10 Insider Tips to Direct Response


by Jay Siff - Date: 2007-02-01 - Word Count: 1440 Share This!

With the proliferation of media choices available today, marketing to consumers has become more sophisticated-and seemingly more challenging and expensive-than ever before. Especially when some of your direct competitors are on local or even network TV, it can seem like your humble promotional efforts are meager at best.

Don't believe it for a second. There isn't any reason why a retailer with a less-than-TV-sized ad budget can't be amazingly effective in promoting his or her store. In fact, some forms of marketing communications deliver a far higher ROI, on average, than a TV ad campaign.

At the very top of the list of under-appreciated media is direct response marketing. As the name implies, this marketing tool is geared for one objective-response. When you need customers in the door, cash registers to ring, and average sale totals to rise, it's hard to beat a well-conceived direct mail program.

Direct response has the ability to help independents go toe-to-toe with better-funded competitors.

All it takes is commitment, a dose of promotional imagination-and an insider's knowledge of what makes a direct mail effort work. With that in mind, here are ten tips the pros use to create a winning direct mail campaign:

1. Focus, focus, focus. One of the most common mistakes gift merchants make is putting too many ideas into one mailer. Focus your piece on a single offer or idea, and drive the point home with crisp, active copy. Better to sell one idea with dozens of powerful words, than a dozen ideas all at once.

A related concept is to focus on YOUR advantages, not on advantages anyone in your business can claim. Talk about your extensive selection of Hummels, or your close relationship with Christian Steinbach that makes you one of the best Steinbach nutcracker retailers in the area. Let your recipients know you have a frequent buyer's club…or that you offer monthly signing events. Specifics set you apart and make you more appealing than your competitors.

2. Pile on benefits, not features. Obviously you want your mailings to have substance. After all, no one wants to spend money on copy that's all fluff. But in your drive to deliver facts, don't forget to sell. That means communicate benefits.

A feature of your shop may be your membership in the Herend Guild. The benefits, on the other hand, include better selection of Herend products…greater availability of limited designs…or inside knowledge of how to start or grow a Herend collection for maximum value. Transform your advantages using words that energize and entice, and you'll enjoy greater response.

3. Create "social proof" using testimonials. People never believe testimonials, right? Wrong! Actual experiences from satisfied customers are among the most influential appeals you can make. Psychologists call it "social proof"-people want to know that others have successfully gone before them.

Ask your most loyal customers to stay and talk for a few minutes. Offer them a discount if they'll tell you what they like about your store. Solicit responses from people who have taken part in your special events. These positive experiences can turn mail prospects into customers. (Be sure to get permission before using any attributed quotes.)

4. Think visually. According to a study of 2,000 consumers, print ads that consisted of 50% visuals (photos, illustrations, graphics) were seen and recalled 30% more often than ads with no visuals. This principle holds true in the direct mail world as well. Pictures do indeed speak louder than words alone.

Today it's easier than ever to include great photography in mailers, thanks to new photo capture, editing and printing technologies. However, nothing takes the place of well composed, properly lit pictures. If you haven't got the knack for it, find someone who does-even if you have to pay.

These days there are also many sources of high-quality photos on the Internet. Unless you are willing to pay royalties, however, make sure the shots you use are in the public domain or you may be open for a lawsuit.

5. Don't neglect color. While a simple word-processed letter printed in black-and-white on a piece of stationary can be very effective, full color mailers (better known in the industry as four-color because of the four inks used) do even better. Research shows that four-color pieces get up to 45% greater readership than black-and-white pieces.

If you're already contemplating four-color, try a "bleed," where the ink runs to the very edge of all four sides of the paper. Four-color bleeds get 15% higher readership on average than non-bleed four color.

To get the most from your use of color, find and use the very best color printer and processing software you can. Or have your pieces printed by a commercial printer if you can afford it.

6. Use coupons! Your customers can make you rich if you give them enough reasons to spend money with you. It's not enough to say "Come again!" as they head out the door. You must get into their minds with offers that justify another visit.

With this in mind, nothing beats a coupon in mailing pieces for generating a response. Coupons featuring even the smallest discounts are strong motivators because they shout, "Take action!"

Be sure you put your discounts in a coupon format, rather than simply stating the savings in plain text. For an even better response, offer a free gift instead of a discount. And always lead with the gift first-say "Free scented candle with the purchase of two at regular price," not "Buy two scented candles at regular price and get the third candle free."

7. Partner for profits. To increase the value and appeal of your offers, find another business that offers complementary services, then cross-promote the services of both merchants through your mailings.

If you're located near a florist, for example, why not join forces? Mail a coupon good for 25% off a music box with the purchase of any qualifying Valentine's Day bouquet. Art galleries, craft stores, even Christmas tree retailers make good promotional partners.

When structuring the deal, make sure your partner gives out coupons for your establishment as well. Why? Because it taps into the confidence of the relationship that business has established with its loyal customers. Make your partner's customer base work for YOU!

8. Promote even when business is good. Huh? Sounds a bit crazy, doesn't it. You have all the business you can handle…so why risk turning away customers you can't accommodate?

Waiting for a slow period to promote your store is like waiting until a storm hits to build a roof on your house. You need to constantly develop your customer base so that slow periods diminish and busy times become more profitable.

Consistent year-round promotion through direct response is the key. Find ways of increasing average sales during busy times of the year, or leverage your traffic by providing add-on birthday or anniversary offers. That way you'll have the goodwill and strong customer base to sustain you when things slow down.

9. Turn loyal customers into mailing lists. This tip dovetails with Number Eight. It's especially important during busy periods to gather names and addresses from your customers. No purchased mail list is as valuable as the one under your nose.

To make it easier for customers to leave their name and address, offer them an incentive, like a chocolate or gourmet cookie. Have a weekly drawing and give away something free…or reward them with a certificate good for a two-for-one deal on their next visit.

10. Test and track. This is perhaps the most important rule of all. The reason direct response campaigns have such a high return on investment is because they are so measurable and can therefore be constantly be refined and improved. Yet amazingly, many direct marketers don't take the time to adequately test and track their efforts.

To test a mailer, send it to a subset of your mailing list-perhaps 500 names-before sending it to your full list. You can do a split run, e.g., 250 names get one offer and 250 more get another, to test the validity of an idea. Test only major ideas ($45.00 versus $50.00 for a Bernardaud Votive is hardly a test) and never test more than one variable at a time.

When customers redeem coupons, track the gift line and total receipt amount. It's easy to quickly mark down the information by the cash register. If an offer is scoring great results, keep at it! There's no reason to discontinue a program until it is no longer working.

Finally, remember that 40% of a mailer's effectiveness comes from the offer, 40% from the list you use, and only 20% from the design and copy. Make sure you're sending the right deal to the right people, and you're 80% of the way to a successful direct response campaign.


Related Tags: marketing, advertising, ads, roi, customers, direct response, test, offer, mail, response, loyal, direct, track

JAY SIFF is CEO of Moving Targets (http://www.movingtargets.com), a Perkasie, Pennsylvania-based provider of new resident direct marketing programs. The company's strategic business partner, Loyal Rewards (http://www.loyalrewards.com), helps retailers expand their customer base and encourage repeat visits through its unique, email-based business marketing system. Moving Targets and Loyal Rewards have served over 20,000 merchants nationwide. Jay can be reached at 800-926-2451 or jay@movingtargets.com.

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.
 

Recent articles in this category:



Most viewed articles in this category: