DM Crash Course

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DM Crash Course

  1. 1. Title Here Speaker Names DM Crash Course presented by: Keith Goodman
  2. 2. DM CRASH COURSE An Introduction to Direct Marketing: • Direct Marketing overview • Planning a Direct Mail campaign • Targeting your Audience with Lists • Composing your Mailing Piece • Mailing Services • Digital Integration
  3. 3. WHAT IS DIRECT MARKETING? “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.” Direct Marketing Association
  4. 4. DIRECT MAIL WORKS •In 2012, over $50 Billion was spent on advertising mail. –Over 29% of all ad expenditures ($171 Billion) •Over $700 Billion was spent as a result of DM •Direct mail advertising continues to grow with anticipated growth rate of over 5%.
  5. 5. 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
  6. 6. 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
  7. 7. PEOPLE READ THEIR MAIL •What do you do when you get home? •Most people sort mail into 2 piles… Relevant Junk Mail
  8. 8. HAVE A PLAN • What do you want to accomplish? • What makes your store/product different? • What are the benefits to your customers?
  9. 9. 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?
  10. 10. 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?”
  11. 11. HOW MUCH IS A “PASSENGER” WORTH? • What would you pay for a busload of customers?
  12. 12. WHAT IS A CUSTOMER WORTH The basic formula… Average Sale $300 Gross Profit $150 Annualized Value (4X) $600 Lifetime Value (3 years) $1800 Acquisition Budget - 10% $180
  13. 13. TWO KEY FACTORS… • What can you afford to spend for a new customer? • How many customers/responses do you need for your campaign to be profitable?
  14. 14. 5 KEY DIRECT MAIL ELEMENTS 1. Timing 2. Mailing Package 3. Copy (Text) 4. The Offer 5. The List
  15. 15. Mission Critical 40%
  16. 16. The Wrong List • Time Sensitive Offer • Relevant Imagery • Excellent Copy • Clear Call to Action The Wrong List No Response!
  17. 17. Topics of Discussion • Retention Based DM - House Lists. • Acquisition Based DM – Prospect Data. • Available Demographics/Selections. • Predictive Modeling. • List Resources on the Web.
  18. 18. 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.
  19. 19. The Key to Prospecting Take a good look at your customers.. Then find more that look just like them!
  20. 20. 80,000 Prospect Lists; 4 Categories • Occupant Data – - Valassis, Compact Information • Consumer Data - Acxiom, Experian, Equifax, InfoUSA • Business Data – - D&B, InfoUSA, Compass • Specialty Data
  21. 21. Occupant Data • Inexpensive - $20-25/M • Optimizes saturation postage • Very limited select options • Reads as “Resident/Occupant”
  22. 22. Consumer Data • Ideal for local mailings. • Wide variety of demographics. • Multi-channel opportunities. • Multi or Unlimited Use licenses.
  23. 23. Compilation Points • County Recorder offices. • Product warranty cards. • Census. • Sweepstakes offers. • Magazine subscriber files.
  24. 24. Consumer Data Selects • Adult Age Range • Income Range • Net Worth Range • Homeowner / Renter • Dwelling Unit Size • Gender • Length of Residence • Education • Home Value • Marital Status • Presence of Child • Lifestyle Interest Data Most Consumer Files have well over 100 demographic selections available.
  25. 25. 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.
  26. 26. Business Data Sources • Business license information • SEC filings • Yellow pages • Directories & industry publications • Telephone interviews (D&B)
  27. 27. Business Data Selects Basic Selects • SIC / Industry Code • Geo • Business Size • Location Type • Phone Number • Top Contact Premium Selects • Square Footage • Years in Business • Own/Rent Building • Franchise Indicator • Public/Private • Owners Ethnicity
  28. 28. Specialty Data • Magazine subscriber files. • Transactional data; online, mail order. • State licensing bureaus. • Survey response information. • Sweepstakes entry forms. • Credit and financial information.
  29. 29. 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.
  30. 30. Predictive Modeling • Process Overview • Profile Report • Geographic Analysis • Model Report • Prospect Count Report
  31. 31. Predictive Modeling Process
  32. 32. 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
  33. 33. Geographic Analysis • Customer penetration model • Target by zip, county, MSA or State • Determine the desired region yourself
  34. 34. 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
  35. 35. Prospect List Counts Provides available prospect quantity, after customer file suppression, by desired geographic area and decile level.
  36. 36. Web Based List Access • Acxiom B2C • D&B B2B • Occupant Data • Bundled Selects • FREE Counts
  37. 37. Creating Your Mail Piece • Now that you have… – Determined why you’re mailing – Created your plan – Selected your list It is time to create your mail piece!
  38. 38. 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
  39. 39. 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!
  40. 40. 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…
  41. 41. The Image • Get Attention and Build Relevancy
  42. 42. 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?
  43. 43. No Chest Thumping You, You, You Not Me, Me, Me Or We, We, We Talk about what is important to your prospect or customer!
  44. 44. 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!”
  45. 45. The Offer • Sample / Trial • Discounts • Time Limit • 90 Days Same As Cash • Free Gift • Special Event • Buy-One, Get-One Free
  46. 46. The Call to Action • Tell your readers what you want them to do – “Go to www.saveyourhouse.comtoday!” – “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
  47. 47. 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?
  48. 48. An Example
  49. 49. Writing Postcards • Keep it simple. Not more than two or three points. • Don’t try to reduce a “letter package” to a postcard.
  50. 50. 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
  51. 51. Has Anybody Not Seen This Postcard?
  52. 52. 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
  53. 53. Drop Shipping for speed and savings Postage discounts 3.4¢4.3¢ per piece Drop Shipping – Time and Money
  54. 54. OneCode CONFIRM® Mail Tracking  Reporting by Date, State, BMC, SCF, Zip & Piece
  55. 55. INTEGRATING PURLS • Personal URLs • Allows for further engagement of DM recipient • Link to commerce and additional information capture
  56. 56. PURL EXAMPLE Integrated Name, Sem inar Location and PURL for RSVP Almost a 100% increase in RSVPs for seminars.
  57. 57. 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
  58. 58. MOBILE INTEGRATION QR SHORT CODE 88202 “MP” versus
  59. 59. QR CODE VS. SHORT CODE QR CODES SHORT CODE Pro – Direct link to action Con – Requires text entry with follow up text and then link to action Con – No reference to requesting source unless variable QR is sourced back to database Pro – Phone number is captured allowing for future communication with requestor Pro – QR Codes are easy to create Con – Text codes are difficult to provision Pro – No cost per link for QR codes Con – Cost per click on text codes Con - QR codes can be troublesome to scan Pro – Everybody knows how to text. Especially younger generations.
  60. 60. INTERESTING QR CODE APPLICATIONS Pre-populate salesperson info to contact list Keith Goodman Modern Postcard 760-271-9932 Video walkthroughs of homes for sale Video demonstrations to support static advertising and content 52% of the population have used a QR Code
  61. 61. 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
  62. 62. TESTING • Testing your direct mail package is how you evaluate the effectiveness of your program
  63. 63. TESTING GRID - SIMPLE Creative List Qty $20 Off Demo – 100K + with family 5000 $20 Off Demo – 60K single 5000 Initial Test Creative List Qty $20 Off Demo – 100K + with family 5000 $10 Off Demo – 100K + with family 5000 2nd Test
  64. 64. TESTING GRID - COMPLEX Creative 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 5000 20% Off Demo – 100K + with family 5000 20% Off Demo – 60K single 5000
  65. 65. TESTING • One program will always do better than the other. • You need to compare response as well as revenue generated • Never Stop Testing!
  66. 66. TEST EVERYTHING • Formats • Lists • Offers • Imagery • With or without digital integration • Copy
  67. 67. ROI – Return on Investment • Determine the ROI of different test cells based on: – Response rate – Purchase rate – Revenue per sales – Annual value / Lifetime Value
  68. 68. 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
  69. 69. Ready to Market? l Come by booth 1041 l Contact me: l Keith Goodman l Phone: 760-692-3359 l keithg@modernpostcard.com l Cell: 760-271-9932

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