Back to Basics: Effective Direct Mail on a Small Scale
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Transcript of Back to Basics: Effective Direct Mail on a Small Scale
- 1. Back to Basics: Effective Direct Mail on a Small Scale
- Kristin Sine-Kinz ; Direct Marketing Services
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- Eric Mower and Associates
- Don Thompson ; Director, Americas Marketing
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- Honeywell Imaging and Mobility
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- formerly Hand Held Products
2. Session Objectives
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- Definesmall scale
- Small scaleperspective on:
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- Where to start
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- Building a Campaign: List, Offer & Creative
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- Fulfillment
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- Tracking
- Case study presentation
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- Strategies that exemplify success on a small scale
- Q & A
3. What doessmall scalemean?
- Small mailing quantities maybe 50K or less
- Budget does not allow for high-end creative
- Cant rely on the same testing principals as large scale campaigns
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- Test one variable at a time
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- Let the tried-and-true methods lead the way
4. Where to start
- Clearly define your audience
- What differentiates your product from the others
- Campaign goals:
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- Lead generation vs. Immediate sales vs.Awareness
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- Database building
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- Growing market share
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- Measures of success
5. Where to start
- Audience questions
- Helpful past experience
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- Integration with other tactics
- Commitment
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- 1 mailing does not equal a campaign
6. Building a Campaign:List 40%
- Efforts will fail if you dont target the best prospects
- House list or customer database
- List rental 98% mailable
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- Direct Response Lists
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- Compiled Lists
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- Controlled Circulation Lists
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7. Response List vs. Compiled List Benefit Response Lists Compiled Lists RESPONSIVENESS Usually out-pulls compiled UNIVERSEGenerally delivers more name volume. SELECTIVITY Good psychographic selections about individuals, lifestyle & purchase patterns. Good demographic selections. COST Can be less expensive to rent. UNLIMITED USE Rented for a specific purpose. Negotiable VOLUME DISCOUNT Negotiable Negotiable 8. Building a Campaign:List 40%
- Thesmall scaleperspective:
- Minimum quantity requirements usually 5,000
- Usage plan ahead when it makes sense; i.e. rent for 12 months unlimited use
- Leverage value-add lists
- Email lists
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- More costly to rent
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- Vendor will not send you the list
9. Building a Campaign:Offer 30%
- In order to catch the fish, you must dangle the right kind of bait
- Qualified vs. Unqualified Offers
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- Must fit with your campaign goals
- Impossible to predict which offer will generate the best response rate for a given product or service
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- Test, test, test
10. Building a Campaign:Creative copy 15%, layout 15%
- Formats:
- Options are endless
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- What format generates the most cost-effective response rates?
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- Impossible to predict with 100% confidence
- To evaluate direct mail creative you should focus on
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- How many responses did it generate?
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- Were the responses qualified enough?
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11. Fulfillment
- With all the details that go into planning a campaign, its easy to forget about fulfillment. This is a very important brand interaction for your prospects and/or customers.
- System to collect responses online, call center, PO Box
- Team designated for responder follow-up sales, call center
- Fulfillment packages distribution of company collateral and white paper(s)
12. Small ScaleFulfillment Considerations
- Bandwidth
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- Might actually be more cost effective to hire a fulfillment house vs. assigning internal resources
- Leftover printed stock
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- Print on demand
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- Distribute electronically
- Need to create materials for distribution
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- Be creative; what can I repurpose? What can I create that will have multiple uses?
13. Tracking
- Its all about applying what you learn; you will want to consider the following for maximum results:
- System of measuring campaign against measures-of-success that were developed up front:
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- Doesnt need to be a sophisticated online system
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- A simple spreadsheet can do the trick
- Time built-in to react
- A place to house data thats collected
14. Case Study: 20052007 Transportation Vertical Direct Mail Campaign Honeywell Imaging and Mobilityformerly Hand Held Products 15. Marketplace Challenge
- Honeywell Imaging and Mobility distributes its image-based data collection solutions worldwide.
- With a small market share in the transportation industry, the manufacturer faced the challenge of:
- Low brand recognition.
- Need for more information about the marketplace and customer demands.
- Need for better understanding of how to position its products as solutions rather than commodities.
16. Objectives
- Collect valuable purchase/needs/sales qualification information from prospects.
- Build a database.
- Lay the groundwork for future campaigns.
- Create opportunities.
- Sell product.
17. Honeywell Frequency Strategy
- If you mail them more, they will buy more
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- Add 40-50% of a mailing's response by a follow-up to the same list within a month; i.e. telemarketing, multiple mailing waves.
- 4X frequency per year; conducive to:
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- Establishing the brand.
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- Positioning as knowledgeable leaders in the transportation industry.
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- Frequent communications with prospects/customers can motivate them to consider you more often.
18. Honeywell List Strategy
- Dont put all your eggs in one basket; diversify.
- Mix of rented lists and in-house database
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- Looking for synergies with advertising; boosts frequency and supports response.
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- List response analysis after each mail drop to aid in future list selection.
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- Responders from rented lists are added to the in-house database for future marketing.
19. Honeywell Offer Strategy
- Sell the offer, not the product.
- Unqualified Offers
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- Premiums paired with relevant white papers
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- Why? Fill the funnel & build the database
- Offer presentation
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- Half price vs. Buy oneget one FREE
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- Colored offer box
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- Image of offer item
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- Attainability
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- UrgencyLimited time offers work. Use a specific date.
20. Honeywell Creative Strategy
- Self Mailers
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- Branded family look/feel
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- Developed control creative by testing tried-and-true methods
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- Mail package HOT Spots
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- Return address area, Addressing area, Teaser mail panel
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- Repeat your message... repeat your message
- Incorporate multiple response options
- The "yes/no" response technique
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- If you give a prospect the option to say no, they are more likely to say yes
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21. 22. Campaign Results
- ~1,700 leads
- ~230 opportunities
- ~$23,000,000 in potential revenue
23. Thank you.
- Any Questions?
- Do not hesitate to call/email if I may be of assistance:Kristin Sine-Kinz, Eric Mower and Associates, 585.389.1817(p) or[email_address]