 Direct Mail or
B-Ball Mail …
What’s Your Company Sending?
By Kurt Konow
Data Center Segment Marketing Manager
Ricoh Americas' Production Printing Business Group (PPBG)
It's been called junk mail, solicitation mail, ad mail, and waste mail. Yet despite the names, direct mail is used to accomplish a very specific objective: to inform the addressee about products or services that invoke a positive response from the recipient. The least desirable response is the "crumple it up and score a two point basket" response. Unfortunately, there are many would-be, B-Ball players improving their shooting skills using your costly and apparently ineffective direct mail.
When was the last time you evaluated your direct mail strategy and measured its effectiveness? But wait - does your company have a documented strategy to measure against? Clearly, your company's direct mail strategy isn't to improve B-Ball shooting percentages, but instead the strategy should consist of goals similar to the following:
- Serve as a core lead generation tool by building awareness and interest of your company's products and services
- Encourage customers to evaluate and trial your company's products and services
- Drive customers to adoption and purchase of your company's products and services
If used correctly, direct mail is one of the best marketing levers to pull. In fact, according to the Direct Marketing Association (DMA) every $1 spent on direct mail advertising can bring in an average of $10 in sales. However, this impressive ROI is only achieved when clear goals drive a direct mail strategy. Let's take a closer look at the following baseline direct mail strategy.
Build Awareness and Interest - To the Right Customer
Direct Mail's primary mission is to inform customers about new products and services. Companies are creating new and improved product lines and services daily and need to communicate to existing customers and new prospects the availability of these products. However, equally important to the new product or service offering is sending the piece to the right customer. Why do financial institutions send college loan specials to empty nesters, or why do retailers send Winter-In-July snowplow specials to Florida residents? Proper customer profiling and targeting is essential to getting the right message to the right person in order to yield the desired results. The parent that has a college-bound student would absolutely want to hear about college loan specials, which would drive awareness and interest in the bank's college loan programs, leading to a request for information or an appointment with a loan advisor.
Encourage Evaluation and Trial - With the Right Offer
Targeting the right customer with the right message is definitely a must for a successful direct mail campaign, but so is the right offer. But what is the right offer? It clearly depends on the business and the target customer. For example, an ice cream company telling the world about a new flavor of ice cream might consider a coupon offer for a free pint of ice cream to encourage an evaluation. However, an insurance company informing customers about new services may want to create an integrated direct mail marketing program tied to current billing applications, supported with a PURL. The customized website tied to the PURL could then gather a bit of information from the customer, enabling an immediate online insurance quote for the new service.
Drive Adoption and Purchase - Get the Right Result
The world is filled with marketing clutter and the ability to cut through the noise is extremely difficult. Yet, even more difficult is driving the customer to adoption and purchase of your product or service. However, if the direct mail program has been executed well, by talking to the right person, with the right message, with the right offer, then getting the right result is within reach. And what does getting the right result mean? It means getting the business!
Direct Mail - A Strategic Tool
Direct mail can be a strategic communication tool, especially for existing customers. You already have a relationship with them, so why not strengthen it with direct mail that is intentionally prepared with offers, services, and solutions that match their customer profile. A relevant direct mail piece that is derived from customer data, such as buying history and consumer preferences can dramatically improve response rates. But don't stop with just the data, to encourage your customers to respond the way you intended, prepare your communications in full color. Color can encourage intentional action, which equates to a better response rate and more dollars for you. For example, when used appropriately, color can influence the customer decision-making process by up to 80%.
Direct Mail - Its Big Business
Mail is big business and direct mail is an enormous contributor to the numbers. Standard mail revenue in 2007 was $21 billion, with 104 billion pieces successfully delivered. According to the USPS the expectation is that by 2009 direct mail will grow by 32% in North America . Several regulatory and compliance laws have contributed to the continued growth of direct mail such as the Do Not Call Registry and the Anti-Spam Act, both established in 2003. Since it is still necessary to communicate to new and existing customers, direct mail remains the perfect vehicle for telling prospects about new services, special offers, and customized solutions.
Direct Mail or B-Ball Mail
Clearly direct mail can be a strategic marketing lever to pull within any marketing strategy. Maybe it's time to evaluate your direct mail strategy and let the NBA worry about shooting skills.
Kurt Konow
Data Center Segment Marketing Manager
Ricoh Americas' Production Printing Business Group (PPBG)
A veteran to the high-volume transactional print market, Kurt Konow is responsible for Data Center marketing for Ricoh Americas' Production Printing Business Group. Kurt brings many years of hardware and software solution experience to his appointment as Data Center Segment Marketing Manager for PPBG. Kurt can be reached at kurt.konow@ricoh-usa.com or at 630-335-4453. |
