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Direct Mail Fundamentals


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Direct Mail Fundamentals

  1. 2. Sep 28, 2011 DM Crash Course Direct Mail Advertising in Less than 60 minutes! presented by Alan Rosenspan And Keith Goodman
  2. 3. WHAT IS DIRECT MARKETING? <ul><li>“ Direct Marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.” </li></ul><ul><li>Direct Marketing Association </li></ul>
  3. 4. <ul><li>Each dollar spent on direct marketing yields, on average, a return on investment of $11.65 </li></ul><ul><li>By comparison, each dollar spent on non-DM advertising yields an ROI of $5.29 </li></ul><ul><li>Source DMA Annual Report </li></ul>DIRECT MAIL IS PROFITABLE
  4. 5. <ul><li>Convenient </li></ul><ul><ul><li>It’s on your kitchen table or desk </li></ul></ul><ul><li>Written record </li></ul><ul><ul><li>File it, save it, show it to others. </li></ul></ul><ul><li>Targeted </li></ul><ul><ul><li>Mail just to the prospects most likely to buy </li></ul></ul><ul><li>Measurable </li></ul><ul><ul><li>You know who responded </li></ul></ul><ul><li>Scalable </li></ul><ul><ul><li>250 customers or 1,000,000 customers </li></ul></ul>ADVANTAGES OF DIRECT MAIL
  5. 6. <ul><li>Email is a great tool for communicating to a subset of your existing customers. </li></ul><ul><li>Direct mail (especially with postcards) gives you a 100% connection with your current customers. </li></ul>Yes! 10%-15% Open Rates for email… Should not be confused with click through or response rates! DIRECT MAIL OR EMAIL?
  6. 7. <ul><li>92% of consumers read the mail the day they get it </li></ul><ul><li>What do you do when you get home? </li></ul><ul><li>Most people sort mail into 2 piles… </li></ul>Relevant Junk Mail DOES MAIL GET READ?
  7. 8. <ul><li>Generating traffic to your store or website </li></ul><ul><li>Generating leads </li></ul><ul><li>Responding to competitive activity </li></ul><ul><li>Generating customer loyalty </li></ul><ul><li>Generating customer referrals </li></ul><ul><li>Special events / sales / seminars </li></ul>COMMON USES OF DIRECT MAIL
  8. 9. <ul><li>What do you want to accomplish? </li></ul><ul><li>What makes your store/product different? </li></ul><ul><li>What are the benefits to your customers? </li></ul>HAVE A PLAN
  9. 10. <ul><li>The question we ask… </li></ul><ul><li>“ What kind of response will I get?” </li></ul><ul><li>The question we should ask… </li></ul><ul><li>“ What kind of response do I need?” </li></ul>WILL ANYONE RESPOND?
  10. 11. <ul><li>What would you pay for a busload of customers? </li></ul>HOW MUCH IS A “PASSENGER” WORTH?
  11. 12. <ul><li>The basic formula… </li></ul>WHAT IS A CUSTOMER WORTH? Average Sale $300 Gross Profit $150 Annualized Value (2X) $300 Lifetime Value (3 years) $900
  12. 13. <ul><li>Timing </li></ul><ul><li>Mailing Package </li></ul><ul><li>Copy (Text) </li></ul><ul><li>The Offer </li></ul><ul><li>The List </li></ul>WHAT IS CRITICAL TO YOUR CAMPAIGN
  13. 14. 40% THE LIST
  14. 15. <ul><li>Time Sensitive Offer </li></ul><ul><li>Relevant Imagery </li></ul><ul><li>Excellent Copy </li></ul><ul><li>Clear Call to Action </li></ul>+ The Wrong List = No Response! THE WRONG LIST
  15. 16. <ul><li>Your buyers and responders are your most responsive lists. </li></ul><ul><li>Capture relevant data. </li></ul><ul><li>You can profile, append and model your existing list </li></ul><ul><li>You cannot grow without prospecting </li></ul>YOUR HOUSE LIST
  16. 17. Take your best customers.. Then find more that look just like them! THE KEY TO PROSPECTING
  17. 18. <ul><li>Consumer Data </li></ul><ul><ul><li>- Acxiom, Experian, Equifax, InfoUSA </li></ul></ul><ul><li>Business Data </li></ul><ul><ul><li>- D&B, InfoUSA, Compass </li></ul></ul><ul><li>Occupant Data </li></ul><ul><ul><li>- Valassis, Compact Information </li></ul></ul><ul><li>Specialty Data </li></ul>OVER 74,000 LISTS AVAILABLE
  19. 20. <ul><li>Snapshot of over a dozen demographic elements </li></ul><ul><li>Comparison on local, state or national averages </li></ul><ul><li>Applicable towards media buys for other channels </li></ul>SEE WHO YOUR CUSTOMERS ARE
  20. 21. <ul><li>Automates the target list selection </li></ul><ul><li>Ties in the predominant demo and geo characteristics </li></ul><ul><li>Illustration of response rate potential and relative impact </li></ul>IDENTIFY THE MOST LIKELY PROSECTS
  21. 22. <ul><li>Provides available prospect qty, after customer file suppression, by desired geographic area and decile </li></ul>MODELED PROSPECT LIST COUNTS
  22. 23. <ul><li>Acxiom B2C </li></ul><ul><li>D&B B2B </li></ul><ul><li>Occupant Data </li></ul><ul><li>Bundled Selects </li></ul><ul><li>Low Minimums </li></ul><ul><li>FREE Counts </li></ul>WEB-BASED LIST COUNTS AND ORDERING
  23. 24. <ul><li>Relevance </li></ul><ul><ul><li>Will it make the keeper pile? </li></ul></ul><ul><li>Read </li></ul><ul><ul><li>Do they want to find out more? </li></ul></ul><ul><li>Response </li></ul><ul><ul><li>Will they call you? </li></ul></ul><ul><li>Revenue </li></ul><ul><ul><li>Is your customer going to part with their cash? </li></ul></ul><ul><li>ROI </li></ul><ul><ul><li>Increased profitability because everything worked! </li></ul></ul>DM AND THE 5 R’s
  24. 25. <ul><li>Graphical treatment </li></ul><ul><ul><li>Format, Imagery, Layout </li></ul></ul><ul><li>The copy </li></ul><ul><ul><li>Prospect pain points, Benefits, Features </li></ul></ul><ul><li>The offer </li></ul><ul><ul><li>We will give you… </li></ul></ul><ul><li>Call to Action </li></ul><ul><ul><li>All you have to do is… </li></ul></ul>4 KEYS TO A SUCCESSFUL PIECE Ever feel like your home mortgage is like 60 tons of water ready to crush you and your family? We can help!
  25. 27. <ul><li>7 Quick Tips Guaranteed to Improve Response </li></ul>
  26. 28. 1. Do One Thing Different Most direct mail is ordinary, dull, and looks like every other piece of direct mail. Do you want to blend in with everybody else, or do you want to stand out?
  27. 31. 2. Do Just One Thing <ul><li>Make sure your message is single-minded </li></ul><ul><li>Make sure your message is relevant to your market </li></ul><ul><li>Make sure it breaks through the clutter </li></ul>
  28. 32. The “Bed of Nails” Approach
  29. 34. 3. Add Value 1. If your direct mail package has no added value in it – then I’m probably going to ignore it 2. If the only time I ever hear from your company is when you want to sell me something… … then I’m not sure I want to hear from your company
  30. 37. Turn your direct mail package into a Fortune Cookie Make it something that people will be happy and excited to open
  31. 43. 4. Add Credibility Many other forms of advertising have a “halo” of credibility Magazine ads in Time magazine. Banner ads on websites. “As seen on TV” adds credibility Direct mail arrives naked at the door – buried in a pile of (mostly) unimportant, untargeted, unsolicited “junk”
  32. 45. Who are you? <ul><li>The first question any prospect will ever ask about your company </li></ul><ul><li>Explain who you are, how long you’ve been in business, how many satisfied customers you have </li></ul><ul><li>You may think everyone knows who you are – but they don’t </li></ul>
  33. 47. Who are your customers? <ul><li>Customer Lists are extremely important in B2B </li></ul><ul><li>They minimize the risk for business people </li></ul><ul><li>They give a better idea of what kind of company you are – or what kind of products and services you sell </li></ul><ul><li>You can’t always list them, but it’s worth trying </li></ul>
  34. 48. Why should I trust you? <ul><li>Testimonials are incredibly powerful – when used the right way </li></ul><ul><li>They should not be overwritten or over-enthusiastic </li></ul><ul><li>They should be localized or targeted if possible </li></ul>
  35. 49. Add Extra Credibility <ul><li>Be specific about your claims </li></ul><ul><li>Use real examples, if possible </li></ul><ul><li>Use numbers; they add 68.5% more credibility. They are 5X more effective. They increase response by an average of 2.3% </li></ul>
  36. 50. 5. Focus on your Prospect Most direct mail focuses on a product or a company. The most effective direct mail focuses on a person.
  37. 54. 6. Improve Your Offer The fastest way to improve response is to improve your offer. Make it “an offer they can’t refuse…”
  38. 55. Offer Guidelines <ul><li>Make it an offer “money can’t buy” </li></ul><ul><li>Be very clear about the offer, and why it’s valuable </li></ul><ul><li>Build your entire direct mail package around the offer </li></ul>
  39. 61. 7. Always Be Testing Some companies do direct mail as part of their marketing mix. Some companies live and die by direct mail - Non-profits - Catalogs - Credit cards These companies always do extensive, continuous, comprehensive testing…
  40. 65. <ul><li>Tracking your responses </li></ul><ul><ul><li>Create response codes </li></ul></ul><ul><ul><li>Varying discount offers </li></ul></ul><ul><ul><li>Multiple response vehicles </li></ul></ul><ul><li>Record the numbers </li></ul><ul><ul><li>How many calls or visits? </li></ul></ul><ul><ul><li>How many sales? </li></ul></ul><ul><ul><li>Average order value? </li></ul></ul><ul><ul><li>Future value of your new customers? </li></ul></ul>IT IS ALL ABOUT ROI
  42. 67. THANK YOU FOR LISTENING Keith Goodman VP, Corporate Solutions Modern Postcard Phone: 800-959-8365 ext. 2059 Cell: 303-517-3119 Email: Alan Rosenspan President Alan Rosenspan and Associates Phone: 781-784-8283 Email: