Document View

Thanks to the now-famous Do-Not-Call Registry, direct mail is being reconsidered as a viable medium by many who had thought of abandoning it. Veitis' 2003 Customer Focus: Direct Marketing study shows response to effectively targeted direct mail has been increasing in recent years - with jumps of as much as 30% to 40% within certain market segments. One reason for this increase: Customers now have more choices for how they respond. Now is the time to reinvent, refine and/or renovate your direct mail program. Start by applying some new ideas: 1. Add your URL to direct mail letters, brochures and response vehicles. 2. Track direct mail-generated response by sales channel. 3. Take advantage of shifts in postal mail volume. 4. Identify your next control.

Copyright North American Publishing Company Feb 2004

These are exciting times for all of us involved in direct mail. If you're wondering whether direct mail-the traditional workhorse of direct marketing-is dead or even dying, the answer is a resounding "No!"

However, it is changing.

And to be successful with your 2004 direct mail efforts, you need to be a part of the change.

Times Are Changing

Thanks to the now-famous Do-Not-Call Registry, direct mail is being reconsidered as a viable medium by many who had thought of abandoning it. Of course, those of us who understand the strategic value of direct mail have never thought of it as not viable. But with telemarketing under close scrutiny and heavy criticism, direct mail-a medium as personal as the phone, yet much less invasive-is once again looking good. It's just the thing for direct marketers who want to balance their online and offline media mix.

And though online direct marketing continues to grow at a remarkable pace, it is not replacing direct mail. The growth is fueled, in part, by direct mail. Direct mail drives qualified traffic to Web sites. That's right; anyone who reaches your Web site because of seeing your URL in a catalog or direct mail piece is not your average surfer. These are prequalified visitors who arrive with specific expectations and greater intentions to buy.

What Channel to Choose? Who to Target?

Veitis' 2003 Customer Focus: Direct Marketing study shows response to effectively targeted direct mail has been increasing in recent years-with jumps of as much as 30 percent to 40 percent within certain market segments (e.g., young baby boomers). One reason for this increase: Customers now have more choices for how they respond. Response channels include mail, phone, a Wsb site or an in-person/in-store visit. In many cases, customers learn about a product via direct mail, get in-depth information at a Web site, then choose to purchase it online, by phone or in a nearby store.

Direct mail also remains the medium of choice for communicating with certain audiences-such as customers over the age of 65-who are accustomed to hearing from you by mail and are, perhaps, less comfortable with other media. But don't rule out members of the younger segments, who seem to spend 24 hours a day in front of computers. Appropriately targeted direct mail messages with pertinent offers can and do still work with diese groups, as well.

Add "Oomph" to Your Direct Mail

Now is the time to reinvent, refine and/or renovate your direct mail program. Start by applying some new ideas:

* Add your URL to direct mail letters, brochures and response vehicles. But first, make sure there is a logical transition between your direct mail message and your Web site. For example, if you make a special offer in your mail campaign and give customers the option to respond online, make it easy for them to find the special offer on your site. Frustration kills response.

* Track direct mail-generated response by sales channel. When you send a direct mail offer that can be redeemed in-store, online, by phone or mail, make sure to link individual responses with the channels that captured them. If you don't, your response rates and sales figures are meaningless when it comes time to develop future strategics.

Enlarge 200% Enlarge 400%

* Take advantage of shifts in postal mail volume. Because some organizations are mailing less-especially for prospecting-your targeted audience may be receiving less postal mail than in the past With less competition in the mail, it is a great opportunity to get your mail piece opened and read. By testing mailing more frequently to mail-responsive segments, it's possible you will see higher response rates.

* Encourage customers to pass along your mailings to friends and colleagues who may be interested in your products or services. Test offers and formats that encourage passalong.

* Check out what's new from the U.S. Postal Service (USPS). Often thought of as stodgy and not in tune with the creative side of direct mail, the USPS recently began offering Customized MarketMail. According to the USPS, this program "allows you to test your creativity and send a truly dimensional mail piece of any shape or design." Mail pieces can be in the shape of circles, triangles, squares or even cowboy boots, boxes of doughnuts (shown on page 33) or personal computers. This may be just what your direct mail program needs to separate you from your competition. For details, visit www.usps.com/customized marketmail.

* Identify your next control. Even if you have a mail piece that works, you should test your way to your next control. Testing keeps you in touch with changes in customer attitudes and expectations. And it keeps you on your toes when it comes to developing the most cost-efficient formats, offers and mailing strategies.

Also, check with vendors to see how the latest technology could help make your direct mail more cost-effective.

* Test the most important things first. "Most important" is defined as those direct mail elements most likely to create significant increases in response. This includes offers, mailing lists, list segments, mailing formats, versioncd copy, use of personalization, "individualized" copy, outer envelopes, etc.

Don't spend money testing the ink color of the signature on a letter before you've tested offers or versioned copy to different customer segments.

* Test offer statements to see which one works best to specific audiences. For example, these statements all describe the same offer, but they may have different appeal to different audiences. You'll never know until you test them:

Buy one, get one free

2 for the price of 1

50% off, when you buy 2

* Test the synergy of direct mail with other response media. For example, send an e-mail follow-up to customers as a last-minute reminder of a limitedtime offer originally sent by mail. Create an inexpensive postcard or self-mailer to drive traffic to your Web site (shown at, left). Or use the combination of direct mail, e-mail and phone follow-up to customers to maximize response.

Whatever you do, don't ignore or give up on your direct mail efforts. Reinvest time and money in your direct mail to reap the benefits!

Enlarge 200% Enlarge 400%