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Direct Mail Crash Course
 

Direct Mail Crash Course

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    Direct Mail Crash Course Direct Mail Crash Course Presentation Transcript

    • 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 your Audience with Lists• Composing your Mailing Piece• Mailing Services• Post Mailing Analysis and ROI
    • 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
    • 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%.
    • 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
    • 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
    • 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 different? • What are the benefits to your customers?
    • 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?
    • 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?”
    • 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 (4X) $600Lifetime Value (3 years) $1800Acquisition Budget - 10% $180
    • 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?
    • 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 List No Response!• Clear Call to Action
    • Topics of Discussion• Retention Based DM - House Lists.• Acquisition Based DM – Prospect Data.• Available Demographics/Selections.• Predictive Modeling.• List Resources on the Web.
    • 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.
    • 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, Equifax, InfoUSA• Business Data – - D&B, InfoUSA, Compass• Specialty Data
    • Occupant Data• Inexpensive - $20-25/M• Optimizes saturation postage• Very limited select options• Reads as “Resident/Occupant”
    • Consumer Data• Ideal for local mailings.• Wide variety of demographics.• Multi-channel opportunities.• Multi or Unlimited Use licenses.
    • Compilation Points• County Recorder offices.• Product warranty cards.• Census.• Sweepstakes offers.• Magazine subscriber files.
    • 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.
    • 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.
    • Business Data Sources• Business license information• SEC filings• Yellow pages• Directories & industry publications• Telephone interviews (D&B)
    • 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
    • Specialty Data• Magazine subscriber files.• Transactional data; online, mail order.• State licensing bureaus.• Survey response information.• Sweepstakes entry forms.• Credit and financial information.
    • 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.
    • 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• Applicable towards media buys for other channels• Typical stand alone cost minimum of $1,000.00
    • Geographic Analysis• Customer penetration model• Target by zip, county, MSA or State• Determine the desired region yourself
    • 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
    • Prospect List CountsProvides available prospect quantity, after customer file suppression, by desired geographic area and decile level.
    • Web Based List Access • Acxiom B2C • D&B B2B • Occupant Data • Bundled Selects • FREE Counts
    • 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!
    • 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
    • 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!
    • 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…
    • The Image• Get Attention and Build Relevancy
    • 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?
    • 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 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!”
    • 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 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
    • 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?
    • 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 promote recognition• Many products are periodic purchases• Mail as often as profitable
    • 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 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
    • 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 information capture
    • PURL EXAMPLE Integrated Name, Sem inar Location and PURL for RSVPAlmost a 100% increase in RSVPs for seminars.
    • 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
    • MOBILE INTEGRATIONQR versus SHORT CODE 88202 “MP”
    • 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.
    • 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
    • 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
    • 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 5000$20 Off Demo – 60K single 50002nd TestCreative List Qty$20 Off Demo – 100K + with family 5000$10 Off Demo – 100K + with family 5000
    • 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
    • TESTING • One program will always do better than the other. • You need to compare response as well as revenue generated • Never Stop Testing!
    • 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 – Revenue per sales – Annual value / Lifetime Value
    • 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
    • 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