Direct Mail marketing simply means postal mailings - letters, brochures or postcards - sent out to a base of potential customers. It is another marketing method around which there seems to circulate a few myths. Let's start by dispelling them:
1, It doesn't work
This is because it is often done badly. Done well - like Dell, Viking Direct or many other SMEs, it can be very powerful. Don't be confused by the fact that many will get thrown away. If 90% are thrown away then 10% are getting read.
2, You should get a return of X%
X varying from around 2% to 4% depending on who you talk to. Again this will vary depending on many things - not least what you are selling. There is no 'right' number. 0.5% is fine as long as it's profitable.
3, It costs a fortune
It doesn't have to. Read on...
One of the first things that I do with many companies that already have a customer base is get them to mail it. Many entrepreneurs see direct mail only in terms of new client acquisition. Whilst it is good for that, regularly mailing your existing customer base can produce excellent results.
When looking to mail for new clients it is important that you clearly define who you want to sell to: individuals or companies, what type, where? The more specific you can be, the better the results that you are going to get. See further resources for more help here.
Consider also what you are going to send and what you want the prospect to do with it?
If it's a brochure you're sending out, be sure to put in a good, short letter - this will increase your response. If you want to tell somebody about an offer then how about sending a postcard instead of a letter? Postcards don't need to be opened, are typically more eye catching and can convey simple messages very easily. They can however be easily 'intercepted' by over zealous PAs, so choose wisely.
That message doesn't always have to be a sales message either. A thank you or a confirmation is often a very cheap and effective way of building customer loyalty.
You can also follow up mailings with a telephone call. This can work effectively with any mailing but can have significant benefits when the mailing has gone to existing customers. It can often produce a 500% more effective mailing - that's a lot of extra profit!
If you don't have the ability to follow up by telephone, follow up with another mailing. You should get about half of the initial response again.
The best thing about direct mailing though is this: it is very scalable. This means that whatever you decide to do, you should start small. I wouldn't recommend sending out more than 250 mailings at any time. If you get a response which leads to 5 sales (and those five sales give you a good profit) then you can be fairly sure that 1,000 of the same mailings to similar people will result in around 20 sales. Conversely a mailing of 250 that brings in nothing or an unprofitable amount will lose you around four times as much if you send out 1,000. So always test a small sample first.
1, It doesn't work
This is because it is often done badly. Done well - like Dell, Viking Direct or many other SMEs, it can be very powerful. Don't be confused by the fact that many will get thrown away. If 90% are thrown away then 10% are getting read.
2, You should get a return of X%
X varying from around 2% to 4% depending on who you talk to. Again this will vary depending on many things - not least what you are selling. There is no 'right' number. 0.5% is fine as long as it's profitable.
3, It costs a fortune
It doesn't have to. Read on...
One of the first things that I do with many companies that already have a customer base is get them to mail it. Many entrepreneurs see direct mail only in terms of new client acquisition. Whilst it is good for that, regularly mailing your existing customer base can produce excellent results.
When looking to mail for new clients it is important that you clearly define who you want to sell to: individuals or companies, what type, where? The more specific you can be, the better the results that you are going to get. See further resources for more help here.
Consider also what you are going to send and what you want the prospect to do with it?
If it's a brochure you're sending out, be sure to put in a good, short letter - this will increase your response. If you want to tell somebody about an offer then how about sending a postcard instead of a letter? Postcards don't need to be opened, are typically more eye catching and can convey simple messages very easily. They can however be easily 'intercepted' by over zealous PAs, so choose wisely.
That message doesn't always have to be a sales message either. A thank you or a confirmation is often a very cheap and effective way of building customer loyalty.
You can also follow up mailings with a telephone call. This can work effectively with any mailing but can have significant benefits when the mailing has gone to existing customers. It can often produce a 500% more effective mailing - that's a lot of extra profit!
If you don't have the ability to follow up by telephone, follow up with another mailing. You should get about half of the initial response again.
The best thing about direct mailing though is this: it is very scalable. This means that whatever you decide to do, you should start small. I wouldn't recommend sending out more than 250 mailings at any time. If you get a response which leads to 5 sales (and those five sales give you a good profit) then you can be fairly sure that 1,000 of the same mailings to similar people will result in around 20 sales. Conversely a mailing of 250 that brings in nothing or an unprofitable amount will lose you around four times as much if you send out 1,000. So always test a small sample first.
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Get More From Jon
Selling
First Impressions
Contractual Sales
Closing
Influence
Top Tips
Objections
Marketing
The Amazing Difference
The Traps
The Power of Attraction
Advertising
Testing & Measuring
The Internet
Pay Per Click
Direct Mail
Public Relations (PR)
Telemarketing
Customer Service
Word of Mouth
Mindset
Who Are You?
What Do You Do?
Invest In Yourself
Wealth & Success
Your Friends & Family
Serendipity
NLP
Hints and Tips
Simplicity
The Key to Success
Potholes
Business Success Group
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