Putting Direct Mail to Work

Many marketers are leery of using direct mail due to its reputation of a 1-3% rate of return. This is unfortunate because direct mail results are actually independent, varying from each company by their strategy and objectives. I remember receiving mortgage refinance offers while I was living in an apartment, which simply reinforces the national average response rate. Disprove the rumored rate of response by incorporating the following tips into your next direct mail campaign.

Beyond the Mailing List Tool                                                                                                                  Nearly every Credit Union maintains software that enables marketers to narrow down mailing lists by demographics, location, credit rating, and so forth. Defining your target market is a necessary step, but does not end with just your mailing list.

Your message, artwork, pictures and offer/incentive should all apply to this target market. When writing your message, consider three problems your target group experiences and promote how your service solves these situations. A 25 year old member does not have the same problems as a 50 year old when wanting a new vehicle and chances are they aren’t looking at even the same class of vehicles. Furthermore, your younger members are probably wondering how they can afford the new vehicle while your older members are wondering when they will have the time to buy one. Everything in your mailer should apply to the specific group you are targeting.
                                                                                                                                                                Define Your Mailing Strategy                                                                                                                 Once you pull your mailing list and tailor the piece specifically to your members, you must define your strategy. Are you releasing all your mailers at the same time to your target group or planning to mail them in a series over a defined time period to provide a more steady flow of response?

Studies have shown people usually have to be exposed to a marketing message three times before it has an effect. Printing 15,000 mailers and sending them to 5,000 targeted members three times will usually produce higher response than 15,000 mailers to 15,000 targeted members in a single mailing.

Maximize Your Spending                                                                                                                           Put every marketing dollar you budget to work. Options in printing and postage are available that can save you a bundle. How do the costs differ by printing on a full press versus a digital press? What is the printing price difference in targeting 2,500 members versus 5,000?

When it comes to direct mail, the USPS provides so many options it may become overwhelming. Did you know sending a certain amount of pieces to a specific zip code can save you postage costs? Contact your mailing house or Mitchell Mayer to learn more about the numerous postage-saving options available.

Understanding Your Response                                                                                                               First and foremost, determine what makes your efforts a success. Depending on what you are promoting, it may be difficult to measure response in terms of financial return. The main focus is to have predetermined goals and track your results constantly. Your overall goal should be to determine what features of your direct mail campaign created the response received.

If your promotional return is below your prediction or breakeven point, don’t fret. Failure is the best key to understanding your members’ motivations in response. Toyota considers failure a blessing. If an employee finds an error or a way to better their methods of production, the assembly line is stopped until measures are taken to resolve the issue, which will ultimately lead to increased production and/or customer satisfaction. The company embraces failure, as should you with any marketing blunders. The key is to understanding why you received the results you did in order to make all future promotions effective.

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