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Direct Mail Marketing Can Help Business Acquire New Customers At Half The Cost |
Want a low risk yet effective way to reach your current or new clients? Direct Mail Marketing could be your weapon of choice. It is a proven method to get customers to respond, bring them to your website or storefront and to create awareness about your brand and products. Direct mail marketing companies work mainly with physical mail, and can supply you with a direct mail mailing list that has contact information of people who have an interest in services and products similar to yours. With their help, you can reach the target customers without undergoing time consuming task like labeling, stuffing envelopes and addressing. Direct mail companies can also assist you in designing an effective direct mail, get discounts on postage and tailor messages to prompt responses to your direct mail campaign.
Things to keep in mind while developing a successful direct mail campaign
- Identify your audience: Are you trying to create a new business or want existing customers to return? Are you selling to particular areas or demographics? Once the audience is known, planning the mailing gets simpler – it saves you time and money.
- Refine the offer: Create a compelling offer for the target customer; make it relevant. Describe the offer clearly and prompt the recipient to act on it.
- Determine your budget: How many pieces will you mail? Most direct mail advertising service companies have an order minimum. Larger quantities will get you a discount. What type of mailing do you want to send? It would depend on the amount you want to spend. Options range from 4”x6” postcard to a multi-page four color brochure. Who creates the direct mail pieces? If your staff can create the design and write effective marketing copy, you save money; otherwise mailing vendors can assist you for an hourly fee. Don’t forget the postage since it may account for over one-third the cost of mailing.
- Response Rate: What is your expectation regarding the response rate? Response rates to direct mailings are generally pretty low and even smaller percentage results in sales. Ask you vendor if he can help set a realistic expectation.
What are the different types of direct mail marketing?
- Mailers are marketing letters in envelopes. You use a few sheets of paper to provide details about the product, include other sales materials like customer testimonials or white papers, or add a reply envelope to increase responses. Advantage of a mailer is that customer’s privacy is protected as the marketing stays inside the envelope. Disadvantage of a mailer is that it is tough to get customers to open the envelope to see what is offered. To overcome this problem and pique their interest, you may put a short marketing message outside the direct mail marketing piece like, ”Amazing loan offer, won’t last long”.
- Postcards feature colorful designs with your offer and logo on one side, details and method to respond on the other. They are the simplest form of direct mail marketing and least expensive to print. Since there is limited space to convey the message, make sure you select your words effectively. The disadvantage of a postcard is that you cannot create the perception that it is an exclusive offer for the recipient since it is visible to everyone. Postcards also tend to get ignored in large piles of mail.
- Self-mailers are printed on a single paper sheet, tri-folded, and sealed so that the address and postage can be put on the outside without an envelope. You save on paper cost besides keeping your mail simple and light. With no envelope for protection, self mailers may get crumpled or ripped during transit.
- Catalogs, brochures and newsletters: Catalogs inform the customers about some of your services and products. Brochures promote your business in a beautiful format on glossy paper stock. No need to use envelopes. The address is printed on the back and it is sealed with a tab. Newsletters offer special deals and keep customers informed about the company. These are all fairly more expensive means of direct mail advertising and are usually reserved for existing customers.
- Dimensional mail is the most creative of all mails as it uses unique sizes and shapes to gain the customers attention. Dimensional mail can be shipped in a tube or box which prompts more customers to open it. It can include something with your brand name on it like a magnet, pen, or even piece of clothing. It should be sent to qualified prospects or current customers as it is the most expensive direct mail marketing option.
- Snap mailers are specialized envelopes that open to reveal the offer. They have punched sides that are torn to show the message or to remove a concealed paper sheet. It is mainly used by mortgage brokers and credit card companies to promote special rates.
What services are provided by direct mail companies?
Sending out mailings yourself is tedious and labor intensive and it is best to hire a direct mail service. These services have the expensive mailing and addressing equipment that automates the folding, stuffing, addressing, stamping and other processes that you cannot easily and economically do yourself.
- Direct Mail Design: Your direct mail marketing company can help you design and print the mailing piece unless you can find someone else to do it cheaper and better.
- Direct Mail Mailing list: You need to send your mailings to an updated and quality list. Make sure your direct mail services vendor has quality lists that are devoid of undeliverable and outdated consumer or business addresses. A good direct mail services vendor should guarantee the accuracy of the list. Your direct mail vendor lets you choose many filters like income, demographics, purchasing habits, lifestyle and credit ratings to create a targeted list so that you only go after customers that would be interested in your product.
- Postage: Direct mail advertising service vendors pay for permits that offer discounts on postage and they pass on those savings to you.
- Presorting, labeling, assembling and delivery are easier when you use direct mailing vendors. They use high-speed machinery to address and stamp hundreds or thousands of pieces per hour.
How do you choose a direct mail company?
Most vendors consider themselves ‘full-service’ direct mail marketing companies, but do not do all the work in-house. They usually outsource the designing and printing work. You may want use a full service direct mail company that works with you from start to end or if you like hire multiple vendors for specific tasks like designing, printing and mailing. Consider the following:
- Customer service: You want to hire a direct mail marketing company that will listen to your needs and is easy to contact if you have concerns or question.
- Experienced direct mail companies can help lower your costs as they know where to look for discounts. For example they may suggest a cheaper way to design or print without losing the punch or may use recycled materials to save you money.
- Tour their facilities to see your vendor in action. See if they are busy and handle the material professionally? Talk to a few salespeople to see if they are knowledgeable? Do they have enough staff to manage your direct mailing?
- Ask for references. Call them up to make sure they were happy with the service and the results. Was the service as expected or promised? Is the mailing list current and effective?
What are direct mail marketing costs?
Price depends on the type of mailing services, your needs and your location. You can reduce your cost if you can manage the writing and design in-house.