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Whether you serve all households or businesses in an area or you serve a more specific
market, an effective campaign targets those consumers or businesses that are most
likely to be interested in your product or service. In fact, up to 40% of direct
mail success relies on choosing the correct list of prospects. Getting your message
to your target audience generates higher quality leads and increases your ROI.
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You wouldn’t purchase groceries months before cooking, so why order a list
well before your campaign is ready? Like food, information can spoil over time.
Lists go out-of-date at a rate of 15% or more every year. Ordering a list when you’re
ready to launch your campaign results in a higher percentage of deliverable mail
because the list is fresh.
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Before starting ask yourself, “What am I trying to accomplish with this campaign?”
Some businesses launch a campaign to build their brand or announce their presence,
others aim to generate leads and orders. This is the first and most important step
in a direct marketing campaign as all the other steps are based around achieving
this objective. Without a clear objective it is impossible to determine success.
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In order to elicit responses your campaign has to generate excitement. One of the
top-10 direct marketing mistakes is burying or not including a call-to-action. Programs
such as discounts, free consultations, and buy-one-get-one-free offers, coupled
with deadlines, give the prospect an incentive to contact you quickly.
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Some people prefer email communication, others phone calls. For consumers, if you
offer both phone and mail response the response rates will be equally split. However,
if you eliminate one method, the total response rate drops 20%-25%. Giving your
For businesses, if you eliminate one method the customers multiple response rate
drops to 50% or less of what it would be with both options. Giving your customers
multiple ways to contact you not only generates more responses, it also shows a
more responses, it also shows a concern for your clients and their way of performing
tasks.
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Nothing is stronger than good references. Peers are the second most trusted source
of information with 22% of respondents of a recent Sirius Decisions survey indicating
peers as their most trusted source (Industry Analysts ranked first with 29%). When
your message comes from customers it has greater influence due to their objectivity
and independence from your company.
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Knowing your product
or service and your market goes a long way towards success, but you never know exactly
what will register with prospects until you do it. The best way to increase response
is by testing three elements of your campaign, one at a time. The elements are the
headline or opening sentence, the offer and the pricing. By knowing and using what
has already proven to be successful, future campaigns will be more efficient and
will generate higher ROI.
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It is important to be realistic when developing expectations for your campaign’s
response rate. The deliverability rates for consumer and business lists are 94%
and 90% respectively. However, the average response rate for direct mail prospecting
campaigns is 1-2%. The disparity between delivery and response rate further illustrates
the need to have a specific target and proven method of reaching them.
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Following up a direct mail campaign with a phone call makes the campaign more personal
and reinforces your brand. Following up a direct mail campaign with a phone call
makes the campaign more personal and reinforces your brand. For every day a lead
is not followed up it loses 10% of its value. Calling prospects is a great way to
quickly establish a relationship after your campaign has taken place.
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Monitoring the number of people who respond to your mailing and what characteristics
they have in common is critical. This will reduce workload and increase profits
for future campaigns as you will have defined targets and will know what resonates
with those prospects.
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