According the DMA, direct mail commends a $15 return on investment. When thinking of traditional direct mail, post cards, flyers and other tradition mail pieces you may get a 1% – 4% return, simply through creative packaging and including a promotional product can double or triple your converstion to between 10% – 18%. Simply putting a promotional product alone will not accomplish this.
1. Spark their curiosity. Rather than just send one letter or item, marketers can create a series of mailings to tell an entire story. Red Rocket Media Group recently converted 25% of recipients into clients with a recent episodic mailer dubbed
“Who is Red?”It sent out seven mailings of packages that included a red lightbulb with a card saying “Get bright ideas with Red,” a red bag of coffee that said “Energize your ideas with Red” and boxing gloves that read “Knock out your competition with Red.” “It was magical,” says Jennifer Bryant, president of Red Rocket. “We just finished our second campaign, where we targeted five companies according to the specific criteria we chose. I’ve called four out of five and have seen great interest and potential with two of them so far.”
The Connecticut Lottery, meanwhile, sent out a keychain with the lottery logo embedded on a coin. “The idea was to create just enough curiosity to get the package opened,” says David Katz, vice president of database/direct at Cronin and Company. “We achieved the objective by getting just over a 2% response rate to the mailing and leads for the CT Lottery retail division.”
2. Know your target. Catch Your Limit Consulting realizes there are a lot of fish (a.k.a. potential clients) in the sea, however it uses a very targeted database when sending out direct mail with premiums.
“Often people feel they need to tell the whole world. Depending on the product, that may be a good idea, but often it’s not,” says Jeff Brainard of Catch Your Limit. Before launching a traditional mail campaign, the marketer must not only know who to send it to, but also have an idea as to what the target market segment is in to.
Fred Albrecht, owner, Proforma Albrecht & Co., says, “research the company or customer base to determine what’s important to them.” For example, when targeting consumers or businesses that value the environment, use eco-friendly goods such as pens made from biodegradable plastic or packaging made from recycled waste. “It shows you can relate to them,” says Albrecht.
3. Copy is king. When a recipient receives a postcard or a letter, the marketer has precious few seconds to engage them. That’s why it’s critical to use a strong headline that states the most important benefit that’s being offered. “A great headline promises a specific result,” says Peter Geisheker, CEO of The Geisheker Group Marketing Firm. “For example, ‘if our skin care product does not make your face look 10 years younger in 30 days or less, we’ll give you a 110% refund.’”
He recommends always using a friendly, conversational style and avoiding corporate speak or complicated vocabulary words. “All this does is turn people off,” says Geisheker. Of course, the call-to-action is also essential. “‘Act now and get a free logoed fleece blanket’” and other such offers work like magic,” Geisheker says. “That’s why you see it used so often on TV, particularly on infomercials and other successful direct response advertising.”
4. Pass the test. Before buying an expensive premium, see how it performs against a cheaper alternative or just a postcard. “Test the use of the premium before you roll it out in a mailer,” says Pam Lockard, president and CEO of DMN3, a direct marketing agency in Texas. “You should determine if the expected response rate justifies the increased cost.”
Marketers should also make sure that their lists are “clean” meaning that the intended recipient is still located at the stated address. Lists can also be purchased based on demographic and psychographic data.
5. Humor helps. When you’ve got a company name like Jeff Brainard’s, Catch Your Limit Consulting, the variety of humor-related premiums is as vast as the ocean. For example, Brainard sent out tin fish scalers with a sticker that reads: “You have to catch them to clean them.”
“Because of our company’s name, it makes sense that we’d send out fish scalers,” he says. “We could have sent out really fancy, modern ones, but the look and feel of our company is like an old fish shack. These scalers look like the old-time sort of things you’d see in a fish camp. The brochure we sent was all about our brand management consulting and how we’re the world’s only management, marketing and fish cleaning company.”
6. Try 3-D. Time Warner Telecomm has a lot of competition for voice, data and Internet services. To try and get the attention of businesses within the 8,500 buildings TW serves in cities nationwide, it added another dimension to its direct mail campaign. It hired Faction Media in Denver, to create a free-standing, one-piece insert.
The cover invites the consumer to “open up a whole new world.” Once opened, a three-dimensional city scene with a billboard containing copy offering a free incentive in exchange for making a sales appointment pops up. The cards are customized per the locale (New York features the Empire State Building and Seattle, the Space Needle).
Incentives varied, however the most common “bait” is a free video camera. “The piece was bulky and large, therefore it was a clutter buster just due to its size and weight,” says Aaron Battle, creative director at Faction. “Similar to a children’s pop-up book, many people just kept the piece on their desk because it was different and fun.” Best of all, it yielded a response rate of 8%-10%.
7. Know your postal rules. It’s always best to check with the post office before producing a mail piece with a premium. Check the rates, in advance, for any piece that’s out of the ordinary in weight, thickness or paper texture, says Lockard. “We recently distributed energy saving tips on a flash drive to a client’s consumer base using padded envelopes,” she says. “Due to the thickness of the package, we were required to pay a higher standard postage rate.”
New postage automation rules limit what you can mail and still get the lowest standard mail rates. The current standard postage rates may vary from as low as $0.18 per piece for a 3.3 ounce or less automated letter-size package to a minimum $0.463 for pieces too large or thick for automation discounts.
8. Become an “Environmailist.” The biggest thing in the direct world right now is the trend toward being ecologically sensitive with mailings, says Katz. The United States Postal Service has started a campaign called “Enviromailist,” which encourages people to help “green the mail.” This includes better targeting, respecting consumers’ mail preferences, good address hygiene and postal optimization to deliver the right message at the right time.
“All of these practices allow marketers to use paper and transportation resources more efficiently, reducing pressure on forests, cutting energy use and climate changing emissions and producing less waste,” says Katz.
Another way to reduce waste is to give recipients an item they’ll actually want to use. Westin, Marriott and other hotel properties, for example, have been sending out imprinted microfiber lens clothes to hotel clients. They can be used to clean glasses, computer screens and DVDs. “Sales teams love them because they’re inexpensive, make great mailers, are easy to travel with and have high perceived value,” says Brian Fircano, of Ad Concepts Inc., which helped create the effort.
Practicing solid direct marketing fundamentals like targeting the right person with the right product at the right address is not only better for the planet, it’s better for conversion rates.
9. Follow-up. Call or e-mail the direct mail recipient the same week. “The price per package can range anywhere from $3 to $100 in certain cases,” says Brainard. “Either way it’s a big investment and you want to follow up on it.”
I know it seems a bit odd and maybe a bit over the top but lets think about this one for a minute.
This is a great product for Realtors, financial advisers, insurance agents, dry cleaners and any industry who is looking to create a long term relationship and build thier brand. These items have a long shelf life and is something men and women will carry with them until the product no longer works.