  Tom Kubinski www.shapco.com |  |
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 @ 612-278-1568. You may also find of interest: Tools Folding Options, Binding Options, and Envelope Options
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