American businesses spend $21 billion each year on direct marketing. They do it because direct marketing is more selective than any other mass medium. It delivers the recipient's full attention and gives readers the means to take direct action via toll free numbers, coupons, order forms, etc.
FIVE STEPS FOR A SUCCESSFUL DIRECT MAIL CAMPAIGN
1. Determine the best buyer. Who are you looking for, and what do you want them to do? In defining your best buyer, consider these two factors:
- DEMOGRAPHICS, which tell you about the external aspects of people's lifestyles such as age, sex, income and education level, marital status, etc.
- PSYCHOGRAPHICS, which measure internal aspects such as what people buy and how they live.
2. Formulate your offer. Your offer should appeal to your best buyer. Make it simple and easy to understand. Never trick your audience or make your offer sound too good to be true you may gain a sale but lose a long term customer. Decide whether you want highly qualified prospects. If your offer makes it harder to respond up front, you'll receive fewer responses, but more of those will turn into sales.
3. Select a mailing list. The correct mailing list is one of the most important elements of a successful direct mail program. It delivers your message to your best buyer. You can create your own lists from current customers files, or you can purchase lists from a list broker, manager or compiler:
- A List Compiler compiles lists from the same sources you would use, such as the ones mentioned above. Their advantage is they are set up to cross reference numerous lists, and can give you very specific data such as the names of all women in a certain zip code who drive Volkswagens and had babies last year. The disadvantage is List Compilers work from sources that are usually published once a year, so their lists are not necessarily up to date.
- A List Broker is an independent agent who rents lists from other companies, such as Mastercard, Visa, Popular Science Magazine, Sears Catalogue, etc. Because List Brokers get their lists directly from the sponsoring company, their lists are up to date. Some brokers specialize in certain kinds of lists, such as consumer lists, business lists, or executive lists, and some brokers will put together their own lists from lists that they have. In addition to working with lists, brokers are often experts in all aspects of direct marketing, and are therefore good resources.
- A List Manager works directly for the company that owns the list, such as a mail order catalogue or consumer publication. The manager maintains the company lists, deleting old names and adding new ones. They handle contacts with list brokers and other buyers. While you could call a list manager directly, your best bet is to use a broker.
Plan to spend about 25% of your total campaign budget on lists and related services. The remaining budget will cover writing, design, printing, mailing services, and postage (a major expense!).
4. Choose your format. Letters, invitations, sweepstakes, lettergrams, card decks the options are unlimited. But some work better than others. Dimensional mail, such as boxes and tubes, has the highest opening rate of any type of mailing. Lettergrams traditionally have a high readership level, but that may be declining due to overuse. Card decks are effective on a cost per inquiry basis, particularly for business to business promotion. Whatever format you choose, make sure its compatible with your product, your offer, and your audience. Remember keep your message consistent.
5. Design and write the package. The major elements of a typical direct mail package are the outside envelope, the sell letter, the brochure, the lift note, and the order form and business reply envelope.
- The ENVELOPE is the first thing your prospect see show can you make sure it's not the last? Personalize it. Use a name, not a title like "manager" or "resident." Write a teaser on the envelope that will make readers want to open it and find out more. Use a real stamp.
- The SELL LETTER. Again, personalize it. Sign it with a name. Highlight your most important benefit in the headline or first paragraph. Short words and sentences communicate best, but don't be afraid to write a long letter, especially with a high priced item or service (e.g., stereo equipment or management consulting). Assume your reader knows nothing about what you're selling. Finally, remember to use the ten most powerful words in direct mail: INTRODUCING, NEW, NOW, YOU, WIN, GUARANTEE, FREE, EASY, SAVE, TODAY.
- The BROCHURE. Make it easy to read and make it consistent with the rest of your package. The cover should be simple, with a single image and a strong selling message. Most importantly, include all the information a prospect needs to make a decision and place an order.
- The BUSINESS REPLY ENVELOPE. Simple, one color printing is sufficient for most business reply envelopes. The preprinted portion is regulated by the post office, so check with them for format. A business reply envelope is especially important when requesting confidential information such as phone or credit card numbers
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TESTING YOUR CAMPAIGN: Don't send your direct mail out and wait for the responses to roll in. Test it. One of direct mail's major advantages over other media is the ease with which it can be tested. Test on two levels:
- THE TACTICAL, such as your lists, target market, and timing (those things the recipient doesn't see);
- THE APPROACH, which is your copy, format, offer, etc. (those things the recipient does see).
CONCLUSION: Your list is one of the most important aspects of your direct mail campaign, so make sure you take the time to define your best buyer, and then get hold of the list that will deliver that buyer. Keep your copy simple, your offer honest, and include elements such as coupons and order forms that will help you turn a list of prospects into a list of satisfied customers.
