direct mail strategy & execution

STRATEGIC COMMUNICATIONS


TopicsStrategic Applications for Direct Mail

Strategic Planning

Strategy Considerations

Creative Execution

Direct Mail Strategy & Execution


When to use Direct Mail as a strategy

To produce an immediate and identifiable order or inquiryTo generate leads for field sales follow-upTo sell directly to prospects without using dealers or retailersTo reach a target audience other media cannot cost-effectively reach When a personal communication is desiredWhen precise timing or frequency of contact is essentialWhen a highly controlled distribution is requiredTo communicate detailed product informationTo build and refine mailing lists


When to use Direct Mail as a strategy

To follow-up on inquiries from other channels (Trade Shows, Web, promotions)

To build long-term customer relationships from short-term salesTo test product potential, price, packagingTo determine prospect profilesWhen you need to show measurable ROI on your marketing spend


Direct Mail Planning

“Plan your work, and work your plan”


Why write a Direct Mail Plan?

Document your strategic frameworkInvolves key functional groups in the total strategyIdentify measures for successBrings focus to messaging and creative execution


Components of the Direct Mail Plan

IntroductionProduct/Service AssessmentMarket PotentialMarketing EnvironmentStrategyImplementation Plan


Introduction

Who requested the plan?Who were the authors?What is the purpose for the plan?Summary of data for the planWhat desired data was not available?


Product/Service Assessment

Physical characteristicsScientific or technical aspectsEmotional aspectsFeatures-Advantages-BenefitsPositioning: current mindset/perceptions to overcome


Product Assessment: example

Describe a pencil …



Physical description

It’s yellow There’s black lead inside a wooden tube There’s a point on one end There’s an eraser on the other end



Technical description

What kind of wood is used How is the lead made? Country of origin of the rubber eraser Manufacturing process Types of pencils offered by the manufacturer



Scientific description

How many times can it be sharpened? How many words per single pencil? How much longer will it perform vs.

competition?



Emotional description

Security of being able to erase mistakes Peace of mind knowing it won’t leak or smear Impress friends with your practicality, frugality



Ultimate benefits

Fame for writing a screen play Riches for writing a brilliant business plan Romance for writing a touching love sonnet


Positioning – an overview

Defined: “Positioning is not what you do to a product. It’s what you do to the mind of the prospect. You position the product in the mind of the prospect.”

Seven-Up: the uncola Avis is #2 in car rentals: We try harder



Today’s overcrowded marketplace …

40,000 products in a supermarket52 versions of Crest toothpasteConsumers get an average 3,000 messages a dayOver 20 million telemarketing calls dailyAverage 150 pieces of mail per month



How do you take a position owned by your competitor?

YOU DON’T!



Positioning in a nutshell:

Reposition competitor by focusing on a category benefit not owned by them

Create a new category in the marketplace Be first to get into the prospect’s mind with a

category position


Market Potential

Sizing the universe Customer/Prospect profile Demographic/Psychographic data Results of previous research or marketing

efforts Changes in product, price or positioning

needed to appeal to other markets


Marketing Environment

Competitive situation analysis Competitive media use and messaging Media Options – integration opportunities Media cost, timing and testing factors SWOT



Review your core competencies and differentiators

Strengths, Weaknesses: internal environment (operations, technology, product innovation, customer service, etc.)

Opportunities, Threats: external environment (economy, government regulations, industry trends, technology, etc.)

SWOT Analysis Model



External Assessment: Who are our key customers, competitors,

suppliers and other external stakeholders? What are their driving concerns? What opportunities/threats do these driving

concerns pose?

Internal Assessment – in light of external findings:

What are the critical cross-functional processes in the organization?

For each process, what are the strengths/ weaknesses?

SWOT Analysis Model


Strategy

Objectives: Strategic, Financial, Marketing Strategic options/alternatives & criteria for

selecting them Recommended priorities for strategy and

tactics


Strategy

Objective Setting Guidelines

Purpose:

To define the intent, the means and the expected results of a strategy or initiative

Characteristics:

Specific Quantifiable Time bound Consistent with Company

strategy Business performance-

oriented Drives strategic decisions


Strategy

Objective Setting Guidelines

Establishing Specifics: What sales

performance have we achieved historically?

What is possible to achieve?

What are the corporate expectations?

Quantitative Measures:

Share of market/wallet New sales revenue Upsell/Cross-sell revenue Retention rates/revenue Profitability (ROI; marketing cost

of sale)


Implementation Plan

Campaign outline (tactics that support objectives)

List: segmentation and target audience Creative concept and offer Budget Timeline Metrics


Review: Components of the DM Plan

IntroductionProduct AssessmentMarket PotentialMarketing EnvironmentStrategyImplementation Plan


Strategy Considerations

Integrated Direct MarketingAnalysis Tools Database Marketing (RFM & predictive

modeling) TestingWunderman’s Commandments


Wunderman’s Commandments

The consumer, not the product must be the hero Communicate with each customer/prospect as an

audience of one Answer the question “Why should I?” Create relationships Suspects are not prospects Know and invest in each customer’s lifetime value Encourage interactive dialogues Share of loyal customer, not market share, creates

profits


Three pillars of Direct Mail strategy

The offer The list The creative execution


Last word on strategy: Execution

A mediocre strategy with great execution always beats a great strategy with mediocre execution!


What you need to know about creative

Direct Mail Formats

Post Cards

Advantages: Cost effective Gets attention without opening an envelope Effective traffic builderDisadvantages: Limited space Not a sales driving device “Junk Mail” association



Direct Mail Formats

Self Mailers

Advantages: Relatively inexpensive More profitable than envelope packages Effective for promoting seminars/publishing

offersDisadvantages: Lower response than envelope packages “Junk Mail” association



Direct Mail Formats

Classic Package (letter, brochure, reply card, envelope, lift note)

Advantages: More personal More “selling” space Higher involvement & responseDisadvantages: More expensive More complex – more ways to go wrong


Envelopes

The job of the envelope is to get opened – not to sell


Envelopes

First, they look at their name Second, they read teaser copy Third, they look at the return address Forth, they look at the postage Last, they look at the back

How consumers look at an envelope


Envelopes

Get the name right Use the name in more than one place Use high-impact, provocative teaser copy Highlight the offer Make your logo/corporate identity visible Use a stamp vs. metered or indicia Consider hand addressing Add color Use Fed Ex or Western Union Faux Fed Ex Consider dimensional package

Tips for getting your envelope opened


The letter

The job of the letter is to SELL


The letter

The Johnson Box/headline The signature The P.S. The first sentence Sub headlines Hand written points Bullet points A second color

Hot spots on the letter


The letter

Start with the prospect, not the product Make the opening line short and compelling Tell a story Fire your biggest shot first – benefits Make it look like a letter, use typewriter font Focus on readability Use a Johnson Box or headline teaser Write to one person Personalize the letter and message Sell with emotional appeals Tell the reader what to do; ask for the offer Use a P.S.

Tips for increasing involvement and response


The brochure

The job of the brochure is to inform. It provides the answer to the question, “Why should I?”


The brochure

Use numbers in headlines to add credibility Put captions under photos Use pictures of people to add a human touch Use charts to convey detailed information Include a Q & A section Include competitive comparisons Use testimonials or product reviews Use a quiz or test to involve the reader Always link product features to customer

benefits Make it easy to understand at a glance Include a call to action and 800 number

Techniques for higher impact


The order form

The order form must be able to stand alone, must be easy to use, and must contain all of these elements:

The offer The terms/payment options The response options The benefits of what you’re selling The guarantee


The order form

Use the customer’s voice Evoke good feelings about using the product Provide several ordering options Overcome skepticism with solid guarantee Put in a photo of the offer Personalize the order form/card Use the word “free” Drive greater involvement with:

Yes/No/Maybe check off boxStickersBrief questionnaire

Techniques to increase response


The offer

The offer represents the total selling proposition that attracts attention, builds interest and motivates action


The offer

Make it relevant to your audience and product benefit

Offer something they can’t get anywhere else Don’t sell the premium, sell the offer Give your customers the best deal Assign a dollar amount to the offer Put a deadline on the offer Offer a gift with inquiry, trial, order Offer price discounts on product bundles Offer information: research, idea kits, etc. Offer trade-in discount or rebate Offer a personalized gift/mystery gift

Tips for success


Presenter

Principal, clarion|creative

Past President, Midwest Direct Marketing Association

B2B Marketing ConsultantCopywriter & Content Marketer

Blog: marketingawesomeness.wordpress.comTwitter: @John_G_OlsonEmail: [email protected]

John G. Olson

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