I’ve pointed out previously that while you might spend days, even weeks, crafting a direct mail message, recipients will spend just seconds deciding whether it’s worth their attention.

Here’s a video from Pitney Bowes illustrating this simple idea.

Let me first say that I disagree with the comment that a plain envelope is “boring.” The fact is, a plain envelope, especially one that looks personal, is a great way to get people to actually open the envelope and look at what’s inside.

Most of the other comments are worthy of consideration. For example, you have to get the recipient name and address right. Nothing will kill a mailer faster than addressing it to the wrong person. You must clean your list before you mail. And please remember to make sure you’re sending just one mailer to a home address unless you intend otherwise. I’ve been seeing a lot of waste recently with the same mailing arriving for various spellings of my name and my wife’s name.

Above is an excerpt from the DirectCreative Blog

Note this particular vendor video also show us how much more advanced mailers are in the US market. More innovative personalisation plus a trans-promotional mailer (the credit card bill), that we don’t see down here.

Note that most of the items shown in this video would not comply with the local NZ Post layout guidelines, allowing you to obtain the discounted postal rate. Call us if you want to try these more innovative ‘high response’ techniques in your next direct marketing campaign or billing mailout.

These reward programmes have to be done right. In an excellent article by Geoffrey De Weaver "… consumers do not mind sharing information with retailers as long as they receive worthwhile, personalised benefits…  54% of Australian consumers have at least one reward or loyalty card, and 69% tried to use a loyalty card as often as possible. Importantly, both figures are trending north…  Never lose sight of the top 20% of your customers who generate the majority of your sales and profits…"

But for the retailer, the hidden beauty of loyalty programs is their ability to better track things at purchase time. Without this or similar mechanism in place, few companies can track individual purchases back to customers.

A major income boost for targeted marketing campaigns

It’s not just about getting people back to the store and buying. It’s about getting these best customers to buy more products, more often. This data is used to alert the right customers, at the right time, about the right offer. This makes it more relevant and therefore obtain a far higher response, often 10x higher.

Imagine having an attractive offer arrive in your letterbox (normal or email), based precisely upon your current buying preferences, desires or on your birthday? Loyalty programs collect just this type of data, yet to date, are too seldom used by retailers or brands here in NZ. Yet it’s been common practice in Europe, UK and the US for several years…

Imagine too if this detailed consumer buying data was available in a smart company CRM system like Salesforce? And what if it’s then used to drive a personalised [semi-automated] cross-channel marketing programme? i.e. Many more sales, for much less effort and overhead cost.

Predicting buyer needs through data mining isn’t new (click here). But loyalty programme data, linked into one-to-one marketing system takes things to the next level. We can now talk directly to the individual, not just the broader demographic, ensuring much higher response rates and ROI.

It’s already started Downunder

Myer, a major retail chain in Australia has decided to slash it’s traditional mass advertising budget, instead sending targeted direct mailers to their 2.7 million Myer One card holders – It’s a smart move which should pay huge dividends.

Once the Myer One database was analysed, it was likely a simple financially-driven decision – One that should save them millions in old fashioned TV and Newsprint advertising, as well as boost their sales volumes and margins.

As Rafi Albo proved many times, a good loyalty program is the hidden key to effective, highly relevant one-to-one communication – When done well it hits that emotional mark, driving sales results way beyond expectations.

Step Up Marketing
In looking at cutting expenses, frequently one of the first cuts is in marketing. This can be a critical mistake.

Control the External Message
One way to make sure that you are in control of the message is to stay in front of the customer both through marketing avenues and personal one-on-one visits.

While others are cutting back on client visits, communication, advertising, and public relations, you can use communication avenues as a differentiating tool.

As one State of the Industry participant put it: “…we are taking every opportunity to make sure the company is perceived as progressive, financially stable, and completely reliable.”

Below are some of our thoughts regarding what proactive businesses need to do to survive and even prosper in today’s business climate.

- Stay in front of your target audience with relevant communications. It’s absolutely critical to build and maintain top-of-mind awareness, as well as position your brand. Look for articles on the Web that have value to your clients and prospects and pass them along. There are also companies such as mine that will create that content for you.

- Use expertly targeted communications like direct mail. Targeted communications to your best, existing clients, with relevent offers always has a high response and sales conversion rate – Sometime 100 times more than traditional, non-targeted campaigns, with means amazing ROIs.

- Go Cross-Channel for results. Email great and is low in cost, but delivery and response rates can be poor. Direct mail has superb delivery rates and good response. However the best, most effective marketing campaigns use parallel, identical messages via both media channels, averaging 15-25% higher sales than any single-media campaign.

- Ramp up their sales and marketing activities in response business conditions. Communicate with your audience at least every 60 days (preferably monthly) to ensure that your message doesn’t get drowned out.

- Some companies will begin to cut back on their efforts. Take advantage of this. Overtake these companies in the minds of your target audience.

- Take the paddlewheel approach. People need to hear your message repeatedly. Pass on large, one-time expenditures and opt for repetition instead.