Direct Mail: Alive and Kicking

Why do I get the feeling that many marketers today look at direct mail the way people look at the Jurassic Period?

Sure it’s nice to imagine what life was like all those millions of years ago, and hey, maybe a movie about it would be nice, too, they would say.

But does it have any relevance in today’s digital world? Not really.

Well, to those marketers I would simply say beware of the dinosaur, because T-Rex is not only not dead, he is still very relevant and very important. Last year I wrote an article in this very space, In This Land Of Digital, Let’s Not Forget The Physical, which touched on a survey conducted by by Millward Brown, a leading global research agency.

Their survey revealed that ”physical media–AKA direct mail–left a ‘deeper footprint’ in the brain.” In other words media that consumers can touch and feel resonated and touched more emotions than those of the digital variety.

And those consumers that are affected by “physical media” are not just the older demo, as many marketers believe.

“Direct mail surprisingly transcends the age demographic, with younger consumers (the 18- to 34-year-old demographic) preferring to learn about marketing offers via postalmail rather than online sources, according to national survey research from ICOM,” said Lisa Formica, president of FMI, a direct mail marketing and advertising firm.

Yeah but then there’s the whole USPS nightmare to deal with, right?

Will they raise rates again?

Will they file for bankruptcy?

Maybe direct mail isn’t worth it because of having to deal with the United States Postal Service?

Hold that thought…

“The USPS has may many advances over the years that has made direct mail more measurable and an even better value for marketers,” added Erik Formica, also of FMI and an executive member of the Greater PhiladelphiaPostal Custom Council. “For example, the introduction of the Intelligent Mail Barcode (IMB) has opened a range of new services and cost savings for marketers.”

Ok, so people like to touch and feel and presumably open direct mail, and it’s not just for the older demos, either.  And even the USPS is doing their part.

So why aren’t more marketers using it?

According to The Kern Organization, it comes down to a matter of training and experience, or lack thereof–as explained in their blog post, Is There Still A Place For Direct Mail in This Digital Age?

• Few marketers these days have had the training required to produce winning packages time after time.
• Many marketers lack the experience and confidence needed to design an effective testing strategy.

I can tell you as one who cut his marketing teeth in the world of direct mail marketing, training and education play a huge role in producing successful direct mail campaigns.

And as anyone who has ever initiated a direct mail strategy, testing is paramount.

What About ROI?

According to a recent survey conducted by TargetMarketing magazine, the channel that delivered the strongest ROI for customer acquisition for B2C marketers was direct mail. Direct mail also scored the highest among B2C marketers for customer contact and retention.

For the record, among B2B marketers, email scored the highest for ROI and customer contact and retention.

Now, truth be told, part of the reason direct mail scored the highest among all channels, such as social media, may due in large part to the ongoing dilemma that is how to measure the ROI of social media.

But that still does not take away from the fact that direct mail can be a very effective medium if used as part of an overall integrated campaign.

And don’t even get me started on integration. To say I’m a proponent of integration would be a major understatement. Heck I even wrote an article showing the correlation between two of my favorite things: marketing integration and Schoolhouse Rock.

Ok, your thoughts please.

Do you use direct mail in your advertising and marketing campaigns and strategies?

How about as  a consumer yourself, do you like getting packages in the mail?

And as for integration, if you do get a direct mail piece do you expect to see the same message across other media?

Source: Steve Olenski, www.forbes.com

Direct Mail To Remain Tops For Customer Acquisition

Marketers are expected to spend more on direct mail campaigns this year. Even as this channel is being pressured by digital formats, direct mail is still seen as the most highly effective way to win new customers. But more marketers are combining this format with digital efforts in their campaigns.

In 2010, businesses spent $44.9 billion on direct mail campaigns. And in  2011, direct mail should see a 5.8% increase to $47.8  billion. This growth rate is impressive but the compound annual growth rate (CAGR) will be lower than it was in pre-recession years. In comparison, spending  in direct response broadcast TV will reach $25.4 billion this year while marketers will shell out $31.6 billion in direct response digital.

For now,  direct mail, both catalog and non-catalog, is considered to be the most effective driver of new customer acquisition. On a scale of 1-5 here’s how surveyed marketers rated several forms of marketing for effectiveness in new customer acquisition:

• Direct Mail, Non-Catalog: 4+
• Direct Mail Catalog: 4+
• Search: 3.75
• Events: 3.25
• Social: 3.00
• Online Display 2.9
• TV/Radio: 2.9
• Email: 3
• Print newspapers/magazine: 2.75
• Mobile: 2.5
• Out of home: 2.5

Audiences are growing increasingly fragmented and new technologies are making the world of direct marketing more competitive when it comes to acquiring new customers. Analysts at Winterberry Group point out that direct mail campaigns can succeed when the following strategies are used:

• Data: Marketers will realize better results when they use proprietary lists
• Delivery: Applying the output from data analytics, marketers can improve results by targeting various groups in a list with specific offers and by using triggered campaigns that coincide with events such as first purchase or anniversary of first purchase.
• Format innovation: Turning to something new such as dimensional mail is more likely to attract consumer interest and increase chances that they will read what has been delivered.

For now, the direct mail format remains the best way to attract new customers. Marketers are likely to start using data analytics to better target parts of their lists with specialized offers in order to improve results and ROI on their investment.


[Source: The Future of Direct Mail in a Changing Economy. Winterberry Group. June 2011. Web. 5 Oct. 2011]

Direct Mail and the Gorilla in the Room

Imagine watching a half-minute video in which two teams pass a basketball. One team wears black shirts, the other wears white. Your task is to count how many times the team members in white complete a pass. If you are like most people, chances are you will report the correct number of passes. But there is about an even chance that you will completely miss the woman in the gorilla suit. Even though she walks through the game in plain sight, including pausing to face the camera for a bit of chest-beating before striding off.

We think this may provide a clue as to the continuing power of direct mail in an increasingly online world.

By means of the gorilla challenge and other ingenious tests, cognitive psychologists Christopher Chabris and Daniel Simons have demonstrated that, try as we may, we humans simply cannot focus on more than one thing at a time. And though Chabris and Simons never marched a gorilla past a mailbox — at least, as far as we know — we cannot help seeing a possible connection between their research and this tidbit from a recent survey: about 79 percent of households read or at least skim their advertising mail, whereas only about 19 percent of commercial emails are even opened.

The same survey reports that it is emails from unknowns, or with too-long or irrelevant subject lines, that tend not to win attention. Seen in light of the gorilla test, this is hardly surprising. When people check their email, they rivet their attention on the “From” field for names they know and like, and on the “Subject” field for short, relevant items. When minds are engaged in that manner, emails from strangers, or with irrelevant or too-long subject lines, may as well be invisible gorillas, chest-beating and all. Assuming, that is, that they evade spam filters in the first place.

By contrast, as people retrieve and sort through their mail, they must focus on each piece one at a time in order to settle on which ones they will explore further. In its moment, each piece — including advertising mail — commands full attention. And not just so that people can avoid inadvertently discarding letters, bank statements or bills, either. Three out of four Americans say they like, trust and read advertising mail. In fact, for new product announcements, the open rate for direct mail is about 1.7 times that of commercial email. That includes Generations X and Y, even though they grew up with the Internet. 

Moreover, a visit to the mailbox is a daily, anticipated event. Most people look forward to it. And, conveniently for advertisers, it’s an event that takes place away from the competing clamor of TVs, computers, stereos and video games.

The gorilla challenge and other ingenious tests are described in Chabris’ and Simons’ book The Invisible Gorilla and Other Ways Our Intuitions Deceive Us. To view the above-referenced video and test your friends, visitwww.invisiblegorilla.com. 

Meanwhile, there’s no need to don a gorilla suit and saunter by a mailbox to prove that direct mail packs a punch. Direct mail’s unassailably high open and response rates, along with survey data, do that on their own. So if you’re looking for a solid way to keep the market’s eye on the ball in an online world, count on direct mail. It is the antithesis of the invisible gorilla.

Hmm. If “the antithesis of the invisible gorilla” becomes the next slogan for the USPS, remember, you read it here first.

—Steve Cuno, Deliver Magazine

The Benefits of Mailroom Outsourcing

Business leaders are constantly watching their bottom line and in today’s economy, it’s more important than ever.  An often overlooked yet costly department is the mailroom.  An alternative to this expense is mailroom outsourcing services and in some cases turns your mailroom into a profit center.

Mailroom Outsourcing Will Eliminate...

• Staffing problems
• Labor costs
• Floor space
• Meter equipment rentals
• Transportation costs

A reputable and quality mailroom outsourcing provider should be capable of  providing your business with financial benefits, high service standards and outstanding support for all of your mailroom activities.  What should you look for in a company when examining mailroom outsourcing solutions?

Does the mailroom outsourcing provider...

• Provide same day service
• Stay up to date on all Postal regulations
• Interact with the Postal Service on your behalf
• Pick up and deliver your mail
• Provide the facility, personnel, mailing equipment and expertise
• Facilitate all processing including weighing and metering your mail
• Generate reports by department that detail your volume and postage used
• Sort your mail for the lowest possible postage rates
• Transport your mail and enter into the Postal Service mail stream

Outsourcing not only gets you back to your core business functions, but it also reduces costs thus increasing profits.

The 8 Step Effective Marketing Strategy

1. Start with an Idea

You can’t build an effective postcard if you don’t have an idea of what you want it to be about. Why are you creating a postcard?  Are you looking to invite new residents to your neighborhood business?  To increase attendance at an event?  To sell a particular item?  Figure it out before you start.

2. Decide On an Offer

You know why you’re sending the card.  Now what exactly are you going to offer up to your recipients to get them to take action?  Is the item, service, event, etc. compelling enough on its own?  Or are you going to offer a discount or provide some other incentive?

3. Identify Your Audience

Is the idea a good fit for your entire client or prospect list?  Or do you want to reach out to only a certain segment based on their interests or location?

We can also supply you with a targeted mailing list for direct mail postcards.

4. Select an Eye-Catching Image

An eye-catching, relevant image could land your card on a recipient’s refrigerator for the next three months, or, even better, make them want to flip the card over and see what you’re offering them.

5. Write Your Headline

The headline on the front of your card is like the subject line of an email.  It should usually be short and interesting, and (in conjunction with the image on the front) make recipients want to flip the card over and read what you have to say.

6. Clarify Your Message

Your offer should be easy to read and understand in the time it takes a recipient to go from their mailbox into their house.  Otherwise your card could end up in the garbage without it having achieved the impact you wanted.

7.  Design Your Card

Keep the design simple and easy to scan, because you have 5-10 seconds to get your point across. If you can say what you need to say in a sentence, then don’t say it in a paragraph.

8.  Send Your Card

Once your card is designed, you’ll obviously need to print it and mail it.  That is where we come in.  We can print, address, and mail your postcards (or any other mail piece design) quickly and minimize your postage costs at the same time.

Targeting Your Audience

The success of your direct mail campaign relies on the focus and accuracy of your mailing list. Here are tips on list hygiene and how to create a list with focused demographics.

·         Eliminate duplicate addresses from your direct mailing list.

·         Ensure your direct mail contact lists are up-to-date.

·         Buy a list that targets a specific population with specific demographics.

Examples:
Consumer lists can be targeted by:

·         Household income levels

·         Education

·         Age

·         Renters or homeowners

·         Occupation

·         Home value

·         Family size

·         Hobbies

·         Memberships and affiliations

 Business-to-business lists can be targeted by:

·         Credit rating

·         Location

·         Revenue

·         Executive titles

·         Industry classification

·         Number of employees

Resident Saturation lists allow you to mail to every address in a specified neighborhood. You can narrow the target audience by:

·         Zip code

·         Specific mile radius of target location

·         Postal carrier routes

Services

The most important service we offer is the expertise, experience, and outstanding customer service our staff provides when guiding you through the process of a successful direct mail project. Once your project is defined, we provide complete project management.

Our printing services include:

• Color printing (digital color and offset color)
• High-speed black laser imaging

Our mailing services include:

• Mailing list maintenance, list updating, and database management
• Envelope inserting
• Inkjet addressing
• Stamp affixing
• Postage metering
• Tab affixing
• Folding, perforating, scoring, and other bindery services

We print, produce, prepare, and mail all types of mail pieces, including:

• Postcards
• Envelopes of all sizes and types
• Personalized letters
• Brochures
• Newsletters
• Catalogs
• Magazines

If it can be mailed or shipped, we can prepare it, deliver it to the post office, expedite the delivery, and minimize the postage or shipping costs.

Target market list acquisition:

• Generate a list that targets a specific population with specific demographics.
• Generate a list that is quality…not just quantity
• Insure that you are mailing to your customers what they need, when they need it, and at a price they can afford.
• Receive a higher ROI (Return on Investment).

Why should your organization use The WordTech Group?

• Commitment to service: We are obsessed with providing outstanding customer service by turning orders around quickly and accurately.
   
• Easy to get fast quotes and answers to your questions: An experienced, live staff member answers the phone when you call and is ready to assist you (not a voice mail system).

·         Save Money: Properly planning and designing your direct mail piece can help you avoid surcharges that increase the overall cost of your campaign. Here are some tips to help you reduce costs.

1.    Have us review your files to ensure they meet USPS requirements and specifications.

2.    Have us merge your lists and eliminate all duplicates within your lists.

3.    Use machinable envelopes

4.    Avoid use of a square design for your direct mail piece. A postal surcharge of $.21 is applied to each piece and can double the cost of your campaign.

5.    Avoid use of a bright color in the address area that can make your piece non-machinable. Postal surcharges are applied to non-machinable pieces.

6.    Provide a 2 x 4 inch white space for addressing.

7.    Use our Indicia in your final files.

8.    For postcards, avoid placing a line down the center that would limit use of a barcode and increase postal rates.

9.    Design an 8 ½ x 11 piece so that it can be folded to 8 ½ x 5 ½. This can cut your postage in half.

• Experience: WordTech was founded in 1980 and all managers have more than 10 years of direct mail industry experience.

• Integrity: We treat all customers with respect, honesty, courtesy, and integrity.

• Infrastructure: We utilize the latest technology and equipment in a modern facility to better serve you.

8 Reasons why direct mail is so powerful

By David Frey, Marketing Best Practices, Inc Direct mail is perhaps, one of the most powerful marketing mediums in use today. Few other marketing tools can deliver your message with exact precision at such a low cost. The amount of mail in your mailbox everyday attests to the effectiveness of this medium (If it didn't work, your mailbox would be empty!). Here are eight reasons why I believe direct mail is still king of the marketing mediums: Reason # 1: It works when you're not Like the old saying goes, "In rain, sleet, or snow" the mail arrives. Whether you're sleeping, vacationing, working, or walking, your direct mail is working for you. It gives your best sales presentation over and over again without you having to be present. Reason # 2: It leverages your efforts Do you want to know how to waste your time? Give your best sales presentation to one person at a time. If you do this, you'll only sell one widget at a time. Send out thousands of letters and your best sales pitch is being presented to thousands of people simultaneously. That's called "leverage!" Reason # 3: Allows you to target with precision Instead of "spraying and praying" your message to people who may or may not be interested or even qualified to take advantage of your offer, direct mail allows you to pinpoint the people who fit your psychographic, demographic, and geographic profile. Reason # 4: You get an immediate response Once you send out your direct mail piece it doesn't take long to get a response. Within one to two weeks you'll receive about 80 percent to 90 percent of all those who are going to respond. If your campaign works, you'll know about it quickly. If it's a bomb, you'll that quickly as well. Reason # 5: It's easy to track your return on investment If you're a small business owner you can't afford to waste a single penny on wasteful marketing. With direct mail marketing you can code your mail pieces to determine the exact number of responses you received from each campaign. And as I said before, the results of your direct mail campaign come back fast, so once you know what worked and what didn't, you can immediately start to "tweak" your mail piece to increase your response and hold your marketing dollars accountable. Reason # 6: It's relatively inexpensive With just $.34 (at the time of this writing) you can send out a direct mail piece that includes your full marketing message. It is amazing what you can get into a small business size envelope and keep under the $.34 limit. Photos, newspaper articles, letters, special reports, and more can be put in these envelopes for under $.34. This means you can reach 100 target prospects for only $34. Comparatively speaking, that's a bargain! Reason # 7: It gets one-on-one attention One of the best things about direct mail is that it gets one-on-one attention from your target prospect. Unlike billboards or radio and television commercials that get your attention while two to three other things also have your attention. Direct mail is opened one piece at a time and read one piece at a time. It gives you the best chance of catching your prospect's attention and keeping it for a period of time. Reason # 8: It's something you can touch and feel—it hangs around Direct mail is something that you can hold in your hand. It's not made of electrons that can be deleted with the twitch of a finger. It's not a radio frequency signal that is here and then gone a moment later. It is physical. It is something that can hang around for a period of time. It has "lingering" marketing effects. These reasons make direct mail a very powerful marketing medium that, if done right, can have a very high return on your marketing dollar.