Werbewoche.ch: The last few months have been extraordinary. How have you experienced your time working from home?
Andreas Lang: At the first moment of the lockdown, I was shocked and didn't know what was coming. However, as a company, we have been on a path of transformation for some time, and we have been aware of "New Work" since before the coronavirus crisis. My team and I were therefore able to be there for our customers again quickly. We have learned a lot and I am sure that we have become more efficient in our virtual meetings and workshops. We will certainly use purely virtual and hybrid formats more often in the future.
Many companies are struggling with canceled projects and a drop in sales. What advice would you give them? Invest in advertising and communication now more than ever or wait and see?
Passive communication in a crisis can have serious consequences. Companies that make savings optimize their costs in the short term. However, they will not only lose market share during the economic downturn, but especially during the upswing. A large number of studies prove this: Brands that communicate during a crisis have disproportionately high growth opportunities. Particularly in special situations, consumers pay close attention to how brands or companies present themselves and whether they offer added value. Active, credible communication and constant communication with customers pay off.
However, when companies have to make savings, communication and marketing are almost always affected. What other options are there, or how can I invest my communications budget wisely?
It does indeed seem to be a simple and obvious solution to cut communication and marketing budgets first. This often has fatal consequences: If you don't advertise, you die. Sales don't increase on their own after a slump; communication and marketing are always needed. I would therefore first try to make savings elsewhere. Corona has changed a lot. This means that the marketing concept needs to be fundamentally reviewed and adapted. And very important: customer care! Existing customers are a company's most valuable asset. It is worth investing here. Swiss hotels that were only geared towards Asian tourism, for example, can now complain about the cluster risk or adapt their strategy and target the many Swiss tourists who are unable to travel abroad, for example. Charles Darwin already said: "It is not the strongest species that survives, nor the most intelligent, but rather the one that is most willing to change."
What is the current value of the individual advertising franc?
This varies from case to case. In general, it can be said that you rarely get as much performance or reach per advertising franc as you do now. The share of voice is also currently higher than before the pandemic, meaning that your own measures are competing with significantly fewer other campaigns than before. The probability of triggering an action in the recipient and being "top of mind" as a brand is therefore disproportionately high. Those who are creative now will benefit.
At the moment, companies can reach many more people than usual at home. What opportunities are there here in terms of customer retention and acquisition?
Due to its multi-sensory properties, physical advertising has a demonstrably stronger influence on our brain than digital stimuli. Information is processed more quickly and is remembered for longer. According to a study by Nielsen, for example, personally addressed letters are read 80 percent of the time. Mailings are therefore very suitable for customer loyalty. In addition, physical mailings convey value, reliability and appreciation like no other medium. This is particularly well received in times of crisis. Another advantage of physical advertising is that it cannot be deleted like an email. An appealing catalog often even makes it onto the sofa. The inspiration to make a purchase - online or offline - is therefore ready to hand. The autopilot in our brain sorts according to relevance and efficiency. It easily jumps from one medium or stimulus to another. Interlinked communication therefore makes perfect sense.
What do companies that are relying on physical shipping for the first time due to the current situation need to consider?
According to studies, physical addressed or unaddressed letters motivate and lead to purchases more than other media. I refer you to the Intervista study on advertising impact. But it is important to know: Especially in times of Covid-19, customers don't want to simply consume. As a company, it is worth thinking about how I can support my customers and what added value I can offer. This requires a clearly defined target group: the more vague it is, the less successful it will be. A tip: In times of crisis, consumers look for regional proximity. If you know your customers well, you can address them individually in physically addressed or unaddressed mailings and thus build proximity and relevance. This avoids wastage and increases performance at the same time.
Great sensitivity is therefore required in customer communication. What else can dialog marketing do here?
We know from various studies that the physical letter is one of the media with the highest credibility. This is all the more true in uncertain times. But dialog marketing encompasses more. It is data-driven marketing and manages the dialog between customers and companies across all touchpoints of the customer journey. Dialogue marketing makes it possible to personalize the approach and individualize the content. This brings competitive advantages, not only in times of crisis. But here, too, common sense and not just a belief in data should be applied. After all, if a consumer cannot explain why a sender knows so much about them, this is more likely to lead to a defensive attitude.
Have you received a remarkable mailing in the last few weeks?
I noticed a few addressed mailings from different NPOs that were very good at initiating a dialog with their donors with the right sensitivity. One unaddressed mailing that caught my eye was the mailing from Coca-Cola with a voucher for a Coke at your favorite restaurant. I think everyone was happy about this mailing.