With the advent and rapid growth of email, some may think that direct mail is
a thing of the past. But make no mistake: direct mail is here to stay.
Certainly, if not executed well, direct mail can appear impersonal to consumers.
However, with a clear strategy, goals and the customer/recipient in mind, direct
mail can be a significant marketing asset for your business.
To ensure an effective direct mail campaign, it's important to be clear about
its strengths. Direct mail is a valuable, cost-effective way to tell your
customers who you are and what your business offers. Specifically, direct mail
campaigns offer customers a chance to learn about your business while helping
you to:
Generate sales and orders
Promote a new product or service
Build brand recognition
Drive traffic to your store, site, etc.
Cultivate long-term customer relationships
In fact, many marketers consider direct mail to have advantages over other
forms of advertising and marketing. Since it is targeted, it allows you to focus
on a specific market audience. These resulting efficiencies make direct mail
highly cost effective. And, unlike some forms of marketing, direct mail is
measurable and able to be tracked.
Keeping these attributes in mind, it's important to determine how direct
mail's advantages align with your product or service. Start by asking a couple
of questions: Can you product or service take advantage of the targeting direct
mail offers? And, are you selling a product that you could reasonably expect
people to order or request more information on through a mailer?
If your answer to these questions is "yes," here are some important tactics
necessary for the success of any direct mail initiative:
List, offer, creative This is the order in which you should focus the
elements of your direct mail strategy. First, without a list that's reaching
your desired target audience, no offer or creative will matter. Second, your
offer is the promotion you are highlighting in this particular campaign - it
should be tailored to what you know to be your customers' unique needs. Finally,
the creative is the copy, text and/or package that presents the offer. Most
people spend too much time on the creative when in reality, an unattractive
package to a targeted list always will outperform a pretty package to an
average, generic list.
Start a "swipe" file Keep a file of the recent promotions you've received
that have caught your attention or motivated you to buy. Think about the various
elements discussed above: what are the creative elements that stand out? What is
it about the offer that attracts you or encouraged you to purchase? Make a list
of these characteristics and continue to update it - it will serve as critical
input for creating your own direct mail campaigns.
Test, test, test! Testing is critical when it comes to direct mail. In fact,
a major benefit of direct mail is its ability to use test results to improve the
results of a mailing. First, you must test the list. To do this, you must mail
to a representative cross section of the list. There is a debate on what that
percentage is, but to ensure relative statistical significance, you need to mail
to 2000 names or 5% of your list, whichever is greater. Also, indicate the names
you have mailed to so if the test is successful, you don't mail to them again.
Then, test your copy. Take part of your list and mail them one letter; at the
same time, mail a different copy to the rest of the list. Finally, test your
offer. Do you offer one product in your mailing or several? Is there a gift or
bonus? In the same way, you can test different price points.
Know the "math of success" Make sure you know the "math of success," that is,
the formula that will show whether or not your direct mail campaign is
succeeding. Before the proliferation of e-mail, response rates used to be at 2%;
now, they tend to remain steady at 1%. Be sure that the math works: # of pieces
mailed response rate conversion rate (those that actually send you money).
If you can make money when all is said and done, then you're on the right track.
Most important: while direct mail is an effective and proven customer
acquisition tool, direct marketers actually make money of what is often referred
to as the "second sale." Customer retention - and building valuable customer
relationships - is the true goal of all direct marketing efforts. You're paying
for the lifetime value of that customer - keep this top of mind as you are on
the direct mail journey.
About the Author
Andrew Brown and Small Business Guru provide Coaching, Inspiration and
Practical Advice for Small Business Owners and Entrepreneurs. Subscribe to the
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