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How to Get Started with Direct Mail

June 01, 2006

According to the U.S. Postal Service, companies bring in $10 in sales for every dollar spent on direct-mail advertising, on average. If those numbers seem suspect, just check your mailbox. The profusion of commercial mail each day is proof that this marketing tool works – if it didn’t, our mailboxes would be relatively empty.

Direct-mail campaigns allow companies to find new business, gather information, and communicate directly with current customers. When executed correctly, they can be very cost-effective and produce a relatively fast return with quantifiable results. In fact, compared to other forms of advertising, direct mail is considered one of the best marketing media for providing measurable ROI.

Here are 10 ways to take advantage of direct mail’s marketing potential.

  1. Hone in on the target. Long before deciding what to say, targeting the right audience is crucial. To reach new customers, purchase or rent highly targeted mailing lists that pinpoint ideal prospects according to demographic or psychographic customer profiles, or by Standard Industrial Classification codes.

  2. Use a good, current database. Make sure your mail reaches real recipients. That means keeping existing customer lists up to date or purchasing the most recent lists available. Ensuring current names and addresses are correct will prevent wasted resources.

  3. Select the right list size. To get an accurate test of a new list, the test must be of a valid quantity. In most cases the industry standard is 5,000 pieces. Larger mailings are usually preferred since good response rates fall between two and four percent and you want to make sure to get enough responses to validate your test.

  4. Consider the timing. Mailings should reach customers in time for them to take advantage of any offers – especially seasonal campaigns, which should be planned and executed well in advance. Create an annual schedule with timelines for producing and mailing each campaign so information arrives at the appropriate times.

  5. Keep the message simple. Studies show advertisements have less than one second to make an impact. Grab the reader’s attention with a simple but powerful headline. Be clear in what you are selling and in telling the benefits to readers. Use subheads or callouts, and avoid industry jargon and details. The faster you can tell customers what they need to know, the better.

  6. Choose the right vehicle to deliver the message. Use postcards, letters, packages, or all three. Format can affect a mailing’s performance, and packages (“dimensional mail”) average the highest response rates. Whatever the format, do something fresh, unusual, and innovative to make sure it gets noticed. Postcards and envelopes can be oversized, and packages can include free samples.

  7. Make it easy for the reader to respond. Give them convenient ways to respond. Include a prepaid business reply card, a toll-free number, and a website address, or encourage readers to bring the mailing in to the company’s place of business for a personal introduction.
  8. Include a call to action. Extend a free offer, coupon, or discount, or provide an incentive. Be sure your offer includes an expiration date to encourage immediate action. Give the mailing added value by making it redeemable as a coupon or voucher.

  9. Seek professional help. Producing, printing, folding, stuffing, stamping…direct mail campaigns are big jobs. Outsource them to mailing houses. They have the equipment to process mailings quickly and cost-effectively.

  10. Test mailings and track results. Many variables can affect the response to a direct mail piece, including the type and quality of list used, the time of year, and the details of the sender’s offer. Do smaller mailings, testing one element at a time until you get confirmation on what’s working. Be sure direct-mail pieces are coded so responses can be tracked and analyzed.