(Today’s Guest Blog is written
on the subject of direct mail for small business, by Jim Davis, a former senior
executive in the direct marketing industry.)
In a world of electronic
communications, websites, banner ads and Facebook pages, there remains one
medium that is a consistent response generator for small businesses - direct
mail.
Following a few simple
guidelines, direct mail still can still
yield excellent and cost effective results for businesses of all sizes. The proof is in our mailbox everyday.
There are three factors that
experts agree consistently contribute to direct mail success: Audience, Offer, and Creative. But
the relative importance of these three factors may surprise some new mailers.
Think of the factors this
way: 60/30/10.
A full 60% of any direct mail
success can be attributed to the Audience,
or, in other words, the mailing list used. Whether mailing to a geographic
area, a demographic segment or a business group, a mailing is only as
good as it the list used.
We’ve all receive mail
addressed to Resident/Occupant or the friendlier greeting “To our Friends
At”. This is a sure indication
that every household in your neighborhood is receiving the same mailing piece.
And household mailings are a basic and reliable traffic-building tool for consumer-oriented, local businesses.
Compiled, demographic mailing
lists which incorporate an individual’s name also are available for more
targeted offerings. Similarly
there literally are thousands of specialty mailing list comprised of everything
from subscription lists to individuals who have responded to previous offers.
Businesses-to-business lists
are another whole category of mailing lists. These lists offer selectivity
by SIC (Standard Industrial
Classification) code and various company size indicators (annual sales, number
of employees, etc.). And, again,
there are specialty lists comprised of subscribers to various trade journals or
other select groups that are available as well.
It would be remiss not to
mention what may be the best mailing list of all - the one that businesses can compile consisting of
their own customers. As always, existing customers represent one of the best sources of new and repeat
business and every business should have the ability to mail to this select
audience.
The next factor is Offer, which can impact a mailing by 30%. Think about it – without a compelling
offer or incentive, direct mail is just a simple message. There is no reason to respond. Too many
mailings have weak, inadequate or ill-timed offers for a chance at success.
Customers and prospects want to
know “What’s in it for me?” and that is
the question that must be asked about every mailing piece designed.
Finally Creative must be considered, but the way the offer is
communicated contributes to the success of the mailing only by 10%. It is true that there is a crucial
point (typically three to four seconds)
when a recipient decides whether or not to further read/consider a mailing
piece. That’s when creative can play its role.
Veteran mailers often say that
creative must appear to one of four basic emotions: Need, Greed, Fear, or Exclusivity. Try looking a mailing piece you receive at home
and you can learn to identify the elected emotional appeal for the mailing.
And to be sure, direct mail
creative is technique-driven. That is one reason that postcards or
self-mailers -- communicating an Offer quickly, without the need to open
an envelope -- are so popular with
small businesses.
The numbers 60/30/10 can vary
by the mailing professional citing them but the principle always in the
same. Audience, followed by Offer and then Creative determine the success of any mailing.
So, if the secret to success is
so evident, why doesn’t every business mail? One reason dominates all others: expense.
Even using the most
cost-efficient mailing techniques for smaller mailers, each piece of mail
delivered is relatively expensive
-- ranging from 40 to 50-cents up to a dollar or more for elaborate
mailings -- so the cost per
thousand contacts is higher than most
other mediums.
Still, direct mail has it place
in an overall marketing strategy. As long as Americans maintain the habit of
checking their mail daily, direct mail messages have the opportunity to be
seen, and to sell.
