Why Use Direct Mail?

There are two questions that I tend to get all the time - especially from small companies.  How do you make direct mail effective?  Should we use direct mail?  I must say that this surprises me every time.  Direct mail is not a "dark art" of marketing like its cousins - branding or advertising.  Effective direct mail is based more on solid blocking and tackling versus creative judo.  There is a very real and defined process for direct mail (this goes for all direct marketing as a matter of fact).

Unfortunately, DM is often misunderstood because it is so often misused or abused.  It is also something that most marketing leaders avoid because it's not considered "sexy" compared to evolving a brand (which you should use DM to do - more later on that) or a new advertisement (which DM should support either pre or post advertisement impact).  Usually DM is seen as a complicated process that, when explained by the wrong person, will cause the eyes of most executives to glaze over or roll back and cause a mild sedated state.

Also, as with every other marketing medium, DM is not a silver bullet.  It should (actually it MUST) be used in conjunction with other marketing vehicles such as vertical or segment specific print advertising, outbound telesales, mass advertising, store/kiosk marketing etc.  Net, if you want to maximize the return on your marketing spend, you need to integrate your marketing platform.

Here are 5 reasons why you should make DM part of your marketing strategy: 

1) It's Targeted:  There are very few (if any) other mediums that one can leverage to geo-target campaigns, offers or creative.  You can mail certain zip codes around an event you are having, buy specific lists to target specific groups like high value customers (HVC), or  perhaps just mail those who are credit worthy.  You can't do this with a free standing insert or run of press advertisement.

With DM, you can attach a small image of a map of the "store closest to the customer" (say within 2 miles of the household).  The customer can detach the map (via a substance that DM folks affectionately call "snotty glue") and bring it in to the store.  You can even print the offer on it and a tracking code as well (see value proposition #2).

2) It's VERY Measurable: I am a firm believer that if you can't measure it, you can't manage it.  As long as you set up your systems and processes correctly (or vendor / agency relationships), you should be able to capture huge amounts of data.  If you combine this data with a sound segmentation strategy, you can gleam even deeper learnings. 

For example, have you ever wanted to know who liked what offer or product?  What genders or ages responded better?  Did it drive calls into your telesales Queue?  Did the offer fail to close the customer or was your average handling time driving abandonment rate (hint - can you tell how you have to integrate telesales into DM analysis?).  Are you attracting prime or sub-prime customers?  These are just a few basic conclusions you can achieve from DM.

3) It's Actionable: Because you can garnish so many metrics, you can implement change effectively and efficiently.  Also, because 75% of your responses will come within the first few weeks of your mailing, conclusions can be drawn quickly on an offer's effectiveness so you can adjust your next campaign.  DM learnings can be used to augment other marketing endeavors with respect to messaging, offers, etc.  DM is a evolutionary process not a revolutionary one.  Plan, do, learn - and then plan again.  It is very much like search engine optimization or media buys for online banners - and there is nothing better when you solve the puzzle and arrive at the optimal plan or mix. 

4) It's Flexible:  DM can be used for a variety of things.  The common misunderstanding is that DM is "carpet bombing".  Wrong.  And even when you see big mailings from companies like Capital One, you can be sure that they are testing many variations of offers, lists and/or creative.  But DM is not just about customer acquisition.  Here are a few other ideas:

• Targeted Invitations (trade shows, executive gatherings, symposiums, webinars, etc)
• Appointment Setting (business reply cards attached)
• Retention Efforts (this is a huge area most do not exploit)
• Brand Launches (I gave a presentation at Chicago DM days for the USPS on this topic)
• Cross-sell / Up-sell of new products and services to current customers
• Regulatory / Legal Notifications
• Drive eCommerce to your website
• Launch a product to the market

DM can come in all sizes and shapes as well: standard self mailer postcards, over-sized postcards (to stick out in the mail box), tri-folds, bi-folds, catalogs, dimensional pieces, snap packs, etc.  I have seen some pretty crazy DM creative too, such as scratch off or scratch and sniff (I know of one done to evoke the smells of summer break like pizza, the beach, etc.)

5) It's Easy:  Don't be fooled and don't be nervous.  DM can be done by even the little guy.  You can outsource much of the work and have program managers ensure the success of the projects.  There are one-stop agencies who will work it all for you, or you can put together the specialty agencies if you want to drive tighter control.  How you decide to go about DM will not be the reason you succeed or fail.  How well you manage the fundamental steps of DM will determine your fate much quicker.

What Is On Tap?

In the coming weeks, I will provide a series of articles that reveal the secrets of the all important DM "tri-fecta": the List, Offer, and Creative.  I will also provide deep dives into important fundamentals such as print production, data management, creative agency selection, internal creative review processes (e.g. avoiding the three legged baby), and testing strategies (champion / challenger or A / B testing) and much more.  I believe that once the myths are explained, you will be more than ready to include DM in your integrated marketing strategy.

Comments

[Gregory Polk]

A Printer-Mailer business owner shared a story with me regarding a new client he started working with recently. The client operated a small non-profit that used direct mail as a primary means of seeking donations for their agency. The non-profit wasn't getting the returns they hoped for, but were content to get something instead of nothing.

At some point, the non-profit decided to shop for printing and mailing services to help lower their investment in each mailing. As mentioned, they weren't getting the return they wanted so it made sense to gain something by lowering their costs.

The Printer-Mailer business owner was approached and was able to win their business and then some. He took a hard look at their direct mail campaign, made some changes with their permission and almost instantly made a dramatic difference in their return. The non-profit is doing great and the Printer-Mailer gained a loyal customer with even more business than he ever expected from them.

The point of course is that direct mail doesn't always work the first time, but it can work and very well for any business willing to put a little faith and trust into a knowlegeable direct marketing professional.

"Why Use Direct Mail" is a great article. Thanks for the inspiration to add my own comments.