Streetwise Tips on Direct Mail
Don't expect to make money on your first mailing
Direct mail marketing is effective for many small and large businesses, but it can be hard to find the direct mail package that works best for you. Don't get discouraged if your first mailing doesn't incease sales. Keep trying!
Know your break-even point
Successful direct mail campaigns typically get a response rate of 1 to 3 percent. Know how many responses you need to break even.
Test small mailings
Test small, inexpensive mailings until you find the formula that works. Let's say you need two responses per hundred to break even on your mailing costs. If you do a two hundred-batch mailing, you need four responses to break even. If you get one response or no responses on your two hundred-batch mailing, it is not working. Chances are, it won't work no matter how many you mail.
Choosing the right list is critical
Choosing the right mailing list will make a much faster improvement in your response rate than changing the package. Choose your list very carefully.
Your best list is usually your customer list
Your best list is a list of people who have previously bought a product or service from you. Keep a good list of current and past customers.
Work your best lists hard
Use your best mailing lists frequently. Mail to these lists again and again, until response dwindles off. Focus on using your best lists repeatedly, as opposed to testing a wide variety of new lists.
Focus your message
Be specific. Direct mail is good at targeting a specific audience. Be sure to develop copy and a layout that are appropriate to your audience.
Call them to action
Direct mail is great for calling customers to action. Don't forget to put a call to action in your piece.
Use coupons and redemption offers
Give prospects a reason to act soon. Coupons with redemption dates give the offer urgency.
Make it easy to respond
Always think ahead to what you want the recipients to do. Make it easy for them to take action. If you want them to return a reply card, make it postage-paid. If you want them to call you, include a toll-free number.
Test and refine
Don't give up after one shot. You could have a wonderful design, great copy, and a solid offer, but be mailing at the wrong time. In the end, you have to test until you see what works for your situation. Test variations on design and timing to find out what works.
* Source Streetwise Small Business Start-Up
