Issues To Consider When Using Direct Mail As A Sales Tool

Direct mail is getting more expensive and has a low rate of return but, if done correctly, it can be a very useful tool. It has been said that a 2% return on direct mail is considered a success. I do not hold this as being a benchmark for today’s business environment. Too many aspects of business have changed dramatically for old standards to be applicable to today’s market.

The first huge adjustment to be made is the influence of the Internet which is rapidly replacing direct mail for many marketing programs. Secondly, the cost is no longer low as it costs us approximately $1.50 to print and mail a typical First-Class direct mail piece in an envelope. A one-sheet mailer without an envelope sent First-Class will cost approximately $1.00. A postcard ends up costing us about .50 per piece. Thus, a basic cost per 1000 is $1000-$1500. We use all types of mailers.

Keep in mind that the only way to capture the full potential of the mailing list is with multiple mailings. A successful targeted mailing strategy must include a series of mailings to extract the full benefit from the list. We start with a two-page, enveloped, First-Class mailing, followed by calls, faxes or emails if appropriate, then a one-sheet mailer, then a postcard reminder. This seems to get the most return for us. We call it the “mail-call-mail” program. Sometimes we reverse it and do a call-mail-call program, both work.

The strategy is heavily influenced by the size of your normal average invoice and the profitability of the sale. In addition, the rest of the marketing plan must also be considered as it’s the whole plan that must work together and all should be considered together when discussing a single aspect of the plan. For example, are you trying to educate?  If so, are you driving them to your website where more information can be disseminated cheaply? Are you setting the stage for a visit or a phone call or an appointment? Are you shotgunning or are you pinpointing your market and going right after a bona fide potential client? All these things need to be considered when determining how many mailings, what they consist of and what your budget may be.

One thing we have learned is that no matter how good your mailing piece is it takes many hits to create an impact. The return is always far less than you think it ought to be. Thus, you may be wasting good money if you blow your budget on one mailing and then wait and see what happens. Be prepared to mail again and possibly even another time or two, sharpening the message and developing the story. Of course, a follow-up call after the mailing is extremely important in most cases.

As for content, humor works, a good story works, testimonials work. Information is usually second in importance. See what works for you. Mailings have a definite place in a marketing strategy.  You should evaluate and determine the role a mailing piece has in your overall strategy. It works. Even if the purpose is to simply drive potential customers to your website, it still works.

It can be expensive and thus you need to track, monitor and control the effort and be very careful about how you do it and what return it brings you. If it isn’t working, stop it as soon as possible, but remember the need for multiple hits before you see a meaningful response, and the need for a total marketing strategy that is integrated and includes a number of communication tools. Quitting too soon does not work either. Frequently it is hard to determine what succeeded in making the customer purchase. Was it the mailing piece, the call, the website or the visit? A close analysis will usually reveal the roll each component played.

I have a client who spends a small fortune on direct mail, with each piece being lavishly made, printed and produced, usually including a gift of some sort and always sent special handling or even overnight delivery. It’s very, very expensive, but it’s sent to a very targeted and prequalified list and it yields a tremendous return. His product carries a high invoice and a large profit. It works very well for him. Another client mass mails junk mail and while also expensive, it yields a satisfactory return as he sends many and the low return is therefore adequate. He claims to be “harvesting the low hanging fruit”. It works for him.

Your mailing program requires a complete strategy based on all the divergent parameters discussed. Figure it out. In the right place, and with the right strategy, a direct mailing strategy can be very successful and an important part of an overall marketing campaign.