Dear Mr. [soMEone]

Thank you for contacting me regarding the Emergency Economic Stabilization Act of 2008. I welcome your thoughts and comments on this issue.

On September 19, 2008, Treasury Secretary Henry Paulson announced a plan by the Bush Administration to stabilize the financial services sector of the economy. This plan included broad authority for the Treasury Secretary to purchase troubled financial instruments with very limited oversight and few protections for taxpayers.

In July, I voted against a similar proposed bailout of Fannie Mae and Freddie Mac because it did not provide taxpayer protection and limits on executive compensation for a government owned entity. For the same reasons, I was not willing to support the Administration’s initial proposal, and I encouraged my colleagues to continue work on a plan that would protect taxpayers, provide strict oversight, and place limits on the benefits to executives who accept taxpayer assistance.

In the days following the Treasury Secretary’s announcement, concerns about the danger to the broader economy deepened. The high-profile failure of numerous financial institutions caused the commercial lending market to accumulate and hold cash. The credit markets effectively froze, making it difficult for consumers to obtain loans for purchases such as homes and automobiles. The lack of lending in these areas began to place further pressure on the troubled housing market and threatened to spread deeper into the economy. Similarly, many small and mid-sized businesses were finding it difficult to obtain financing to meet their payroll obligations and purchase inventory. Many cities were entering the bond market and getting no bids, even with AAA ratings. The current liquidity crisis still poses a real potential for significant job losses. After consulting with numerous financial experts, small businesses, and bankers in Texas, it became clear to me that normal commercial lending activity would not resume without action by Congress.

Despite this realization, I was still not inclined to support the Paulson plan. After weeks of negotiation, however, a bi-partisan compromise was reached. While there are provisions in the bill that I do not favor and would not have drafted, overall the need for action to stabilize the market and to protect the retirement savings of millions of Americans weighed heavily on my mind. Ultimately, I supported the Senate bill along with 73 of my colleagues. The bill we passed was a major improvement over the initial plan announced by Secretary Paulson.

We increased the deposit insurance cap from $100,000 to $250,000 so that families will have added protection for savings and retirement accounts. While the initial proposal authorized up to $700 billion to purchase distressed assets, the measure we passed takes a more cautious approach, initially authorizing $250 billion and requiring the approval from Congress and the President for additional funding. Importantly, the bill we passed includes restrictions on the benefits received by executives whose companies are selling some of their distressed assets to the government. In return for purchasing the assets, taxpayers will obtain an ownership stake in the companies. Many leading economists believe that the real estate market will turn around in the foreseeable future and government owned properties and assets will be sold at a profit. A provision in this bill that I supported requires any profits realized to be placed in the nation’s treasury to reduce the deficit. If, however, after five years the government is facing a loss in the program, the President must submit a plan to Congress recommending how the money will be recouped from financial services companies. I believe that these protections are a dramatic improvement over the Administration’s initial proposal.

The bill passed by the Senate included an important package of tax policy provisions. One of these provisions is an extension of the state and local sales tax deduction, which is a matter of fairness for states like Texas that do not have a state income tax. The average Texan will save $520 when they file their federal income tax forms next year. We also shielded low and middle-income taxpayers from higher taxes associated with the flawed alternative minimum tax (AMT) and included tax incentives to spur energy production and innovation including the wind energy production tax credit and the research and development tax credit.

As Texans, we have learned to take responsibility for our actions and being asked to pay for the mistakes of others is something many, including myself, find deeply troubling. However, after careful deliberation, I believe that the risks associated with doing nothing outweighed the risk of passing a less than perfect bill that nevertheless includes important protections for taxpayers. Economic evidence clearly suggested the problems were spreading into the broader economy. That i
============
[cont.]

That is why I voted for the Emergency Economic Stabilization Act.

I appreciate hearing from you. Please do not hesitate to contact me on any issue of concern to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov
==========
Kat: We have no choice but to drive 10 over. Our cows do eighty in their sleep!

Seriously, you’re spot on, as always. Lucky for you your Senators (unlike our Sinners) did it down.

Thanks!

(beware the Texas Cow)

…

“Marketing.” Definition:  Selling to defined audience.  By marketing to the correct customer and prospect base, your lead generation marketing will become more responsive: your phone will ring more frequently and at less cost per call.

Without the precision of marketing to the correct target group – those people or firms who are ready to buy – your lead generation campaign is wasting money and time. Your money, and your time.

In the first article of this series we reviewed seven lead generation mistakes to overcome.  Here you can learn how to increase your lead generation effectiveness and enjoy the rewards of a better customer acquisition strategy by implementing a more focused direct marketing plan.

What happened with your old lead generation and customer acquisition strategy?  It stopped being as effective as it was years ago.  Customers cost more to acquire… and maintain.  Clients jump ship every couple of years, and yours did, too.  So?

Here’s how you can change all that:

1. Current customer analysis.
Figure out who your current customers are.  Dig through your files for commonalities: is it location?  Income level?  Value of home?  Is net worth the driver?  Neighborhood?  Business type?  Circle of friends?  Write all these market factors down on a sheet of paper.  

Hey… if I do this for you – figure out who your customers are, and write it down on a sheet of paper I call it marketing research and charge you two grand.  You can do this for free, and call it whatever you like — it’s your sheet of paper.

2. Figure out where your customers hang out. Then hang out there, too.
What restaurants do your customers eat in?  What mailing lists are your customers on.  What newspapers or magazines do they read?  Do they watch on TV, and what do they watch?  What circle of friends do they go out with?  What charities do they donate to?  What associations do they belong to?  What gym do they work out at?  As you start answering these questions, your lead generation program is now starting to shape-up.  Next, go on – hang out there yourself.  Read those publications.  Go to those movies.  Visit those strip clubs, I mean strip malls.  And be your client.

Remember, when fishing, you go where the fish are.  When looking for clients and customers, go where your clients and customers go.  

3.    Learn what your customers own.
Do they all drive Chevys?  Do they all own boats?   Airplanes.  Tractors?  Have houses in the hills?  Write all this down, too.  It’s part of your lead generation and customer acquisition marketing research. (Remember, you were going to send me two grand if I did this for you?  So now, just send me, oh, three hundred.  Just kidding.  Make it $250.)  This is part of your primary lead generation matrix: a lead generation equation you’re developing into a quite defined formula.

4. Figure out exactly what most of your clients have in common?
If you could clone a few clients, what are the common characteristics they’d all have?  Because that’s exactly what I’d start looking for in new clients: the same demographics of clients currently in my own customer database. 

Section out the target of people who have those same commonalities as your current clients, and advertise or send direct mail to them.  

An example.  Suppose you find out that every one of your clients reads the same 3 magazines.  Those magazines would be good places to take out an ad schedule, wouldn’t they?  

How about if 4 out of 5 of your clients had offices in the same neighborhood.  I’d pick a lead generation campaign with a good direct mail strategy base, and mail regularly to that neighborhood.

If all your customers own dogs, your lead generation campaign should look for dog owners to market to.

If they all eat at the same restaurant, I’d start eating there, too.  If it’s an upscale restaurant, invite me! I’m not too busy and I enjoy nice great food!  Just kidding.  My wife hates it when I go out without her.  I hate it too – she goes shopping.

Hey, that restaurant website might be a good place to effect a lead generation targeted ad campaign; or sponsor the restaurant coat check room for a few nights.  Or leave a few of your business cards at the coat check.  A small and tasteful sign  there would be helpful, too. 

Of course if your clients eat at Denny’s… then, yeee-ha: time to get some new clients there, Jethro.  Sorry. If it wasn’t for bad taste, I wouldn’t have any jokes to tell. 

Back at the nice restaurant, you could always test sponsoring the coat check room, or sponsoring desserts for an evening.  Or if you’re in the city – sponsor parking.  Lead generation doesn’t have to be traditional.

5. Start a mailing list of your customers.
Analyze your customer database, and find more of the same type of person.  Then:

6. Buy several mailing lists that match the demographics of your own house list.
Test each.  Small tests aren’t expensive.  Ramp up when a test is profitable.

7.  Create media awareness.
As a traditional direct marketer, I don’t believe in unfocused mass advertising. Those methods only work in very select circumstances: huge clients with wide markets and big budgets. 

Some lead generation campaigns in local, traditional media such as direct mail, newspapers, magazines and local TV work well to raise the level of awareness of your firm in your own back-yard.  This kind of PR will also increase phone calls to your firm.  You remember who likes to shop in their own back yard?  Everyone.

Create the right message, the right image, and present it consistently in the right media, and presto — an effective lead generation strategy. People will get to know you.  Then do you know what happens?  The phone rings.

8. Create trust.
You can’t build an effective lead generation strategy without the help of others. It’s low in cost to build up your network of referrals and referral sources, and trust plays a big factor here. 

Start your referral network by referring customers to others.  Don’t worry, it starts out slow, but the business will come back to you—in spades. 

9. Build trust by creating a paper trail of nice letters.
To build trust exponentially kindly remember that every referral – whether you give one or receive one, needs to be followed up by a WRITTEN piece of correspondence. 

Use the power and longevity of direct marketing and direct mail when thanking someone for giving you the referral.  Have a referral letter on hand, personalize it and send it every time that you refer a potential client to your colleague.  And a “Thank you for your trust” letter whenever you receive a referral. 

Yes, you need an actual letter – a written piece of correspondence.  No, a call is not the same.  Sure you can call them, BUT… you still need to write something down and send it.

In the next and final artice in this 3 part series, we’ll look at 12 more lead generation strategies.  Stay tuned.

12 More Awesome Tips on Lead Generation Systems and Direct Marketing Strategies.

1.  Pick up the phone and call.
Speaking about the phone, just call current customers and say thanks for your business.  You’d be surprised at what this does for your lead generation program.  You don’t need to sell anything, just thank customers and ask if you can help with anything or provide any information they may have questions about.  For best results, offer

In the insurance industry lead generation is often just a FREE policy review away.  In both the financial community and the insurance industry, a free portfolio or policy review is one of my favorite offers.  And quotes are always the first line item preceding a sale.

2.  Go back to school.
School events can help even if you don’t have kids.
For financial lead generation programs, or insurance lead generation strategies, don’t forget to help out with school programs: build credibility and trust when you take out ads in the yearbook, play programs, school events.  People naturally trust firms who work with kids, and their kid’s schools.  School ads are always inexpensive and are generally tightly focused to a neighborhood, which you’ve probably targeted as your own local market.  And you remember who likes to shop in their own back yard?  Yea, I thought so.  Everyone.

3. If your market is geographically tight, get active in the local scene. Go to area meetings and join community associations.  Join the township board, or get on some committees.  Go to business events.  People trust people they can look in the eye and they can do that at local events.   And the business goes to people with… a high degree of visibility and accessibility.  Applause.  OK you guys with high visibility and accessibility – step forward.  Thanks.

4.  Stop pushing products. Most businesses are based on a relationship, lead generation strategies are the beginning of this relationship.  Start prompting people to call you with questions, for answers or for additional information.  Become the informational resource. 

Once they’re on the phone with you, it’s all you baby, it’s all you.  Unleash that magnetic personality.  You do have a magnetic personality, don’t you?  Sigh…  me neither.  Oh well… put them on your mailing list and mail to them all the time, like I do.  You do have a mailing list, don’t you?

5. Design your Lead Generation Program with the correct objectives.
The best lead generation programs can do is generate warm phone calls – then it’s all up to you to create a relationship (aka create a client) when the phone rings.  So…

6. Make the phone ring
Create an ad, a press release or send a direct mail piece, post card or letter.  Continuous active marketing is crucial to new business.

7.  Make FREE Offers.
The best way to generate phone calls with these lead generation printed pieces is to Offer Free Booklets of helpful information. 

The titles drive the response – the better the title, the greater the response.  Simple as that. 

Better yet, in the center of your letter or post card, show a punchy bulleted list of compelling booklet titles readers can get FREE, if they just call now!  Keep in mind, if just one title is a “Must Have!” you’ll get a call.  The better the titles, the more calls you’ll get.

8.  Build trust. Offer a range of FREE informational services along with your FREE booklets.  This will make people call, and put you on their radar of “helpful people to call” when they need something.

For example, FREE quotes, FREE policy review, FREE portfolio reviews, FREE drop off and pick up; FREE Seminars, FREE book, “FREE FREE FREE… just pick up the phone and call now!”  If you can’t bury the cost of giving away a free book to activate an account, you’re doing something wrong.  

9. Track lead generation strategies back to the source.  Keep a count of new customers acquired through each marketing channel in your lead generation program.  Next year when you do it all again you’ll know where to start – at the highest new customer acquisition level.

10.  Keep clients for life. Simply deliver the service you said you would, at the time you said you would deliver it.  And then thank clients for their business.  Yes.  Simple as that.  So…

11. Don’t forget to send a letter thanking clients for their business a couple of times a year. They never get tired of this, and they don’t get it from companies who don’t care.  It sets your firm apart from those.

12.  Hey, did I mention books make great business gifts. Certain books. Especially the ones that show how your clients can get more business in these tough economic times. Hey, did I mention my books can show you how to get more business for yourself in these tough times?  Three of the best marketing books in the world:  “How To Market A Product for Under $500″, “Uncommon Marketing Techniques”, and “Direct Marketing Strategies”.  They’re awesome. Get them at Amazon.

No Comments »