1. 9/30/2011
DM Crash Course
Direct Mail Advertising
in Less than 60 minutes!
presented by
Alan Rosenspan
And
Keith Goodman
30-Sep-11
WHAT IS DIRECT MARKETING?
“Direct Marketing is an interactive
system of marketing which uses one
or more advertising media to effect a
measurable response and/or
transaction at any location.”
Direct Marketing Association
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2. 9/30/2011
DIRECT MAIL IS PROFITABLE
•Each dollar spent on direct marketing
yields, on average, a return on
investment of $11.65
•By comparison, each dollar spent on
non-DM advertising yields an ROI of
$5.29
Source DMA Annual Report
ADVANTAGES OF DIRECT MAIL
• Convenient
–It’s on your kitchen table or desk
• Written record
–File it, save it, show it to others.
• Targeted
–Mail just to the prospects most likely to buy
• Measurable
–You know who responded
• Scalable
–250 customers or 1,000,000 customers
DIRECT MAIL OR EMAIL?
• Email is a great tool
Yes!
10%-15% Open
for communicating to Rates for
email…
a subset of your
existing customers.
Should not be
• Direct mail (especially confused with
click through or
with postcards) gives response rates!
you a 100%
connection with your
current customers.
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3. 9/30/2011
DOES MAIL GET READ?
• 92% of consumers read the mail the day they get it
• What do you do when you get home?
• Most people sort mail into 2 piles…
Relevant Junk Mail
COMMON USES OF DIRECT MAIL
1. Generating traffic to your
store or website
2. Generating leads
3. Responding to competitive
activity
4. Generating customer
loyalty
5. Generating customer
referrals
6. Special events / sales /
seminars
HAVE A PLAN
• What do you
want to
accomplish?
• What makes
your
store/product
different?
• What are the
benefits to your
customers?
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4. 9/30/2011
WILL ANYONE RESPOND?
• The question we ask…
“What kind of response will I get?”
• The question we should ask…
“What kind of response do I need?”
HOW MUCH IS A “PASSENGER” WORTH?
• What would you pay for a busload of
customers?
WHAT IS A CUSTOMER WORTH?
The basic formula…
Average Sale $300
Gross Profit $150
Annualized Value (2X) $300
Lifetime Value (3 years) $900
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5. 9/30/2011
WHAT IS CRITICAL TO YOUR CAMPAIGN
1. Timing
2. Mailing Package
3. Copy (Text)
4. The Offer
5. The List
THE LIST
40%
THE WRONG LIST
• Time No Response!
Sensitive
Offer
• Relevant The
Imagery Wrong
• Excellent List
Copy
• Clear Call to
Action
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6. 9/30/2011
YOUR HOUSE LIST
• Your buyers and responders are
your most responsive lists.
• Capture relevant data.
• You can profile, append and model
your existing list
• You cannot grow without
prospecting
THE KEY TO PROSPECTING
Take your best customers..
Then find more that look just like them!
OVER 74,000 LISTS AVAILABLE
• Consumer Data
- Acxiom, Experian, Equifax, InfoUSA
• Business Data
– - D&B, InfoUSA, Compass
• Occupant Data
– - Valassis, Compact Information
• Specialty Data
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7. 9/30/2011
IDENTIFY PROSPECTS WITH MODELING
SEE WHO YOUR CUSTOMERS ARE
• Snapshot of over a
dozen demographic
elements
• Comparison on local,
state or national
averages
• Applicable towards
media buys for other
channels
IDENTIFY THE MOST LIKELY PROSECTS
• Automates the target list selection
• Ties in the predominant demo and geo
characteristics
• Illustration of response rate potential and relative
impact
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8. 9/30/2011
MODELED PROSPECT LIST COUNTS
Provides available prospect qty, after customer file suppression, by
desired geographic area and decile
WEB-BASED LIST COUNTS AND ORDERING
• Acxiom B2C
• D&B B2B
• Occupant Data
• Bundled Selects
• Low Minimums
• FREE Counts
DM AND THE 5 R’s
• Relevance
– Will it make the keeper pile?
• Read
– Do they want to find out more?
• Response
– Will they call you?
• Revenue
– Is your customer going to part with their cash?
• ROI
– Increased profitability because everything worked!
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9. 9/30/2011
4 KEYS TO A SUCCESSFUL PIECE
Ever feel like your
• Graphical treatment home mortgage is
like 60 tons of
– Format, Imagery, water ready to
Layout crush you and
your family?
• The copy
We can help!
– Prospect pain points,
Benefits, Features
• The offer
– We will give you…
• Call to Action
– All you have to do is…
7 Quick Tips
Guaranteed to
Improve Response
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10. 9/30/2011
1. Do One Thing Different
Most direct mail is ordinary, dull, and
looks like every other piece of direct
mail.
Do you want to blend in with
everybody else, or do you want to
stand out?
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11. 9/30/2011
2. Do Just One Thing
 Make sure your message is single-
minded
 Make sure your message is relevant
to your market
 Make sure it breaks through the
clutter
The “Bed of Nails” Approach
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12. 9/30/2011
3. Add Value
1. If your direct mail package has no added value in
it – then I’m probably going to ignore it
2. If the only time I ever hear from your company is
when you want to sell me something…
…then I’m not sure I want to hear from your
company
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13. 9/30/2011
Turn your direct mail package
into a Fortune Cookie
Make it something that people will be happy and
excited to open
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14. 9/30/2011
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15. 9/30/2011
4. Add Credibility
Many other forms of advertising have a “halo” of
credibility
Magazine ads in Time magazine. Banner ads on
websites. “As seen on TV” adds credibility
Direct mail arrives naked at the door – buried in a
pile of (mostly) unimportant, untargeted, unsolicited
“junk”
Who are you?
 The first question any prospect will ever ask
about your company
 Explain who you are, how long you’ve been in
business, how many satisfied customers you
have
 You may think everyone knows who you are –
but they don’t
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16. 9/30/2011
Who are your customers?
 Customer Lists are extremely important in B2B
 They minimize the risk for business people
 They give a better idea of what kind of company you are
– or what kind of products and services you sell
 You can’t always list them, but it’s worth trying
Why should I trust you?
 Testimonials are incredibly powerful – when used the
right way
 They should not be overwritten or over-enthusiastic
 They should be localized or targeted if possible
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17. 9/30/2011
Add Extra Credibility
 Be specific about your claims
 Use real examples, if possible
 Use numbers; they add 68.5% more credibility. They are
5X more effective. They increase response by an average
of 2.3%
5. Focus on your Prospect
Most direct mail focuses on a product
or a company.
The most effective direct mail focuses
on a person.
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18. 9/30/2011
6. Improve Your Offer
The fastest way to improve response is
to improve your offer.
Make it “an offer they can’t refuse…”
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19. 9/30/2011
Offer Guidelines
 Make it an offer “money can’t buy”
 Be very clear about the offer, and why it’s valuable
 Build your entire direct mail package around the offer
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20. 9/30/2011
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21. 9/30/2011
7. Always Be Testing
Some companies do direct mail as part of their
marketing mix.
Some companies live and die by direct mail
- Non-profits - Catalogs
- Credit cards
These companies always do extensive, continuous,
comprehensive testing…
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22. 9/30/2011
IT IS ALL ABOUT ROI
• Tracking your responses
– Create response codes
– Varying discount offers
– Multiple response vehicles
• Record the numbers
– How many calls or visits?
– How many sales?
– Average order value?
– Future value of your new customers?
ARE YOU MAKING MONEY?
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23. 9/30/2011
THANK YOU FOR LISTENING
Keith Goodman
VP, Corporate Solutions
Modern Postcard
Phone: 800-959-8365 ext. 2059
Cell: 303-517-3119
Email: keithg@modernpostcard.com
Alan Rosenspan
President
Alan Rosenspan and Associates
Phone: 781-784-8283
Email: arosenspan@aol.com
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