DIRECTADE BUSINESS RULES SERIES: AN INTRODUCTION

A small leak today....

A small leak today....

By Jason Solano

“Beware of little expenses. A small leak will sink a great ship.” - Benjamin Franklin

We joke that Direct-To-Consumer and Subscription Business Rules aren’t particularly sexy. They’re complex and often technical. Rules that work well sometimes can’t be easily tracked on a dashboard. Like most things in Direct Response marketing, rules need to be tested and measured over time with accurate data. Rules can’t be maintained by a single marketing or finance department - and they definitely require IT support.

Business Rules might be seen as barriers to orders. Or tiny cents compared to thousands of dollars in sales. This assumption would be dead wrong. Every order in your company is touched by dozens of business rules.

At first glance, Business Rules are a bit like plumbing in your house. It’s there, you don’t think about it, but you count on it everyday to work seamlessly. Small leaks are annoying yet seemingly inconsequential to your budget. A big leak can cause some damage and be fixed in an afternoon. And yet the plumbing in your business is completely different than the plumbing in your house. This plumbing needs to be reviewed and monitored regularly. By the time you spring a big leak, it might be way too late.

Think of how much effort goes into acquiring an order. You’ve spent money on design, on product, on your staff and your website. Not to mention the media expense. Taking an order doesn’t mean it will ship. Just because you’ve acquired a member with an expected Lifetime Value of $250 doesn’t necessarily mean you’ll ever net a dollar. Many, many Business Rules will apply to orders that you’ve paid and captured; your media cost is sunk! So good news: any improvement can flow right to your bottom line.

Optimizing your Business Rules requires a lot of questions. So that’s what we’re going to present - questions and perspectives than can help you become fluent in DTC and Subscription-related rules.

Many of these rules contain questions you’ve asked before. Some of the rules have questions you may not have considered. Many rules should come with that irritatingly famous slogan "You think you know ... but you have no idea.”. Some rules might be better for your bottom line at the expense of your customer. We urge you to be careful and be fair. Some of these questions may not apply to your business. Some of these questions might be connected to federal or state laws - so it may also be a good idea to confer with your legal counsel.

Check back next week for our first of many business rules blog posts. We’re kicking off at the top of your funnel with some thoughts on credit card authorization.