Direct Mail Marketing
Is it Obsolete?

By Lisa Martin

With the upturn of online marketing and the down-turn of the economy, many people assume that spending the extra dollar on conducting a direct mail campaign is a thing of the past, when in fact it is quite the opposite.

A survey of more than 1,000 US consumers, age 18 and up, was conducted from 10 major metropolitan areas — Atlanta, Boston, Chicago, Denver, Houston, Los Angeles, Miami, New York, Phoenix and Seattle. Respondents were equally divided between male and female, and were screened to at least “sometimes” be personally involved in reviewing their mail.

Below are some of the results:

• 85% say they open, sort, process and read selected pieces from their mail everyday?
• 55% report ‘greater enjoyment’ from reading their regular mail vs. email? This includes the 18-39 age group.
  
• 75% of consumers say they are examining their mail more closely in recent months for coupons and special offers that save them money.
  
• 40% of consumers say that they have tried a new business after receiving direct mail from that business … and 70% report renewing a relationship with a business they’d ceased patronizing, as a result of receiving direct mail from the business inviting them back.

Source: DM-News/Pitney Bowes 2008 Direct Mail Survey

Those within the marketing realm realize that using direct mail is not obsolete and it has actually evolved with the times and can compliment any marketing campaign quite nicely. Direct mail is interactive and response-driven. If you are marketing savvy, you realize that no single channel should be relied on to reach consumers. The more diverse your message medium is, the better.

Although direct mail is a strong tool, unless used strategically it loses its effectiveness. Direct mail requires commitment and a willingness to experiment. A successful direct mail effort calls for experimentation, measurement and multiple mailings to optimize the profitability. With multiple mailings your budget can become a concern. When reviewing costs, don’t limit the amount of campaigns you plan to run, but the number of recipients. Simplify your mailing list and mail only to the core, profitable target audience and cut out unprofitable contacts. Also be sure to keep your lists clean and up-to-date.

As mentioned, each and every aspect of a direct mail campaign has an impact on the response you will receive. Below are some guidelines and a helpful checklist to start you on your way to a successful direct mail campaign.

1. Test everything.
An effective way to gauge the success of a direct mail campaign and pinpoint which elements of the piece were the key to its success is through the process of testing. It may involve using tracking codes on Business Reply Cards (BRCs) or sending out two similar pieces with one variant (within the copy/design or offer) to see which produces a superior response rate. It can also be as simple as adding up to 5 internal team members names to your list (referred to as “seeding a list”) to gauge turnaround times for mailing and re-evaluate your postage choice (standard vs. first class).

2. The mailing list is the single most important element in your mailing.
Go beyond names in the phone book or professional directories. Look for lists of people who have already responded to other direct mail offers similar to your target audience. They may include:

• Recent buyers of a product or service
• Subscribers to magazines
• Members of organizations
  

3. The offer is very important.
Make the strongest offer you possibly can, and then TEST IT. Here are some good elements to test:

• Price – Sometimes high prices draw more orders! You'll never know unless you test
• Free or short-term trial offers
• Free incentives or gifts with order
• Incentives to respond by the deadline
• Guarantee – Make the strongest guarantee you can. The best guarantee offers a full refund at any time. If your product or service is solid, very few people will ask for refunds.
  

4. The copy needs to elicit action.
Copy motivates a prospect to take action. It should be action-oriented and to-the-point. A postcard or a one-page letter may be sufficient, or you may need a longer sales letter or brochure with all the bells and whistles. It depends on what you are trying to accomplish. Here are some points to remember:

• Your prospects spend about three seconds deciding whether to read or trash your mailer. Make sure you pitch to their self-interest, instead of focusing on how great you are.
• Sell the benefits of using your product or service, and support them with features and advantages. To find out what the most important benefits are, talk to your customers! You can also develop benefit statements by applying the "So what?" test. Start with a feature (e.g.,Our ballpoint pen has a matte black barrel.) and ask, "So what?" The answer provides the benefit; (i.e. the matte black barrel is easy to grip and looks elegant on your desk.)
• Do everything you can to build credibility and establish trust. After all, you are inviting a complete stranger to establish a relationship with you.
  

5. Make your design dynamic and kinetic.
Whether your organization is a bank or a nightclub, the design must get attention and move the prospect to take action. Incorporate the following into your design:

• Warm colors - red, orange, yellow - are attention-getting and help stimulate action
• Insure your response card/order form always has the prospect’s name and address on it. If you are using mailing labels, make sure the label is always located on the response card, showing through the window on the envelope.
• Use pictures of people to help build interest and trust. Use captions to sell – everyone reads them.
• Design needs to convey motion, leading prospects through the mailing and to the order card, making it easy to take action.
• Small changes can create unplanned cost overruns. One paper stock can cost significantly more in postage if it weighs more than another stock.
• Unique sizes may be attention-getting, but they may take longer to process in the mail house. Be sure to check with the post office on regulation sizes. You can call your local post office to get answers to specific questions on your direct mail concerns. They also offer helpful mail seminars. Call: 1-800-ASK-USPS or Visit: www.usps.com
  
  

6. Make sure you consider seasonality and timing in your mailings.
Some months are better for sales than others. For example, if you are marketing to government agencies, buying cycles are tied to their fiscal year, which ends September 30th. Mail accordingly. If you mail newsletters to customers and prospects, drop each mailing consistently on or around the same time each month or quarter. You build trust by consistently delivering what people come to expect from you.

7. Go GREEN!
Take into account the planet – use recycled paper and environment friendly inks when printing your direct mail materials. Always give your audience the option to go to your Web site for more information and/or to take action.

8. Make it a two way conversation.
Become a part of an online community and use your direct mail piece to drive your audience to chat and ask questions. People do not like to be spoken to; they prefer to be engaged in part of the discussion. This gives your company the opportunity to become a trusted resource for information and will bring customers back for more. Use the following checklist to assure that your direct mail pieces include everything important:

Include your return address, phone number and Web site (if applicable) on every element:

Click here for a printable PDF of the checklist.

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