Showing posts sorted by date for query disclosure. Sort by relevance Show all posts
Showing posts sorted by date for query disclosure. Sort by relevance Show all posts

5/25/2022

PayPal: Where $1 Cash Back For Every $20 Spent Is Less Than 5%

Since last July, the value of PayPal stock has fallen by about 75%. While many analysts are discussing the company's "fundamentals" and suggesting at what price to purchase the stock, I'm staying away for a different reason -- because they often produce Mail That Fails. 

My first post about PayPal's several Fails was in 2011 when they mailed me a shoddy credit offer. There are a few more, including a recent one about a confusing and poorly targeted Venmo offer. Now, add to my list of PayPal Fails this offer of "$1 cash back for every $20 spent at restaurants." 

PayPal Restaurant Rebate Offer - May, 2022

PayPal Restaurant Cash Card Offer - May, 2022

PayPal Restaurant Rebate Offer - Disclosures

PayPal Restaurant Rebate Offer - More Disclosures
PayPal Cash Card Restaurant Rebate Offer
Received May 9, 2022

Scanning the headline might make you think that going out to lunch four times -- spending $25 each time with your GooglePay app to use your PayPal balance for those lunches -- would earn you $5 cash back ($100 divided by $20 equals $5). But you'd be wrong…twice. The offer requires me to first request a PayPal Cash Card, then receive it in the mail and use it at a restaurant. All within 5 weeks of first receiving the offer – some of which is spent waiting for PayPal to process my request for the card. That's a lot of effort and a short window of opportunity for a small benefit, e.g. a Fail for Offer

PayPal could have easily avoided this by using a rolling offer expiration date. For example, PayPal could require the customer to request the card by a specific date, but then give the customer a reasonable amount of time to use the card after activation, say, 60 days. That would be clear to explain and fair to the customer -- unless, of course, the intent is to make imply the offer is more generous then it actually is.

Which leads me to the actual offer value. I read through the disclosure text a few times, and I'm pretty sure that cash back offer is on a per-transaction basis. So, while each purchase of $25 would be worth $1 cash back and a $100 dinner might net $5 cash back, four lunches adding up to $100 would be worth only $4 cash back. If I'm right, this is a Fail for Offer and Content for being misleading. If I'm wrong, it is a Fail for Content for lack of clarity.

Another Fail for Content lies in the disclosures. It appears this disclosure was rushed and not proofread. Take this paragraph, for example:

"Eligible Purchase(s)": Eligible Purchase is defined as every $20.00 USD spent in-store or onlineusing the Card and finalized by the merchant during the Offer Period (defined below) in thefollowing category: restaurants (according to the Merchant Category Code (“MCC”) assigned byeach merchant, their processor, and the credit card networks. Only acceptable MCCs for this offerare 5812 and 5814). PayPal is not responsible for assignment of MCC codes. As a result, Reward willnot be awarded if the MCC code assigned to a particular merchant does not fall within a restaurantcategory, even if you believe that the merchant is a restaurant. Eligible Purchases do not include:(1) purchases that are marked as “pending” in your Card account as of the end of the Offer Period,(2) purchases made at eligible merchants using a third-party delivery service (3) ATM transactions,(4) gift card purchases, (5) any purchase or portion of a purchase that involves a payment methodother than the Card, or (6) in-store cash withdrawals/cash back. 

Spaces are missing between words. The punctuation is inconsistent. Some numbers in parentheses have spaces before them; some do not. There’s also a missing comma after "service" in the last sentence. 

There are references to "e-mail" in some paragraphs and "email" in other paragraphs. According to grammarly.com, both are correct as long as you use it consistently. PayPal is not being consistent.

These types of possibly misleading offers and unclear communications suggest to me that PayPal's leadership is spending their marketing dollars without full consideration of what they are doing and how they are doing it. As a stockholder, that would frighten me. As a customer, that also scares me a bit. If I can't expect to get a clean offer and clear communication, should I really be trusting PayPal to keep my personal information secure?

Lessons:

  1. Clearly communicate your offer.
  2. Allow your customers adequate time to respond to your offer and benefit from it's value.
  3. Proofread your entire communication, including your disclosures.
  4. Your customers' trust is potentially built or destroyed by every communication.
  5. The debate between "e-mail" and "email" isn't over, but at least pick a side.

8/14/2021

Freshly: Referral Offer Freshens Up

 A couple months ago I wrote about a referral offer from Freshly that merited a Fail for Creative. Last week, the company sent me a similar offer and, from a creative and user experience standpoint, it is an improvement. 

Freshly Referral Offer
Freshly email

This email is personalized, addressing me by name. Although it positions the referral offer as something I had "earned" (which feels a bit gimmicky), the email does recognize both my purchase history and enthusiasm for the product. 

Rather than the previous mailing -- which provided a code to share but without adequate instructions about how to use it -- this email offers a simple link with a Call to Action to "Send a Free Box." That seems easy, and needs no special codes. 

The landing page includes a 3-step, easy-to-understand process for the customer to follow to give a friend a free week of Freshly. 

Freshly Freebie Box Landing Page
Referral offer landing page

The input fields are clear. The email message and subject lines include stock language with an opportunity to personalize. That's almost as flexible as switching next week's meal from the Cauliflower Shell Beef Bolognese to the Indian-Spiced Chickpea Curry Bowl.

One element included in the May email that is lacking here, however, is an expiration date. Instead, the email body copy mentions "... and will expire unless you share it soon ...", while the disclosure reads, "Freshly reserves the right to modify, replace, or cancel offer(s) at any time" -- a statement that lacks a sense of immediacy. This is not a Fail for Creative but is an improvement opportunity. Even if this referral offer is intended to be evergreen, I would include a soft expiration date using language such as "... so send a Freebie Box in the next 7 days and give the gift of better meals made easy!"

Referral offer Thank You page

Lessons:
  1. Referral programs are a useful approach to allowing your customers to be your advocates.
  2. When you want your customers to do something, take all the traction out of the process.
  3. If your offer does not have a expiration date, at least suggest a timeframe for the customer to take action.

5/02/2021

Freshly: How Do I Share My Code?

This email from Freshly merits a Fail for Creative.

Freshly referral / share email
Freshly email to customers inviting them to share


Freshly is a meal subscription service. It offers reasonably healthy, pretty fresh refridgerated meals that can be prepared in the microwave in about three minutes. Personally, during the pandemic lockdown, it helped me have several quick, tasty lunches between Zoom meetings. They've offered a referral program since as long as I've been a customer (at least I think so -- during the lockdown, one business day sometimes faded into the next). 

This offer is a bit different. The email recipient, a current customer, is given a "share code" to send a Freshly Freebie to someone who can get a free week of meals. Nice; however, there is no explanation of how to share. The email lacks an explanation of what I or that special someone needs to do to use that share code and enjoy that free food. This lack of explanation puts traction in the customer process of sharing, which reduces the likelihood of customer action.

The offer was sent on April 29 and expires May 6. This means the offer expires only a week after sending. The offer window is appropriately sized for an emailed offer; however, because the expiration date is mentioned only in the disclosure, the attribute of immediacy in the Call to Action is lost. The expiration date should be communicated in body copy, e.g. "Your share code is valid only through May 6, 2021, so be sure to share your Freebie today!"

Lessons:

  1. Your Call to Action should clearly describe the steps required for the customer to take advantage of your offer.
  2. Do not bury your offer expiration date in your fine print. 


4/15/2021

Norton Lifelock: Renewal Email Reminds Me of Penn & Teller

Penn & Teller had a show that ran for eight seasons: “Penn & Teller: Bulls---!” According to Penn Jillette

If we said it was all scams we could also be in trouble, but 'bulls---,' oddly, is safe. So forgive all the 'bulls--- language', but we're trying to talk about the truth without spending the rest of our lives in court."

This leads to a recent email I received from Norton. IMHO, it goes beyond merely a Fail for Creative

Norton Antivirus Renewal Notice

The email offers the customer an opportunity to review their virus protection for $39.99, with an asterisk mentioning that this is the price for just the first year. That asterisk references a Disclosure rendering in 4.5-point font size:

I'll enlarge the fine print to a readable font size:

You are enrolling in an automatically renewing subscription that begins when your purchase is completed online (or otherwise, when your offline payment is received). Please download and install on each device, up to the specified number of devices, to get protection. Price shown is valid for the first term only. After that, your subscription will renew each year at the applicable annual renewal price here. You can cancel your subscription at my.norton.com or by contacting Member Services & Support. For more details, please visit the Refund Policy. Your subscription includes product, service and/or protection updates and new features as available during the subscription term, subject to acceptance of the License and Services Agreement. Features may be added, modified or removed during the subscription term.


So, to find out what the second-year price might be, I have to search through literal mouseprint to find the correct link to learn that the actual long-term price is currently expected to be* 50% greater than the advertised price.

Why isn’t Norton upfront about this in the email? Is it perhaps that Norton believes customers will not look for it now and just accept the higher price in a year?

I understand the subscription business model. Norton is offering me software as a service. So does Microsoft, but they don’t obfuscate the fact that I pay $70 a year to use Microsoft Office. Other companies offer introductory prices, but I rarely see the long-term subscription price this hidden.

An honest yet persuasive approach would be to explain the subscription option and offer $20 savings off the first year. The people at Norton know this -- they use this approach as landing pages from PPC ads.

When companies hide relevant information from customers, they might get sales but they’ll also earn distrust. If I can’t trust Norton to be forthcoming about its subscription price, can I trust it to protect my computer? That's why I believe Norton's approach to disclosing prices to customers like this is bulls---.

Lesson: Your relationship with your customers goes beyond one transaction. Honesty is the best policy for long-term customer retention.


* The header of the pricing landing page reads: "Our renewal prices for standalone and add-on subscriptions are listed below. They may change, but we will always send you a notification email prior to billing." In other words, the actual second year price in 12 months could be substantially greater than the price shown today. 

1/31/2021

Amazon Music Unlimited: Improving the Pitch

 This letter from Amazon Music Unlimited merits a Fail for Creative for a combination of mistakes and missed improvement opportunities. 


Some positive elements of the solo letter package:
  • The letter is addressed to an Amazon Prime customer in a closed-face envelope with simple Amazon branding. This approach ensures a high open rate because Amazon and the customer have an ongoing business relationship, meaning the Prime customer will open the letter to see what it is about.
  • The front of the letter is easily scannable. The Johnson Box clearly communicates that the Prime customer would benefit from 3 months of free … something.
  • The sparse use of copy and generous use of white space help call out the benefits of Amazon Music Unlimited.
  • The letter opens with a personal salutation, addressed to the Amazon Prime customer.
  • The Call toAction on the front of the letter is easy to find.
Amazon Music Unlimited Offer Letter
Front of Letter
using Amazon Music Letterhead



However, there are opportunities to improve on this approach.

The letterhead is from “Amazon Music,” which is already free with Amazon Prime. The Johnson Box could communicate that the offer is for 3 months of Amazon Music Unlimited for free.

The opening sentence is not grammatically correct. It opens with “As a valued Amazon Prime member, we have a special offer for you:” This is an incorrect use of a dangling modifier. The opening phrase “as a valued Amazon Prime member” describes “you,” the customer -- not “we,” the company. The independent clause that begins with “we” does not match the opening phrase, which lacks a subject. While typical customers reading the letter might not remember grammar rules taught in high school, they might subconsciously notice that the sentence feels clunky, which detracts attention from the message. Keeping the message intact, a better opening would be:

“As a valued Amazon Prime member, you are eligible for a special offer:”
or, perhaps,
“As a valued Amazon Prime member, you can enjoy this special offer:” 

The complete value proposition of the low price is hidden in the Disclosure on the back. I would be forthright and mention upfront that the cost is under $8 a month after the third month.

The letter mentions the feature of being “ad free” a couple times (with varying use of hyphens). This could be brought up a level by messaging the benefit, i.e. “Listen to music non-stop, without interruptions.”

While the letter opens with a personal salutation, the closing is from “Amazon Music Team.” A truly sincere closing would be from Bob Bowen, Worldwide Head of Music, or even Jeff Bezos.

The letter includes supporting messages on the back. The front of the letter could use a message referring to the back of the letter to learn more.

Amazon Music Unlimited Marketing Letter
Back of letter

On the back of the letter, the Call to Action appears twice; however, it is easily lost. In one location, it is almost as small as the Disclosure copy. It could be larger and positioned below the Disclosure without being distracting.

The front of the letter mentions “Limited time only.” It fails to mention how limited the offer is. The offer expiration date is buried in the Disclosure on the back. The problem with this approach is two-fold:

  1. The implied need for immediate action is lost, because the customer doesn’t know by when to take action. In other words, it’s easy for the customer to say, “I’ll take care of this later,” then forget about it.

  2. If the offer truly expires on the offer expiration date, and the customer attempts to sign up after the offer expires, the customer will be unhappy from the experience of missing out on the promotion. That dissatisfied customer would view Amazon less positively -- perhaps taking out their frustration by shopping less or even cancelling their Prime membership.

Simple Envelope


Below is a rewrite of the front of the letter, with a bit more focus on product benefits. If Amazon likes the rewrite, I am willing to accept a personally signed thank-you letter.

Dear <Customer Name>,

Would you like to enjoy access to millions of songs, anytime, without interruption? Then here is an offer for Amazon Prime members like you: 3 months of Amazon Music Unlimited for FREE.

Sign up today to get unlimited access to more than 70 million songs. Listen ad-free from your home or mobile phone anytime with offline listening and unlimited skips. With so many new releases and thousands of playlists and stations available, we are sure to have your favorite tunes ready for your delight. In fact, with Amazon Music Unlimited, you can even control your music hands-free with Alexa, included in the Amazon Music mobile app and Amazon Echo devices.

BENEFITS OF AMAZON MUSIC UNLIMITED

Ö        Unlimited anytime access to more than 70 million tunes

Ö        Listen to music non-stop, without interruptions

Ö        Enjoy music anywhere, online or offline

Ö        Skip as much as you like 

Ö        Hands-free listening with Alexa

I’m so sure you’ll like Amazon Music Unlimited, I’m offering it to you for FREE for 3 months. After that, your subscription will renew for only $7.99 a month. You can cancel anytime.

This is a limited time offer, so visit amazon.com/trynow to sign up today.

Sincerely, 

[signature]

Bob Bowen

Worldwide Head of Music

P.S. This offer is good only through <expiration date>, so be sure to review the information on the back of this letter and visit amazon.com/trynow to sign up for Amazon Music Unlimited today.

Lessons:
  1. Use correct grammar.
  2. Your benefits sell your product, so communicate them.
  3. Ensure that your Call to Action is easy to find.
  4. If your offer has an expiration date, don’t bury it.
  5. A personalized letter should be personally signed.
  6. When your brand covers multiple products in a customer relationship, an experience with one product can impact the entire relationship.
  7. Don’t just ignore the back of the letter -- you can use both sides of a page to make your sale.

12/15/2020

FTD Flowers: A Mistake and a Quickly Wilting Apology

In a single day last week, I received five emails from FTD Flowers, each with a different subject line:

  1. Psst... Someone Special's Birthday is 5 Days Away
  2. Share The Love ❤️ An Important Anniversary Is In 7 Days!
  3. 🌹🌹🌹 3 More Days To Order Anniversary Flowers! 🌹🌹🌹
  4. Someone Special's Birthday is TOMORROW!
  5. Someone Special's Birthday is 7 Days Away!

Here is an example of one of those five emails.

FTD Anniversary Coming Email
1 of 5 emails I received on 12/9/20

That evening, when I read the first one, I was confused. Whose birthday was in 5 days? According to my Google calendar, the only person I could find with a birthday that day was a former business colleague. We were friends, but not close enough that I'd send him flowers. I checked my FTD purchase history and found nothing for this timeframe. Hmm, I thought -- maybe I need to dig up my old personal calendar I last used during the Clinton administration. 

The next email reminded me of an important anniversary in seven days. It wasn't between my wife and me -- we had a June wedding. It wasn't my parents' or my siblings'. I was confused.

By time I read the third email, I realized something was off with FTD. So, I ignored the forth and fith emails. Ah, well, I thought, we all make mistakes. I categorized this as a Fail for Timing and figured that FTD incorrectly sent those emails.

The next day, I received an email from FTD with a subject line of "Ooops! Hit Send WAY Too Soon 😬". I correctly guessed that FTD had realized their mistake.  

FTD apology email
Apology Email Sent 12/10/20
25% Discount Expired 12/11/20

FTD had quickly recognized its issue, admitted the error, and offered an explanation and an apology. This is a thoughtful approach, similar to what Amazon did several years ago when it sent out a BCS Championship winner merchandise email early

But FTD went a step further ... sort of. The apology email on December 10 included an offer of 25% off my next purchase "to show our appreciation for your understanding." I state, "sort of" because, buried in the email's disclosure, was information stating that the 25% discount would expire just before midnight on December 11 -- and that was the next day.

*Offer expires at 11:59 p.m. CT on 12/11/2020 or while supplies last. Quantities may be limited. All discounts shown. Discounts are not applicable on: (i) product customizations including vases or product add-ons, (ii) FTD Membership fees, (iii) gift card purchases, (iv) service, delivery or shipping fees and applicable taxes, (v) special collections including Nambé, Baccarat or other special collections designed by FTD, and (vi) all "Gifts"under $24.99 or products under $19.99. Discounts cannot be combined. Offers may be subject to change without notice. See www.ftd.com for additional details.

The apology email merits Fails for both Offer and Creative. The Fail for Offer is because the discount window less than 38 hours after the apology email was sent. That's barely enough time for a customer to react to the email and make a purchase. The Fail for Creative is because a customer has to read the fine print to realize this, thus the apology appears to be disingenuous. 

When an offer with a short response window does not message the offer expiration date in the body of the communication, the seller risks customer dissatisfaction -- the type that motivates a customer to shop elsewhere. Or, to put it bluntly, if you pee on a customer's leg and tell them it's raining, that customer will not buy an umbrella from you.

Lessons:

  1. If you make a mistake, own up to the error.
  2. When making amends for a mistake, offer a genuine goodwill gesture.
  3. If your offer expires quickly, you should communicate that fact in the body of a communication, not bury it in a disclosure.

10/25/2020

Caviar: What Is It?

Two postcards arrived within a day of each other. One includes elements that can make direct mail successful; the other Fails in multiple ways.

freshdirect new customer offer

freshdirect new customer offer

This postcard from freshdirect reflects smart use of these elements, specifically:

  • Targeting: No one at the targeted home has purchased from freshdirect. The targeted home is in a freshdirect delivery area and in a zip code where overall use of grocery delivery has increased.

  • Offer: There is a new customer incentive of $25 off the new customer's first purchase, -- a good reason to to give freshdirect a try. Plus, the offer is valid for about three weeks from the postcard's in-home date, motivating that customer to take action right away.

  • Creative: The 5 1/2" x 10 1/2" postcard clearly communicates its sales proposition both visually and in prose. One side of the postcard succinctly communicates the service provided, and even includes a tag line to reinforce the sales proposition. The address side includes the call to action and supporting benefits messages. The incentive is unambiguous -- at a glance, the reader knows what it is, the value, when to use it, and how to take advantage of it

  • Timing: Mid-October is likely the last time of year to mail and avoid the oncoming clutter associated with holiday catalogs and other gift-related mailings.

  • Execution: The postcard was printed with spot varnish to protect the pictures from appearing scuffed.

  • Tracking: The new customer incentive includes a promo code for the customer to use. This promo code facilitates the customer discount, but it also allows freshdirect to track the customer's path to becoming a customer. This means freshdirect can reasonably assume it was the postcard that motivated customer action.

Well done, freshdirect!

On The Other Hand ... 
The below 6" x 11" postcard from caviar is physically larger than the one from freshdirect, yet it communicates much less. From looking at the postcard, can you answer the question: What is caviar? 

caviar new customer offer 10/2020

caviar new customer offer 10/2020


OK, its a food delivery service -- but what kind of food delivery? Does it deliver meals and groceries like freshdirect, in-home food kits like Blue Apron, or perhaps single-person prepared meals like freshly? From the pictures of the kale salad and what I now think may be a poke bowl, I couldn't tell, but a google search revealed that caviar is a delivery service specializing in meals from high-end restaurants. So, I guess it's more like seamless.

According to their snippet on a Google search caviar offers, "Delivery & takeout from the best local restaurants. Breakfast, lunch, dinner and more, delivered safely to your door."  There you go: a brief, succinct explanation -- one that should have been included on the postcard. The snippet also mentions, "Now offering pickup & no-contact delivery.That is an important supporting message during this pandemic that should also appear on the postcard. The lack of a sales proposition and supporting messages is a Fail for Creative. The postcard has plenty of white space, so why not use it?

Also, it takes a pair of reading glasses to review the disclosure noting that this offer is good through December 7, approximately eight weeks after the postcard arrived. That response window is too long to encourage what is typically an impulse decision: namely, what to have for dinner tonight. This wide response window merits a Fail for Offer.


caviar postcard disclosure text 10/2020
The caviar introductory offer is not valid for DoorDash customers.
It expires eight weeks after arriving in home

That fine print also leads to meriting a Fail for Targeting. The recipient is a regular DoorDash customer, making that person ineligible for the discount. 

wondered why a meal delivery service would make customers of a different meal delivery service ineligible for a discount. In my research, I learned that DoorDash had bought and integrated caviar into the DoorDash network several months ago. Here in New York City, the integration did not go well

For the postcard recipient's mailing address, Caviar offers delivery from only 17 restaurants. That’s a small number compared to DoorDash’s 398 restaurants. (Furthermore, all 17 of Caviar's restaurants were inclusive to those available through DoorDash.) This lack of compelling selection might merit another Fail for Targeting.

There is no reason to expend the cost of sending mail that does not communicate a sales proposition with an invalid, non-urgent discount offer to a home that has limited purchase opportunities. If DoorDash continues to waste marketing dollars like this, caviar's days are numbered. 


Lessons:
  1. When soliciting new customers, communicate a compelling sales proposition.
  2. A response window should be long enough to give a customer time to respond, but not so long that immediacy is discouraged.
  3. Mail your offer only to customers who might be eligible to take advantage of the offer.

10/12/2020

Merrell: Well-timed offer lacks expiration clarity

A recent conversation at home went like this:

Me: "Hey, honey, did you say you needed new hiking shoes?"

Wife: "Eventually. Mine are starting to wear. Why?"

Me: "We got an offer in the mail from Merrell for 25% off footwear."

Merrell One Year Discount Offer

Merrell One Year Discount Offer - 25% Off

Wife: "Well, I do like Merrell, but I don't plan to use hiking shoes in the next few weeks. Maybe I should get replacements now with the discount. When does the coupon expire?"

Me: "It doesn't say."

Wife: "Really?"

Me: "I'll look closer." (Puts on reading glasses.) "It says it expires '30 days from postmark.'"

Wife: "When is that?"

Me: "I don't know. It's not postmarked."

Wife: "Well, whatever, I don't need new hiking shoes right away and I'm pretty busy right now."

This conversation outlines why the postcard merits a Fail for Creative

On September 13, 2019, I purchased a pair of Merrell Moab 2 hiking shoes. They are perfect for that outdoor hike around the lake, through a park or in the snow. The postcard arrived October 2, 2020, just a little over a year after I started wearing my previous purchase. So, the timing and messaging around my "Merrell anniversary" are spot on. Kudos to Merrell for Timing.

The postcard included a personalized coupon code for 25% savings; however, there is no mention in the headline regarding when the coupon code expires. I found some information in the disclosure.*

Merrell One Year Discount Offer - 25% Off
Postcard disclosure text

As I wrote in prior blog posts such as this one and this one, a Call to Action should include a clearly communicated offer expiration date. This is important: The right response window encourages immediacy of customer action; one that's faulty or unclearly defined, however, only encourages inertia.

With the Merrell postcard, the coupon code's expiration date is not only buried in the disclosure, it also references expiring "30 days from postmark"; however, there is no postmark. Postcards mailed Standard Rate are not postmarked by the USPS. So, how do customers know when the coupon code expires? They don't.

There are several ways to care for expiration date communication without jeopardizing the integrity of the message, diluting Merrell's branding or adding production costs. Here is one: Include an offer expiration date in the address section of the postcard. 

Merrell postcard mock-up, modified to add expiration date
Mock-up. I added the expiration date in the address panel

In the above mock-up, the coupon code expiration date is clearly communicated. The date is specific and reasonably prominent. The messaging complements the headline and supports immediate action. It can be inkjet- or laser-personalized using the same variable data method as the producing the coupon code and customer name and address. Depending on the postcard's production method, it could appear in spot color without incremental print expenses.

If Merrell adapts this approach, the only incremental edit would be to rephrase the disclosure to reference the expiration date in the address panel.

Lessons:

  1. Your call to action should include a clearly communicated, definitive offer expiration date.
  2. Postcards mailed Standard Rate are not postmarked.


* Many people mistakenly refer to small print associated with marketing communications as a disclaimer, when in fact it is a disclosure. According to dictionary.com, a ‘disclaimer’ is “the act of disclaiming; the renouncing, repudiating, or denying of a claim; disavowal” while a ‘disclosure’ is “the act or an instance of disclosing; exposure; revelation.” ‘Disclose’ is defined as “to make known; reveal or uncover” From a Marketing standpoint, a disclaimer is an admission that the headline is false – otherwise why renounce it? However, a disclosure provides secondary but relevant facts of an offer. So the only reason an offer or marketing communication would require a disclaimer is if it was misleading from the onset.



10/02/2020

PayPal: Selling Honey Requires a Key Ingredient

   This recent email from PayPal merits a couple Fails for Creative

PayPal Honey Offer. What is Honey?
PayPal Honey Offer. What is Honey? 

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 HoneyWhy 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.

7/06/2020

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.


PenFed Federal Credit Union






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.

4/05/2020

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
Santander Bank self-mailer
Cover panel
Santander Bank self-mailer
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.

Santander Bank self-mailer
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.

Santander Bank self-mailer
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?

Santander Bank self-mailer disclosure panel
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.