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View Full Version : Direct Mail Campaigns DO work!



TravisPetelle
07-29-2010, 11:43 AM
I've noticed pretty much every business that I work with hates direct mail campaigns. I've even noticed it from a lot of my blog readers and a lot of these forums how people say no no, direct mail doesn't work...there's no ROI. Well, that's complete crap really. Direct mail is a method that has been around for hundreds of years and can still work today just like it did in it's hay day.

The problem most business owners have when they send a direct mail piece is that it's just another flyer or piece of junk mail that we all get everyday. Marketing...no matter what from...is all about being like no other....grabbing attention. This is especially true with direct mail pieces.

There are three steps to having a successful direct mail campaign. First, they must open the piece of mail. There are multiple ways to get this to happen. Don't just send your normal envelope. Try multiple sized envelopes, multiple colors, try using lumpy mail (small trinket inside, makes the envelope have a lump).

One best way I know to get someone to open the mail is have the return address from someone they know. On your next job, when you have a satisfied customer, start talking with them about what organizations they are a part of...kiwanis, CoC, friers, etc....everyone is a part of something. Then ask if you could send a message to this group in there name...you write up the direct mail piece and allow them to look at it. If they want anything changed, then change it. The piece will just talk about your business and what you did for that customer and how much they liked your service...etc.

What this does is guarantee the reciever is going to open the letter...100% guaranteed. You just got past step one of direct mail campaigns.

Step two is getting them to read it. In your everyday direct mail piece, the key here is your headline. In the suggestion above, it's pretty much guaranteed they are going to read it too. But if you went through a different approach to direct mail...you have to grab their attention with the first line in the mail piece. You just want them to read the rest of the letter.

Then of course step three would be for them to take the action that you tell them to do in the letter (you better have a call to action). So, if you want them to call you, say CALL ME at the bottom. For an effective direct mail campaign, you must send to the prospect more then once...three times minimum. If you are only going to send one direct mail piece then don't send one at all. Build urgency in the progression, offer special discounts with a fear of loss feeling inside. Just don't send only 1.

You can greatly increase your chances of this happening by perfecting your copy in the letter and also by the target audience you sent the mail piece too. Don't consider everyone your target customer. Find the neighborhoods that would have your ideal customer located. See where people are living that will need your services the most and only send to that neighborhood.

And as with any marketing technique, you have to test test test.

Direct mail is not dead in anyway. I get my biggest clients with direct mail. I've doubled businesses revenue in under 60 days with direct mail alone. It doesn't matter what industry, you just have to be creative...thats what marketing is. Stand out from everyone else.

iberlian
07-29-2010, 12:02 PM
What else to do you suggest for start up companies to do in addition to direct mail to be most successful in sales. For example, I am about to launch a web directory and we're sending mailings to all of our potential clients as well as doing some cold calling, but we have little creditability thus far. Any advice would be appreciated.

Lyrafire
07-29-2010, 03:40 PM
I strongly believe in using a mixed-media approach to marketing. What do you think is a good response rate?

One thing, though. I'm surprised that people will allow you to use their return address to try to sell a product. Do you give them a cut or something?

Steve B
07-29-2010, 03:47 PM
It definitely does NOT work for my business. I used all of the tactics you stated. I tried it several times, and the best I ever did was break even.

Patrysha
07-29-2010, 05:28 PM
It definitely does NOT work for my business. I used all of the tactics you stated. I tried it several times, and the best I ever did was break even.

How niched was your list Steve? I've been intensely curious about that for a while. I think a good offer to a good list should work for you and it boggles my mind that it hasn't. Of course, it boggles my mind why some of my endevours fall flat too...that dang 80/20 rule is a bugger!

hdm
07-30-2010, 03:05 AM
Good morning, Travis. I enjoyed reading your post, very encouraging.

Direct mail allows you to target your audience. Using good direct mail lists means you waste less time, effort and money on those who are unlikely to be receptive to that pitch. By pinpointing your intended recipients, you restrict the use of resources to those who are most likely to bite. If the marketing mail contains an effective call to action the response should be swift and sure.

Direct mail is personal. Even though it may be carried out on a large scale, carefully worded copy can seem to address the recipient directly and avoid the impersonal spray and pray advertising like TV adverts and billboards. Unlike those methods, the mail piece also gets the recipient’s undivided attention, for a few seconds at least.

Direct mail stands apart from the high-speed, frenetic world of advertising and hearkens back to a time when things were a little calmer.

Using handwriting in marketing materials may take a little more time and effort but is sure to pay off in conversions. It is a good marketing tool for getting your readers' attention, even if it's just to direct them to your website.There is something about a handwritten letter that almost compels you to read it. However, just using handwriting isn't enough to guarantee conversions on its own. Handwriting just breaks down barriers and gets the message noticed. You will still need to use every trick in the book to convince people to contact you.

Steve B
07-30-2010, 07:24 AM
My list targeted homeowners in the right zip codes, houses over 300k, and dog owner's. I even hand addressed the envelopes and used a first class stamp on most of the campaigns.

cbscreative
07-30-2010, 02:03 PM
Although I have Steve B in mind on this post, it really applies to almost anyone when using direct mail (or even other promotional methods).

First, the direct question to Steve. What are your offers? More directly, are you trying only to sell pet fences, or have you tried to establish relationships?

Here's why I ask. I think it's safe to say that most advertising or promotion is focused strictly on "selling" and missing other opportunities. If your direct mail piece seeks to sell the pet fence and it's that or nothing, then there's money on the table. I'm really just asking because I have no way of knowing what your mailings look like.

What other things do dog owners care about? I know urinary tract infection (UTI) is fairly common, so I'll use that as an example. If you had a guide on simple tips to keep your pet healthy and avoid UTI, do you think pet owners would be interested? Use the direct mail to direct people to your web site for the free guide. Encourage them to sign up for additional pet care tips by email. Seek out strategic relationships with local stores for discounts to include in your emails. I doubt the opt out rates will be very high if you keep the emails valuable like that.

As you are sending these emails, you are building trust as the guy who wants to keep pets safe and healthy. Over time, I think you'll sell more and more pet fences.

Lyrafire
07-30-2010, 02:22 PM
Although I have Steve B in mind on this post, it really applies to almost anyone when using direct mail (or even other promotional methods).

First, the direct question to Steve. What are your offers? More directly, are you trying only to sell pet fences, or have you tried to establish relationships?

Here's why I ask. I think it's safe to say that most advertising or promotion is focused strictly on "selling" and missing other opportunities. If your direct mail piece seeks to sell the pet fence and it's that or nothing, then there's money on the table. I'm really just asking because I have no way of knowing what your mailings look like.

What other things do dog owners care about? I know urinary tract infection (UTI) is fairly common, so I'll use that as an example. If you had a guide on simple tips to keep your pet healthy and avoid UTI, do you think pet owners would be interested? Use the direct mail to direct people to your web site for the free guide. Encourage them to sign up for additional pet care tips by email. Seek out strategic relationships with local stores for discounts to include in your emails. I doubt the opt out rates will be very high if you keep the emails valuable like that.

As you are sending these emails, you are building trust as the guy who wants to keep pets safe and healthy. Over time, I think you'll sell more and more pet fences.

This is good, actionable advice. You really help us to see what is meant by building relationships. It all goes back to "you have to give to get," which is the new (well, not entirely new) standard practice in web marketing.

Steve B
07-31-2010, 07:48 AM
I used a couple different offers in my attempts. One was a free gift just for requesting a quote (Book by Cesar Milan - the Dog Whisperer) and a $75 discount if they got a fence installed. The most recent was that I offered to put the fence in for FREE and give them 30 days to decide if they want to keep and pay for it (an unheard of offer for my type of business). I forget what the other offers were. I'm pretty sure I didn't have anything in it that would qualify as building a relationship. The building a relationship concept is a great idea, but direct mail would be WAY too expensive to use for that. Between the list, the printing, the postage etc. - it usually comes to around $1 per house (if you use first class postage).

However, I could use this approach in my newspaper box stuffing campaign. The cost is much cheaper for that. I spend 3 cents a piece for the printing and 3 cents a piece for the delivery. We hand pick the zip codes and neighborhoods. Of course, we give them to everybody so 2 out of 3 people will NOT have a dog. But, even factoring in the waste on the non-dog owners it still makes it a more reasonably priced way to try out your relationship building approach (18 cents per home with a dog). Actually, I wouldn't call the 2 out of 3 a total waste, because those people at least know somebody that has a dog.

I really just wanted to point out in my response that the only people that are extremely confident about any type of marketing approach are the people selling it. They usually quote some statistics that are based on fantasy and are NEVER willing to guarantee any result. The last attempt was last month. The salesman predicted I would get between 30 and 40 calls. I let them design the piece so they couldn't blame me for a lame graphic etc. Guess how many calls I got? One. Which was actually exactly what I predicted. Luckily it turned into a sale.

cbscreative
07-31-2010, 02:30 PM
Fortunately, Steve, I'm not stuck on any one method such as direct mail. I do know it can work, but I can't argue about it not working for you so far.

The one concern I would have about your newspaper idea is the dwindling circulation of newspapers. If your area is like mine, the circulation numbers are being artificially inflated. Basically, the publishers are giving out papers trying to get people to take them. I see through their tactics because I know they just need to be able to show advertisers how many subscribers they have. I can only imagine how low the quality is. Many people aren't even buying papers any more, they're taking advantage of the free offers which I'm guessing keep getting extended.

I won't argue that some good leads won't see your offer, but I wonder how many will really be any kind of quality. Around here, about the only selling point the papers have left is the coupons inside. If you can use that structure to form your offer, it might work for you.

From some of your other posts, I have to wonder if you're utilizing Facebook. I would expect that to be a valuable resource for your business.

huggytree
07-31-2010, 05:27 PM
almost all of my builders were gotten by direct mailers...i still do it every 3 months....

i hand write the envelopes and know who to put ATTENTION: to

it works well because i send them over and over and over for 3+ years straight...they all know me...i used to come up with a new mailer each time...now i send the same one for 3x in a row...i doubt they notice...i change up the mailers to focus on different subjects...every customer is different and has different issues with their current plumber...by changing them up i hope to hit on their pet peeve. without those mailers i would have failed..almost all of my current customers have been gotten by mailers in the past 16 months.....so if i would have quit doing them long ago id be in trouble right now.

cold calling them doesnt work...they blow me off...they are busy....a mailer works great....its a reminder that im out there for when they have a problem with their current plumber...im here to take over...eventually they all call me.

Steve B
07-31-2010, 06:49 PM
I actually have someone put my piece in the newspaper box directly - it's not part of the newspaper. So, everyone in a chosen neighborhood gets one.

greenoak
08-23-2010, 09:23 AM
i feel the same way about marketers...at the same time knowing how important marketing is...we do our own and i would love to get out of some of it.... but ours is so productive i cant just turn it over to someone who says they know everything ....i cant afford to go backwards ..
.... maybe your letters are working, maybe if they got your mail and later saw your truck...then when the real need for a fence came up maybe you would be the name that pops into their mind....i thnk its SO hard to measure....especially for a pet fence which depends on their dog situation and their available money to purchase...it doesnt sound like a real impulsive buy..
ann

Tri-Win
05-05-2011, 11:27 AM
Steve, it sounds like you are in a hard spot with direct mail. Or, rather were in a hard spot since you are not using it anymore. I think greenoak has a point. You are not in an impulse buy industry so in your case direct mail would be a name recognition technique. The same thing you get with a truck, or your newspaper box approach. As long as you are working in a neighborhood that the truck / newpaper approach is great. Direct mail give you the opportunity to canvas a much larger area at one time. You might look at the new "Every Door Direct Mail" campaign USPS it is designed to let someone canvas an area without needing to buy a list. No list cost plus using bulk mail rates instead of first class might get direct mail into a price point you are interested in.

Steve B
05-10-2011, 07:44 AM
That's a great idea. I didn't know of that option.

You're right, since it's rare that anyone needs a dog fence at the time they receive the piece from me I think those campaigns will not have a measurable impact. Perhaps they contribute to name recognition that has a pay off that is too hard to measure.

As a result, I'm starting a new campaign that will be much slower and more expensive, but, hopefully, more successful. I've printed a jumbo post card, and also printed a business card sized sticker. I will be applying the sticker to the post card via fugitive glue dots (aka credit card or booger glue). The focus on the piece will be the service work that we do for any brand of dog fencing. The instructions will ask the consumer to place the sticker on their current dog fence equipment in the garage so they will have our number handy when they need it. Since I also own a company delivering dog food, I'm making use of the effort by also attaching a sticker with info. on our dog food delivery service. The problem is that this will be incredibly time consuming to attach the stickers to the post card. Let me know if you have access to any companies that could put all this together for me.

Thanks for the tip - where do I find out more about the Every Door Direct Mail thing?

cbscreative
05-10-2011, 02:14 PM
You're right, since it's rare that anyone needs a dog fence at the time they receive the piece from me I think those campaigns will not have a measurable impact. Perhaps they contribute to name recognition that has a pay off that is too hard to measure.

I think that point is one of the easiest for business people to miss. While it's good advice to "measure" your response from all marketing and advertising methods, it can be deceiving. Marketing and advertising really isn't one or the other, it's everything working together.

I've probably used this example here before, but I think it illustrates the principle very well. Several years ago, I used to work for a company that did screen printing, signs, and promotional products. During my time with them, I had many titles and job responsibilities. This not only provided exposure to every facet of the business, it gave me some great experience. A couple of the titles I had were office manager and sales rep.

It was these two positions that allow me to have real world proof of how difficult it is to accurately measure your response rates. The company did a significant amount of radio advertising. As office manager, I can't recall one single phone call that was the result of the radio ads. From all appearances, those radio ads were a complete waste of money. While out selling though, the payoff was more obvious. There were MANY times when I approached business people, and when I introduced the company, got responses like, "Oh yeah, I've heard your radio ads." This provided selling opportunities that I am sure would not have had as much chance of success otherwise.

sacramentoonlineads.com
05-12-2011, 08:38 PM
I have never run a marketing campaign under 2% of return for direct mail and I think it is one of the best. It maybe out of reach for some but those that can- it will be affective!

SmallBusinessAdvice
05-23-2011, 01:58 PM
Maybe, I missed it, but there is one list Direct Mail will have a tremendous ROI with the right offer. That is your own customer mailing list. We talk about getting new customers, while existing customers list will bring 5-10 times the result.

Every small business owner that I have sent a letter to their list with a good offer gets great results. Yes, you can try to use email, but direct mail still works. One huge secret is don't send a stupid coupon for $5 off $20 or $25 purchase. Send a free gift certificate depending on the price of your products or services and track the results. If you are nervous, send a small mailing first and track the results. You should be pleasantly surprised.

mhilliarda
05-27-2011, 02:52 PM
I think direct mail can still work, but how long would you suggest waiting to follow-up? Obviously with direct mail you have to give them a longer time to receive it and respond. How do you judge how long?

uwwandrew
05-29-2011, 04:16 PM
I own a web development/marketing company and you would not believe the number of people that still come into my office thinking their revenues will soar once they get a site. Of course I talk them down primarily because it is almost never true but also because I encourage them to use traditional methods like direct mail. I consider the website to be your marketing cornerstone. In the case of direct mail there was some traditional thinking that suggested out of every 1000 mail pieces you will get 1 (or whatever) customers. What was unknown then was how many people were actually interested in the offer but had questions the flyer could not answer and were unwilling to call and speak with a sales guy. Every other marketing mechanism has a limited space to tell your story. Your website is your unbridled resource to (among other things) tell the whole story and complete your business objective (get a sale, get a call, schedule a test drive, etc.)

greenoak
05-30-2011, 08:57 AM
steve c....i think you described very well how advertizing has to be looked at.....its never quite black and white.....
we are getting about 500 or 600 actual sales for our event right now...and thats about 10% of our database....so i know things are working .... you show how murky it is to pin down.and how hard it is for us owners to judge whats going on....... my theory is dont rock the boat too much as long as those results come thru.......
dirrect mail has been huge for us....people gripe if they dont get theirs.... or notice, like this year when disaster struck and they got it late...

cbscreative
05-31-2011, 03:53 PM
I own a web development/marketing company and you would not believe the number of people that still come into my office thinking their revenues will soar once they get a site. Of course I talk them down primarily because it is almost never true but also because I encourage them to use traditional methods like direct mail. I consider the website to be your marketing cornerstone. In the case of direct mail there was some traditional thinking that suggested out of every 1000 mail pieces you will get 1 (or whatever) customers. What was unknown then was how many people were actually interested in the offer but had questions the flyer could not answer and were unwilling to call and speak with a sales guy. Every other marketing mechanism has a limited space to tell your story. Your website is your unbridled resource to (among other things) tell the whole story and complete your business objective (get a sale, get a call, schedule a test drive, etc.)

I will enthusiastically second this. I actually have to screen clients when they believe this myth. If they think a web site will magically make things happen without support from other methods, that is a disaster waiting to happen. Your point about how a web site supports the other methods is one I find myself continually trying to teach. With some audiences, it doesn't always sink in.


steve c....i think you described very well how advertizing has to be looked at.....its never quite black and white.....
we are getting about 500 or 600 actual sales for our event right now...and thats about 10% of our database....so i know things are working .... you show how murky it is to pin down.and how hard it is for us owners to judge whats going on....... my theory is dont rock the boat too much as long as those results come thru.......
dirrect mail has been huge for us....people gripe if they dont get theirs.... or notice, like this year when disaster struck and they got it late...

Thanks, Ann. I've seen examples where business owners didn't realize how effective one method was until they eliminated it. I'm sure there are many times where people lose money without being able to identify why simply because they miss the principle of how everything ties together.

jamesray50
06-06-2011, 02:05 PM
Wonder what it would cost to advertise on the back of a city bus?

Patrysha
06-06-2011, 06:14 PM
I think in the $10,000 a pop range...course depends on the size of the town and a few other factors...

akfisher
07-11-2011, 05:35 PM
Hi all... I work at a marketing automation firm that specializes in automating B2B email marketing, and guess what? We just sent out a really fun direct mail package! It was "lumpy", because we put a tin of silly putty inside each mailer. So we've found that direct mail definitely works as a strong complement to web and online marketing. Sometimes it's necessary to try multiple channels (email, direct mail, automated call, telemarketing) in sequence to get through to a prospect.

J from Michigan
07-11-2011, 07:50 PM
Big mistake people make is sending out 6000 mailers all at once.
You are much better off sending 2000 mailers- 3 different times to the same place.

It's like a movie poster;
- the first time you see it, you don't notice.
- the second time, you remember it exists.
- the third time, you can hardly wait to go see it.

victoria stiles
08-09-2011, 12:50 AM
I think direct mail can still work, but how long would you suggest waiting to follow-up? Obviously with direct mail you have to give them a longer time to receive it and respond. How do you judge how long?
Yes. that is true that that the direct mail service still works. In fact, if you sell a business-to-business service of any kind, a direct mail can be a powerful tool for generating leads from a targeted list of prospects.They still work. In some cases, better than ever.

greenoak
08-09-2011, 07:02 AM
i figure most direct mail is wasted on me...but if its something i might like it would be a lot better than sending me an cd...im maybe like dans mom ...i would need help putting it in the computer..and probably just toss it in the trash.....
also if it was lumpy....something related to the product enclosed, that might be great...
our direct mail is really boring...credit cards and insurance mostly ....

NineDesign
08-09-2011, 07:36 PM
I was a layout designer for several of Cox Communications direct mail campaigns. . . *waiting for the crowd to hurl objects* . . . and the great thing about a large scale DM campaign is that if 2% of people end up becoming customers from the mailing campaign, it pays for itself. Everything after that was pure, tasty profit. I would say depending on the demand for your product or service, coupled with how effectively the campaign is executed will determine whether or not you'll get your investment back and make money.

A couple notes about the execution of a DM campaign:

• Target several different audiences with the campaign, don't just mail out the same generic piece of mail to everyone.

• Research the demographics of your market. This comes into play when choosing photos and writing copy. For example, if you're targeting a base of customers in a Korean neighborhood, or restaurant proprietors – make sure you know who owns what in that area. If the majority of the restaurant owners are Korean, you'll probably want to include a photo (regardless of what it happens to demonstrate) of an Asian business owner. I'm not trying to sound shrewd here, but people will feel a more personal connection if the mail feels personal.

• Use variable copy. Even something as simple as "Dear [Potential Customer Name]," sounds better than "Dear Business Owner," again it's all about making them feel a personal connection to the piece.

• Send DM pieces to existing as well as potential customers - existing customers are more likely to upgrade their services with you or do more business with you.

Just my two cents on the issue.

thebizinator
08-10-2011, 04:14 PM
Good post Travis. Direct mail tends to work for well for some types of businesses and not so well for others. A lot of the effectiveness does depend on the aesthetics of the package. At the site in my profile, check out Moo's postcards and business cards, very nice.

If you're looking to start a direct mail campaign the website in my signature compares reviews of the top business printing companies. The site is really useful for small business owners looking for services to grow their business.

erichtoll
08-13-2011, 02:59 PM
Direct mail is a lot like gambling in Monte Carlo - very expensive, and you might win, you might lose.

The #1 most important thing is testing - always have a code that recipients have to give you, so that you know which list, which offer, and which creative works the best.

Spider
08-14-2011, 08:54 AM
I have never felt the efficacy of testing mail pieces for small businesses. Generally, their list isn't big enough to test and they don't mail often enough to make it worthwhile.

Certainly, testing offers, headlines, colors, design, etc. works well for large companies spending big bucks on huge mailouts, but small businesses - especially the micro-business that post here - are not, I'm sure, spending big bucks on their direct mail campaigns. (Do they even have "campaigns" or is it more a one-sheet flier occasionally?)

If you have a mailing list of 200, what significant information can you obtain by sending one headline to 100 people and another headline to the other 100? The numbers are too small to be significant. And even if you can get useful feedback, how long will it be before you send out another flier? And would you use the same headline on this second flier?

I don't see it, but I would be interested to know what the marketing folk amongst us feel is a minimum list size that can reveal useful information like this, and what frequency would be needed to use the information.

cbscreative
08-16-2011, 01:49 PM
Spider, I tend to agree that testing for the smaller biz is too often unreliable, especially with DIY marketing campaigns. Then it also varies for the type of business. I'll pick on huggy (not really picking on but using as an example) because he's our resident plumber here. When a plumber sends a direct mail, he's probably hoping that the recipient will put their name on the fridge for the day when they need a plumber. The likelihood of timing the mail just right is minimal. Many in this situation have received calls 6, 12, and 24 months after sending a direct mail.

With pizza delivery, the rules change drastically.

Another problem I see with accurate tracking is the fact that one offer seldom yields stellar response. Suppose you send a direct mail piece and the recipient has also heard your name on the radio. In addition, one of their friends does business with you and mentions it in conversation. These multiple points of contact each have a certain influence that none could match on their own. Knock out any of them and you might lose opportunities that don't show up as measurable response during the campaign itself.

I'm in no way suggesting not to track and measure, but I believe some very analytical thinking needs to go into your decisions about what is working and what is not.

alphadore
08-28-2011, 08:15 AM
I am estimating the cost per distribution (letter, printer, mail) will be around 1 dollar. You need to spend 100 dollars to reach 100 people. I am not very sure if that is the best value for money. It is niche I agree but I dont think it will work for my business. You need to have a really good business intelligence before dispatching the mails. You need to know the full name of the person, position, department, and company address. Well if you already have so much information, why dont you just call and ask for an appointment. Or if it is a small business you are mailing to, then why dont you stop by his office or shop?