ Zip ___________ Phone_____________________________________________ Email _____________________________________________ Payment:
s

VISA

MasterCard

American Express

Card Number ______________________________________ Expiration Date ____________________________________ Signature __________________________________________ Fax to 612.929.1318 or mail to MDMA, 4248 Park Glen Rd, Minneapolis, MN 55416. To register online go to www.mdma.org. Or call 612.928.4643.

My e-mail message which is encrypted with my private key

Message is sent

Bob decrypts my message with my public key.

How big is your mailing? Just a few or millions? , Postcards, or 9" x 12" envelopes?

XL

Weve got your size.

Not every lettershop can handle jumbo 9" x 12" mailings along with the smaller packages. We can. And not many lettershops are a good fit for mailings of 2,000 or 2,000,000. We are. Since 1990, Performance Mailers has been helping customers relax, knowing their mailings are inserted correctly, addressed right, and mailed on time. At Performance Mailers, were proud of what we do and we care about the details, big and small.

DOING IT RIGHT, THE FIRST TIME

380 Millard Ave., P.O. Box 729, Cokato, MN 55321

612-449-0100 (Twin Cities metro) or 320-286-2202

April 2000

ers rit opyrwal A C ou n J

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COPYWRITING HAIKU

Customer satisfaction online

continued from page 1

les Al Ma y

on

Nimble fingers fly across computer keyboards, writing words that sell. Agency wins gold for witty and clever work. Client now bankrupt. Mail this card today to get more information. Offer will not last. My portfolio. Look at all the nifty ads. Do you think I'm good? Traffic manager's simple question makes me sweat. "When will job be done?" Brainstorming session. Let's not be judgmental here. Praise stupid ideas. Oozing easy charm, the account executive leaves me feeling coarse. "The client bought it!" I thrill at the welcome news. Mom and Dad love me. The art director deletes key word from headline. "Ad looks better now." "You are a genius, but here we work as a team. Please don't be too right." Frantic for ideas as the drop-dead deadline nears, fear and panic reign. Some write to praise God; others, to praise liberty. I write to praise stuff. Like a lightning flash, a great headline comes to mind and the dark clouds clear. "That's a great idea. Could we change just one small thing? Its very essence."

to realize its true potential. They put their entire tracking system on the Web, so customers could dial up and find the status of all of their packages at any hour of the day or night, without talking to an operator, or getting put on eternity hold. Anyone who has used the FedEx tracking system knows how useful it is. What the customers may not realize is that it saves FedEx millions of dollars a year. The Web accomplishes three feats simultaneously: it makes customers happy, it builds loyalty and it saves money. What is the principle here? I call it Letting them come behind the counter. Just about every company in the world has a sign on the wall someplace that says, Authorized personnel only. You dont let customers go back into the accounting department, or wander around in your warehouse. But the Web has changed all that. Companies have learned that they can give customers access to the kind of information that their customer service reps are reading off their computer screens. They have written the software so that customers can manipulate their keyboards and mice to act like company employees: reading technical information, wandering through warehouses, looking up their own shipping and billing information, and placing their own orders. They can eliminate hundreds of rep jobs. Some business-to-business companies have gone one step further: vendor-managed inventory on the Web. With this system, a manufacturer keeps track in his computer of the inventory in his customers warehouses. As each item is taken off the customers shelves for use or resale, daily automatic electronic notices are exchanged between customer and manufacturer. New products are automatically shipped to keep the shelves at optimum levels. Optimum quantities are automatically revised based on usage. Product obsolescence is eliminated by automated, quarterly return material authorizations with no restocking charge. Purchasing and receiving paperwork is almost eliminated. Customers have lower inventory costs. They never run out of needed items.

So what are we accomplishing by Letting Them Come Behind the Counter? We are making customers happy, building customer loyalty, increasing sales, saving millions of dollars, and making the world a better place to live. What more could you want?
Arthur Middleton Hughes is Executive Vice President of The Database Marketing Institute. The Institute (www.dbmarketing.com) gives two-day seminars on Database Marketing and E-Commerce. The next seminar is April 17-18 in Washington, D.C.

Math for creatives

continued from page 1

This is the first time I ever wrote the words equation and creative in the same article. Ive learned that numbers and math can be used creatively, like color and words.
As former Creative Director of Polk Direct and a direct mail freelance copywriter, Tom Meyer has written and helped create over 200 control packages. Toms articles have also appeared in Target Marketing, Selling to Seniors, The Suarez Marketing Newsletter, and Inside Direct Marketing. He can be reached at 612.876.0925.

1/4 General Litho

April 2000

Japs-Olson is a partner with the production solutions.

We offer our clients
A 512,000 sq. ft. production facility! Over 700 trades-people with the production know-how! NEW full size 16-color web press! WORLDS FIRST 12-color sheetfed press! Introducing variable digital printing! 35 web, sheetfed and flexo presses! 18 300x300 dpi Pagestream laser printers! 56 Inserters with in-house USP Service!

Call Nancy Dibb at 612-912-1826

JAPS-OLSON COMPANY

Specialists in Commercial Print and Direct Mail Production

7500 Excelsior Boulevard., St. Louis Park, MN 55426 (612) 912-9393 800-548-2897 www.japsolson.com

DIRECT CONNECTIONS
Product Merchandising Coordinator

Leading health care direct marketing company has an immediate opening for an individual responsible for coordination and implementation of new product development. Working closely with the merchandising manager, this individual will be responsible for implementing the product plans, tracking product performance, researching customer trends, maintaining product reports, and serving as the product liaison with key internal departments. The ideal candidate will have a college degree with 2-3 years of product/market development or equivalent experience. Knowledge of and/or experience in the health care industry is required. Excellent verbal and written communication skills and attention to detail is a must. Strong organizational skills are desired. Must possess ability to work as a team player in a fast paced environment. Direct/catalog experience is a plus.
Merchandising Manager

World Class Customer Service Over the Phone or on the Web

At Gage, we understand that no customer contact is inconsequential. We know each and every time a customer calls with a question or a problem your companys reputation is on the line. Our one goal is to build a better, deeper relationship between you and your customers with every phone or web inquiry we handle.

Multi-Lingual Customer Service/ Problem Solving/Customer Retention e-Customer Service On The Web/ Real Time Text Chat/E-Mail/Web Callback IVR (Interactive Voice Response) with Live Operator Options Order Entry/Upselling/Help Desks/ Dealer Locator/Lead Generation Fulfillment and e-Fulfillment Services
Mark Lamberty VP Business Development Gage Customer Service 10000 Highway Fifty-Five Voice: 612-595-5821 Fax: 612-595-5808 mark_lamberty@gage.com

Leading health care direct marketing company has an immediate opening for an individual responsible for managing the product development and positioning of a product portfolio. This person will be responsible for developing and executing annual product plans for a market segment including market research, vendor negotiation, positioning, etc., for multiple distribution channels. The ideal candidate will have a college degree, 5-7 years of product development/marketing or equivalent experience. Knowledge of and/or experience in the health care industry is a plus. Direct/catalog marketing is preferred. Excellent verbal and written communication skills a must. Ability to work as a team player in a fastpaced environment is a must. We offer a complete benefits package and a pleasant office environment. We are located at 494 and 35E. Please send resume including salary requirements to: Colwell, Attn: Lori Thomas, 1031 Mendota Heights Road, St. Paul, MN 55120. No calls or agencies please. Equal Opportunity Employer.

April 2000