DM CrashSed ut perspi undomnis       Course    oiste Natus aei         presented by:        Keith Goodman
Section Title  Click to add text
DM CRASH COURSEAn Introduction to Direct Marketing:• Direct Marketing overview• Planning a Direct Mail campaign• Targeting...
WHAT IS DIRECT MARKETING?“Direct Marketing is an interactive system ofmarketing which uses one or more advertisingmedia to...
DIRECT MAIL WORKS•In 2011, almost $50 Billion was spent on advertising mail.  –Over 28% of all ad expenditures•Over $700 B...
DIRECT MAIL IS PROFITABLE•Each dollar spent on direct marketing yields, on average, a return on investment of $12.40•By co...
THE ADVANTAGE OF DIRECT MAIL• Convenient  –It’s on your kitchen table• Written record  –File it, save it, show it to other...
PEOPLE READ THEIR MAIL•What do you do when you get home?•Most people sort mail into 2 piles…  Relevant          Junk Mail
HAVE A PLAN      • What do you        want to        accomplish?      • What makes        your        store/product       ...
GOALS & STRATEGIES•   What is your budget?•   What is your deadline?•   What is your offer?•   Who are you talking to?    ...
WILL ANYONE RESPOND?• The question we ask…“What kind of response will I get?”• The question we should ask…“What kind of re...
HOW MUCH IS A “PASSENGER” WORTH?• What would you pay for a busload of customers?
WHAT IS A CUSTOMER WORTHThe basic formula…Average Sale                $300Gross Profit                $150Annualized Value...
ONLY TWO THINGS MATTER…You Have to Know…• What can you afford to spend for a new  customer?• How many customers/responses ...
5 KEY DIRECT MAIL ELEMENTS  1.   Timing  2.   Mailing Package  3.   Copy (Text)  4.   The Offer  5.   The List
Mission Critical40%
The Wrong List• Time Sensitive  Offer                    The• Relevant  Imagery                   Wrong• Excellent Copy   ...
Topics of Discussion•   Retention Based DM - House Lists.•   Acquisition Based DM – Prospect Data.•   Available Demographi...
House Lists• Your buyers and responders are your  most responsive lists.• Customer retention, cross-sell, up-sell• Data ca...
The Key to Prospecting   Take a good look at your customers..  Then find more that look just like them!
74,000 Prospect Lists; 4 Categories• Occupant Data  – - Valassis, Compact Information• Consumer Data  - Acxiom, Experian, ...
Occupant Data•   Inexpensive - $20-25/M•   Optimizes saturation postage•   Very limited select options•   Reads as “Reside...
Consumer Data•   Ideal for local mailings.•   Wide variety of demographics.•   Multi-channel opportunities.•   Multi or Un...
Compilation Points•   County Recorder offices.•   Product warranty cards.•   Census.•   Sweepstakes offers.•   Magazine su...
Consumer Data Selects•   Adult Age Range          •   Length of Residence•   Income Range             •   Education•   Net...
Business Data• Ideal for local mailings or strategic  geographic markets.• Best coverage for target verticals.• 100% phone...
Business Data Sources•   Business license information•   SEC filings•   Yellow pages•   Directories & industry publication...
Business Data SelectsBasic Selects             Premium Selects•   SIC / Industry Code   •   Square Footage•   Geo         ...
Specialty Data•   Magazine subscriber files.•   Transactional data; online, mail order.•   State licensing bureaus.•   Sur...
Specialty Data Specifics..•   Data source is relative to your target.•   Normal minimum of 5,000+ pieces•   Approval often...
Predictive Modeling•   Process Overview•   Profile Report•   Geographic Analysis•   Model Report•   Prospect Count Report
Predictive Modeling Process
Profile Report• Snapshot of over a  dozen demographic  elements• Comparison on local,  state or national  averages• Applic...
Geographic Analysis• Customer  penetration  model• Target by zip,  county, MSA or  State• Determine the  desired region  y...
Model Report• Automates the target  list selection• Ties in the  predominant demo  and geo  characteristics• Illustration ...
Prospect List CountsProvides available prospect quantity, after customer file suppression, by desired geographic area and ...
Web Based List Access                  • Acxiom B2C                  • D&B B2B                  • Occupant                ...
Creating Your Mail Piece• Now that you have…  – Determined why you’re mailing  – Created your plan  – Selected your listIt...
THE 5 R’s• You can’t have ROI if there is no  revenue• You can’t have revenue if there is no  response• You won’t have res...
The Critical 5 R’s• Relevance  – Will it make the keeper pile?• Read  – Do they want to find out more?• Response  – Will t...
The 4 key points to a successful piece! • Graphical treatment   – Format, Imagery, Layout • The copy   – Prospect pain poi...
The Image• Get Attention and Build Relevancy
The Image• Get Attention and Build Relevancy                  Ever feel like your                  home mortgage is       ...
No Chest Thumping  You, You, You  Not Me, Me, Me  Or We, We, We  Talk about what is  important to yourprospect or customer!
The Copy• Keep it simple: One or two QUICK benefits  “Keep your house!”  “Save $800 a month in interest!”• Give a reason t...
The Offer• Sample / Trial• Discounts• Time Limit• 90 Days Same  As Cash• Free Gift• Special Event• Buy-One,  Get-One Free
The Call to Action• Tell your readers what you want them to  do   – “Go to www.saveyourhouse.com today!”   – “Redeem this ...
The Image• Get Attention and Build Relevancy                  Ever feel like your                  home mortgage is       ...
An Example
Writing Postcards• Keep it simple. Not more than two or three points.• Don’t try to reduce a “letter package” to a postcard.
Mail Multiple Times to Increase Response•   Not everybody will see your mail every time you mail•   Multiple touches promo...
Has Anybody Not Seen This Postcard?
Postage Discounts… Don’t Pass ‘em Up• Doing their work pays off – work sharing   • Presorting – grouping mail by common   ...
Drop Shipping – Time and Money     Drop Shipping for speed and savingsPostage discounts    3.4¢   4.3¢             per piece
®OneCode CONFIRM Mail Tracking Reporting by Date, State, BMC, SCF, Zip & Piece
INTEGRATING PURLS• Personal URLs• Allows for  further  engagement of  DM recipient• Link to  commerce and  additional  inf...
PURL EXAMPLE                                                Integrated                                                Name...
PURLS FOR COMMERCE           l Customer information is             pre-filled from database           l Cuts down required...
MOBILE INTEGRATIONQR    versus   SHORT               CODE                88202 “MP”
QR CODE VS. SHORT CODEQR CODES                         SHORT CODEPro – Direct link to action      Con – Requires text entr...
INTERESTING QR CODE APPLICATIONS         Pre-populate salesperson         info to contact list           52% of the popula...
KEY POINTS WITH MOBILE• You are engaging a  mobile device• Do not expect a high  level of data entry  or interactivity• Ma...
TESTING  • Testing your direct    mail package is how    you evaluate the    effectiveness of your    program
TESTING GRID - SIMPLEInitial TestCreative List                              Qty$20 Off        Demo – 100K + with family   ...
TESTING GRID - COMPLEXCreative List                          Qty$10 Off    Demo – 100K + with family   5000$10 Off    Demo...
TESTING  •   One program will always      do better than the other.  •   You need to compare      response as well as     ...
TEST EVERYTHING•   Formats•   Lists•   Offers•   Imagery•   With or without digital    integration•   Copy
ROI – Return on Investment• Determine the ROI of different  test cells based on:  –   Response rate  –   Purchase rate  – ...
ABOUT MODERN POSTCARD• Focus on helping our clients  acquire new customers and  acquire their existing ones.• Full solutio...
Ready to Market?l Come by booth 1101l Contact me:  l Keith Goodman  l Phone: 760-692-3359  l keithg@modernpostcard.com  l ...
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Direct Mail Crash Course

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Direct Mail Crash Course

  1. 1. DM CrashSed ut perspi undomnis Course oiste Natus aei presented by: Keith Goodman
  2. 2. Section Title Click to add text
  3. 3. DM CRASH COURSEAn Introduction to Direct Marketing:• Direct Marketing overview• Planning a Direct Mail campaign• Targeting your Audience with Lists• Composing your Mailing Piece• Mailing Services• Post Mailing Analysis and ROI
  4. 4. WHAT IS DIRECT MARKETING?“Direct Marketing is an interactive system ofmarketing which uses one or more advertisingmedia to effect a measurable response and/ortransaction at any location.” Direct Marketing Association
  5. 5. DIRECT MAIL WORKS•In 2011, almost $50 Billion was spent on advertising mail. –Over 28% of all ad expenditures•Over $700 Billion was spent as a result of DM•Direct mail advertising continues to grow with anticipated growth rate of over 6%.
  6. 6. DIRECT MAIL IS PROFITABLE•Each dollar spent on direct marketing yields, on average, a return on investment of $12.40•By comparison, each dollar spent on non-DM advertising yields an ROI of $5.29
  7. 7. THE ADVANTAGE OF DIRECT MAIL• Convenient –It’s on your kitchen table• Written record –File it, save it, show it to others.• Targeted –Mail just to the prospects most likely to buy• Measurable –You know who responded• Scalable –250 customers or 1,000,000 customers
  8. 8. PEOPLE READ THEIR MAIL•What do you do when you get home?•Most people sort mail into 2 piles… Relevant Junk Mail
  9. 9. HAVE A PLAN • What do you want to accomplish? • What makes your store/product different? • What are the benefits to your customers?
  10. 10. GOALS & STRATEGIES• What is your budget?• What is your deadline?• What is your offer?• Who are you talking to? – What interests them?• How will you get your prospects to respond?• What is your competition doing?
  11. 11. WILL ANYONE RESPOND?• The question we ask…“What kind of response will I get?”• The question we should ask…“What kind of response do I need?”
  12. 12. HOW MUCH IS A “PASSENGER” WORTH?• What would you pay for a busload of customers?
  13. 13. WHAT IS A CUSTOMER WORTHThe basic formula…Average Sale $300Gross Profit $150Annualized Value (4X) $600Lifetime Value (3 years) $1800Acquisition Budget - 10% $180
  14. 14. ONLY TWO THINGS MATTER…You Have to Know…• What can you afford to spend for a new customer?• How many customers/responses do you need for your campaign to be profitable?
  15. 15. 5 KEY DIRECT MAIL ELEMENTS 1. Timing 2. Mailing Package 3. Copy (Text) 4. The Offer 5. The List
  16. 16. Mission Critical40%
  17. 17. The Wrong List• Time Sensitive Offer The• Relevant Imagery Wrong• Excellent Copy List No Response!• Clear Call to Action
  18. 18. Topics of Discussion• Retention Based DM - House Lists.• Acquisition Based DM – Prospect Data.• Available Demographics/Selections.• Predictive Modeling.• List Resources on the Web.
  19. 19. House Lists• Your buyers and responders are your most responsive lists.• Customer retention, cross-sell, up-sell• Data can be profile and additional fields appended.
  20. 20. The Key to Prospecting Take a good look at your customers.. Then find more that look just like them!
  21. 21. 74,000 Prospect Lists; 4 Categories• Occupant Data – - Valassis, Compact Information• Consumer Data - Acxiom, Experian, Equifax, InfoUSA• Business Data – - D&B, InfoUSA, Compass• Specialty Data
  22. 22. Occupant Data• Inexpensive - $20-25/M• Optimizes saturation postage• Very limited select options• Reads as “Resident/Occupant”
  23. 23. Consumer Data• Ideal for local mailings.• Wide variety of demographics.• Multi-channel opportunities.• Multi or Unlimited Use licenses.
  24. 24. Compilation Points• County Recorder offices.• Product warranty cards.• Census.• Sweepstakes offers.• Magazine subscriber files.
  25. 25. Consumer Data Selects• Adult Age Range • Length of Residence• Income Range • Education• Net Worth Range • Home Value• Homeowner / Renter • Marital Status• Dwelling Unit Size • Presence of Child• Gender • Lifestyle Interest Data Most Consumer Files have well over 100 demographic selections available.
  26. 26. Business Data• Ideal for local mailings or strategic geographic markets.• Best coverage for target verticals.• 100% phone coverage – follow up.• 90% top contact name & title.• Multi-use available.
  27. 27. Business Data Sources• Business license information• SEC filings• Yellow pages• Directories & industry publications• Telephone interviews (D&B)
  28. 28. Business Data SelectsBasic Selects Premium Selects• SIC / Industry Code • Square Footage• Geo • Years in Business• Business Size • Own/Rent Building• Location Type • Franchise Indicator• Phone Number • Public/Private• Top Contact • Owners Ethnicity
  29. 29. Specialty Data• Magazine subscriber files.• Transactional data; online, mail order.• State licensing bureaus.• Survey response information.• Sweepstakes entry forms.• Credit and financial information.
  30. 30. Specialty Data Specifics..• Data source is relative to your target.• Normal minimum of 5,000+ pieces• Approval often required – 3-5 days• Targeting a large geographic area The List Owner reserves the right to potentially deny your order request, especially with competitive offers.
  31. 31. Predictive Modeling• Process Overview• Profile Report• Geographic Analysis• Model Report• Prospect Count Report
  32. 32. Predictive Modeling Process
  33. 33. Profile Report• Snapshot of over a dozen demographic elements• Comparison on local, state or national averages• Applicable towards media buys for other channels• Typical stand alone cost minimum of $1,000.00
  34. 34. Geographic Analysis• Customer penetration model• Target by zip, county, MSA or State• Determine the desired region yourself
  35. 35. Model Report• Automates the target list selection• Ties in the predominant demo and geo characteristics• Illustration of response rate potential and relative impact• Typical stand alone cost minimum of $1,000.00
  36. 36. Prospect List CountsProvides available prospect quantity, after customer file suppression, by desired geographic area and decile level.
  37. 37. Web Based List Access • Acxiom B2C • D&B B2B • Occupant Data • Bundled Selects • FREE Counts
  38. 38. Creating Your Mail Piece• Now that you have… – Determined why you’re mailing – Created your plan – Selected your listIt is time to createyour mail piece!
  39. 39. THE 5 R’s• You can’t have ROI if there is no revenue• You can’t have revenue if there is no response• You won’t have response if they don’t read the piece• They won’t read the piece if it is not relevant
  40. 40. The Critical 5 R’s• Relevance – Will it make the keeper pile?• Read – Do they want to find out more?• Response – Will they call you?• Revenue – Is your customer going to part with their cash?• ROI – Increased profitability because everything worked!
  41. 41. The 4 key points to a successful piece! • Graphical treatment – Format, Imagery, Layout • The copy – Prospect pain points, Benefits, Features • The offer – We will give you… • Call to Action – All you have to do is…
  42. 42. The Image• Get Attention and Build Relevancy
  43. 43. The Image• Get Attention and Build Relevancy Ever feel like your home mortgage is like 60 tons of water ready to crush you and your family?
  44. 44. No Chest Thumping You, You, You Not Me, Me, Me Or We, We, We Talk about what is important to yourprospect or customer!
  45. 45. The Copy• Keep it simple: One or two QUICK benefits “Keep your house!” “Save $800 a month in interest!”• Give a reason to continue reading “See below to find out how easy it is to apply!”• Make a big promise and be sure you can fulfill it “If your not completely satisfied we will give you your money back!”
  46. 46. The Offer• Sample / Trial• Discounts• Time Limit• 90 Days Same As Cash• Free Gift• Special Event• Buy-One, Get-One Free
  47. 47. The Call to Action• Tell your readers what you want them to do – “Go to www.saveyourhouse.com today!” – “Redeem this coupon by March 1st!” – “In-store sale…one day only!”• Spell it out. Don’t assume you’ve gotten through• Include an expiration date… create a sense of urgency or exclusivity
  48. 48. The Image• Get Attention and Build Relevancy Ever feel like your home mortgage is like 60 tons of water ready to crush you and your family?
  49. 49. An Example
  50. 50. Writing Postcards• Keep it simple. Not more than two or three points.• Don’t try to reduce a “letter package” to a postcard.
  51. 51. Mail Multiple Times to Increase Response• Not everybody will see your mail every time you mail• Multiple touches promote recognition• Many products are periodic purchases• Mail as often as profitable
  52. 52. Has Anybody Not Seen This Postcard?
  53. 53. Postage Discounts… Don’t Pass ‘em Up• Doing their work pays off – work sharing • Presorting – grouping mail by common destination and postal processing facility o discounts of up to10¢ per piece o Available from mail service providers • Drop shipping – For larger, geographically concentrated mailings, moving your mail to destination postal processing facilities. o up to 4.3¢ in additional discounts
  54. 54. Drop Shipping – Time and Money Drop Shipping for speed and savingsPostage discounts 3.4¢ 4.3¢ per piece
  55. 55. ®OneCode CONFIRM Mail Tracking Reporting by Date, State, BMC, SCF, Zip & Piece
  56. 56. INTEGRATING PURLS• Personal URLs• Allows for further engagement of DM recipient• Link to commerce and additional information capture
  57. 57. PURL EXAMPLE Integrated Name, Sem inar Location and PURL for RSVPAlmost a 100% increase in RSVPs for seminars.
  58. 58. PURLS FOR COMMERCE l Customer information is pre-filled from database l Cuts down required entry and time for a transaction l Led to significantly lower abandon rate
  59. 59. MOBILE INTEGRATIONQR versus SHORT CODE 88202 “MP”
  60. 60. QR CODE VS. SHORT CODEQR CODES SHORT CODEPro – Direct link to action Con – Requires text entry with follow up text and then link to actionCon – No reference to Pro – Phone number isrequesting source unless captured allowing for futurevariable QR is sourced back to communication withdatabase requestorPro – QR Codes are easy to Con – Text codes are difficultcreate to provisionPro – No cost per link for QR Con – Cost per click on textcodes codesCon - QR codes can be Pro – Everybody knows how totroublesome to scan text. Especially younger generations.
  61. 61. INTERESTING QR CODE APPLICATIONS Pre-populate salesperson info to contact list 52% of the population have used a QR Code Keith Goodman Modern Postcard 760-271-9932 Video walkthroughs of homes for sale Video demonstrations to support static advertising and content
  62. 62. KEY POINTS WITH MOBILE• You are engaging a mobile device• Do not expect a high level of data entry or interactivity• Make sure your application provides a high value to the customer or prospect
  63. 63. TESTING • Testing your direct mail package is how you evaluate the effectiveness of your program
  64. 64. TESTING GRID - SIMPLEInitial TestCreative List Qty$20 Off Demo – 100K + with family 5000$20 Off Demo – 60K single 50002nd TestCreative List Qty$20 Off Demo – 100K + with family 5000$10 Off Demo – 100K + with family 5000
  65. 65. TESTING GRID - COMPLEXCreative List Qty$10 Off Demo – 100K + with family 5000$10 Off Demo – 60K single 5000$20 Off Demo – 100K + with family 5000$20 Off Demo – 60K single 500020% Off Demo – 100K + with family 500020% Off Demo – 60K single 5000
  66. 66. TESTING • One program will always do better than the other. • You need to compare response as well as revenue generated • Never Stop Testing!
  67. 67. TEST EVERYTHING• Formats• Lists• Offers• Imagery• With or without digital integration• Copy
  68. 68. ROI – Return on Investment• Determine the ROI of different test cells based on: – Response rate – Purchase rate – Revenue per sales – Annual value / Lifetime Value
  69. 69. ABOUT MODERN POSTCARD• Focus on helping our clients acquire new customers and acquire their existing ones.• Full solution provider – List rental and analytics – Graphic and layout support – High quality printing – Complete mailing services – Email, mobile and web
  70. 70. Ready to Market?l Come by booth 1101l Contact me: l Keith Goodman l Phone: 760-692-3359 l keithg@modernpostcard.com l Cell: 760-271-9932

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