Direct Mail – Don’t Assume, Just Test and Track
Direct mail can be a powerful tool for branding, lead generation, and customer acquisition for any business big or small. Direct mail provides the opportunity to have your message delivered directly to the homes of interested customers, allowing you to take full advantage of personalization with no worries that readers will miss your ad.
True enough – direct mail is still alive and well today! But one thing we've learned in recent years is that not all direct mail is created equal. In an effort to avoid the pitfalls of this potentially high-cost medium, it pays to test a variety of tactics with different target audiences in order to determine which methods work best for your needs.
In this article, we're going to take a look at the direct mail process from start to finish, highlighting the steps you can take to test each stage and determine which tactics work best for your business – using examples from our own experiences in direct mail.
Direct Mail Process: Terminology
Before we dive into the different stages of creating and sending a direct mail package, it's important to understand some of the terminology used throughout this process. You'll find terms like:
Lead Generation Campaign: This is a campaign that sends out messages directly to potential customers only – there are no traditional media placements (like TV ads or newspaper inserts) involved in a lead gen campaign.
This is a campaign that sends out messages directly to potential customers only – there are no traditional media placements (like TV ads or newspaper inserts) involved in a lead gen campaign. Spending Budgets: This is the amount spent on a direct mail strategy. Different strategies can cost more or less than others based on how many direct mailpieces you need to target your audience, how many different addresses you need to send the piece, and which demographic groups you want to attract.
This is the amount spent on a direct mail strategy. Different strategies can cost more or less than others based on how many direct mailpieces you need to target your audience, how many different addresses you need to send the piece, and which demographic groups you want to attract. Mail Piece: Sometimes referred to as a "direct mail piece," this refers to the package sent out via direct mailing. The mail piece typically contains a direct mail marketing message and a tear-off reply card that allows recipients to respond directly to your offer (by phone, fax, or email).
Sometimes referred to as a "direct mail piece," this refers to the package sent out via direct mailing. The mail piece typically contains a direct mail marketing message and a tear-off reply card that allows recipients to respond directly to your offer (by phone, fax, or email). Response Rate: This is the percentage of households in a target market that respond to your direct mail campaign. It's typically expressed as a percentage or as a number of responses per thousand pieces mailed.
This is the percentage of households in a target market that respond to your direct mail campaign. It's typically expressed as a percentage or as a number of responses per thousand pieces mailed. Direct Mail ROI: This stands for "Return On Investment" and is expressed as the amount of profit you earn for every dollar spent on an advertising campaign – i.e. your ROI.
This stands for "Return On Investment" and is expressed as the amount of profit you earn for every dollar spent on an advertising campaign – i.e. your ROI. Mail Piece Breakdown: This is a list of all the information included in each direct mail piece, including your company logo, offer copy, recipient copy, enclosures (if any), and other pertinent information like call-to-action buttons or phone numbers.
Direct Mail Process: Campaign Development
1. Define Your Outcome
Before you get into the details of creating a direct mail campaign, it's important to first agree on the purpose for which you'll use this marketing tool.
There are many reasons why you might want to target a specific group of people via direct mail:
To generate new leads. This is the primary objective of lead generation campaigns – sending targeted messages only to specific groups of people who are interested in your business. Below are some examples of common lead generation tactics: "Double your sales in 30 days" or "Get more people to do business with you" – these types of messages grab attention and reel in recipients who may be interested in making a purchase.
To attract new customers. You might be running a new product introduction campaign – for example, you may have created a new product and are trying to reach potential customers nationwide by targeting specific advertising outlets to allure them.
To maximize profits. This is the goal of ROI-based campaigns – sending direct mail pieces only to relatively high-value recipients in order to improve your bottom line. A few examples include "Get 25% more response with this offer" or "Lose 50 cents per lead with this offer." For a more detailed explanation of ROI campaigns, see my article on the subject here.
Another good reason for using direct mail: To target competitors. If you're in the direct mail business, chances are your competition is as well. Sending out a direct mail campaign to your competitors' customers can be very effective if you know what areas they are strong in and where they struggle.
You can also use direct mail as a way to make a political statement. If you're selling political products (like an anti-assault weapon or pro-candidate), you may be able to send out an open letter to the public asking them to vote for this person or that one by sending out a direct mail piece that explains your reasoning why their opponent should not get elected.
2. Decide On Your Message
Once you've decided on your objective, next it's time to come up with a clear message that you want to convey through your mailing campaign. There are two different kinds of direct mail messages you can use:
Personalized Direct Mail Messages: Personalized messages convey a personal touch without being too intrusive. Think of it as the "belly button" version of direct mail – targeted messaging that focuses on a person's interests and preferences without sending them any sales pitches. These typically read like this: "Dear (name), You may know me as ____, but thanks for visiting our website. We're in the business of helping businesses sell more products and services. We'd love to share a few ideas with you in person, over coffee. To setup a cup of coffee, please call me at 555-555-5555."
Personalized messages convey a personal touch without being too intrusive. Think of it as the "belly button" version of direct mail – targeted messaging that focuses on a person's interests and preferences without sending them any sales pitches. These typically read like this: Standard Direct Mail Messages: These messages, on the other hand, are very sales-oriented and are often used to promote new products or expand your business by reaching out to new demographics you may not be familiar with.
Conclusion
Direct mail can help you to develop cohesive marketing strategies that reach the right people at the right time. If you're trying to target your current customers, it can also help you to improve your marketing and sales efforts by reaching new prospects.
For more information on direct mail, check out my articles in this area:
If you would like to learn how direct mail simplifies your advertising efforts, check out our webinar series here: Free Webinar Series on Direct Mail Advertising – Simplifying Your Advertising Efforts!
Image credit: "Beehive" © 2002 Doug Eldred, Freepik.com; all rights reserved. Used under creative commons license (CC BY-NC-ND 2.0).