 
Tom Kubinski Sheila Stai www.sextonprinting.com
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Many of you may be currently
involved in a direct mail campaign or are considering one. In either
case... Here are the 12 Most
Commonly Asked Questions: 1) Is
Direct Mail the Right Medium? (See
case studies below) • Testing
is Crucial - 78% of Direct Mail
is thrown away unopened! In this issue of TK's
Korner, I'll give you helpful suggestions, important information along
with sources, and case studies to further research questions you may
have. To
Start, Let's Dive into Direct
Mail: Direct
Mail deals
with building and
maintaining one-to-one relationships between brands and customers, with
the purpose of establishing an image for the brand and selling products
to customers. Why Direct Mail? 1) Interactivity
is a 2-way communication (push/pull strategy)
ROC (Return on Customer) LTV (Life Time Value) 4) Loyalty Customer
Satisfaction! While the brand perception
should be identical, the objectives per target group will be differentiated,
and therefore also the investment level, media, messaging and offer.
Media is Complementary instead of replacing one another. Advertisers and consumers
prefer a tangible object, something that can be held or touched.
People prefer paper to something that exists only electronically.
How many of us read an entire document on the computer screen? Follow-Up is Key to direct marketing activities and therefore direct mail. >> A
mailing invites customer to react Developments in Information Technology have provided direct mail professionals with a wealth of possibilities and have propelled the use of direct mail/direct marketing: >> Increased computer processing power The Power of Direct Mail to address every customer as
one person vs. the mass media "One size Fits all".
Customers appreciate direct mail when it's relevant, respectful and
rewarding to them. Closing Rates by Selling to People you Know is easier - • New Customer
= 5-20% closing rate Loyalty is closely related to customer satisfaction.
Companies need to be better at anticipating consumer questions and complaints.
Response
Rates of Direct Mail depend on: Integrity of List
- Are you marketing to your target audience, and has the list been run
through Who Responds to Direct Mail? (in descending order) 1) Customers - 3 to 8 times more
likely to respond or buy There are a variety of opinions on what makes up
a successful
direct mail
program. Listed below
are a few of them. You'll notice below that they basically have the
same criteria with different percentages. 50-20-20-10 Probability of Success 40-40-20 Probability of Success:
40%=Quality of Offer or Incentive: Is it a good offer sent to the right person? 20%=Creative: Copy supports the imagery REMEMBER 78% of DM is thrown away
unopened. This is due to the
What people tend to do with direct mail - 40% open and read After consumer reads content, we want them to - Act, Get Involved or Stimulate them to... >> Respond by deadline It is predicted that .046% is the average response rate for
a general broadcast black and white static piece. How to Increase Response -
NOTE: +600%
(this equates up to 16% total). Full variable data, personalization,
customization, database segmentation. ie. specific targets, smaller
quantity, more opportunities to respond. Versioning - different groups receive different
versions based on criteria, content and language changes for specific
audiences. Typically black copy file. Hybrid - Offset printing plus variable
copy. Customization - Altering each document to meet
requirements of a certain group. Guidance based on a certain criteria.
One to four color images change, plus copy. NOTE: It is not the quantity that is
sent out, but the number of responses you get back that matters. Variable Data Results -
NOTE: when BRC is "pre-completed" with recipients name and address,
the return rate increases 13%!
Projection
on how to lower cost per response by using VDP personalization Projection
on cost per sale and ROI using VDP personalization The Database is the Most Important Lever: 1) Must be clean >> 6x's higher response rate with good database NOTE: 18% of Americans relocate
annually, and 2%
of your list moves monthly Mail List Hygiene:
Budget
Allocation
for Direct Mail: Direct mail, today, has
become an extension of brand experience via advertising and packaging.
The image expressed through direct mail is consistent and coherent with
other means of communication. It adds up to overall brand feeling. Testing: * You
must be testing all the time What to test: 1) copy ...the best place to start letter copy or envelope teaser. Learn from what doesn't work, was it the offer, time, copy, vehicle, target. 'Losers can be winners' Ask Questions: >> Does
it grab your Attention? Offer: * Engaging Call to Action: >> What do I want you to do? Return on Investment Info: * TV=1 to 5, for every $1 spent, you get back $5 * Direct Mail=1 to 11, for every $1 spent, you get back $11 Print is still the best way to develop a brand Loyalty
and Most Trusted Media overall Wow, that's a lot
of info. Where to start? First, you must understand and know your Target Market in order to create and design an offer that gets noticed or acted upon. Who and what is your target market as it pertains to:
The more specific your target,
the better the use of your marketing dollars, and hopefully the bigger
ROI will be. A mail list company can assist you in obtaining
this data. More information: Competition - Answer the following in order to compete: 1) Who are they Your Product / Offer - 1) What are you selling or offering Once you've
clearly defined your
target audience, understand their demographics and psychographics, done
research on your competition and clearly defined your offer, now you're
ready to create something that stands out from the rest. Copy and Design
-
>> Who you are Call to Action
- Make it Easy
for them to Respond - Images - The use of Techniques like spot coatings, foils, etc to highlight specific areas. Black and White Images can be used along with 4 Color to show a positive/negative situation in B/W. Since it is going through
the mail, Coatings to protect the piece is highly recommended.
I hope this issue has been
helpful in letting you know more about Direct
Mail, what you can
do to make the best impression, how you can ensure your mail stands
out from the rest and what critical elements you should consider. If
you would like more information for your next printed project, to see
some of the really cool samples I have or regarding this article,
please give me a call @ 651-255-1225. You may also find of interest:
Tools Folding Options, Binding Options,
and Envelope Options
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