By Lori Gertz
Those who have success with direct mail tell everyone they know how effective it has been for them and how amazing their return on investment is, but often I hear from confused marketers how while they hear it is the single most effective element in someone else’s marketing mix, they can’t seem to make it work for themselves.
What I’m finding is that it usually is because they don’t “get” the right techniques for using direct mail, and as such they rarely make the most of even a smidgen of the opportunity that good direct mail can offer.
The golden rule of direct mail success sounds something like this: Success is based 40% on the list you use, 40% on the strength and relevancy of the offer you make, and 20% on how you execute. In other words, it is much more about saying the right thing to the right audience than how you say it. Content beats style for sure!
1. Do they even read ‘em?
While 25% of most ads are read, the Direct Marketing Association’s proven statistics are that 75% of mail is opened and read. When you consider that direct mail costs more per contact as it compares to an ad reaching the masses (many of whom it doesn’t relate to anyway) this is an important statistic to remember, because the quality of contact is much better with direct mail.
2. How many prospects/customers will call me as a result of my mailing?
As for the response rate you should hope for, 2% is the industry norm for prospecting leads. This has long been reported by the Direct Marketing Association in cases where “more information” is the call to action. While 2% may seem low, consider that on a percentage basis, ads typically get response levels below .5%.
Also, consider that the responses from a pre-qualified mailing list are almost always better than from any othersource. I guess the most important point here is not to get all hung up in the averages, and keep your eye on your objectives.
3. How many touchpoints do I make? How often should I mail?
The general rule is to mail 3 times in a relatively condensed period of time. Typically, you will receive 60% of your total response from the first mailing, 20-30% from your second, and under 10% from your third.
4. Should I change my offer or my message and how often?
New people will enter your market all the time. If you are mailing to the same list, don’t mail the exact same package many times in a very short period of time- you must give the market time to change.
5. Where should I get my mailing list?
Start with your own POS system. Current customers are by far the best because they already know you, trust you, and do business with you. Plus, experts say that it costs 6-10X more to convert a prospect into a customer than it does to sell to your past customers.
The next best lists are your sales leads that have inquired about you and your product or company before. They have already pre-qualified themselves as in the market for what you have to sell, and it’s seldom that people inquire about things who aren’t authorized to buy them or play a role in picking them.
Since most of your mail will be working to identify new prospects, finding a reputable list broker who carries lists that are regularly scrubbed (cleaned and purged), from media files to postal delivery lists. With selects up to the thousands, you can pull your lists by virtually any criteria you can think of. Drilling down to specific segments is amazing. Some lifestyle databases have up to 30+ different “markers” per individual – from gender, age, and income to value of house, hobbies, and type of pet or pets owned. Lists can also be crossed with each other to further fine tune a prospective audience. The best rule is to investigate the method the lists were compiled to see if they are on the up and up in terms of quality. Again, a reputable list broker will put his or her reputation on the line to assure quality of their lists.
6. What is the best “Call to Action”?
If you are selling direct, the best offer is related directly to your product or service. Go for the order right outta the mailbox! If you are selling b2b or high-end merchandise, the better offer would be for more information. In a lot of cases, the sale can’t be made until two people talk. Contact and a sales “touch” is imperative. The role of the direct mail in this case, is to identify the prospect and create a situation for that personal touchpoint to occur. Product literature like How To Guides, Case Studies, and white papers offer more information in a highly professional manner and they will increase response as they help to differentiate your product and company as superior and more “expert” even if your products are not any different than your competitor. It’s all in the positioning.
7. What’s the most important part of the direct mail piece?
The letter gives you the chance to make a lasting impression. Research with hundreds of split-run tests between letter-based mailings and those without- the packages with the letters almost 80% of the time “out-pull” those without. Use the letter to get personal with your prospect. No form letters here….let them know you know who they are and what their needs are and let them know “what’s in it for them”.
8. What should my direct mail look like? What format?
There are many right answers to this question. Your format really depends on what is strategically right for the particular goal you have. Testing is key to knowing if a self-mailer versus and envelope, postcard versus self-mailer, or if a business letter versus a graphically driven pamphlet is right. They are all right for certain outcomes.
9. Should I personalize the envelope or send to a person’s title?
Direct mail lets you personalize down the person who shops in a particular place and has a particular income and a particular number of children, etc. The medium is so personalized that skipping that on the envelope would be missing a huge opportunity to make a touchpoint impressionable. The general rule is that names pull better than titles – which is also why name lists typically cost a little more than title lists. But so goes the saying, you get what you pay for.
10. Should I put teaser copy on the envelope?
YES YES YES! You only have one opportunity to make that first impression, and you only have a few seconds to grab and hold that person’s attention too. Make it memorable!
11. Should I use a stamp or metered mail? Does one get opened more?
Generally, whether you use a stamp or first-class postage vs. metered mail doesn’t increase the response enough to warrant spending more. That said, make sure you work closely with your printer and mailing house to execute the package in a way that is most cost efficient to print and mail.
12. I’m ready to roll, but should I test first?
TEST TEST TEST! There aren’t any rules to follow on your way to finding the direct mail success of those who boast about the ROI they are getting on their mailings, but there is a lot known about this incredible medium that CAN guide you. The wisdom I speak of came from testing one package against another, one list against another, one offer against another, one format against another, one timing against another….so you see….even if you have a mail package that’s giving you good results, you need to keep testing this “control” to try to increase your overall performance. This is the key to achieving your greatest success in using direct mail as a marketing tool.
