February 2008

DSF launches experiential marketing
division despite tight economy
Fast-growing firm connects the dots
between marketing and sales By Pat Atkinson

It’s not every day you meet someone with the temerity to withstand door-slamming rejection but Neil Spivak is no ordinary mortal. After graduating from Seneca College, his career path began at Look Communications as a field sales agent promoting Internet and telecom services door-to-door. After this came a stint in media at Leo Burnett. No doubt, the juxtaposition of these roles made quite an impact on the ambitious, young businessman. “I saw that in advertising, companies are spending millions of dollars on print, TV, and radio with no measurable return on investment,” he explains. Recognizing the gap between advertising to prospects and actually closing sales with them, Spivak saw the business opportunity inherent in strengthening the face-to-face customer connection. That’s why in 2003, he relinquished his safe, salaried position at Leo Burnett to launch his own sales agency– Direct Sales Force (DSF) in Toronto. Although the fledgling outfit’s original raison d’être was door-to-door sales, that approach soon proved too problematic for Spivak to manage.

“It was very difficult to recruit and train people, plus there was a lot of turnover,” admits the now successful 29-year-old company president, who incredibly already possesses ten years of relevant experience in his specialty. “I had to take a step back and re-evaluate the business,” he explains. “Eventually we came up with the concept of acquiring client organizations, and placing our people in key locations to enable us to talk to our clients’ customers face to face – thereby providing lead generation and sales on the spot.” Spivak emphasizes that what distinguishes his company’s approach from mainstream advertising is that when DSF’s agents are finished with an assignment, the client knows exactly how many people agents spoke with and how many sales were closed on that company’s behalf.

“We set up kiosks at malls, airports, trade shows, events, independent supermarkets—anywhere people are at,” he explains. “Our agents are walking, talking billboards.” But unlike billboards, the sales agency’s face-to-face ambassadors can be activated to go virtually anywhere to build customer acquisition or sales on their clients’ behalf.

Unique assignments
For example, as part of a successful Fido campaign, DSF teams jumped into the backseats of more than 500 cabs to solicit drivers for a specific airtime package. The element of surprise kept drivers listening to the pitch and over 500 people signed up during the two-week blitz.
For American Express, DSF agents attended a variety of concerts and offered VIP access to new and current American Express cardholders—welcoming them to the credit card company’s exclusive, on-site Front of the Line Club.

DSF agents are specifically trained for each assignment, as was the case in 2007, when CIBC Aerogold Visa underwent a major change to its Aeroplan Rewards program. After boning up on the changes, the 55 DSF agents stationed at 20 kiosks inside CIBC branches across the country signed up over 25,000 applicants.

DSF also works with Bank of Montreal and TD Canada Trust. Spivak estimates that financial institutions represent 65 percent of the firm’s business, with telecom at 20 percent and the remainder attributable to packaged goods and media companies. And business is certainly booming. DSF ranked 27th overall for the second consecutive year in the 2008 Profit Hot 50, which ranks the top growing companies across Canada over a two year revenue period.

Doesn’t do recession
Today, the firm’s 250 full- and part-time employees effect the company’s mainstream direct sales campaigns from offices in 11 Canadian cities nationwide.

Undeterred by the current nerve-wracking economic outlook, Spivak has just announced the launch of Direct Branding Force (DBF) an experiential marketing division that will have a presence in all DSF locations. “We’re going to be providing our clients with brand recognition by using customer contests and other unique activities to create a memorable customer reaction,” he explains. “Then, when the customer is ready to make a purchase decision, the brand will be top of mind.” He adds that the recession may actually improve his company’s bottom line since advertising and media budgets are likely to be cut and clients will be on the lookout for more targeted and effective ways to spend what money they have to achieve better ROI.

Incredibly, at a time when many traditional ad agencies are laying off staff, this six-year-old firm is expanding and actively hiring qualified marketing personnel for roles within its new division. “Direct Branding Force is not participating in this recession,” explains vice-president Michael Kuipers, whose history with Spivak and DSF extends back to those early door-knocking days.

Driving the retail brand
As one of the new division’s first assignments, Kuipers has been working with Benjamin Moore paint stores to develop an exciting, new room makeover contest. Beginning on March 30, the contest will be promoted on television and by strategically positioned DBF agents, who will direct prospects at shopping malls into the paint stores. There, face-to- face sales agents will encourage in-store paint customers to post “Before” and “After” photographs of their newly painted rooms on a special, Web-based contest micro-site. Online visitors will subsequently vote for their favourite new room and the grand prize winner will receive a complete home makeover.

“In a recession, marketers look for opportunities that are different than just what’s available from the mainstream media,” Spivak emphasizes. “If you can demonstrate that there is a true ROI, and that you can deliver a certain result with a specific investment, then smart marketers are willing to take the chance. Now is the time they need to be taking chances to find different ways of reaching people.”