Direct Marketing 101Ten Steps to Direct Marketing Success
Agenda
• Background ... what is Direct Marketing?
• Ten steps to Direct Marketing success
What is Direct Marketing?
Direct marketing is an interactive system of marketing designed to effect
a measurable response and/or transaction at any location using one or
more advertising media
What is Direct Marketing?
Direct marketing is an interactive system of marketing designed to effect
a measurable response and/or transaction at any location using one or
more advertising media
What is Direct Marketing?
Direct marketing is an interactive system of marketing designed to effect
a measurable response and/or transaction at any location using one or
more advertising media
What is Direct Marketing?
Direct marketing is an interactive system of marketing designed to effect
a measurable response and/or transaction at any location using one or
more advertising media
Direct Marketing is ...
A one-on-one, person-to-person sales call
Direct Mail
• Outer Envelope
• Sales Brochure
• Sales Letter
• Response Device
Direct Mail
• Outer Envelope:
– The introduction
– One job, get opened
Direct Mail
• Sales Brochure:
– The attraction
Direct Mail
• Sales Letter:
– The argument
Direct Mail
• Response Device:
– The resolution
Successful Direct Mail
Direct Marketing priorities
1. List / Media
2. Offer
3. Creative
10 steps to Direct Marketing success
1. Develop a master financial plan
2. Select suitable products/services
3. Make your offer irresistible
4. Use lists / media that reach best prospects
5. Choose formats that fit your product /service and objective
6. Create advertising that sells
7. Plan for prompt fulfillment
8. Set up an R&D budget for testing
9. Analyze results carefully
10. Maximize customer value through repeat sales
Develop a financial plan
• Establish:
✓ Proper selling prices
✓ Test budgets
• Determine the allowable!
#1
Develop a financial plan
#1
Develop a financial plan
• Develop cash flow charts
• Substitute actual test results
• Expand program step-by-step
#1
Select suitable products / services
• Not all products are suitable
• Repeat business factor ... who are your best prospects?
#2
Make your offer irresistible
• The offer is very important ... more important than copy, graphics, format
• Use the most attractive offer you can afford!
#3
Make your offer irresistible
• Offers to relieve risk
• Price and payment options
#3
Make your offer irresistible
• Some popular offers:
1. Free offers
2. Discount offers
3. Sale offers
4. Sample offers
5. Time limit offers
#3
• Some popular offers:
6. Guarantee offers
7. Build-up-the-sale offers
8. Sweepstakes offers
9. Club/continuity offers
10. Philanthropic offers
Make your offer irresistible
#3
Great rates, low cost
Emotional and rational
Earn more plus a bonus
Use media that reach best prospects
• Start with the best media vehicles to reach prospects
• But, test different media
• RFM important in list work ... and beyond
#4
More TestVehiclesProven
Categories
Use media that reach best prospects
InitialTest Categories
Test Vehicles
Proven CategoriesTest Vehicles
Confirmation TestingProven Categories/Vehicles
Test New Vehicles and Additional Categories
Core Schedule
ConfirmationTestingProven Vehicles
ConfirmationTestingProven
CategoriesVehicles
More TestVehicles
New ProvenCategories
More Test Vehicles
and Categories
#4
Use media that reach best prospects
#4
Choose formats that fit your product/service and objective
• Every medium offers a variety of formats
• Use format appropriate to your target audience ...
#5
Choose formats that fit your product/service and objective
#5
Create advertising that sells
• Why would a stranger turn over hard-earned cash for a product or service they haven’t held or examined?
#6
Create advertising that sells
• Consumers are visual creatures
• Graphics should work with copy
• But, copy sells!
#6
Plan for prompt fulfillment
• Targeted fulfillment designed to stimulate action ...
• Don’t make them wait!
#7
Set up an R&D budget for testing
• Test to keep up with marketplace
• Never stop testing
• Test big things
#8
Set up an R&D budgetfor testing
Control#8
Set up a R&D budgetfor testing
1. Test a single element / approach
2. Record test results3. “Beat the Champ”4. Results statistically
valid
5. Analyze carefully6. Test for yourself7. Results aren’t forever8. Avoid over-testing9. Don’t test what you
can’t roll out
#8
Analyze results carefully
• Study, analyze and interpret
• Recommend specific actions
• Expand on success gradually
#9
Analyze results carefully
#9
Week 2 Week 4
Daypart Cost Leads CPL Daypart Cost Leads CPL
M-F 9A-2P 300.00$ 30 10.00$ M-F 9A-2P 300.00$ 35 8.57$
M-SU 5P-12A 600.00$ 27 22.22$ M-SU 5P-10P 450.00$ 33 13.64$
M-SU 12A-2A 300.00$ 8 37.50$ M-SU 12A-2A 5NCs 8 NA
S/S 10A-5P 300.00$ 33 9.09$ S/S 10A-5P 300.00$ 36 8.33$
Station Total 1,500.00$ 98 15.31$ 1,050.00$ 112 9.38$
Allowable 18.00$
Analyze results carefully
Week 2 Week 4
Daypart Cost Leads CPL Daypart Cost Leads CPL
M-F 9A-2P 300.00$ 30 10.00$ M-F 9A-2P 300.00$ 35 8.57$
M-SU 5P-12A 600.00$ 27 22.22$ M-SU 5P-10P 450.00$ 33 13.64$
M-SU 12A-2A 300.00$ 8 37.50$ M-SU 12A-2A 5NCs 8 NA
S/S 10A-5P 300.00$ 33 9.09$ S/S 10A-5P 300.00$ 36 8.33$
Station Total 1,500.00$ 98 15.31$ 1,050.00$ 112 9.38$
Allowable 18.00$
A reasonable CPL becomes ... a great CPL
#9
• Your best prospects are your current customers!
Maximize customer value through repeat sales
#10
Customer Profit Fan
-3
-2
-1
0
1
2
3
4
5
1 2 3 4 5 6 7 8 9 10 11
Advocacy
Lower Cost
Premium Price
X-Sell
Base Product
Revenue from …
10 steps to Direct Marketing success
1. Develop a master financial plan
2. Select suitable products/services
3. Make your offer irresistible
4. Use lists / media that reach best prospects
5. Choose formats that fit your product /service and objective
6. Create advertising that sells
7. Plan for prompt fulfillment
8. Set up an R&D budget for testing
9. Analyze results carefully
10. Maximize customer value through repeat sales
In short ...
Effective Direct Marketing is simple;
Get the right message,
to the right person,
at the right time!
Thank You
James Hipkin
(415)505-0632
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