Andy's Articles
DIRECT MAIL - THE BIG BROTHER OF DIRECT MARKETING
Direct mail fascinates me. It is a remarkable medium.
But one that is still very much misunderstood…
At time of writing this, direct mail takes close to 75% of total direct marketing expenditure in the UK and it continues to gain popularity day by day, growing at almost 10% per year.
Latest figures show that 82% of the adult population have bought by mail and 84% of trading companies now use it, for promotional purposes…
…yet, the vast majority of it is still so poor…..not only in the UK and Europe, but overseas as well. Especially here in the Gulf.
You only have to look at your own mail to see that. In fact, there's probably more junk around now, than when the media picked up on the Junk Mail tag and ran it incessantly, nearly a decade ago.
Why is this? Well, there are many reasons. The main one, in my view, is that we, the direct marketing professionals, have not sold our culture too well over the last few years. Yes, I know this is not going to go down too well in certain circles - specialist agencies for one, but it's true - I see it at the sharp end every day.
It's patently obvious to me that we haven't convinced a huge amount of end users that direct mail is a very specialist area, requiring specialist input. Accordingly, marketing departments in companies large and small, don't recognize the need to employ specialists, who fully understand the elements of direct mail and how they work together to create that successful mailing.
Here in the Gulf region, people consider direct mail to be a flyer in an envelope, with a label on the front. They must do, because that's mainly what you see.
It is jaw droppingly poor, in the vast majority of cases. And, despite efforts by a number of dm professionals including myself, people who should know better, still 'play' with the medium, instead of taking it seriously.
So, in an effort to clarify key areas of direct mail, I thought it would be prudent to start with some proven facts…
Million Dollar Mailings, a first class book which analyses 71 of the best US mailings, which the editors call 'grand controls', offers absolutely priceless advice, about what works best and the reasons why.
A control mailing is the one that works best, after being tested against numerous other packs. So these examples have beaten everything they were tested against in the world's most competitive market over long periods of time.
One very special mailing deserves to be highlighted and discussed. The Wall Street Journal, has been running and working for over 25 years, pulling in a staggering $1.3bn (£800m) in sales. It has generated more revenue per word written, than anything else ever published, including the Bible.
The characteristics of a lot of the most successful mailings will probably surprise you. Not one tried to conceal its intentions by masquerading as personal mail. In fact, quite the opposite. They were all blatantly commercial.
88% had messages on the envelope; 83% used window envelopes
Every single mailing pack contained a personalized letter ( more of that later ) and most were longer than a single page, once again disproving that fairy story that no one will read a long letter.
The average length of a letter to sell a consumer magazine was 3.3 pages: for business magazines, 2.1 pages. To sell a newsletter, the average was four pages; for a home study course, six pages.
FREE offers were the order of the day in the mailing packs, both to consumers and business people, and were even more common in the latter case, a trend which has continued to grow and become more successful in the last five years.
As you would expect, the word 'free' was very prominent on the outer envelopes, and was used in 71% of business-to-business packs. This again disproves another myth you hear regularly, that business people are different from consumers and don't like to get something for nothing.
Eighty-three per cent told people to 'send no money now'.
How to Make Your Direct Mail Work Harder
For a product or service to sell well by mail, it must offer one or more of these three basic benefits.
*Attractive Price If the price is lower than the retail stores, a person will obviously be attracted to buy by mail.
*Service/Convenience If the mailer offers terrific service, strong guarantees, easy return policy, a customer will be attracted to buy by mail.
*Exclusivity If the product or service is not available from any other source, those who want it, will be attracted to buy it by mail.
Direct mail is not only an effective tool for generating new business and opening doors. It is also the best available route these days, for building and maintaining relationships with those valuable customers you have spent a lot of money acquiring. Here are 12 ways to use direct mail to cultivate profitable long-term sales relationships.
TALK TO YOUR CUSTOMERS MORE.
Put yourself in your customers' shoes. Think about companies who are now maintaining good relationships with you. What are they doing to keep you happy? If they know what they're doing, they're placing products and services in front of you, that you have indicated an interest in.
In other words, relevant, offer based mailings.
Their mailings will be addressed correctly. Spelling a name correctly might seem like a small thing, but it is a vitally important element.
It is to me. I get angry every time I receive an incorrectly spelt mailing from anyone. It is unnecessary and lacking in discipline and control.
What's more, it reduces my interest accordingly. If they can't take the time to get my details right, I can't be bothered to order from them.
1 SAY 'THANK YOU'
Thank your customers for their business. If you take a customer's business for granted, don't be surprised when that customer takes their business elsewhere. ( And, when they do, you'll be very lucky to see them again. )
It is very, very easy to say thank you. If you sell a product, you can include a thank you note in your fulfilment package. If you sell a service, include a short hand-written note. You could even include a gift.
I heard a lovely story once, of a sales trainer who takes a group photo of himself and his seminar participants after his session.
When he gets home, he has the photo developed and sends a copy (along with a short thank you note) to each person in the group and to his customer who appointed him. It's a nice gesture that everyone involved appreciates.
It costs the person very little, but elevates the speaker's profile significantly.
Guess whose name comes to mind when more training is needed?
UNDERSTAND YOUR CUSTOMERS Keep a detailed history of what your customers order.
I buy regularly by mail, from a number of companies, several times a year. I would think I'm a good customer to some of the companies I shop with.
Yet I very rarely hear anything from them.
Nothing is sent to me that relates to product lines/areas that I have previously shown an interest in, by my past purchasing habits. Right now, my loyalty is up for grabs.
Your best customers should know they are appreciated There is no better way than telling them. Give them something for free, or at a special discount. It's so simple. All you have to say is "We really appreciate your business. Take 30% off your next purchase, or stay with us and your partner goes free"
It costs so little to do this and insignificant compared to the amount that the customer could spend with you every year. And more importantly, it helps develop the relationship and reduces the chance of them defecting to your competitor.
CROSS & UP SELL YOUR CUSTOMERS
Use the very powerful knowledge you have on your customers. This knowledge should give you an insight into selling opportunities for other products in your range.
Perhaps some of your present customers would benefit from an upgrade of your product or service, or from a new extension to the product line. As long as it is relevant and in their best interests, customers will appreciate being made to feel important enough to receive a special deal. So, when you have a new offer or an exciting new service, send your best customers the offer first and make it more attractive than the offer that's going out to everyone else.
For business-to-business customers, include a personalized fax-back order form (this is doing gangbusters business lately).
1 DON'T TAKE NO FOR AN ANSWER
Continue to "talk" to prospects even after they say no. Often customers who say "no", really mean "not now." Prospects sometimes say "no" just because the timing is wrong.
After all, no matter how good our targeting is, how strong our offer may be and how attractive our mailing pack may look, it is still enormously arrogant of us to assume that the individuals we are mailing are in the market for our product(s), right at the time it drops through the letterbox.
They may not be able to use your product or service at that precise moment, but they might have a need for it a month or so later.
If you keep corresponding with them, your name is one they will think of when they need your product.
2 WORK HARDER TO KEEP YOUR CUSTOMERS
Write this statement down and never forget it. It is the number one commandment for all businesses these days:
"It is infinitely more profitable to service an existing customer, than it is to find a new one"
Fight to keep all your customers. Don't let them "fade away."
Once a customer stops buying from you, it does not mean they never will again. Talk to the customer. Find out why that customer has stopped placing orders with you.
Let that customer know you value his business and you will do whatever is necessary, to get him purchasing from you again. Write to him and say "We haven't heard from you for a little while and we've missed you…here's a special offer to entice you back….".
It is a fact that most companies will lose around 30% of their customers every year. Improving that figure by as little as 5%, could double bottom line profits.
3 BIRTHDAYS & ANNIVERSARIES ARE
GREAT SELLING OPPORTUNITIES
Don't forget your customer's birthdays, anniversaries or special events.
Most people are happy at these times. Take full advantage of this positive outlook and turn it into business for you.
I know of one restaurant group in the USA, that sends birthday cards out to their customers offering them a FREE meal ( if they come with a party of 4 ), anytime in their birthday month .
This promotion has been pulling over 40% redemptions regularly, year after year.
4 USE THE POWER OF POSTCARDS
Use postcards within your promotional programme.
They are very cost effective and can be very impactful.
It costs peanuts to send a short message to prospects and/or current customers, to let them know about something relevant, new and attractive.
It could also be used as a notification to watch out for your next direct mail pack "crammed with new and exciting offers"
Or of course, a postcard could be used to send a simple "I've been thinking about you"… message just to keep your company in the forefront of customer's minds.
5 CREATE A UNIQUE PERSONALITY FOR YOUR MAILING PROGRAMME
It will be a fact that the individuals you have identified as attractive to you, will also have a similar attraction to your competitors.
Accordingly, it is important that your communications 'rise above the general noise level' and stand out amongst the rest.
If you are planning a mailing programme, covering a period of time, it will certainly pay big dividends, to create a personality, or theme for your mailings. This might take the form of a special size mailing, or special colour combinations, or unique branding message.
6 USE QUESTIONNAIRES
Your customers can help you enormously with your future promotional activity. Their opinions about you, your company and your products/services should be sought. How?
Well, I am constantly asked "How do I find out what my customers think"… …my answer is a simple one. Ask them and they will tell you…
Incorporate a questionnaire into your mailing programme. One per year is about right, to keep you abreast of changing opinions and views.
Make it easy for people to respond. Use a tick box/yes/no format, with no more than 10/12 questions.
Reward them for taking the time to complete the questionnaire. Remember, they are doing YOU a favour. A discount voucher of value for example, encourages repeat business, and has a greater potential attraction to both your customer and you, than a prize draw.
IF YOU ARE THINKING OF RUNNING ONLY ONE MAILING CAMPAIGN, DON'T DO ANY….
Direct Mail, in some ways, is no different from other promotional mediums. It requires frequency to generate the best returns.
Let's face it. You never see a TV ad running one time only, do you? You never see a poster campaign with one site ?
That's because, these days, on most occasions, it's a slow burn. For some products and services it needs a number of hits on the target to register and create action.
Direct mail is the same. Your finely tuned target might not be interested today.
But tomorrow is a completely different story…
AND LAST, BUT MOST IMPORTANT OF ALL… NEVER, EVER SEND A DIRECT MAIL PACK OUT, WITHOUT A PERSONALISED LETTER…EVER, NO EXCEPTION…..
Direct mail is a superbly effective, personalised medium.
With the possible exception of actual personal contact, it has no equal in one to one communication. So, take advantage of this enormous benefit and use it correctly.
And that means using a personalised letter. Remember, in direct mail, 'the letter sells, the brochure tells' That's the way it is. That's the way it will always be.
Don't mess with this, by trying to cut corners and mailing a brochure only. You will be wasting your time and your money. If your target is important to you, that target deserves to be spoken to personally.
And remember, the brochure only tells. It won't sell on its own.
In direct mail, the targeting and the letter vastly outweigh creative in importance terms. It has been proven thousands of times over the years.
So, throw all your self - adhesive labels in the bin now! Labels on outer envelopes, went out with the Zeppelin. Either use window envelopes, or print your address directly on the front of the envelope and hand match the personalised letter at mailing stage.
One other thing. Unless you are an experienced direct marketer, don't write the letter yourself. Don't even try. You won't have the skill. Neither, incidentally, will your above the line agency.
Direct response copywriting is a specialist art. There is a massive difference between traditional ad agency and direct response copywriters.
They are storytellers. We are salesmen.
So, in summary, don't take direct mail for granted. Don't play with it, like so many still do. Treat it with respect and abide by its proven rules. And, seek specialist advice, if at all possible.
If you do all those things, you will enjoy a return on marketing investment that you will find hard to beat.
Best of luck.
Andy Owen is Managing Director of Andy Owen & Associates, a Strategic Marketing Consultancy, with offices in Birmingham, Dubai, Paris, New York & Los Angeles. He personally visits Dubai every four weeks to work with clients in the area. He can be contacted on 0044 121 778 6640, or by email at andyowen@aol.com en.co.uk