Direct Mail Marketing

Direct Mail Marketing – Primary Advantages with Direct Mail Marketing

1. Target Advertising - targeting a specific group of customers.
2. Personalization of Marketing Message to customers specific needs based on previous transactions and gathered customer data.
3. Optimization of Marketing Message - Because of its direct accountability, direct mail marketing can be tested to find the best address list or customer target group; the best product offer; the best timing for your sales or marketing campaign (and many other factors). Then the winning tests can be rolled out to a wider audience for optimal results.
4. Specific data collection on customers - Responses (and non-responses) can be added to the database, allowing future mailings to be better targeted.

Successful Direct Mailing Campaign in 8 steps:

1. Define primary purpose of your Direct Mail Marketing Campaign (see ex below)

• Information regarding launch of your newly established company
• Increase sales and customer contacts
• Decrease customer churn
• Increase profitability from existing consumers

2. Marketing decisions based on customer knowledge
Message, Total cost for the campaign, Sales targets, Effect on churn levels on existing customer base, Hit rate, Break even.

3. Consider existing customers purchase history and demand before testing
Most important aspects of effective direct mail marketing is which customers to contact. Logical starting point for understanding how to construct your customer target group is to analyze your current customers. When you understand existing customer base you can effectively expand your customer target group by identifying similar companies that are not your customers today.

4. TEST your direct mail marketing assumptions – GO LIVE
Collect approximately 500-600 customer addresses and divide these customers into 2-3 customer target groups, test different marketing messages and observe customer response, hit rate, number of sales and effect on revenue

5. ANALYZE the Direct Mail Marketing Test, draw your conclusion and Decide
a. Did you reach your primary purpose defined under section 1.?
b. If your objectives where not reached find our why?
c. What communication message and was most effective?
d. What print material (flyer, brochure, postcard etc) and was most effective?
e. What sales channel was most effective?
f. When and how did the customer contact you?

6. Take care of contacting customers
The more response alternatives your give your customers the higher the hit rate. Assign responsible contact people and plan for peak of incoming traffic. Secure mail server access and proper storage of the incoming customer mails. If you work with coupons plan how to administrate and store the coupons.
Make sure your company’s telephone can handle simultaneous calls, a “call back” solution perhaps?

7. DECISIONS for the full Direct Mail Marketing Campaign!
What message shall be communicated? What product offerings or services should be in focus? and much more....

8. IMPLEMENT Your Direct Mail Marketing Campaign
Think through cost of distribution, competitor respons... etc

FOLLOW UP and draw learning’s from your direct mail marketing campaign!
Which customers did respond and which did not repsond and why? What did the customers purchase? Average Order Value compared to estimations and a lot of other

GOOD LUCK WITH GROWING YOUR BUSINESS AND REVENUES

Please help me improve this Direct Mail Marketing Guide further and do correct me if you believe that my conclusions need improvement.