Solo Direct Mail Strategy
Who is using direct mail and why? It must be working, cause I get it in my mailbox, and chances are you do too. So what do I need to know to take advantage of this?
The bottom line is that when done properly, Direct Mail works. That’s why you get it all the time. Who doesn’t know about the Bed Bath and Beyond 20% off coupon that comes in the mail? I know my wife looks for it all the time. If this type or marketing and advertising weren’t effective, would Bed Bath and Beyond continue to spend millions of dollars on direct mail?
Before you jump out of your comfy office chair to call me up and launch your direct mail campaign, take a couple minutes and read through some of the things you really ought to consider if you want to have a successful campaign. We’ll of course help you navigate all this, but get educated and do it right if you’re going to do it. In the end it’ll save you time, money and potential disappointment!
Thoughtful Direct Mail
Isn’t it just about the numbers?
Absolutely not! The numbers are a big part of it and there are lots of studies and numbers thrown around about what kinds of response rates direct mail generates. Most people seem to agree that 2% or 3% is about ‘average.’ You can absolutely have a successful direct mail campaign with that sort of response rate. How do you make sure you succeed? Keep this in mind:
An effective direct mail campaign is more than just printing post cards, putting a stamp on them and sticking them in the mail. Some things to consider when you do a direct mail campaign:
It’s a competitive market out there for just about everyone. There’s little chance that you work in an industry where there isn’t some stiff competition, so make sure you do some homework and see what sorts of offers your competitors are putting in front of prospects. Direct mail is an opportunity to put your message in front of a large audience at a cost effective price. Make sure you don’t blow it with a poor offer or special.
Know your Numbers
Make sure you have some idea about the LTV of a customer, or the Life Time Value. The value a new customer brings to a business is based on a lot more than just whatever they buy the first time they come into your store or purchase your items or services. You goal should always be to establish a relationship with your customer to keep them coming back over and over. This is why offers like the ones you see at Groupon are so effective. The businesses that make these offers know it’s tough to overcome the ‘inertia’ of the typical consumer. People are creatures of habit, and it’s going to take more than 10% off to get people to alter their routine. The bottom line here is when you’re considering a direct mail campaign to pull in new customers, don’t throw the opportunity away because you’re afraid you won’t recoup your expenses based on the first ‘touch’ you have with the customers your offer brings in, and don’t waste your money if all you’re willing to do is give 10% off. You won’t get many new customers with a weak offer like that.
In order to increase the LTV of new customers, you want customers and prospects that are local. This is one of the biggest complaints I hear about places like Groupon. Sure the response rate might be good, which is no surprise considering the typical size of a Groupon discount. But how many of those people are likely to be repeat customers? Truth is that a large percentage of Groupon shoppers are deal hunters and bargain shoppers who buy the deal, redeem it and are never seen or heard from again. My experience is that often people will drive a great distance for a Groupon deal, but they’re not going to drive that same distance a second time to get the product or service at normal price. Too many people doing that and the great discount Groupon expects you to give just isn’t worth it. If however, you make that same offer, but keep the offer constrained to folks that live or with within about a 5 mile radius of your location, and you’ve got a big winner on your hands.
If you offer a great deal on something people want or need, and you offer it at a price that’s either a loss or break even price point for you, take the mindset that these folks are still prospects when they come in and purchase your goods or services with the special offer. They’re not not really customers until you take such good care of them that they become loyal, repeat customers. The combination of the direct mail campaign and your great offer will get them in the door, converting them into customers and getting them to come back is your job.
If you do everything right and you send out the right message to the right folks at the right time, people are going to come in. Who hasn’t purchased a Groupon deal or Loclly offer or whatever, only to discover the establishment really wasn’t really ready to handle the volume of business generated? Don’t be that business. Make sure you’re ready when you launch or you’ll miss out on the opportunity to convert prospects to customers because you can’t provide quality service.
Ready! Set! Go!
Ready to GROW your business?
Shoot me an email, call me up, message me on Facebook, tweet me, whatever works for you! I’m anxious to meet you, talk with you and figure out how we can target prospects and get them converted into customers!
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