Introducing
“The Smart Box”

Then exploding onto the scene was the Smart Box. We realized as with most business
CEO’s, CFO’s CIO’s and all the O’s they have no time nor patience to read anything that is
mailed to them from unknown companies. They are heavily relationship based as far as their
selection with the vendors they do business with. So the program had to be 1st rate,
world class and send a unique message.

The idea was to develop a multi-media program that would tell the story.
This company uses the internet to connect manufactures of high tech equipment to their end
customers…you. A multi-media program is a great idea but you have to get your
prospects to put a CD in their drive ..which sometimes can be difficult. So we developed
the concept of the Smart Box..

The Smart Box is a direct marketing concept that was designed with the customer in
mind.

Imagine this:

You are working diligently on a project with your mind focused solely on the success of
your project. You don’t want to be disturbed by anything or anybody when your assistant
knocks on your door and says “Hey Boss, you have to see this” She brings you a Halliburton aluminum case. On the outside of the case is a label that
instructs you to lift off a special combination. With your curiosity peaked, you dial in
the combination, unlock the case and open the cover. There in front you sits a Macintosh
laptop and a Nokia cell phone.

You quickly see a label that directs you to turn on the computer. In no time, a
stunning 5 minute multi-media presentation unfolds before you. You sit back delighted. The
program instructs you to you reach for the Nokia cell phone and as directed, you dial the
#1 button. You are instantly connected to a company sales representative that gives you
additional information and, of course, he takes the appointment.In a matter of 20 minutes, you have been given useful information and can return to
your other business at hand. All parties benefit here.

Whether you go with this compnay or not, what is your first impression of their company? How
bad do you think they want your business?

It does no good to have a direct marketing program that doesn’t appeal to your
potential clients. The Smart Box has not only dramatically increased
that company’s response rate, but it has also changed the way they are perceived by their clients.

Results:

New clients such as Intel, Compaq, Hewlett Packard, etc… are all responding to
their offer.

You may be wondering at this point how much does this cost?… Look at it this way,
their entry level service is a $100,000 sale. With a 55% response rate and a 50%
conversion rate….. who cares?

This is the question this company was courageous enough to ask;

• What is a 55% response rate worth to our business?
• Should you be asking yourself the same question?

McAllaster & Associates is an independent investment brokerage firm who provides
services in securities, investment portfolio management, financial planning, and financial
consulting. They also produce outrageous in-house informational seminars/workshops on a
variety of sophisticated financial topics. Securities are offered through D.E. Frey &
Co., Inc.

McAllaster & Associates has created a new, aggressive style of marketing…a
strategy that incorporates many unique features not found anywhere in the securities
industry that truly focuses on new acquisition and retention activities using very unconventional
strategies.

These features include:

1). A customer focused stock brokerage firm:

That statement could be considered an oxymoron in the securities industry. Establishing
a unique customer focused identity was a top marketing priority to McAllaster &
Associates. They wanted to communicate friendliness and a personal, one to one
relationship style of service while maintaining a perception of stability, and expertise
within the stock brokerage and financial management industry. Thus, a highly
unconventional marketing program was developed which represented those customer elements
and was immediately applied to everything they released from their office. They saturated
a highly targeted market niche with their new corporate image.

This proposition is bold and aggressively reverses the stereotypical “risk”
of investing through a broker. It is a clearly defined statement addressed to the client
which contains a specific guarantee and powerfully reverses the perceived risk the client
may take on.

“If the stock we have recommended for you does not increase in value in the first
year, we’ll sell it for you, with absolutely no commission received on our end.”This is highly unique because all brokers get paid their commission whether your stock which
they recommended goes up or down.

This outrageous promise has literally set the stage on fire for clients to inquire
about services with intense intrigue. Increase has been over 62% the last 5 months.

This system is a money machine! It incorporates ingenuity at its best coupled with the
personal touch, while generating clients at a rate never seen before. It uses a common
sense approach, while intriguing, and rewarding the client base for their loyalty. This
program has been one of the keystones of the entire marketing program.For every referral they receive from a client, they send them 1 beautiful crystal wine
glass from Tiffany’s (out of a complete collection of 6 glasses) and a hand written thank
you card. The receipt of this elegant glass creates the impulsive desire for the complete
set! Consequently motivating the client to provide more referrals! And that’s not
all…McAllaster & Associates also gives the referred client their first 10 stock
trades free (no commission!). Up to date they are receiving 10-$500,000 referred clients
per week…impressive to say the least!

This program is practically unheard of in the industry, and entirely customer-driven!
It is also measurable. Which, in turn, has spawned new generations of marketing ideas,
leading to dramatic, multi-level profitable results!

While all of the above marketing programs (features) were implemented, THE KEY
MARKETING FEATURE OF ALL TIME, was being constructed behind the scenes. This feature is
the one that will prove to be the most influential and powerful of all the strategic
marketing elements in their entire system. The McAllaster Financial Center broke ground in
February, 1997, and completed the construction in its entirety by June 25th. The 8,500
square foot facility strategically resides in one of the most elite neighborhoods in
Savannah Georgia, “The Landings”: A state-of-the-art financial center designed
entirely for the clients.

1. 1,200 square foot multi-media seminar room for his clients to use for their special
events. He also uses it for his financial seminars. 2. An impressive, comprehensive
financial library for research open only to his clients. Prospects will be able to utilize
the facilities for the first 5 months, but on 1/1/98 it will be a ‘client only’ facility.
This allows the prospects to experience the value of the amenities that McAllaster &
Associates’ clients enjoy, thereby creating a sense of urgency for the prospects to become
clients.3. The largest electronic financial ticker in the South.

4. Computers to provide hands-on access to the internet for his clients to research
anything they desire.

5. Private offices are provided so his clients may stop by to make phone calls to Wall
Street or any other use they may have.

6. Golf cart re-chargers located in the parking lot of the Center. You see, most of the
transportation on The Landings is done via the golf cart! There are not 4, not 5, but 6
PGA golf courses on this island, which are patronized by a majority of the Landings
residents. This Financial Center, its staff, and personal services is truly an
extraordinary experience!

7. A social gathering area for his clients to mingle, read, and simply relax away from
the Savannah sun.

 

Richard (Dick) E. McAllaster has always been conscious of his community environment and
constantly seeks out ways to give back to the community which has provided ample
opportunity for his business to succeed. In January, 1997, he proposed to the local
Women’s Guild that McAllaster & Associates take on the title sponsorship of the
Savannah Duck Race on the Savannah River. This annual event is a local favorite and
coincides with the annual Seafood Festival. The Duck Race was created 5 years ago as a
fundraising mechanism to support the Savannah Symphony.The 4-year old annual ‘Savannah Duck Race’ became the ‘McAllaster Duck Classic’ this
past Spring and will continue to be sponsored by McAllaster & Associates for years to
come. A Duck Classic logo was created to reflect a combination of the McAllaster &
Associates company logo and the duck race itself. T-shirts with the emblem were made and
sold, tickets were created, and articles written about the event to help promote it.

McAllaster & Associates directed their $5,000 contribution toward this entity to
help keep the arts alive and well in Savannah. It also became an extraordinary marketing
move because of his targeted niche market who patronizes the symphony events all year
long. Most symphony season ticket holders fit McAllasters “A” market clientele
profile. With his sponsorship backed marketing and assistance in promoting, he was able to
pull in a record amount of funding dollars for the symphony.

The originality of each of the aforementioned features along with their focus are
extraordinary and extremely rare in this industry. This industry is traditionally a
huge behemoth of non-personal, product driven, non-relationship building and the
proverbial “glass house” mentality that is driven by sheer size alone! His
competition’s idea of customer service is sending you thousands of the same letters that
are not even signed in real ink. It’s printed! Now does that make anyone feel special?
When was the last time you received a “Thank You” written on personalized
stationery from your broker? The McAllaster & Associates strategies not only hit hard
on the customer service side, but also on the vast knowledge and awareness of the variety
of financial products they offer which truly separates them from their competition.The extraordinary, yet fundamental characteristics of these strategies is simple:
Execution and follow-through! You can promise the world but without proper follow through,
IT’S WORTHLESS! McAllaster has been adamant with their follow through. They truly take
those extra steps, develop a client friendship, provide consistent superior customer
service, and make up for the difference if and when any of the above, for one reason or
another, doesn’t happen to the clients’ complete satisfaction. It truly becomes a PLEASURE
to hire McAllaster & Associates as your financial manager!

d). How difficult was it to implement your marketing strategy?:

They designed it to be executed in stages. Each stage had its purpose, objectives, and
goals. Upon the completion of each stage they rapidly became a multi-layered and
multi-faceted marketing system. The only inherent difficulty was listening to all the
“naysayers” in the securities business that said it would never work. “It’s
too outside the box,” or “it’s too unconventional,” etc.

f.) Describe the role, if any, that technology has played.

Technology has played a great role in many facets of this program. Not only were most
of the design and development produced 1,800 miles away, everything was digitally designed
and produced. McAllaster & Associates also uses the latest technology in the
multi-media seminar room which is just a small example of the state-of-the-art innovation
that has lent itself to a uniquely, client-friendly facility. From electronic shades and
presentation screens, to a satellite link for instant downloads of stock quotes, to the
capability for high-tech, multi-media seminar presentations, professional lighting, and
digital production.

Question 2: Concept Originality

a). What were the precise objectives of your marketing program?

The precise, planned objective was to increase business 100% within 18 months of the
rollout of the marketing program.

b). How did the idea develop and what were the outside influences.

The idea developed because the Landings area in Savannah, Georgia is the 8th highest
income per capita zip code in the country. In talking with the residents of the Landings,
it was determined that they did not want to leave the island to acquire services from
grocery shopping, the beauty salon, to automotive services. So, consequently, a strategic
advantage would be captured and an enormous opportunity would exist by building the
McAllaster Financial Center just outside the residential gate, and adjacent to the island
shopping center, on the only road in and out of the island. The advantage becomes
apparent when you consider other brokerage firms are “centrally located” in
their glass towers within the city of Savannah, whereas McAllaster & Associates is
centrally located within the Landings, his highly targeted niche. So he went from a
centralized, general market scope, to a highly focused, specifically targeted community
who could completely satisfy his established client profile agenda.

c). Is this the first and only application of its kind? Detail any unique features
of the concept.

YES! McAllaster & Associates is the first known independent brokerage firm to have
developed such unconventional and unique marketing approaches and incorporate their
building structure as a main part of the marketing strategy. The Financial Center
represents a huge, powerful billboard in and of itself, sitting directly in the midway of
the entrance and exit of the Landings at Skidaway Island.

d). How does this marketing program compare to that of your competition?

The competition are the major wire house brokerage firms. They use conventional,
institutional advertising, mass mailing, and cold calling as their primary marketing
strategy coupled with a “large net” catch all mentality which would never work
with “A” clients. McAllaster & Associates’ personal one to one marketing
approach is to focus on the client. The Landings, which generates the greatest percentage
of growth in the Savannah area because of its high net worth per capita, represents a
large group of clients whose investment relationships are in transition. They’re moving
from their home-towns in Pennsylvania, Connecticut, New York, where they grew up and
developed business relationships. These relationships are now experiencing change and as a
natural consequence, must change to suit their new location, environment, etc. McAllaster
& Associates has positioned themselves to be central in easing their relationship
transition through convenience, educational workshops, seminars, research tools, access to
digital communications, expert financial consulting, and professional brokerage services.

McAllaster & Associates stepped up the marketing assistant position within the
firm, hired marketing interns, and developed a solid corporate identity with a new logo
utilizing the independent firm name rather than the clearing house name. The focus on
using the firm name resulted in a much higher name recognition based on a small field
study comparing the awareness the market had of the clearinghouse name and the business.
When it was compared, 30% remembered the clearing house name vs. 95% who remembered
McAllaster & Associates. Along with the new logo, a full array of materials such as
stationery, business cards, pocket folders, binders, advertisements and gift items to
include golf towels, golf balls, engraved glasses…all sporting the new corporate logo
and name. Consistency and saturation was the major key.

McAllaster & Associates experienced no real obstacles. The only perceived barrier
was the element of time. Managing the precise sequential implementation of the marketing
program while building the McAllaster Financial Center, and at the same time running a
profitable business became the only monster challenge for them to manage. Most of what
other businesses may perceive as obstacles were looked at as an opportunity. MCALLASTER
& ASSOCIATES HAS
ONLY 6 EMPLOYEES!

Question 4: Benefits and success of the program.

a). What methods do you use to measure the success of the marketing program internally
and within the marketplace?

The way McAllaster & Associates determine the success of their marketing program
rollout is two-fold. The first is the increase in the customer base and the increase in
the commissions that are generated from that base. A significant increase in business has
already been realized. Within the last 6-months of business, the firm has experienced an
increase in growth of 62%! They are currently generating 10 $ 500,000 clients per week
using the referral-based system. The interesting element regarding this result is the fact
that the “grand finale” of the marketing program has not even occurred yet (the
Grand Opening of the McAllaster Financial Center.) It will surely be the marketing coup
of all time for a small business!

b). What was the most important customer or client benefit?

The entire marketing program is customer focused and customer driven. The most
important client benefits evolve around on the new Financial Center. These benefits
include extreme convenience (can ride bikes or drive golf carts to location), a fully
comprehensive research library, as well as the educational benefits of informative
financial seminars, workshops, and investment courses.

c). What is the most important overall benefit to your company?

One of the most important benefits to McAllaster & Associates is that this
positioning solidifies his base of business. It allows the focus towards one specific,
large group of qualified clients. This environment creates an ideal habitat for creative,
efficiently effective, highly focused marketing efforts that work! In other words, the
market is very easily identifiable and truly accessible which results in the elimination
of wasted marketing expenses, testing, and searching for the most profitable markets. It
allows them to compete fiercely with the “Big Guns.”

d). Has the program achieved its objectives?

Currently the program in still in its infancy. The simple fact that the Financial
Center has yet to open its doors to the Landings community (due to open for full business
services in mid July, 1997), and already the marketing efforts toward this objective have
increased growth 62% in the past 5 months. The initial goal was to increase growth 100%
within 18 months of the rollout of the program. McAllaster & Associates anticipates
doubling the growth after the doors of the McAllaster Financial Center open. This is an
outstanding achievement when you consider that Dick McAllaster started his independent
firm only 4 years ago from nothing!

Contact Dick McAllaster for personal phone interview and more
information at
1-800-249-3739.

Creative Room set-up

Team Collaboration / Bonding

New Idea & Concept Generation

Team Presentations

You develop a “high-end” gift for your clients that they can see, touch, and
feel from a tangible point of view. It should define why your clients are important to you
and what you are trying to communicate to them. Where in your industry have you ever seen
someone send out a Million Dollar theme box for their clients? Given the mind-set of many
companies these days, this would put your miles ahead of your competition.

When was the last time you received a classy box that was relative to your lifestyle
and your achievement status?

There are few companies turning out direct Marketing like this, especially to what we
consider your “A” Clients. If there are direct Marketing items being sent, the
items probably do not represent or appeal to this caliber of client base.

Here are two examples of theme boxes that we came up with.

The
Corporate Connection

Educating our new and existing clientbase is one of the most difficult and least understood marketing principles. Whether you are Marketing through your referral base or just through new acquisitions you need to develop a strategy that will cut through all the rhetoric that occurs in what era we call “the over communication age.”

A small fitness center in Golden Colorado was faced with the need to increase and improve their clientbase. Their strategy for educating their customers was as follows:

They created a box they gave to each current or potential member. Inside the box you found some fun and exciting information.

“As a valued employer of our area, we wish to thank you for your continued economic support of this community by offering you, through a program called the Corporate Connection, a special corporate rate for membership to the New Golden Community Center, for you and your employees.

This certificate entitles your company to a corporate membership to the new Golden Community Center. Sign up your company today by calling XXX-XXXX and give us the name of your company. Our staff will guide you through the details of a full Corporate Connection membership.

If you sign up before October 31, you will become a Charter Member, and we will give you up to an additional 5% off the already-discounted fee. This allows you to receive 30% off of your annual membership dues year after year.

We wish you continued success in your business and hope the new Golden Community Center will add to your bottom line through increased productivity due to healthier and happier employees.

Our no-risk Guarantee: For your peace of mind, we stand behind our membership with a money-back guarantee. Call XXX-XXXX and ask for details.”

As a value-added service for the business what employer would want to miss out on this offer?

The Results:

This promotion was so successful that within three months the Center was fully subscribed. It has been fully self-supporting and never had to rely on the General Fund.