9/30/2011 1 30-Sep-11 DM Crash Course DM Crash Course Direct Mail Advertising in Less than 60 minutes! presented by Alan Rosenspan And Keith Goodman Direct Mail Advertising in Less than 60 minutes! presented by Alan Rosenspan And Keith Goodman WHAT IS DIRECT MARKETING? “Direct Marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.” Direct Marketing Association
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9/30/2011
1
30-Sep-11
DM Crash CourseDM Crash CourseDirect Mail Advertising
in Less than 60 minutes!
presented byAlan Rosenspan
And
Keith Goodman
Direct Mail Advertisingin Less than 60 minutes!
presented byAlan Rosenspan
And
Keith Goodman
WHAT IS DIRECT MARKETING?
“Direct Marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location.”
Direct Marketing Association
9/30/2011
2
•Each dollar spent on direct marketing yields, on average, a return on investment of $11.65
•By comparison, each dollar spent on non-DM advertising yields an ROI of $5.29
Source DMA Annual Report
DIRECT MAIL IS PROFITABLE
• Convenient–It’s on your kitchen table or desk
• Written record–File it, save it, show it to others.
• Targeted–Mail just to the prospects most likely to buy
• Measurable–You know who responded
• Scalable–250 customers or 1,000,000 customers
ADVANTAGES OF DIRECT MAIL
•Email is a great tool for communicating to a subset of your existing customers.
•Direct mail (especially with postcards) gives you a 100% connection with your current customers.
Yes! 10%-15% Open Rates for email…
Should not be confused with click through or response rates!
DIRECT MAIL OR EMAIL?
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• 92% of consumers read the mail the day they get it
• What do you do when you get home?
• Most people sort mail into 2 piles…
Relevant Junk Mail
DOES MAIL GET READ?
COMMON USES OF DIRECT MAIL
1. Generating traffic to your store or website
2. Generating leads
3. Responding to competitive activity
4. Generating customer loyalty
5. Generating customer referrals
6. Special events / sales / seminars
• What do you want to accomplish?
• What makes your store/product different?
• What are the benefits to your customers?
HAVE A PLAN
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• The question we ask…
“What kind of response will I get?”
• The question we should ask…
“What kind of response do I need?”
WILL ANYONE RESPOND?
• What would you pay for a busload of customers?
HOW MUCH IS A “PASSENGER” WORTH?
The basic formula…
Average Sale $300
Gross Profit $150
Annualized Value (2X) $300
Lifetime Value (3 years) $900
WHAT IS A CUSTOMER WORTH?
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1. Timing
2. Mailing Package
3. Copy (Text)
4. The Offer
5. The List
WHAT IS CRITICAL TO YOUR CAMPAIGN
40%
THE LIST
• Time Sensitive Offer
• Relevant Imagery
• Excellent Copy
• Clear Call to Action
TheWrong
List
No Response!
THE WRONG LIST
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• Your buyers and responders are your most responsive lists.
• Capture relevant data.
• You can profile, append and model your existing list