The Science of “Meaningful Marketing”

Conventional wisdom suggests that there isn’t much hard science in marketing, but in
fact marketers are constantly collecting statistical data on customer psychology, brand
preferences, sales techniques, pricing, and other forms of marketing-related research.
Author Doug Hall—founder of the famous Eureka! Ranch and a former Procter &
Gamble brand manager—has now sifted through thousands of these sources and
collected a hundred “data-proven truths and practical ideas” for front-line marketing
and sales managers.

Hall’s new book, Meaningful Marketing, contains a wealth of tactical approaches that
often challenge traditional marketing methods, and his analysis and research evidence
are valuable even if they’re taken out of any context. But Hall also offers a big-picture
view: He argues (again, with statistical backup) that buyers generally see through
gimmicks and hype, and end up rewarding marketing campaigns that stress honesty,
value, and “adult conversation.” The good guys really do win, it seems.
A few of Hall’s discoveries:

• The market rewards pioneers: Me-too competitors sometimes steal the limelight
from true innovators, but Hall says companies with “meaningful” early-bird
solutions usually end up with the highest sales. “On average, brands that are second
to market generate 71% of the sales of the pioneer,” he says. “Those that are third
to market generate 58% and those that are fourth some 51% of the sales of the
brand that is first to market.”

• Quantity beats loyalty: For growth-oriented companies, says Hall, campaigns
aimed at installed-base customers tend to have much lower payoffs than cultivating
lots of new customers—even though the cost of attracting new customers is usually
much higher. “If your resources are limited, the data indicates that the first priority
should be on increasing your total number of customers.”

• Too many choices can kill sales: Marketers often believe they’ll capture more sales
by offering multiple versions and options. In reality, says Hall, a smaller number of
choices usually translates into more revenue. For example, an Internet-based retailer
eliminated 54% of its products—and sales rose by 11%.

• Weasle warranties are useless: A “no-excuses” guarantee almost always boosts
sales by reducing the customer’s perception of financial risk, according to several
research studies. However, once the company lawyers start adding footnotes and
loopholes, the warranty’s impact on sales drops almost to zero. “Customers know
the difference between a real warranty and a fake warranty being used as a trick,”
Hall points out.

• Satisfaction trumps cost-savings: As companies get more efficient, Hall points
out, they usually face a choice—use the savings to reduce prices or invest in greater
customer satisfaction. “Research has found that improving customer satisfaction
is dramatically more effective than either a cost-focused or dual strategy. Only the
the customer satisfaction quality strategy correlates with overall company financial
performance, company return on assets, and long-term stock returns,” says Hall.

Meaningful Marketing, by Doug Hall; $24.99. Web: www.eurekaranch.com.

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