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Hitting the Bullseye with Direct Mail- Business.com Whitepaper

Hitting the Bullseye with Direct Mail- Business.com Whitepaper



Has technology and digital communication completely done away with the need for paper promotion? With a typical response rate of 1-10%, direct mail hasn’t resigned itself to a thing of the past just ...

Has technology and digital communication completely done away with the need for paper promotion? With a typical response rate of 1-10%, direct mail hasn’t resigned itself to a thing of the past just yet. In our Direct Mail Checklist for SMBs, you’ll discover the advantages of using a direct mail service, how to deliver a message that sells, and average costs of this direct marketing approach.



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    Hitting the Bullseye with Direct Mail- Business.com Whitepaper Hitting the Bullseye with Direct Mail- Business.com Whitepaper Document Transcript

    • © Business.com Media, Inc. All rights reserved. | 888.441.4466
    • Table Of Contents • Introduction: What is Direct Mail? – Page 1 • The Advantages of Direct Mail. – Page 1 • Direct Mail vs. Email. – Page 2 & 3 • How to Deliver a Message that Sells. – Page 4 • The Business.com Direct Mail Service Checklist. – Page 5 and 6 • Summary. – Page 7 © Business.com Media, Inc. All rights reserved. | 888.441.4466
    • Direct Mail: Straight as an Arrow It would be utterly embarrassing to witness a What are the Advantages of Direct Mail? professional archer throwing rocks at a ringed • Directly reaches the target prospect target in hopes of hitting the center of the bulls eye. • Provides a call-to-action and a reply Likewise, business owners and marketers need to mechanism, such as a business response card utilize the correct tools to reach their target (BRC), email address, website link, toll-free audience in the most direct fashion. While online phone number, etc. to gather additional marketing sportsman and retargeting champions are one channel to target audiences around the internet, direct mail is still an option and not dead for many industries that want to get offers in the hands of customers. What is Direct Mail? Direct mail marketing delivers print materials such as letters, postcards, brochures, and catalogs to a physical postal box. Direct mail marketing is one the most cost-effective ways to reach a target audience and generate leads and sales. The target audience could be consumers within a certain zip code, those who have a stated political preference within a voting district, parents with two or more children, professionals who own their businesses, families within certain income brackets, or those who've bought or previously indicated an interest in your products. There are various ways to further "slice and dice" these demographics (quantifiable data that characterizes a specified population, at a specified location), to focus as tightly as possible on the audience most likely to be interested in what your business has to offer. © Business.com Media, Inc. All rights reserved. | 888.441.4466 information and/or initiate a sales transaction. • Trackable, measureable, quantifiable results; call-to-action responses provide hard data on who is interested and why.
    • Avoid Taking a Shot in the Dark As of late, there have been technological advances The response rate for direct mail averages making this medium more affordable without between 1% and 10%. While this might seem low compromising on a professional appearance. High- and inefficient, even a 1% response from 10,000 quality graphics and print production are well within solicitations yields 100 sales. the budget for an SMB than in previous years. For example, let's say you mail 10,000 pieces at a A common knock against direct mail is that it is "junk cost of $6,000. You get a 1% response of 100 mail” which will land in a trashcan. However, one sales. Let's say each sale results in $100 profit person's junk is another person's treasure. A well- each. So, you've spent $6,000 to make $10,000, designed direct mail piece leaves a stronger brand for a return on investment (ROI) of $4,000 or 66%. impression than other forms of advertising. Isn’t Email More of a Direct Shot? You might think that technology has made direct mail obsolete, or at least increasingly irrelevant. After all, in today’s world of email and social media, doesn't everyone get what's important to them online? Not quite everyone. Don’t assume the entirety of your target demographics prefers online messages to tangible information. According to Central Mailing Services, • 48% of customers felt messages received by direct mail were easier to take in compared to the 20% of customers who preferred email. • Older generations and low income earners are more receptive to direct mail than email • Nearly 28% of direct mail sent out between 2010 and 2012 was set aside for future use • 17,700,00 ordered something after receiving direct mail in 2012 Source: Data compiled by the Central Mailing System http://www.centralmailing.co.uk/blog/direct-mail-vs-e-mail/ © Business.com Media, Inc. All rights reserved. | 888.441.4466
    • Direct Mail vs. Email Direct Mail Is Seen and Saved Direct Mail Has a Higher Return on Investment People are now receiving less mail than actual The majority of studies demonstrate that direct mail email so it’s becoming harder to get through to is more effective than email. According to a United someone via email. When you get something in the States Postal Service study, direct mail has a 10% mail, you have to look at it before you decide to higher ROI than email (34% vs. 24%), significantly throw it away (not the case with email). higher than any other mass marketing media DMDatabases.com reports, "It's not uncommon for channel. The next highest is search engine [postal] mailers to receive orders from a direct mail marketing (pay-per-click ads), which has an 8% campaign years after the mail date. Email ROI.1 campaigns are over in days.“ If you are looking for an immediate response, email may be a better way to go. No Need to Opt-In with Direct Mail Direct Mail Is More Effective at Generating Online Traffic Direct Marketing News reported that "direct mail has a response rate of up to 10 to 30 times that of email" With email, the CAN-SPAM act requires that and the USPS found that direct mail is more effective people "opt-in" before being sent commercial than non direct mail tactics in generating website email. Obviously, there are ways around that, or traffic and online sales. you wouldn't receive any spam. But legitimate merchants simply can't send unsolicited email without facing expensive and embarrassing legal Direct Mail Makes a Stronger Impression action. With direct mail, you don’t have the same The mail in your hand not only has a longer shelf life restriction. (it can stay on a table for days while an email easily disappears with a mouse click), but is actually more Spam Filters Reduce Direct Email Use engaging than the email on your screen. Email spam folders often trap messages that aren't ever looked at. It is estimated that email has a delivery rate below 50%, while a direct mail list is typically 95 percent deliverable. 1. DMA, 2012 Response Rate Report © Business.com Media, Inc. All rights reserved. | 888.441.4466 “Direct mail is typically 95% deliverable.”
    • How to Take Aim with Direct Mail 1). Select the right type of direct mail • Make a limited-time offer. A response deadline The direct mail piece can be a standard or compels recipients to act now to avoid missing oversized postcard, a letter, flyer, multi-page out on the offer. Realize though that this brochure, or a full-blown sales catalog. It might also shouldn’t be what you calculate your ROI on as include a CD or some kind of "gift," sometimes people tend to make purchases up to a 1 year called a "freemium," such as an engraved pen or a after the date they received. membership card. The format is dictated by your objectives. A postcard may be sufficient to advertise a special sale, while the details of a new product description might require a larger brochure, or even a letter-and-brochure combination. 3.) Have the right target: The Mailing List You need a list of addresses to mail to. The more targeted and segmented your mailing list, the better. For large and/or new mailing lists, one or two trial mailings to a small portion of the list can help you 2). Use the basic elements of a direct mail pitch determine whether or not you want to mail to the Regardless of format, a direct mail piece must entire list. contain the following four elements to be effective: • Have a hook (in terms of graphics or copy, preferably both) that makes the reader want to find out more. • Include a call-to-action with a reply mechanism 1,000 names. Be cautious of any type of "exclusive" lists. In rare cases does this exist. Get to the point and focus on a specific offer. • You can expect on average to pay about $100 per for a customer to respond via phone, fax, email, social media, or a postage-paid reply card. Postage rates vary by whether you are sending first class or bulk (also called "standard"). Typically bulk mail is less expensive if you mail in large quantities the more you mail, the lower the bulk postage rate. In the past, first class mail was faster; however, postal software automation has rendered the difference in speed between the two as largely inconsequential. On the following page, we’ve created a helpful checklist to follow along with and evaluate vendors. © Business.com Media, Inc. All rights reserved. | 888.441.4466
    • Direct Mail Services Checklist My Needs Services • Graphic design • Copywriting • Design templates • Mail lists • Print production • Product fulfillment • Direct mail tracking Type of Direct Mail Materials • Postcard • Jumbo Postcard • Letter • Newsletter • Brochure • Self-mailer • Snap-mailer • Mini-catalog (half page, slim-jim sizes) • Full catalog Printing • Black and white • 1-color, 2-color, and 4-color • Personalized (by names, addresses) • Glossy • Matte • Return Envelope or reply coupon • Laser printing • Inkjet printing • Offset printing • Folding and trimming • Shrink-wrapping • High Speed Copying Mail List Services • Direct addressing © Business.com Media, Inc. All rights reserved. | 888.441.4466 Vendor 1 Vendor 2
    • Direct Mail Services Checklist My Needs • Direct addressing • Labeling • Inserting • Sorting • Metering • Hand assembly • Email tracking • Eliminate undeliverable addresses • Purchase List • Rent list • List updated in last 3 months? • Barcoded • Data analytics Types of Mailing Lists • Consumer • Business • New movers • New homeowners • Mortgage • Specialty Postage • Base rate (pre-sort and delivery) • Standard (letter/flat) • First class (letter) • First class presort (letter) • First class (postcard) • First class presort (postcard) • Nonprofit rate (letter) • Nonprofit rate (flat) • Return services Mail List Services • Creative turnaround time (avg.) • Mailing turnaround time (avg.) © Business.com Media, Inc. All rights reserved. | 888.441.4466 Vendor 1 Vendor 2
    • Ready, Aim, Fire. Don’t count this communication channel dead just yet. Hit your target audience by utilizing direct mail services. look for more from Business.com on how to set up and support a thriving startup and enable future growth and development. Thanks and come back soon. © Business.com Media, Inc. All rights reserved. | 888.441.4466