Direct Marketing

Direct marketing refers to the promotional materials that are sent directly to customers or potential customers via mail (i.e., post or email). This includes junk mail, leaflets, and brochures that are frequently placed in letterboxes by local businesses, supermarkets, and other shops. It also encompasses mail items that are sent directly to individuals at their business or residential addresses. Although direct mail has been criticised as wasteful, carefully crafted and targeted mail items, particularly those with reasonable offers, can generate positive results and boost sales.

To ensure a successful direct mail campaign, the following guidelines should be observed:

1. Your direct marketing should be targeted, meaning the mail you send should be directed towards the person who requires your product or service and has the authority to make a purchase. To achieve this, some preparation is necessary. After identifying your target market, contact them to ascertain the name of the individual responsible for making purchasing decisions. If you are mailing to your existing customers, you should already know that person’s name; however, it is prudent to periodically check and ensure you have the correct name.

2. Your direct marketing material must include something significant and compelling. Refrain from sending anything that merely states who you are and what you do, as this will likely result in no response. When investing time, effort, and cost into direct marketing, ensure it is worthwhile. For instance, when directly marketing a new product, consider offering a ‘two for one’ or ‘buy one, get one free’ deal, or a discount off the standard price. Alternatively, provide a free trial of a new product or service, a satisfaction guarantee (e.g., ‘If you’re not happy, we will refund you the cost of the product’), a gift with purchase, or a complimentary gift voucher for future transactions. Whatever you offer, ensure it holds value for your customer and enhances the appeal of what you are selling.

3. Ensure that your direct marketing material stands out from the crowd. Utilise coloured paper, attach novelty items to your letter, include validated vouchers upon purchase, or employ oddly-sized paper or envelopes – be creative. It is crucial to test every aspect of your campaign. Rather than sending out thousands of letters and hoping for success, distribute small quantities featuring various modifications and evaluate which approach works best.

4. It is considerably easier to persuade existing customers to make a purchase than to acquire new customers. This is due to the fact that you will consistently receive a better response from current or previous customers compared to new ones.

5. Persistence is key. While your initial attempts may not yield favourable results, you will discover that the more frequently you send mail to your customers or potential customers, the higher the likelihood of receiving a positive response. By being persistent, you build a profile for your business. The more customers and prospective customers learn about your business, i.e., the more they engage with your brand, the better the response will be. Greater exposure to your brand name increases the chances of being chosen as a supplier when a need arises for your product or service. An essential aspect of your marketing strategy should involve maintaining contact with existing customers and regularly reaching out to new ones.

6. Occasionally offer something without expecting anything in return. It could be as simple as a birthday or Christmas card, or something valuable for their business, such as an article about improving sales, trends in their industry, new technology, and so on.

If the gift holds perceived value, the customer is likely to be impressed, and you will have enhanced your relationship with them, which is the essence of business.

Here are some additional ideas for direct marketing materials that may prove effective:

a. A postcard: Connect your offer or promotion to the image on the front, e.g. a card featuring a tropical destination might promote a competition with a holiday as the prize. Entry to the competition could be for purchases above a certain amount.

b. Email a direct mail piece: Emails are usually viewed promptly, unlike letters that may remain unopened for days. However, the email should stand out, incorporating graphics, fancy fonts, and effects.

c. Present an offer that requires a response by a specific deadline to ensure an immediate reaction.

d. To obtain a list of potential new clients, approach another business (not a competitor) that sells to your market. Request that they endorse your products to their client database in exchange for endorsing their products to your customers.

e. Send an audio tape or CD about your product or service and the benefits it offers to clients. While this incurs some expense, it can be effective for high-priced products or services.

f. Include scratch cards with your letters. Although this involves a cost, it can be successful in capturing immediate attention. Your promotion should require a swift response to build momentum.

g. Organise a direct mail competition, which can be highly effective if you send mail frequently. Each month’s mail item should include a question, requiring clients to email the answer or submit it via your website. Make everyone eligible (not just the purchaser), although you may offer a more valuable prize for those who have placed orders during the competition.

h. If you are hosting a special event, sale, or open day, establish a theme. Dispatch your mailings or invitations reflecting that theme, e.g. a party theme might include a party popper and toy whistle. A successful campaign featured a beach theme and included a bag of sand, generating 80 new account customers for the business simply by being different.

i. Bulky packages are always opened. Consider incorporating pencils, pens, or Minties for ‘moments like these’.

Lastly, bear in mind a few important points. Use words such as ‘YOU’, ‘FREE’, ‘NEW’, and ‘TRIAL’ on envelopes and within the content of your direct mail as teasers. Provocative words that promise something special, like those mentioned above, will encourage recipients to read your correspondence rather than discard it. Ensure your direct marketing offers are time-sensitive, allowing only one or two days for a response or an early bird discount or addition. The objective is to prompt prospective customers to act immediately. Once your correspondence is set aside, it is unlikely to be revisited. Test, test, test. This cannot be emphasised enough. Code your order forms or create slightly different offers in each mail piece to compare responses. Over time, you will learn what works best for each market type and can then focus on the most successful methods to improve results.

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    IMPORTANT NOTICE

    Information contained in this document constitutes general comments only for the purposes of education, and is not intended to constitute or convey specific advice. Clients should not act solely on the basis of the material contained in this document. Also, be aware that changes in relevant legislation may occur following publication of this document. Therefore, we recommend that formal advice be obtained before taking any action on matters covered by this document. This document is issued as a guide for clients only, and for their private information. Therefore, it should be regarded as confidential, and should not be made available to any other person without our prior written approval.