The Young Designer’s Guide

It has often been said that the success of a direct mail campaign can be broken down into three primary components:

1. The mailing list or target audience
2. The offer or incentive for the customer to buy the product
3. The creative package or communication message conveyed in the overall package

Experts in the field of direct mail have gone further to say that 40% of a campaign’s effectiveness is driven by the mailing list, 40% by the offer, and 20% from the creative package.

While this might be true from a big picture point of view, the following is a brief overview of 11 key strategic factors to consider when initiating a direct mail campaign.

Items 1-5 discuss campaign basics, items 6-8 introduce areas that focus on capturing information from your campaign, and items 9-11 look at goal setting, tracking and analysis.

1. List
Knowing the customer or decision maker for your product/service is instrumental in developing a successful direct mail campaign. For a simple example, if you are a developer of Hawaiian time share condominiums, it would probably be better to avoid soliciting people that already live in Hawaii.

Whether your mailing list is created based on demographics such as “gender” or “zip code,” or behavioral attributes such as “likes to play golf,” it is critical to understand your intended buyer/customer and select a mailing list within an appropriate and useful target audience.

2. Offer
Every direct communication should include an offer or incentive for the customer to buy your product/service. It might be a premium such as a toaster, or a discounted price. It also could be something intangible such as saving time. Either way, the more intrinsically valuable your offer is, the more likely that your audience will respond in a positive manner.

A general rule of thumb is that money tends to produce the best results. A word of caution - a lucrative offer such as 50% off might generate a wonderful response rate; however, it also can be an expensive proposition. So, be careful that you do not give away too much.

3. Creative Package — Message & Copy
What is your product? What are its benefits? Why does your audience need it? Where does the reader sign up, and by when? These are examples of the critical messages that need to be clear, concise, and even repeated several times in your communications. If your readers are confused, they will not buy.

When developing copy, assume your reader has a short attention span. It is best to use short sentences, bullet points and headlines that can be read quickly. Finally, while grammar is important, your English teacher is not grading your letter. Feel free to take creative license.

4. Creative Package — Format & Graphics
Using different type styles such as bold, underline and ALL CAPITAL letters can be used to draw your reader’s eye to key messages. Headlines and/or changes in font sizes can do the same thing. However, be judicious in your use of these techniques, as over use will lessen the impact.

Consider highlighting your offer, call to action, and response date, while using headlines as an opportunity to state benefit messages throughout your communication piece.

5. Call to Action
The bottom line with any direct mail piece is to get your reader to take action. Do you want your prospect to fill out an application or do you want them to call for more information? Either way, it is important that you are very clear as to the action you want them to take and by when. Do not be shy about repeating it.

Generally speaking, a single-page direct mail letter might have the call to action listed three times: in the middle of the letter, in the last paragraph, and in the post script.

6. Outer Envelope
Consumers tend to be cynical with regard to direct marketing. It is often viewed as “junk mail” and something they do not need. Therefore, it is critical that the outer envelope give your reader a compelling reason to open the envelope and read the entire message.

If the outer envelope cannot convey importance, the mail will undoubtedly be thrown away - unopened. Compelling reasons to get a reader “inside the envelope” can include an offer and/or benefit message. On the other hand, if you are mailing to active / current customers, your logo may be enough to get to open the envelope.

7. Testing Multiple Variables
A benefit of direct mail is the ability to obtain and measure responses. However, it can be hard to know exactly which element(s) drove the positive response. Maybe your audience wanted your free airline ticket offer. Perhaps your green letterhead caused them to respond. Or, maybe your product is exactly what they needed.

As a result, consider creating “test cells” by mixing key variables of your campaign. For example, divide your mailing list into four parts and send:

Offer A with Copy X to 25%
Offer B with Copy X to 25%
Offer A with Copy Z to 25%
Offer B with Copy Z to 25%

See section 9 regarding tracking and measuring.

8. Multi-Wave Mailings
Another testing opportunity is mailing a 2nd and possibly even 3rd letter to the same person approximately 1-4 weeks apart. A general rule of advertising is that people do not really see and/or internally comprehend a marketing message the first time around. Using this rule of thumb, it might take your target market 2-3 “viewings” to open, comprehend and internalize your message enough to buy your product/service.

Subscription mailings and grand opening announcements lend themselves to multi-wave mailings. However, a promotion for a 2-day sale probably does not warrant using this approach.

9. Creating Tracking Measures
Establishing accurate measurement tools such as promotion codes and/or coupons cannot be overlooked when designing your direct mail campaign. Without them, you cannot truly determine if , and to what extent, your efforts were successful.

For example, if you are selling newsletter subscriptions, ask your customer to mention the coupon or read a promotion code when they sign up. Keep track each time a customer mentions or reads the code so that you can be sure they were responding to your letter, versus signing up on their own. (This information will become critical when measuring the programs financial success - Section 11.)

When testing multiple variables (as described in Section 7), use a separate promotion code for each test cell.

10. Setting a Budget
When setting a budget, consider the following types of expenses you will typically incur: Mailing list (this could be free if you are using your own customer file), paper, printing, postage, cost of the offer, lettershop expenses such as merge/purge and mail sort, and any advertising agency or graphic artist fees.

Also, be sure to understand the difference between your “fixed costs” (i.e. postage) and “variable costs” (i.e. printing). This is will help you make better decisions about running another direct mail campaign in the future.

11. Measuring Financial Success
The financial success for a campaign can be measured in many ways. Cost per new accounts (CPA) and return on investment (ROI) are two examples. To calculate a CPA, take your total program expenses and divide by the number of new accounts acquired. A simple ROI equation takes the total program expense minus the additional money generated as a direct result of the campaign.

Before you get too far down the planning process, you might want to make some response rate and budget assumptions for your campaign. Take a look at the CPA and/or ROI and ask yourself, “Will these customers spend enough money (either now or in the near-term) to justify the campaign’s expense?” If the answer is “yes”, move forward with the campaign using the campaign goals you set forth.

In conclusion, direct mail can be a very important element of your marketing mix. When used correctly it allows for high target market selectivity, personalization, testing, and most importantly, it enables you to measure results. So, take the time to consider the details of a successful campaign — you will be glad you did.

This articles was provided by http://www.engelmanmanagement.com/

1. About Company
   Define Products / Services
   Features and Benefits
   Strengths and Weaknesses
   Internal Issues
2. Background Information
   Market Analysis
   Industry Trends
   Prior Marketing Efforts (What / Results)
   Sales and Buying Processes
3. Competition
   Who, Why
   How do They Compete
   How do They Sell
   What is Their Positioning

1. Target Audience
   General Description
   Specifics About the Buyer
   Unfulfilled Needs
   Good vs. Bad Customer
2. Where Do You Want to Go?
   Segments to Attack
   Products to Promote
   New Products / Service Offerings
   Goal Setting
3. Align the Key Variables
   4 P’s
   Differentiators
   Using the Marketing Mix
4. Brainstorm Communication Activities
   Create Value Propositions
   Standard & Out of the Box Activities
   Prioritize Activites
5. Set Action Plans
   Timing / Responsibilities / Next steps
   Judging Success
   Establishing a Budget

1. Identify Critical Issues
   Keys to Winning
   Barriers to Success
2. Measuring Results
   Who Will Judge
   When
   Using Which Metrics

Information provided by Rob Engleman of Engelman Management Group.

Not too long ago, a friend posed the following questions to me: What should a marketing department do? And, what should they be responsible for?

After reflecting upon the query, I came to the realization that my friend had asked quite interesting and thought-provoking questions for which there are not simple answers. To begin, the responsibilities of a Marketing Department vary based on several factors including business size, industry, corporate structure, and more. To complicate the matter, a Marketing Department’s role will undoubtedly be different for organizations where the department is considered to be a “cost center” vs. a “revenue center.”

While understanding that “it depends” is not a suitable answer for any direct question, the following are my thoughts on 9 core activities / responsibilities a Marketing Department must handle. They are not listed in any particular order, as they all should be accomplished if an organization wants to grow the value of its business.

1. Focus on the Customer. Marketers should spend time listening to their customers (and prospective customers) in order to understand their needs and wants regarding a particular product or service. Soliciting thoughts and input from internal stakeholders such as the Sales and Customer Service groups is also appropriate, as these departments are typically closest to the customer.

2. Monitor the Competition. Learning about and understanding the competitive landscape is also an important function of the Marketing Department. Marketers should be the “go to people” within an organization capable of answering the following types of questions: Who is the competition (both direct and indirect)? What do they communicate? Which customers do they serve? Why do customers choose the competitor versus you?

3. Own the Brand. The perceptions and feelings formed about an organization, its products / services, and its performance is what is known as its “brand.” The Marketing Department is responsible for creating meaningful messages through words, ideas, images, and names that deliver upon the promises / benefits an organization wishes to provide for its customers. Furthermore, the Marketing Department is responsible for ensuring that messages and images are delivered consistently by every member of the organization.

4. Find Direct Outside Vendors. Internal Marketing Departments do not create magic alone. Therefore, Marketing needs to source and oversee a group of outside resources (a.k.a. “partners”) such as copywriters, graphic designers, web designers, database specialists, and printers so that a company can get the most “bang” for its marketing efforts.

5. Create New Ideas. Whether it’s customer acquisition campaigns, keep-in-touch programs, new product promotions, retention efforts, or something in between, the Marketing Department should ultimately be responsible for developing new ideas that generate revenue for the company. This does not mean that the Marketers have to come up with every idea on their own; however, they need to identify, cultivate, and work with others (see point #4) to execute programs that will create revenue.

6. Communicate Internally. It is important that the Marketing Department communicates with all departments inside an organization. Since any employee (regardless of position) can support (or damage) a brand, value proposition or even specific program initiatives, the Marketing Department needs to take responsibility for disseminating information throughout the organization (this includes internal education and training when appropriate).

7. Manage a Budget. Establishing and communicating messages to the marketplace costs money. Therefore, Marketing Departments should be responsible for estimating the anticipated expenditures associated with marketing activities. Once set, Marketers should be held responsible for meeting all budget projections.

8. Understand the ROI. Since marketing activities are an investment — an investment in time, money, and effort — they should be monitored and measured against specific concrete goals and objectives. Marketing Departments should constantly ask themselves…”What’s my expected return?” Answering this simple, yet often overlooked question will result in better, more accountable decisions.

9. Set the Strategy, Plan the Attack, and Execute. One of the key activities for a Marketing Department is to integrate an organization’s goals, strengths, channels of distribution, competitive environment, target markets, pricing, core messages, and products into one cohesive document known as the Marketing Strategy. As part of the strategy, the Marketing Department should also develop a list of tactical ideas such as direct mail, print advertising, and search engine optimization that will enable the organization to communicate its message to customers and prospects. With a strategy and tactical ideas in hand, the Marketing Department is now ready to take on the responsibility of executing the programs and initiatives to drive sales and revenue for the organization.

Whether you are part of a Fortune 500 corporation, a regional manufacturer, a local distributor, an independent professional service provider, or somewhere in between, marketing is a critical component necessary to increase the value of your business. Take a look at your Marketing Department. How many of the 9 activities above do they handle? If something is missing, it is a sure sign that your marketing efforts are not as effective as they could be; therefore, your company is leaving money and valuable resources on the table.

Please feel free to contact me at 847-945-7573 or rob@engelmanmanagement.com if you have any questions or wish to discuss your organization’s marketing challenges.

Regards,

Rob

P.S. For more marketing and business growth ideas, please check out Zen 2 Wow — the podcast at http://www.zen2wow.com.