PayPal: Selling Honey Requires a Key Ingredient

   This recent email from PayPal merits a couple Fails for Creative. 

 

The email includes a Subject Line of "Get a $5 bonus for shopping smart with Honey." The headline reads "Give Honey a try. Spend $10, Get $5." Below that is a gif of a small box parachuting into a celebration, followed by a message reading, "When you add Honey to your browser for the first time, create an account, and spend $10 or more with PayPal, you'll get a $5 bonus. That's just the start of the savings. Honey members save over $126 annually." Below that are step-by-step instructions about how to install and use Honey, and a disclosure.

There is a clear Call to Action and an incentive for the customer to take action now. The email was sent on September 25 with an offer expiration date of October 4, so immediacy is encouraged. 

But, what is Honey? Why would I add it to my browser? How do honey members save money, and compared to what? None of these questions are addressed in the email.

Based only on the email, one might guess that Honey is a rebate program or online savings account. In actuality, though, it is an online coupon provider. According to their home page, "Honey helps you find some of the best coupon codes on 30,000+ sites." That is Honey's value proposition, and it is missing from this email.

The other Fail is less important, but worth mentioning.  According to the disclosure and the detailed Terms & Conditions found on Honey's site, only 40,000 customers are eligible for the award. Once that limit is reached -- even if before offer the expiration date -- the reward will no longer be available. This type of restriction is fairly common in direct-to-consumer marketing. I've included number-of-customer limitations in several campaigns to ensure the product is not oversold or to cap potential incentive liability. When I did, I would use this clause to my advantage by communicating it in the body of the email. PayPal could do this by including above the Call to Action a message along the lines of...

Be one of the 40,000 people to get your $5 bonus by October 4th. Bonus must be used by October 31st.* 

or ... 

This exclusive bonus offer is limited to the first 40,000 people to take action by October 4th. Bonus must be used by October 31st.* 

This type of messaging approach not only makes the in-house lawyers happy by clearly communicating an offer restriction; it also communicates scarcity, which is a known factor to drive immediate action and increase response -- and that makes your manager happy.

Lessons:

1. It is not enough to have a call to action and encourage immediacy in your direct-to-consumer emails. They should always include a value proposition.
   
   
2. If your offer is limited to a specific number of customers, do not bury that restriction -- use it to your sales advantage.

Mr. Cooper: Sloppy letter

This letter from home loan provider Mr. Cooper merits multiple Fails for Creative.

"Pre-Approval" Letter

The letter opens with a headline reading "You're Pre-Approved* for a New Home Loan." Then, the first sentence after the salutation reads, "Whether you're bying a home or refinancing ..." Those two bits of copy don't align, which can be confusing. If Mr. Cooper is offering a new home loan (as stated in the salutation), then why the quick change to refinancing in the sentence immediately following? If Mr. Cooper is offering pre-approval for a home refinancing, why not have a headline reading "You're Pre-Approved for a Home Loan" without suggesting the pre-approval is restricted to the purchase of a new home?

The letter's Call to Action is to contact Mr. Cooper's call center. These days, many call centers are open 24/7. Mr. Cooper's hours, however, are limited to 9-14 hours a day, Monday - Saturday. Fair enough. Home loan purchasing is not like auto insurance, where you might want Jake from State Farm to take care of you in the middle of the night. However, the call center hours are hard to find on the letter. They are located under the company's address, when they would be more appropriately positioned near the phone number the reader would call.

The letter contains several grammatical and formatting errors. Some examples:

• There are three problems in this one sentence: "Call today to see if your could lower your monthly payment, payoff your home faster, pay less interest or other loan benefits." 
• The diction is incorrect in that a person does not place a phone call to "see" something. A person places a phone call to "hear" or "learn" something.(Had there not been other errors in the same sentence, I might have passed this off as a copywriter's creative style.)
• The sentence lacks parallel structure in that the reference to "other loan benefits" lacks a verb.
• The word "payoff" is improperly applied. As written, "payoff" refers to bribing someone. The sentence should have used the term "pay off," written out as two words.
  
  
• In the line listing call center hours, there is an extraneous space at the front of the line.
  
  
• For readability, that same line should include commas after the days of the week, e.g., "Mon - Thu, 7 am - 9 pm CT..."
  
  
• In the opt-out box at the bottom of the letter, the word "pre-screen" is treated inconsistently -- once with a hyphen and twice without.

If potential customers see so many errors in a business's one-page letter, why would they believe the business is capable of properly handing a mortgage application or that the business could accurately prepare required documents for a home sale closing?

In other words, Mr. Cooper needs to clean up his act.

Lessons:

1. The body copy of a marketing communication should support the headline.
2. Include your call center hours in context.
3. Proofread your communications for language and grammar. 
4. Ensure your formatting is consistent and your letter is visually clean.

PenFed Credit Union: Not Military Precision

I recently received this solicitation from PenFed Credit Union, whose formal name (according to Wikipedia) is Pentagon Federal Credit Union -- a name that aligns with the company’s pentagon-shaped logo. 

The solicitation letter is pretty typical for mid-tier credit card providers: window envelope with teaser; letter with Johnson Box; clear Call to Action; Schumer Box; buckslip insert reinforcing benefits and the call to action; and required credit prescreen opt-out notice.

The first line of the disclosure on the front of the letter reads, “To receive any advertised product, you must become a member of the PenFed Credit Union.” I originally thought this might be a Fail for Targeting since I have never worked in the military services or at the Pentagon and thus, I thought, would not be eligible for membership. The letter itself does not mention membership criteria, and I also could not find a mention on the main pages of their website or their sitemap. I did, however, find some information about membership eligibility from third-party websites such as on WalletHub; from there, I returned to a page that listed Affinity Partners. 

On affinity partner pages such as this one related to the American Red Cross, there is some copy that reads:

"Congratulations! As an employee, retiree, or volunteer of the American Red Cross you are eligible for PenFed membership! How does PenFed define volunteer? A volunteer is anyone who provides time, talent, or treasure. Time is the hours volunteering for the organization, talent is the unique skills a volunteer brings to the organization, and treasure is both financial and blood donations."

Aha! I am eligible for PenFed Credit Union membership because I supported the American Red Cross. Perhaps the Red Cross shared my contact information with PenFed in hopes that I would become a member and the Red Cross would receive some benefit for the referral. If I am correct -- and, perhaps even if I'm not -- the letter merits a Fail for Creative because the letter lacks an explanation of membership eligibility. 

The letter should explain membership eligibility and how broadly they define it. Even a couple lines along the lines of "We support people who serve the military but also offer membership benefits to tens of thousands of other people who support the military or one of our affinity partners." Or, if I received this offer because of my history of American Red Cross support, why not call that out? Touting affinity relationships helped make MBNA America successful -- perhaps that approach could work for the credit union.

At the very least, PenFed should add a page on its website explaining membership criteria -- a page that is indexed by Google, easy to find and easy to understand. This easy-to-find page on Affinity Federal Credit Union's website is a good template.

Also, is this offer a Fail for Timing? According to CNBC and other news sources, many banks are cutting back on balance transfer offers during these extraordinary times. Perhaps the credit union has a contrary view of where the economy is headed. Or, maybe it has reviewed its current membership pool and credit prescreen criteria and has taken a different view of credit default risk. Or, maybe the credit union had planned this campaign long in advance, and just decided to move forward.

Lessons:

1. If soliciting members for your credit union's credit card, include language that suggests the person is not only eligible for the credit card, but also eligible to join the credit union.
   
2. Membership eligibility for a credit union should be easy to find.
   
3. Consider whether a pandemic is a good time to offer 0% balance transfers.

Santander Bank: Creative Improvements, Lousy Timing

Last May, I wrote about a postcard I received from Santander Bank that merited a Fail forCreative because it promoted an incentive but lacked a conspicuous explanation of how to earn the incentive.

Santander Bank self-mailer
Cover panel

Address panel

Santander’s small roll-fold self-mailer that I received on April 2 here in New York City, however, includes elements lacking in last year’s postcard.

Offer Panels

This recent self-mailer includes a clear call to action. In fact, performing the desired action comes across as easy as 1, 2, 3.  The self-mailer includes a conspicuous explanation of what is required to enjoy the $300 incentive, with supplemental information in the disclosure. There is adequate space for benefits messaging, an easy-to-read Promotion Code, and the location of the nearest branch.

Promotion Code and Bank Branch Location

However, as I write this, the nearest branch listed on the postcard has been closed for two weeks because of the COVID-19 pandemic. More than two thousand people in New York City have succumbed to the virus. The Big Apple is in lockdown. Is this really when a consumer might consider switching the bank where their paycheck is deposited? Many consumers around here won’t even have a paycheck in a couple weeks; many others will be deceased.

So, this self-mailer is a Fail For Timing. At the very least, it can come across as callous. But should one blame Santander? It could be that the self-mailer was mailed before things got bad. When mailing Standard Rate, there is a lag time between maildrop and in-home date – sometimes a few business days, sometimes a few weeks. As we’ve seen, the world can change a lot in that short time.

Several years ago, I launched a direct mail campaign offering prospective customers around Philadelphia savings on their electricity supply costs. Unfortunately, Hurricane Sandy started up the East Coast after the maildrop. The mail reached the target market while the hurricane was disrupting power to many homes. Who knew?

Disclosures updated as of 2/29/20

The disclosure includes an as-of date of February 29, which suggests the self-mailer was printed in early March. If it was mailed prior to March 10, I would say, "Who knew?" 

Or maybe the mail dropped closer to March 20, which means the bank knew about the pandemic hitting the United States but decided to mail anyway. If so, a decision should have been made to pull the mail rather than commit an unforced error because – even though the mail had been printed and personalized – the campaign could have been halted. Doing so would have meant postage money could be saved for a better timed mailing, and would have prevented bad optics.

Lessons:

1. Your Call to Action should be conspicuous and easy to understand.
2. Sometimes planned marketing efforts can be impacted by unforeseen events.
3. There are occasions when you may need to pull mail at the last minute. Maintain the decision-making capability and flexibility to do so.

American Red Cross: No longer blind

A little over two months ago, I wrote about receiving a solicitation from the Red Cross in a blind envelope right in the middle of the traditional giving season. Last week, I received a similar solicitation but with a corporate envelope.

Where the envelope in December had no hint of branding, this envelope is unmistakably from the American Red Cross. The teaser message reminds me that my donation helps the Red Cross respond to more than 60,000 disasters a year.

Red Cross Solicitation:
Fully Branded Outer Envelope

The letter inside is exactly the same as the December letter. The only update is the mailing date.

Donation Solicitation Letter front

Donation Solicitation Letter back
Request for email address circled

As a direct marketing professional, my gut tells me that the blind envelope was part of an A/B Test and this is the Control, but that is just a hunch. Perhaps the plan was for the holiday solicitation to be blind to differentiate it from the multitude of charity mailers that typically arrive in December. The mailbox is not as busy in February, the thinking would go, so now is time to show that logo again.

I wonder if it is also time for increased multichannel engagement. This is a direct mail letter requesting a mailed-back, completed response form. There is also an online donation option; however, the mention of that is in small type.

No one wants to mess with a successful Control package (if this is it); however, it may be time to consider that the internet is useful for many things, including donor engagement. Buried on the back of the form – below the input field for credit card information – is a request for email address. Instead, why not, on the front of the form, ask all donors for their email address to share stories of the Red Cross coming to the aid of disaster survivors? Rather than treating this solicitation as solo mail in a vacuum, include a link to the American Red Cross YouTube channel or the local Red Cross as a means of encouraging engagement?

Business Reply Envelope

Perhaps that could be their next A/B Test.

Lessons:

1.      Test your most successful direct mail packages. Let new presumptions challenge your assumptions.

2.      We live in an omnichannel world. Don’t use direct mail in a vacuum – integrate it with your other engagement channels.