Direct Mail: Return on investment
Too many Marketers dismiss Direct Mail as an outdated tool. Used wisely it can still play a huge part in growing and retaining a customer base.
It is a very powerful medium in generating high quality leads, as well as converting prospects both new and old into lifelong customers.
Consider This Example:
A Healthcare company wanted to expand into a new area. It targeted 23,000 households recognising that, on any given year, 2% of those households would switch to a new company; which could translate into 460 new insured households. The goal was to get 500 new families signed up to the new plan.
Two Direct Mail pieces were used to drive prospects to a website and to attend events.
The time period was less than 30 days, so the Marketing was compressed and aggressive. A large over-sized letter was the first Mailshot, followed by a self-mailer that looked like a folder.
The result: Over 2,000 households switched to the company’s health plan, in the year following, an additional 6,000 households switched to its plan, making the company the fourth biggest in their segment in just two years, thanks to Direct Mail.
Five Tips for 2013:
1.) Get In Touch With Your Mailing Partner At Planning Stage: They should provide you with invaluable information about you’re mailing options, how to get the best return on your investment. They can advise on the best postage methods and services. Early planning with your mailing house can also lead to ways to add extra value to your Mailshot. From the simple addition of a QR code, to bespoke scented envelopes.
2.) It Is Still All About The Data: If you have a good, accurate list, you are more likely to succeed. If your list is poor, it does not matter how great your communication is—it will fail to resonate and therefore not be relevant. Time and money spent on understanding and updating your data will pay dividends.
3.) Think In Terms Of Niches: Effective direct mail is rarely the same. Therefore, you have to vary your copy and design based on the segments that emerge from your database analysis.
4.) Test Your Offers And Messaging: Most marketers ignore this directive, and their results suffer. Remember, direct mail is a copy-driven medium. Copy that the target audiences can relate to will be the most effective.
5.) Evaluate What Your Competitors Are Doing And Take Note: Again, many marketers seem to operate in a vacuum. Ignoring what is working and what is not, from a competitive intelligence vantage point. Understand, to the best of your ability, what differentiates you from your competitors and then exploit your Unique Selling Proposition.
The role of Direct Mail is ever evolving. It’s still viable in almost all vertical markets. It remains a great way to reach prospects and can be very effective in converting leads to paying customers. However, its new role as a key tactic used in an integrated Marketing campaign is increasing
Curious to find out how consumers react to direct mail?