2. Direct Mail Strategy & Execution
Topics
Strategic Applications for Direct Mail
Strategic Planning
Strategy Considerations
Creative Execution
STRATEGIC COMMUNICATIONS
3. When to use Direct Mail as a strategy
To produce an immediate and identifiable order or inquiry
To generate leads for field sales follow-up
To sell directly to prospects without using dealers or retailers
To reach a target audience other media cannot cost-effectively reach
When a personal communication is desired
When precise timing or frequency of contact is essential
When a highly controlled distribution is required
To communicate detailed product information
To build and refine mailing lists
STRATEGIC COMMUNICATIONS
4. When to use Direct Mail as a strategy
To follow-up on inquiries from other channels (Trade Shows, Web,
promotions)
To build long-term customer relationships from short-term sales
To test product potential, price, packaging
To determine prospect profiles
When you need to show measurable ROI on your marketing spend
STRATEGIC COMMUNICATIONS
6. Why write a Direct Mail Plan?
Document your strategic framework
Involves key functional groups in the total strategy
Identify measures for success
Brings focus to messaging and creative execution
STRATEGIC COMMUNICATIONS
7. Components of the Direct Mail Plan
Introduction
Product/Service Assessment
Market Potential
Marketing Environment
Strategy
Implementation Plan
STRATEGIC COMMUNICATIONS
8. Introduction
Who requested the plan?
Who were the authors?
What is the purpose for the plan?
Summary of data for the plan
What desired data was not available?
STRATEGIC COMMUNICATIONS
12. Product/Service Assessment
Technical description
What kind of wood is used
How is the lead made?
Country of origin of the rubber eraser
Manufacturing process
Types of pencils offered by the manufacturer
STRATEGIC COMMUNICATIONS
14. Product/Service Assessment
Emotional description
Security of being able to erase mistakes
Peace of mind knowing it won’t leak or smear
Impress friends with your practicality, frugality
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15. Product/Service Assessment
Ultimate benefits
Fame for writing a screen play
Riches for writing a brilliant business plan
Romance for writing a touching love sonnet
STRATEGIC COMMUNICATIONS
16. Positioning – an overview
Defined: “Positioning is not what you do to a
product. It’s what you do to the mind of the
prospect. You position the product in the
mind of the prospect.”
Seven-Up: the uncola
Avis is #2 in car rentals: We try harder
STRATEGIC COMMUNICATIONS
17. Positioning – an overview
Today’s overcrowded marketplace …
40,000 products in a supermarket
52 versions of Crest toothpaste
Consumers get an average 3,000 messages a day
Over 20 million telemarketing calls daily
Average 150 pieces of mail per month
STRATEGIC COMMUNICATIONS
18. Positioning – an overview
How do you take a position
owned by your competitor?
YOU DON’T!
STRATEGIC COMMUNICATIONS
19. Positioning – an overview
Positioning in a nutshell:
Reposition competitor by focusing on a
category benefit not owned by them
Create a new category in the marketplace
Be first to get into the prospect’s mind with a
category position
STRATEGIC COMMUNICATIONS
20. Market Potential
Sizing the universe
Customer/Prospect profile
Demographic/Psychographic data
Results of previous research or marketing
efforts
Changes in product, price or positioning
needed to appeal to other markets
STRATEGIC COMMUNICATIONS
21. Marketing Environment
Competitive situation analysis
Competitive media use and messaging
Media Options – integration opportunities
Media cost, timing and testing factors
SWOT
STRATEGIC COMMUNICATIONS
22. Marketing Environment
SWOT Analysis Model
Review your core competencies and
differentiators
Strengths, Weaknesses: internal environment
(operations, technology, product innovation,
customer service, etc.)
Opportunities, Threats: external environment
(economy, government regulations, industry
trends, technology, etc.)
STRATEGIC COMMUNICATIONS
23. Marketing Environment
SWOT Analysis Model
External Assessment:
Who are our key customers, competitors,
suppliers and other external stakeholders?
What are their driving concerns?
What opportunities/threats do these driving
concerns pose?
Internal Assessment – in light of external
findings:
What are the critical cross-functional
processes in the organization?
For each process, what are the strengths/
weaknesses?
STRATEGIC COMMUNICATIONS
24. Strategy
Objectives: Strategic, Financial, Marketing
Strategic options/alternatives & criteria for
selecting them
Recommended priorities for strategy and
tactics
STRATEGIC COMMUNICATIONS
25. Strategy
Objective Setting Guidelines
Purpose: Characteristics:
To define the intent, the Specific
means and the expected Quantifiable
results of a strategy or
initiative Time bound
Consistent with Company
strategy
Business performance-
oriented
Drives strategic decisions
STRATEGIC COMMUNICATIONS
26. Strategy
Objective Setting Guidelines
Establishing Specifics: Quantitative Measures:
What sales Share of market/wallet
performance have we New sales revenue
achieved historically?
Upsell/Cross-sell revenue
What is possible to Retention rates/revenue
achieve?
Profitability (ROI; marketing cost
What are the corporate of sale)
expectations?
STRATEGIC COMMUNICATIONS
27. Implementation Plan
Campaign outline (tactics that support
objectives)
List: segmentation and target audience
Creative concept and offer
Budget
Timeline
Metrics
STRATEGIC COMMUNICATIONS
28. Review: Components of the DM Plan
Introduction
Product Assessment
Market Potential
Marketing Environment
Strategy
Implementation Plan
STRATEGIC COMMUNICATIONS
30. Wunderman’s Commandments
The consumer, not the product must be the hero
Communicate with each customer/prospect as an
audience of one
Answer the question “Why should I?”
Create relationships
Suspects are not prospects
Know and invest in each customer’s lifetime value
Encourage interactive dialogues
Share of loyal customer, not market share, creates
profits
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31. Three pillars of Direct Mail strategy
The offer
The list
The creative execution
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32. Last word on strategy: Execution
A mediocre strategy with
great execution always
beats a great strategy
with mediocre execution!
STRATEGIC COMMUNICATIONS
33. What you need to know about creative
Direct Mail Formats
Post Cards
Advantages:
Cost effective
Gets attention without opening an envelope
Effective traffic builder
Disadvantages:
Limited space
Not a sales driving device
“Junk Mail” association
STRATEGIC COMMUNICATIONS
34. What you need to know about creative
Direct Mail Formats
Self Mailers
Advantages:
Relatively inexpensive
More profitable than envelope packages
Effective for promoting seminars/publishing
offers
Disadvantages:
Lower response than envelope packages
“Junk Mail” association
STRATEGIC COMMUNICATIONS
35. What you need to know about creative
Direct Mail Formats
Classic Package (letter, brochure, reply card,
envelope, lift note)
Advantages:
More personal
More “selling” space
Higher involvement & response
Disadvantages:
More expensive
More complex – more ways to go wrong
STRATEGIC COMMUNICATIONS
36. Envelopes
The job of the envelope is
to get opened – not to sell
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37. Envelopes
How consumers look at an envelope
First, they look at their name
Second, they read teaser copy
Third, they look at the return address
Forth, they look at the postage
Last, they look at the back
STRATEGIC COMMUNICATIONS
38. Envelopes
Tips for getting your envelope opened
Get the name right
Use the name in more than one place
Use high-impact, provocative teaser copy
Highlight the offer
Make your logo/corporate identity visible
Use a stamp vs. metered or indicia
Consider hand addressing
Add color
Use Fed Ex or Western Union
Faux Fed Ex
Consider dimensional package
STRATEGIC COMMUNICATIONS
39. The letter
The job of the letter
is to SELL
STRATEGIC COMMUNICATIONS
40. The letter
Hot spots on the letter
The Johnson Box/headline
The signature
The P.S.
The first sentence
Sub headlines
Hand written points
Bullet points
A second color
STRATEGIC COMMUNICATIONS
41. The letter
Tips for increasing involvement and response
Start with the prospect, not the product
Make the opening line short and compelling
Tell a story
Fire your biggest shot first – benefits
Make it look like a letter, use typewriter font
Focus on readability
Use a Johnson Box or headline teaser
Write to one person
Personalize the letter and message
Sell with emotional appeals
Tell the reader what to do; ask for the offer
Use a P.S.
STRATEGIC COMMUNICATIONS
42. The brochure
The job of the brochure is to
inform. It provides the answer
to the question, “Why should I?”
STRATEGIC COMMUNICATIONS
43. The brochure
Techniques for higher impact
Use numbers in headlines to add credibility
Put captions under photos
Use pictures of people to add a human touch
Use charts to convey detailed information
Include a Q & A section
Include competitive comparisons
Use testimonials or product reviews
Use a quiz or test to involve the reader
Always link product features to customer
benefits
Make it easy to understand at a glance
Include a call to action and 800 number
STRATEGIC COMMUNICATIONS
44. The order form
The order form must be able to stand
alone, must be easy to use, and must
contain all of these elements:
The offer
The terms/payment options
The response options
The benefits of what you’re selling
The guarantee
STRATEGIC COMMUNICATIONS
45. The order form
Techniques to increase response
Use the customer’s voice
Evoke good feelings about using the product
Provide several ordering options
Overcome skepticism with solid guarantee
Put in a photo of the offer
Personalize the order form/card
Use the word “free”
Drive greater involvement with:
Yes/No/Maybe check off box
Stickers
Brief questionnaire
STRATEGIC COMMUNICATIONS
46. The offer
The offer represents the
total selling proposition that
attracts attention, builds
interest and motivates
action
STRATEGIC COMMUNICATIONS
47. The offer
Tips for success
Make it relevant to your audience and product
benefit
Offer something they can’t get anywhere else
Don’t sell the premium, sell the offer
Give your customers the best deal
Assign a dollar amount to the offer
Put a deadline on the offer
Offer a gift with inquiry, trial, order
Offer price discounts on product bundles
Offer information: research, idea kits, etc.
Offer trade-in discount or rebate
Offer a personalized gift/mystery gift
STRATEGIC COMMUNICATIONS
48. Presenter
John G. Olson
Principal, clarion|creative
Past President,
Midwest Direct Marketing Association
B2B Marketing Consultant
Copywriter & Content Marketer
Blog: marketingawesomeness.wordpress.com
Twitter: @John_G_Olson
Email: john.olson7@comcast.net
STRATEGIC COMMUNICATIONS
Notes de l'éditeur
The strategic plan gives rationale for your tactical decisions Key functional groups include Sales, Marketing, Operations, Supporting Vendors Measures are linked to the business objectives. They may include Revenue goals, Market share growth, Share of customer/wallet, Retention/Loyalty or ROI Effective messaging is a result of knowing current mindset of your target audience
From the marketing classic, “Positioning” by Ries and Trout. The concept of positioning changed the thinking about advertising and marketing communications from a saturation strategy to a whole new paradigm that recognized a new reality: the marketplace is overcrowded.
Source: Peter Sealey, author of Simplicity Marketing. Given the level of brand choices and commercial solicitations consumers are exposed to, it has never been more critical to understand their perceptions, their wants, and your positioning with them when developing your messages to them.
Remember Avis? For 13 years they lost money trying to compete directly with Hertz. Then they positioned themselves as number two: we try harder. They claimed the number two spot and began to profit. Y1: $1.2M Y2: $2.6M Y3: $5M Then Avis was bought by ITT who didn’t like the number two strategy. They began running ads saying, “Avis is going to be number 1.” Psychologically, it didn’t resonate with the intended audience. Strategically, it didn’t exploit any weakness in Hertz. And it bombed. Third place National began to gain their market share. Avis is fortunate to still hold number two today, if they realize it or not.
Resources for sizing markets: Standard Rate & Data Services (srds.com) has lists of subscribers to professional trade publications and associations nationwide. Dunn and Bradstreet business database. Government resources: Bureau of Labor & Statistics, Dept. of Commerce, Census Bureau (all online) List brokers. Profiling: purchasing behavior (RFM scoring); what do our existing customers look like? Seasonality? Who are the decision makers and influencers? What are their business problems? Demo/Psyco: Income, Home ownership, Children, Marital status, Hobbies, Political affiliations, Disposable income, Media perceptions and consuption
What is the cumulative media messaging hitting this target audience? What is your competition claiming? What position do they own? What’s their market share? How are they using the various media to reach the market?
Given your identified objectives, what are the best channels and means for driving consumer behaviors to meet those objectives? Rank the tactical priorities to achieve the specific objectives: Strategic – “big picture” strategy Financial – Revenue, ROI Marketing – behaviors you need to drive
Implementation details: the nitty-gritty of what you will do.
IDM: the precision deployment of direct mail, telemarketing, public relations, advertising and internet/email marketing tactics to deliver on your business objectives. Develop messaging through voice of customer research to determine media preference/usage for optimum results. DBM: recency, frequency, monetary value. The most fundamental way to evaluate customer value and behavior. Predictive modeling looks at current customers key purchasing variables to predict those most likely to respond to an offer or channel. Testing. Main rule for testing: one variable (as in A-B testing). See additional materials for testing models. Wunderman: what all successful direct marketing companies have learned about effective direct mail strategies.
The product must create value for each of its customers. It must satisfy their unique differences, not their commonalities. Your message must be as relevant to each consumer as the product or service is. The product and its communication stream must continue to provide both rational and irrational answers. Relationships continue to grow – encounters do not. Prospects are consumers who are able, ready and willing to buy; suspects are merely eligible to do so. Convert one-way communication to two-way information sharing.