The Mechanics of Developing A Direct Mail Program
1. WHY DIRECT MAIL?
2. HOW CAN I USE DIRECT MAIL?
3. 8 STEPS FOR CREATING A DIRECT MAIL PIECE.
4. WHO CAN HELP ME CREATE A MAIL PACKAGE?
5. UNKNOWN
6. HOW MUCH WILL DIRECT MAIL COST?
7. WHAT KIND OF RESPONSE SHOULD I EXPECT?
8. THE RIGHT MAILING LIST IS CRITICAL
9. MAILING LISTS
10. SHOULD I COMPILE MY OWN LIST?
11. HOW MANY NAMES SHOULD I TEST?
12. WHAT INDUCEMENTS (STEP #2) CAN I OFFER
ENCOURAGE PEOPLE TO RESPOND?
13. WHAT MAIL DESIGN (STEP #4) SHOULD I USE?
14. 6 IDEAS TO CONSIDER BEFORE YOU START
THE PRINTING PROCESS.
15. A FEW TIPS ON DIRECT MAIL STRATEGY.
16. WITH ALL THIS DIRECT MAIL TALK, LET’S NOT
FORGET ABOUT THE POWER OF TELEMARKETING.
17. HOW CAN I USE TELEMARKETING?
1. WHY DIRECT MAIL?
Direct mail is a proven and successful marketing tool.
More money is spent on directmail than any other type of
advertising. Following are four major
reasons (benefits) of why direct mail is successful.
1. DIRECT MAIL IS…TARGETED
Direct mail is a “rifle shot”
in which you can hit the “bull’s-
eye. Being able to “pinpoint” your
best prospects will result in more
customers.
DIRECT MAIL IS…PERSONALIZED
Since you are not sharing space with
other advertisers, your mail package
will have the readers complete attention.
2. DIRECT MAIL IS…SCIENTIFIC.
By using a redeemable coupon, reply
card, or other response related
item, you will always be able to
track responses.
3. DIRECT MAIL IS…MAXIMUM COVERAGE
Radio, newspaper, magazines, and
other advertising vehicles are not
able to reach all your audience.
For example, most city newspapers
are reaching less than 50% of all
households. Likewise, with direct
mail you can reach every household
in your territory.
2. HOW CAN I USE DIRECT MAIL IN MY BUSINESS?
-increase store traffic during slow
business hours
-lay groundwork for a future sales call
-establish credibility
-gain more name recognition, awareness
-generate qualified leads
-announce special sales
-maintain frequent and personal contact
with potential buyers in area
-obtain orders by mail for items not in
your inventory
-reemphasize your unique image
-reach your competitors customers
-build goodwill
-fill spots that other advertising is
missing
-test customers reactions
-solicit new ideas and suggestions
-maintain “continuing” contact
-reach unique prospects
-disposal of overstocked inventories
-distribute free samples
-announce a new product
3. 8 STEPS FOR CREATING A DIRECT MAIL PIECE?
STEP #1: Determine your objective. What
do you want to accomplish. Sales.
Leads. Stored Traffic. (Review page #2).
STEP #2 Think of a special inducement
that will make people respond.
STEP #3 Decide on mail format. (Look
at page #7 for some samples).
STEP #4 Write the copy (words). To
accomplish your objective, what should
you say and how should you say it.
STEP #5 Design. How should the copy
and graphics be positioned? Should I
include graphics or illustrations? What
colors should I use?
STEP #6 Print your final design.
STEP #7 Affix mailing labels to your
envelopes and sort for postal discounts.
STEP #8 Transport the mailing pieces to the
post office.
STEP #9 Sit back and wait for the
responses. (Most importantly, “record”
the responses and measure the results).
Was your objective accomplished?
4. WHO CAN HELP ME CREATE A MAIL PIECE?
There are about five sources you can turn
to for help. We usually recommend you
first call a printer or lettershop since
they are more price competitive on basic
direct mail pieces.
1. Printer
2. Lettershop Service Company
3. Graphic Designer
4. Ad Agency
5. Consultant
*The above sources can be found in the
“yellow pages”.
5. IN YOUR CONVERSTAION WITH THE PRINTER,
HERE ARE SOME TOPICS TO DISCUSS
A) Ask the printer if you could see
some mailing samples. Along with
showing the printer’s quality
standards, the samples will give you
ideas on how to design your piece.
B) Ask the printer if a “copywriting”
service is available. (Step #4).
C) Ask if design/typesetting (Step #5)
Is available.
D) Ask the printer if “lettershop”
Services (step 7 & 8) are available.
6. HOW MUCH WILL DIRECT MAIL COST?
Each source will quote you a different
Price for steps 1-8, outlined on page #7.
As a general guideline, the opposite page
Shows a very competitive price quote for
A typical direct mail package. If you
Can obtain a similar quote (for a similar
Mail piece), then you are in good shape.
7. WHAT KIND OF RESPONSE SHOULD I EXPECT?
There is no such thing as a standard
response rate. Some companies need a 50%
response rate while millionaires are made
with a 1% response rate. Typically, you
can determine a response rate that is
required to pay for the direct mail.
8. THE “RIGHT” MAILING LIST IS CRITICAL
Research shows that the list has more of
an affect on your success than the design
of your mail package. A poorly designed
package sent to the right list will
generate more sales than a beautiful
package being sent to the wrong list.
DIRECT MAIL PROGRAM
PRICE QUOTE FORM
OBJECTIVE: general leads for sales team
CONCEPT: offer free demonstration
emphasis new feature and
savings benefit
MAIL PIECE FORMAT: - Envelope (#10)
- Letter
- Fact Sheet
- (1 page – 1 sided)
- Reply Card (BRC)
- 2 color (black/red)
QUANITY: 5,000
MAIL DATE: January 10
COST
$200 COPYWRITING
$200 DESIGN & TYPESETTING
$1,700 PRINTING
$75 AFFIX LABELS TO ENVELOPE
$75 INSERT MATERIAL INTO ENVELOPE
$75 SORT FOR BEST POSTAL DISCOUNT
$25 DELIVER TO POSTAL OFFICE
$2,350 PRINTER’S QUOTED COST
$150 MAILING LIST FROM
$200 LISTS
$1,150 POSTAGE Postal rates: Postal Rates
TOTAL INVESTMENT (refer to pg-9
1.23 ea. for determining your ROI).
If you go to outside services to do your copywriting, design, layout, typesetting, your cost will be considerably higher making your in the mail cost more around $1.00 each. True in-the-mail cost is determined by the cost for printing, lettershop services and mailing list costs. Creative, production and design are not included.
After deducting creative, production/design (mechanical or electronic art work), you in-the-mail cost will run between $.65 to $.95, depending on graphics (color printing).
The standard direct mail package consist of a letter, fact sheet (brochure) and response vehicle.
9. MAILING LIST
For mailing lists recommendations and cost, please call 1 800 805-9490 or email info@dirmark.com.
BUSINESSES LISTS
You can create your own customize mailing
list by using the following factors:
-type of business
-number of employees
-sales volume
-zip code, county, state
-driving distance from store
CONSUMERS LISTS
You can create your own customize mailing
list by using the following factors:
-age
-estimated income
-years living at home
-gender
-presence of children
-marital status
FORMATS (opposite page).
10. SHOULD I COMPILE MY OWN LIST?
Yes, if you can do it cheaper. However,
we have yet found a firm that could
compile a list cheaper. Keep in mind
that for $140 you can receive the
following:
-5,000 qualified prospects in your area
-with full address data
-with phone numbers
-with age, income, and other data
-with employee size, owner’s name, etc.
Most importantly, you don’t have to incur
the cost of keeping the list up-to-date.
with zip code changes, business failures,
and the constant influx of “new” people,
keeping a list up-to-date can cost a
fortune.
In sum, you will save time, money, and
headaches if you let somebody else do the
compilation.
11. WHEN ORDERING MY MAILING LIST, HOW MANY
NAMES SHOULD I TEST?
The “rule of thumb” is to test 3,000 to
5,000 names. This quantity will
constitute a valid test. Results from
smaller quantities can be misleading.
12. WHAT INDUCEMENT (STEP #2) CAN I OFFER TO
ENCOURAGE PEOPLE TO RESPOND?
Following are four groups of inducements
that will encourage response.
1. PRICING INDUCEMENTS
-refunds/rebates
-cash discount
-quantity discount
-meet competition’s price
-reduced down payment
2. GUARNTEES
-return with no questions
-double money back
-extended warranty guarantee
3. PREMIUMS & GIFTS
-free gift when visiting
-free gift when buying
-free gift when inquiring
-free gift for 1st 99 visitors
4. OTHER INDUCEMENTS/OFFERS
-trade-in offer
-philanthropic offer
-special payment schedule
-free 30 day product trial
13. WHAT MAIL DESIGN (STEP #4) SHOULD I USE?
Following are the three most common
Direct mail designs.
1. Classic Package
Includes: cover letter
Brochure
Reply card
2. Self-Mailer
Includes: 8.5 x 11, folded
(no envelope involved)
3. Postcard
Includes: 2-sided postcard
14. 6 IDEAS TO CONSIDER BEFORE YOU START THE
PRINTING PRESS
1. Before printing, show your mail
piece design to the post office or your
lettershop representative. These people
can determine if your piece meets the
proper postal requirements. Remember,
an inch too wide or an ounce to heavy can
mean a big increase in your postage .
2. Avoid Dating Your Material. Your
mail piece can become obsolete when
dating your material. Likewise, without
a date an old design can be used again and again.
3. Before signing the deal, make the
designer/printer to agree that the final
design proof will be given to you after
production.
4. Before starting the printing press,
have a few employees or friends double
review your mailing piece: check for
errors with spelling, grammar, phone
number, address, etc.
5. When designing your piece, try to
stick with two colors. A three color job
is a big increase in price.
6, You will notice that most direct
mail pieces come in standard sizes, such
as 5 x 8, 6 x 9, 8.5 x 11, and 9 x 12.
The reason is that printing equipment,
paper and envelope companies, and other
processes have been structured to fit
these sizes. Thus, try to stick with
these sizes. You’ll spend more if you
don’t.
15. A FEW TIPS ON DIRECT MAIL STRATEGY
1. THINK LONG-TERM
Don’t always try to make a profit on
the direct mail program. Instead,
try to gain NEW “customers:. The
cost of the direct mail program will
be paid many times over when you
consider the amount of profit a
customer will contribute over the
long run.
2. USE A RESPONSE TRACKING ELEMENT
Include some type of item in your
mail package that will help you
track response. For example, when a
new visitor brings in the coupon
that was in the direct mail package,
you will know that the direct mail
generated the new customer. Without
a tracking element, who gets credit
for the new customers: direct mail,
“word of mouth”, newspaper ad, etc?
3. COOPERATIVE MAIL PROGRAM
Consider cooperative mailings. You
can save much money by including
your direct mail piece with another
mailer.
4. READ DIRECT MARKETING BOOKS
Call Dirmark 1 800 805-9490
HOTLINE for a recommended outline.
16. WITH ALL THIS DIRECT MAIL TALK, LET’S NOT
FORGET ABOUT THE POWER OF TELEMARKETING
The growth of telemarketing has been
overwhelming. Over 15 billion in sales
have been made since the
1970’s. And because of new technology,
greater use of credit cards, and a more
willing public (business and consumers)
some predict telemarketing will out grow
direct mail.
17. HOW CAN I USE TELEMARKETING?
1. further qualify inquires before
passing them on to sales people
2. obtain more information on prospects
3. confirm that the direct mail piece
was received
4. generate sales from people that are
too far away for a personal sales
call
5. acquire the name of the primary
decision maker, then send a mail
piece to this decision maker
6. complement your direct mail with
telemarketing (this step will
increase response rates
exponentially
7. a less costly substitute for
personal sales calls