The Realities Of Direct Mail

'I'm looking for cheap direct mail that works! Any ideas?' 

Firms today must find new ways to save and reduce costs. On the other hand, one must be careful. Realistically speaking, there's no such thing as 'cheap direct mail' that's effective. Others would go further to say that the very phrase is a contradiction in terms. Sure, all businesses want results fast-the sooner the better.

There's no doubt that firms of all sizes have concerns about reducing costs and saving money to use elsewhere. No manager wants to invest huge amounts of time and manpower if a simple solution requiring little or no effort will suffice. However, an effective direct-mail program is based on certain realities: 

One is the loneliest number. Most important, direct mail is a program of introduction, reinforcement, repetition, consistency, and timing. It's not a single mailing. An institution differentiating itself, promoting products, and introducing new services can't expect immediate action or reaction from a single mailing. 

There are exceptions, however. If the offer is extraordinary, it will draw customers in-assuming that your list is accurate and appropriate. Otherwise, without a very strong lure, the odds are against it. 

Listlessness leads to loss. The most important component for an effective direct-mail program is the list. Simply put, the most poorly written letters, flyers, brochures, and other materials sent to the right individuals are more valuable than the best-written letters sent to the wrong ones. 

The strategy (from inside the firm) must be on target, the right parameters have to be established, and the names, addresses and information have to be up-to-date. In short: 

• Wrong list + right package = high degree of failure       
• Perfect list + lousy package = possible chance of success       
• Perfect list + right package = high degree of success       

List purchasing is both an art and a science-at least when the criterion is more complicated than 'within a mile radius of the store.' Information is available on every consumer on earth-specifics on age, income, education, purchasing habits, driving habits, and bad habits. Want to know what size coffee cup your head of household drinks from? Wondering what size tires are on his/her car? Everything is available, from the absurd to the sublime. 

It's important to define the parameters you need early on. Here are the key elements to direct-mail success: 

• the list (it had better be the right prospects)       
• the copy (tell 'em why they need to come in)       
• the hook (there must be something for the prospect)       
• the look (familiar, but different-out of the ordinary, but similar)       
• the offer (your firm must be competitive and then some)       
• the action (fax it in, mail it in, walk in)       
• the urgency (do it now, because ...)       
• the timing (common-sense strategies and just plain luck)       

The words do make a difference. Some people think that terms like 'database marketing' and 'direct marketing' are simply new buzzwords. Wrong. In the past, the phrase 'direct mail' was used to define a piece that went in the mail to a particular individual on a list. Often there were no set parameters other than geography and the occasional emphasis on branding. 

Today, an effective direct-marketing campaign relies on detailed database information. With recognition of the cumulative effect of multiple mailings, each mailing is both a marketing piece (effectively branding the bank, building and reinforcing the image) and a response piece. Throughout the campaign and in anticipation of the next, the database is updated based on responses, profiles of product, and other criteria: 

... And the envelope please. Package vs. envelope? Letter vs. flyer? Which works best? Packages and multiple pieces tend to produce higher responses than individual approaches. People process information differently. Some want to read a letter (signed by a president or a key department head); others prefer the short and sweet of a simple flier or insert. Some demand detail, others are turned off by it. Solution? Include both approaches in every mailing-regardless of the complexity of the product offering. 

Four color vs. black and white? An odd-size envelope vs. the No. 10? Don't waste your time on trends-you'll find considerable shifting of likes and dislikes. Most studies indicate that four color has greater impact than black and white. That's a given. Yet, at the same time, a black and white photo will stand out and draw attention among a world of four-color images in magazines, newspapers, billboards, and Yellow Pages. 

The same challenge exists in direct mail. In the world of four color, black ink, and PMS colors, effectively used four color will capture attention faster and work more effectively to draw the reader into the piece. Conversely, when a consumer opens up to 15 pieces of mail and each piece is four color, the value of your color is diminished. 

What about using gimmicks for getting the reader's attention? Be cautious-they can backfire. An envelope looking like it conceals an IRS check return, packaging disguised as Federal Express material, and other tricks send a mixed signal. Misleading and disappointing potential customers hurts your image. 

Unresponsive vs. Ummm-responsive. Direct mail, no matter how well it's packaged, may still be perceived as junk mail. Include all the necessary components, but realize that some will never open it, some will think about the offer but never respond, and some will respond. 

• Reality Check 1. Expect your direct-mail piece to be thrown away-no matter what's inside.

   

• Reality Check 2. Direct mail works overtime and over time. You must understand the value of repetition and customer behavior. One-time mailings are wastes of time. Stay with the program and learn a lesson from every clothing catalog firm that mails consistently month after month, year after year. Give it time.

   

• Reality Check 3. The insurance industry's norm for response is 1.5% to 5%. Direct-mail promotions using grand-prize money as the hook can be affordable and successful.

   

• Reality Check 4. You can give away anything and increase a response rate. But it probably won't be profitable immediately, may take forever to recoup the extra costs, and might attract the wrong type of customer or prospects with no intention of becoming customers. A firm can give away hundreds of useful, unrelated items-such as movie tickets, ski passes, and cookware-to increase a response to 50% or 70%, but look closely at the profit per piece and the timeline for breaking even. A finite number of components determine if a direct-marketing program will be a success, and an infinite number of creative solutions can capture the attention of the audience so the program has a chance to have an impact. Review the project thoroughly, without ignoring any small detail or big-picture item. Remember that direct marketing is a numbers game.