Traditional direct mail and e-mail work best together. Both have their place in a marketer’s tool kit, neither cancels the need for the other, and the two may even work symbiotically, as when a post card is sent offering a premium if the recipient provides an e-mail address.
Some audiences prefer traditional direct mail
While we acknowledge the growing importance of web-based communication to reach customers and prospects, computers and mobile wireless devices like smartphones cannot by themselves reach everyone in a business’s or organization’s target market. That could change as the use of mobile wireless devices spreads (which is happening rapidly). But until that time, traditional direct mail still has valuable place as a marketing tool.
Traditional direct mail is a good choice for some audiences (such as an older demographic whose adoption of web-based communications may be lagging younger audiences) and for anyone who clearly states a preference for direct mail.
Traditional direct mail is also a good choice for businesses and organizations whose target audience is local. Sustaining member campaigns, fundraisers and financial support appeals by community-based non profits are a good example where outreach by traditional direct mail to the homes of donors is likely to outperform web-based appeal.
Anticipating the addition of, or even the switch to web-based communication, businesses and organizations are collecting e-mail addresses and starting permission-based newsletters and blogs. But until that task is complete, traditional direct mail could be the only way to reach a customer or prospect.
Successful direct mail in 3 easy steps
To conduct a successful direct mail marketing campaign, you’ll need a mailing list, a mail piece and something to communicate that is of interest to your target audience. We’re making it sound simple because it really is.
Notice that we said a successful direct mail marketing campaign. If you measure success as the response rate, then greater success comes from a series of mailings rather than a one-time drop.
The ideal number of mailings in a campaign is either three or seven, mailed close enough together to build recognition in the mind of the recipient. Studies show that the cumulative response spikes after three mailings, then reaches a point of diminishing return until the seventh mailing, then spikes again. Based on this fact, the response rate will be greater if you mail three times to the same list rather than one time to a larger list. Said another way, if you budget allows for mailing 3000 pieces, mail three times to 1000 rather than one time to 3000.
Step 1: the mail list
The best response rate comes from mailing to those who are already familiar with your business or organization. This can be your customers (active and inactive), prospects who have contacted you for some reason, and referrals from customers or friends.
A list you put together yourself consisting of customers, prospects and referrals is known as a house list. A house list can be compiled from customer purchase transactions, donor records, membership rosters and similar sources. In general, a house list produces a higher response rate than a purchased list because so many of the individuals on the list already know who you are.
If you want to expand your house list by adding a purchased list, a good technique is to submit the house list for data append. This adds demographic information (such as household income, gender of the head of household, home value, presence of children for residences and annual sales volume, number of employees, and SIC code for businesses). Data append creates a profile of those on your house list; then the profile can be used to select prospects whose profile is a match.
Using this technique, you’ll have a targeted mailing list of customers with whom you have an established business relationship and prospects whose demographic characteristics match those of your customers. If the list consists of businesses, you can further refine the list by searching the Internet for the business’s web site and gathering additional information to help you personalize a sales message.
As you prepare your mail list, keep this fact in mind: the mail list accounts for 60% of the response rate in any direct mail marketing campaign.
(to be continued 1/31/11)
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