Sunday, May 12, 2013

Is Direct Mail Out of Date

With the advent of email and the current disdain for junk paper mail, is the practice of Direct Mailing out of date for small businesses? Well, yes and no. Actually, done correctly, Direct Mail can be very successful, not only because it is a real novelty in an email world, but because of the way you use it. It depends on three things: What you want to send, Who you want to send it to, What kind of services you are offering. Think of Direct Mailing in two forms: Speed Dating and Marriage Proposal.

Speed Dating:

This is the best practice for retail businesses and certain services such as plumbers, electricians, painters, et al. You don't need to target a certain small market as just about everybody at one time or another will need your product or service. You mail out 10,000+ postcards to a geographic location, aka anybody with a pulse. You can purchase ready made lists. Your offer is all about the best price and the best deal. It's a sales campaign that has no expectation of customer loyalty. Your profit is based on volume. Postcards and coupons are effective and inexpensive.

Marriage Proposal:

This is the best practice for high end products and services. Rather than postcards or coupons which studies show don't work well in this market, you mail out a Sales Letter instead. You do not mail to a geographic or zip code destination. Instead you mail to a small but targeted market of pre qualified potential clients. You offer high end services and products to those who are looking for value and a continuing mutually beneficial business relationship: a lasting marriage rather than a one night stand.

Why the difference between Postcards or Sales Letters?

Postcard and coupon direct mails typically get a .5% return. That's OK because the mailing list is huge. The mailing list is typically by geographic location or zip codes so postcards work well for low end products and services. The list is RESIDENTIAL. The postcard or coupon can be posted on the refrigerator- It's all about price or, how soon they can get there!

Sales letters may bring in a lower response, but the cost of your products and services are higher and your target is BUSINESS OWNERS. Your customers are specialized, pre targeted for their likelihood of need and are looking for more than convenience. They want value and are willing to pay for it. They want trust and a continuing mutually beneficial relationship. A Sales Letter, written correctly, can give you as much as a 25% return. But remember, even a 5% compared to a .5% return on your high end service will be worth the time and effort. Now that you know what to do, how do you do it?

What's in the envelope?

First of all, what's ON the envelope? The hardest part of Direct Mail is getting the customer to open the envelope in the first place! Always hand write the envelopes. That alone will make it unique and irresistible. Secondly, a short "See what's inside" note on the outside is what advertising guru Bill Glazer (Outrageous Advertising) recommends for a successful mailing campaign.

Inside your envelope is your Sales Letter- Remember, it's not about you, it's about THEM!. The classic sales pitch is: 1. Identify their need, 2.Describe their pain, 3.Offer a solution, 4.Call to action. Now that's irresistible! Include your brochure and flier too.

Now what?

Follow up! While it is both impractical and impossible to followup on a 10,000+ list, you can follow up to a small targeted list. Statistics show that 90% of small business do not follow up on their marketing and advertising. So doing so will put you in the top 10%! Yes, it's hard work. Yes, it takes time. That's what it takes to create a successful marriage and that's what it takes to create a successful business. Go kiss the bride!


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