Elements Part 3: The Schedule

The Schedule

Direct mail is most effective when mailed repeatedly and regularly. For planning purposes, figure a typical response rate of 1-2% (though this number can change based on many factors). The response rate is cumulative based on minimum of three mailings. If your budget allows for a mailing of 6000, the response rate will be higher if you mail three times to 2000 rather than one time to 6000.

Space the mailings between 4 and 6 weeks apart and coordinate the dates with a supporting  e-mail and/or telemarketing campaign. Using more than one marketing channel will improve response rate.

Tips and Tricks

Creating a direct mail marketing campaign that also includes using e-mail outreach is becoming increasingly popular. Adding a QR code to a mail piece makes it interactive and takes the recipient to a web page for more information, to enter a contest or take a survey, or retrieve a coupon. Some QR codes make a phone number pop up on a smart phone; by clicking, the recipient is connected with a contact center-effectively completing an inbound telemarketing response.

The shoe company DSW (Designer Shoe Warehouse) learned something interesting about its customer's use of QR codes: namely, that men like to use them but women often ignore them. DSW found that their male customers don't like tearing a coupon from a mailer and putting it in their wallet, but will click on a QR code that provides a coupon that can be downloaded to a smart phone. Women, who are more inclined to put something in their purses, were less likely to use a QR code-based coupon.

Direct mail is effective

Direct mail is a proven and viable method to communicate with customers and prospects. For help planning and executing a direct mail marketing campaign, contact us at 254-773-7391 or by email dennis@papergraphicsltd.com. We'll guide you through the process to bring you success.

Elements of a Direct Mail Campaign: The Mail Piece

There are three basic elements of a direct mail marketing campaign: a mail list; a mail piece; and a schedule. Each element influences the response rate (and therefore the effectiveness) of the campaign. In our last Blog we looked at the mail list, this time we will take a look at the mail piece.

The Mail Piece

There is much debate about what format for a direct mail piece is best. If the job of the mail piece is to engage the reader, then information from the Direct Marketing Association indicates that format isn't as critical as you might think. In the Statistical Fact Book for 2006, the read rates for postcards, catalogs, flyers, letters and large envelope letters ranged from 42% for postcards to 34% for letters.

So the best advice is to choose a format that is most appropriate for your message. Here are a few suggestions:

• Post card/self-mailer. Good for a message that doesn't require a lot of explanation. Use to build traffic (to a website or a physical location) or complete transaction (place an order).
• Flyer. Good for a general message or announcement, especially when the target audience is prospects rather than customers.
• Direct mail package. A large envelope with multiple inserts-letter, brochure, order form, response device etc. Used more for customers or hot leads than for general prospecting.
• Letter. Use when you want to give a personal feeling to the mailing. Because two-page letters elicit a higher response rate than a single page, either write a longer letter or include something else- a brochure, an article or a product sheet- to serve as the second page.

The content of the mail piece must always include an offer and a call to action. A good offer is relevant to the target audience; promotes only on thing; it's time sensitive (to create a sense of urgency) and is easy to understand. If the purpose of the direct mail campaign is to secure an order, the offer can be product-related (such as buy one, get on free; free trial; premium with purchase; free sample; or price discount). If you are trying to secure leads, then the offer should provide a motivating incentive (educational or information white paper, free consultation, research results).

When the target audience is consumers, include a coupon. Across all age groups, 70% of buyers respond to a message that includes a coupon.

You may be surprised to learn that the design of a mail piece accounts for only 20% of the response rate. What this means is that unless your target audience requires it, you can keep the design simple. The rule of thumb is that the recipient will invest from 3 to 7 seconds to decide whether to open and read; keep to read later or pass on to someone else; or discard. Use this time to best advantage by following these tips;

• Use a large, short headline as teaser copy on the front of the envelope or post card.
• Stress benefits, not features in the body copy.
• Make the call to action simple and easy to find.
• Include contact information prominently but not dominantly
• Keep your logo and name visible but don't make it compete with key elements of the mail piece (headline, offer, call to action).

In our next Blog, we will look and scheduling your direct mail campaign.

Elements of a Direct Mail Marketing Campaign: The Mail List

Elements of a Direct Mail Marketing Campaign

The basic elements of a direct mail marketing campaign are simple: a mail list; a mail piece; and a schedule. Each element influences the response rate (and therefore the effectiveness) of the campaign.

The Mail List

Of all the elements, the most influential is the mail list. It has been estimated that the mail list accounts for 60% of the overall response rate. Design a beautiful mail piece and include an irresistible offer but mail to the wrong audience and the response rate will be disappointing.

Today target audiences expect a direct mail piece to be relevant to their needs or interests. Personalization- such as including information about the prospect on the mail piece, tailoring the presentation of information, or including an appropriate message- are ways to demonstrate relevancy. Highly targeting personaliztion requires additional information (such as buying patterns and demographic profiling) that turns a mailing list into a database.

Any mail list- whether containing only name and address or enriched with transaction and demographic data- must be 100% accurate to be effective. This means spelling names correctly, keeping addresses current, and ensuring that demographics like age and gender are accurate. We can help you by giving you address corrections we receive from the USPS prior to mailing, but you will have to take the time to update your mailing list.

In our next Blog, we will look at the second element: The Mail Piece.

Direct Mail: Your Extra Salesperson

Here is an easy way to add an extra salesperson to your marketing staff: develop an ongoing direct mail marketing campaign. While the goal of advertising is to create brand awareness and a connection with potential buyers, direct mail marketing aims to motivate a prospect to take action and complete a transaction. A carefully planned and executed direct mail campaign can do just that.

Today more companies are turning to direct mail. According to research conducted by IBISWorld and published in its October 20,2012 report Direct Mail Advertising in the U.S., direct mail is expected to grow 1.4% annually in the next five years. This is in contrast to the 1.2% contraction direct mail has averaged since 2008. Part of this is due to incentives provided by the United States Postal Service (USPS), such as direct mail that includes QR codes and Every Door Direct Mail.

In its 2011 Channel Preference Study, Epsilon Targeting found that direct mail is the top choice of consumers for receiving brand communications, even among 18-34 year old's. Other interesting findings include:

• 26% of U.S. consumers and 30% of Canadians said direct mail is more trustworthy than email;
• 50% of U.S. consumers and 48% of Canadians said they pay more attention to postal mail than email;
• 30% of U.S. consumers said they're receiving more mail that interests them compared to a year ago, and just 50% (down from 63% in 2010) said more information is sent to them in the mail--including marketers are improving targeting efforts;
• The perception that reading email is faster declined among U.S. email account holders to 45% in 2011 (from 47% in 2010), suggesting clogged in-boxes are draining time.

Keeping Leads Alive and Healthy

No business can thrive without leads to drive sales. While finding quality leads is challenging enough, maintaining and converting those leads can be even more difficult. As you think about your sales strategy for the new year, consider these ideas for keeping prospective buyers interested and active.

Take Your Time
Nobody wants to feel as though they're being overtly sold a particular product or pressured into making a buying decision that might not be right for them. Yet many sales reps are very quick to launch right into a sales pitch or offer quick-fix solutions without fully understanding a prospect's needs. This approach tends to turn off a lot of prospects and quickly kill leads.

Instead of launching right into your sales speech, start the conversation without broaching the subject of sales at all. For example, if the lead came from a list of customers who are using an outdated software system, begin by asking how the current system is working for them. Some companies may not even realize that they should consider updating. Approaching the subject from this perspective can seem less pushy and help the prospective customer feel more comfortable talking with you. From there, you can gradually ease into a more sales-oriented conversation.

Build Rapport
Get to know your prospect and their particular needs before discussing budgets and product specifications. Then tailor your approach accordingly. Establish rapport and let your customer see that you have a genuine interest in solving their problem, not just making a sale. Even if you don't make an immediate sale, your prospect will leave the meeting with a more positive impression of your company and will be more likely to turn to you when they're ready to make a purchase in the future.

Follow Up
Don't make your first meeting with a prospect your last contact with that person. Follow up to remind them what you talked about and to keep your name top of mind. A poll conducted by B2B Marketing Magazine found that 69 percent of buyers preferred to have companies follow up with them through e-mail. Telephone follow-up finished a distant second, at 17 percent. SCi Sales Group found that 52 percent of buyers expected a call back from companies within one day, and another 36 percent said they expected to hear back from a company within five days. Failure to meet buyers' expectations on these issues can result in a variety of missed opportunities.

Resurrecting Dead Leads
Sometimes, despite the best of intentions, leads die. Some, however, can still be resurrected. Successfully generating sales from a dead lead requires tact and the right tools.

Once a lead has gone cold, it can be difficult to determine if the prospect still has a need for your product. Your first step should be to determine this potential. Remember again that prospects don't appreciate pushy sales tactics. Instead, try sending a brief, one or two line email to determine if they're still interested in your product. If the response is positive, follow up right away with a phone call, asking for a time to sit down and meet. In your meeting, steer the conversation toward the prospect's needs and solving their problems, rather than focusing on your product or pushing for a sale.

Keeping leads alive and healthy is an important part of doing business. In the rush to get as many leads as possible, it's easy to let some leads die. These leads, however, can be a major source of revenue for your company. Learning how to keep leads alive or save those that have gone cold is an important skill... and one that can improve your company's bottom line.