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Direct mail keeps you in touch with customers  
    By Chris Coltrin  

Your kitchen pipes burst, and you need help fast. You used a great plumber two years ago, but you threw away his card when your 3-year-old poured strawberry jam in your kitchen drawer. Looking in the phone directory, no names seem familiar so you end up calling a stranger.

You and your plumber both lost out because he failed to keep in touch with you. If the plumber had a direct mail program, sending printed mailings to you throughout the year, you'd remember his name when you need him. And his business would grow.

Most small businesses feel direct mail is out of their range, fearing both the costs and the hassle. You may have instead decided to contact potential customers through e-mail, figuring that's a lot cheaper.
Well, it's time to think about direct mail.

Direct mail — a physical piece of paper — leaves a stronger, more lasting impression than e-mail. Sure, many people routinely toss "junk" mail in the trash, but many others actually read and keep advertising they get. With e-mail, you're competing against many other advertisers — and spammers — and it's likely your message may not get through e-mail filters.
With a little planning, you can develop a cost-effective, successful direct mail campaign. The keys to direct mail success:

• Your mailing list: Choose the recipients of your mailing carefully. The best names are your current and past customers. That's why it's critically important to maintain a customer database.

You also can buy names from companies specializing in selling prospect lists. You can purchase lists of subscribers to certain magazines serving your target market. When buying lists, make certain the characteristics of the people on the list match the attributes of your potential customers in terms of demographics, geography, income and interests. Perhaps you can swap your mailing list with businesses that serve similar clientele in your area.
Take time and care to develop your mailing list. By eliminating names that are less likely to be responsive, you greatly reduce costs.

• Your message: Your direct mail piece must be motivating to be an effective sales tool. Carefully think through what you want to tell potential customers, what you want to sell them and what you want them to do. Provide an incentive, such as a discount or gift-with-purchase. Add a deadline, but make sure it's far enough in the future so you have time to have the mailing piece printed and sent. Make certain everything is simple and clear.
• Your ongoing program: Like any form of marketing, direct mail takes many repeat exposures to be successful. You can't think of direct mail as an "I tried it once" proposition. Expect to send direct mail pieces five to six times a year to your key target market — but at least quarterly. It's better to send repeat mailings to a limited number of highly qualified prospects than just sending a mass mailing once.

Common wisdom is that direct mail response rates are very small — 1 percent or 2 percent. But a carefully executed direct mail campaign can achieve higher returns. Moreover, it's a mistake to judge the effectiveness of direct mail on the response to any one individual mailing. Instead, consider the lifetime value of each new customer you attract or referral you get as a result of your direct mail. If you consider what a customer spends with you over many years, you may find direct mail is a bargain.

 

2006-08-04 - 13:04:00

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