Direct Mail: Dinosaur or Dynamite?

If you're under 30 you may think Direct Mail is ancient technology. Passe'. A marketing dinosaur in an increasingly electronic age. But before you write off Direct Mail as being irrelevant, youngster, you may need a bit larger perspective than your tender years allow.

What you may not realize is that direct mail is the Grand Dame of marketing. Like Grand Dames everywhere, Direct Mail lead the way to Direct Marketing. Like what other Grand Dames—Katherine Hepburn and Elizabeth Taylor—did for the film industry, Direct Mail did for Direct Marketing.

If Hepburn and Taylor showed ingenue actresses who followed how to act with style and maximize their assets, Direct Mail showed upstart media like email, websites, microsites, text messaging, Twitter, Facebook, LinkedIn, other social media and YouTube how to do it with style... and how to maximize their results.

Segment data, test packaging, test messages. Use personalization, teasers and pinpoint messaging to get the best return on investment. The first media to do it all—and to do it all right—was Direct Mail.

But life goes on. Sometime around 1960 the electronic invasion began and direct marketing rules started to change. Equipment got smaller, faster. New technologies arose to take advantage of these smaller, faster thingies. Other new technologies allowed better data capture and collection. This is where you enter the picture, newbie—at the dawn of the electronic era.

The wave of new media changed the way we communicate, giving us many new ways to do so. And because the older generation really does want to communicate with the younger (please ask your Mother), Direct Mail had to learn a few new tricks as well. After all, a True Grand Dame can evolve—just look at what Elizabeth Taylor became. (I could digress at length, but will avoid the temptation.)

Today, savvy marketers of all generations say Direct Mail has proven to be one of the most effective means of driving leads to websites and mobile platforms.

How did Direct Mail do it? By integrating new technology into print media. That's how. Personalized urls (PURLS), and quick response codes (QR codes) are only two of the most obvious techniques Direct Mail has made its own.

Variably printed PURLs direct prospects to personalized microsites customized to the individual recipient's interests and concerns. On the self-named site, recipients can leave specific information about themselves, which allows the marketer to prequalify leads and segment lists for more accurate messaging later.

Want another great evolutionary and revolutionary example? Try QR codes! QR codes take a recipient with a smart phone straight from the printed page to the mailer's webpage, YouTube video, or FaceBook page.

Want to promote something with a web-based address? A QR code is the fastest shortcut to get an interested person there. Want to segment your list into different messages or different platforms? Use different QR codes—one for each message or platform.

And it gets better! The USPS is so excited about QR codes, that it is offering a 3% postage rebate in July and August of 2011 for mail pieces that meet the requirements. I mean, when have you heard of the government giving the public something? Big banks and brokerages, car manufacturers, oil drillers, Big Ag and pharmaceutical megalopolies, sure. But you and me? This is amazing!

But more is coming. This is only the beginning. Direct marketing is evolving as I type. Intense list segmentation and data mining is creating the possibility of ever more personalized approaches. Variable Data Printing ensures that each recipient can get a message and graphics specific to that person's needs and interests. I can't begin to predict where Direct Marketing will be in even a few months. But someone somewhere is working on an amazing new app today that will change the conversation yet again tomorrow.

After all, Grand Dames don't become Grand Dames by sitting around on their tushes and eating bon bons. They get out and do things. They make things happen. They change themselves and their worlds.

That's what Direct Mail has done... and is doing. In the process it has become marketing dynamite.

Listen Up. I’m only going to tell you once…

The masters of marketing say that you have tell prospects what you are going to tell them... then you tell them... and then you remind them of what you told them. In other words, repeat your message.

So why would you think that one email or one direct mail or one tweet or one text message would be enough? Surely one of anything will pull in some business, but if there were an easy way to multiply your effectiveness wouldn't you want to do it?

You'd be an idiot not to! And yo' Momma didn't raise no idiots. Right?

But if you've read this far you already know how to create this marketing magic.

Need a hint?

Go back and read the first paragraph again. And again.

Got it now? Repeating your message is good marketing.

No, I'm not saying to robotically say the same thing over and over again until you hypnotize your audience into zombie-like group think. I'm saying to use multi-channel marketing. Mix the media, but not the message.

Need corroboration? Consider this statistical gem: Direct, targeted direct mail, combined with a same-day delivery of an email can boost response rates above 10%.

It starts with direct mail. 98% of consumers retrieve their mail the day it is delivered; and 77% of that 98% sort through it immediately. A great DM piece—well written, well designed, well presented—grabs eyeballs and attention. It probably lands in a "to do" pile, and it probably brings in a 3-8% return.

Now add a little "sweetener" in the form of a complementary email. Same message. Same graphics. Same call to action. Same day. Voila' marketing magic!

OK, usually only 10% of your email recipients open your email, and only about 10% of that 10% click through to your offer. Now that's an itsy bitsy group, but if the email and the DM appear on the same day, they exponentially reinforce each other.

Let me say it one more time:

Mix your media and repeat your message.

Then get out of the way.

Get Personal. Get Results. (Part 2 of 3)

Get Personal. Get Results.
Part 1 Part 2 Part 3 Part 4

Personalizing Prospect Marketing

First, a definition.

Everyone starts as a prospect, ie someone that a marketer believes might donate/buy/subscribe/join/attend or in some fashion show interest in the sponsoring non-profit/company/magazine/organization, etc.

Not all prospects are created equal. To paraphrase George Orwell, some are more equal than others. Hence the first challenge is to find the right people who might want to donate/buy etc. That effort is called “prospecting.”

Looking for prospects starts with a definition of your optimal buyer. Then you define and refine until you get a many faceted profile.

Like grizzled 49ers of old prospected for gold in them thar hills of California, today’s frazzled marketers prospect for gold in the thousands of lists on the market. With the right list and the right approach, the marketer finds his gold.

Finding good prospects just starts with list selection.

Looking for donors? Go to donor files. Select donors to allied organizations. Simple. Or maybe not.

Looking for business owners? There are a thousand lists. Drill down through company size, gender of owner, location (and number of locations), industry sector, number of employees, type of organization (franchise, LLC, Inc, privately/publicly held, HOBO, etc) to find the list you need.

Now you can use the new technology of “data mining” to get even further into the prospect’s head.

Are you asking for the donors to support a non-profit summer camp for indigent children? Women would probably be your best prospects, and women with children would be even better. Families with household income over $xx would mean the family has expendable income to share, and those who have shown their love of nature and support for children’s causes would improve your “hit” rate.

If you’re looking for business owners who travel a lot, maybe those with multiple office/plant locations would be a starting point. If they have a second home, that’s a plus. If they are pilots or sailors, that helps define them as well.

Now you’re finding out what really makes these people tick.

Simultaneously with extracting the gold from the lists, you need to develop creative copy and design that maximizes the impact of your message. Find out what their individuals needs and interests are, then design your message to emphasize those issues.

New production technologies allow for variable full color graphics and copy. Here is how a few companies are using the latest in personalization technology to enhance their prospecting efforts...

Case Study #1. The exclusive mountain resort community. They sent oversized postcards to married couples with household income over $xx, in a specific geographic region. Artwork was based on the recipient’s ethnicity, age and hobbies.

If the recipients were Caucasian, 40-60 years old, so were the models. If he liked golf and she liked tennis, the male model had golf clubs in his hands; she had a tennis racket in hers. They stood in front of the magnificent clubhouse with a world-class view of receding mountains.

The graphic designer used the recipient’s name in color to eye-catching effect, thus creating a split second opening for the recipients to soak it all in. It wasn’t much of a stretch for the targeted couple to see themselves in the picture as it spoke directly to them and their interests.

Case Study #2. The Long Term Care Insurance provider. His marketing package utilized variable art and copy based on the recipient’s age, gender, ethnicity, physical location, and household income. The photo showed a couple waking on the beach with the statement “Now is the time to think about Long Term Care Insurance.”

The copy speaks to women by name as they tend to outlive their husbands and therefore need this product more, and because women make 70% of insurance decisions for their households. “Hypothetical” tables based on the couple’s age and income show what a plan could cost—and could deliver.

Case Study #3. The real estate agent. In an economy that had produced zero house sales for her the previous year, she opted to mail renters telling them to stop wasting rent money and buy a home.
The renters, selected on geographic proximity to her office as well as their household income, got an oversized postcard showing a photo of a home with a curbside mailbox. The home was in the background in soft focus; the mailbox was center front and crisp. On each mailbox was the name of the targeted family: Ramirez, Wong, Williams, Curtis. Subliminally the recipients could “see” themselves in this picture, in their new home.

These three examples show how the newly available filters can help inventive marketers position themselves in unique ways, to people who are specifically qualified for those messages. All three were working with prospect lists, using new technology and fresh creativity to stand out in the mailbox.

Are these individualized approaches more expensive than a traditional one-shot-fits-all marketing approach? Yep. Each individually prepared piece has a different mix of graphics and copy going to highly selected and qualified targets. That effort does have a price.

Are these personalized approaches more successful? Yep again. People see themselves and they respond.

The result: companies mail smaller quantities and get the same number of leads.

Technically, this extreme personalization process is called VDP or Variable Data Printing. It requires lots of computer power, marketing expertise and a precise mix of people and equipment to pull it off.

However, unlike shot gun marketing, with VDP you can approach only people that you know are the perfect target for your message. So you print less (that’s good green business practice), pay less in postage (that’ll keep the bean counters happy) and generate a higher return rate (that’ll make the boss ecstatic).

As the pharmaceutical ads say, VDP isn’t for everyone. It’s more expensive, it takes more time in development, and it can be nerve wracking waiting for the creative and data processing and programming to come together. But when it works, it’s amazing!

It’s state-of-the-art direct marketing. Until the next new-best-thing comes along.

Part III of this series focuses on personalization in housefiles.

Part 1 Part 2 Part 3 Part 4

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