Direct Marketing News

If you’re new to direct mail, it may seem like a bewildering array of strange jargon and mathematical formulas. However, it’s relatively cheap (compared to a full-blown branding and general advertising campaign). And, it can all be tracked and measured, so you can tell exactly what’s working, what’s not, and where your revenue is coming from.

Q: What response rate will I get?

A:
Unfortunately, there is no hard and fast rule for response rates. A general rule of thumb is that 1 -2 % of people on your list will buy low-cost products or services, 6-10% will ask for something that’s free, and .2% will buy a high-cost item.

Q: How can I get my response rates as high as possible?

A: The success of any mailing depends on three things:

1) The List of People You Send it To

The list is the most important part of any mailing. It accounts for 60% of your response. The best ones are lists of people who have previously purchased products or services similar or related to yours. In other words, if you’re selling baby carriages, you might try a list of people who have recently bought infant car seats. The more closely the people on your match your ideal buyer or previous customers (business size, type of business, job title, etc.) the more likely it is that they will respond to your mailing. Existing customers and prospects who already know your company or have purchased your products will generate higher response rates than an outside or rented list.

2) What You’re Offering and How Much It Costs

The second most important part of your response rate is the “offer.” This is the product or service you are promoting and the price. Usually, the lower the price, or level of commitment, the higher the response rate. For example, an offer of a free Hawaiian travel guide aimed at lead generation will yield more responses than a mailing promoting an immediate purchase of a $5,000 vacation package. You can boost response with a free trial, extra bonuses, or a limited-time offer.

3) The Design and Content of the Mailing

The last factor that influences response rate is the creative, or the size, shape, colors, and words used in the mailing. Bold fonts, colors, and underlining will all attract attention to your message. Talk to your customers directly, using “you” and “your”. Discuss their problems and highlight how your customers are able to solve those problems by using your product or service. Don’t forget to include a “call to action”. This is “direct marketing speak” for a sentence or two that tells the reader to do something, such as “Call Now!” You can experiment with different colors, sizes, and copy versions and test them against each other to see which one works the best.

Q: How can I cut my costs?

A: Try sending a series of smaller mailings rather than one large one. That way, you can see which lists (or formats) work best before committing yourself to a full campaign. Here are four additional steps you can take:

1) Change the size and shape of the mailing Talk to your printer to make sure your mailing isn’t overweight or oversized. They can also help you with paper size, weight, colors, and costs. An 8 1/2 x11 10-page brochure on thick paper will cost more to print and mail than a 6×9 6-panel self-mailer. It’s a lot cheaper to change the design before they start, and a smaller, lighter package will require less postage.

2) Share printing costs with other businesses Choose a printer that “gangs up”, or combines, print jobs from multiple customers. You’ll get full-color printing and save money because the setup, ink, paper, and printing costs are spread around over different companies. If you think you may need a few extra, order them. Much of the cost is in the initial setup, so doubling the quantity won’t double the price.

3) Keep your list up-to-date. A little effort in making sure the names and addresses on your list are current can go a long way. Sending mailings to old addresses wastes money, paper, and effort.

4) Give the post office a helping hand. The less work the post office has to do to sort and deliver your mailing, the less they will charge you. So, put your list in zip code order. If you have more than 200 pieces, you’ll be eligible for postage discounts. The larger the mailing, the bigger the discount. It’s like getting postage on sale.

About the author:

Jodi Kaplan is a marketing expert and founder of KaplanCopy, a direct marketing consulting firm. She fixes “broken” marketing by turning ineffective marketing and unappealing Web sites into powerful marketing tools with clear benefits and measurable results. Her professional network gives her clients “one-stop shopping”: marketing, copywriting, graphic design, and Web design all in one place - with one phone call. To learn more, visit http://kaplancopy.com

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