1st Order Okay, 2nd Order Critical

While your first customer order is important, the next, and often elusive, second order, is almost as critical. Once someone purchases from you initially, they are a buyer, but when they buy from you twice, they become a customer.  Build a relationship with that 1st time buyer by testing a series of fulfillment letters that go out to your 1st time buyers with their initial order.  Offer a new customer discount on their 2nd order.  Begin to think like your customer and make them feel special with exclusive savings – right after their initial purchase.

Mail Use & Attitudes

Purchases Resulting From Advertising Mail In Previous Month Percent of Households
# of Purchases    2004    2005    2006    2007    2008
1                           12%       11%       11%        12%      12%
2                           6%         6%         7%           5%        9%
3-5                        4%         4%          5%          4%         8%
6                           1%          1%          1%          1%         2%
Total                    23%       22%       24%        22%      31%

Take-Away:

This study, performed annually since 1987, conducted by NuStats on behalf of the US Postal Service, provides a consistent look at households’ attitudes towards mail received, such as advertising mail.  Contrary to the image that direct mail is “junk mail” and is tossed without consideration — a majority of respondents report paying attention to the advertising they receive, either reading it or scanning it.  In addition, one of three households says they made one or more purchases thanks to the advertising mail they received

Lost Sales
Miss or bad addressed promotional mail has a triple-cost effect.   The obvious cost is wasted postage and production.   The not-so-obvious cost is the lost potential of those spoiled pieces.    The hidden cost is what you need to sell to recover the cost.   For instance, if you wasted $1000 in undeliverable mail, and you enjoy a 10% income before taxes, then you wasted $10,000 in sales.

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Rock Solid Guarantee

No matter how powerful your direct mail might be, it is still just a bunch of paper that arrives in the mailbox. Trusting a handful of paper takes a leap of faith, especially if the recipient has never done business with your company before.

To help people make that leap, you need to do whatever you can to establish credibility and reduce the perceived risk of making a purchase.

One of the best techniques is to include a guarantee. A guarantee can be one of your most powerful selling tools. It’s proof that you’re reputable. It helps lower perceived risk. And it almost always boosts your response.

Questionnaires

Questionnaires are worthy vehicles to motivate a reader to self-assess their fit to your product.   Design them as scoring tools, or as visualizers.   Use them as prestige builders, and certainly, use them to gather real market data.    Given careful positioning relative to your reader’s interests, a questionnaire is a likely dialogue opener for you.

Psychographics

When looking at your customers or prospects, more often than not, they are viewed in terms of demographics (age, income, etc) and geographics (location, areas, etc).  However, with the addition of psychographics (activities, interests, opinions, attitudes, values, etc) a deeper understanding of their psyche can be obtained, providing you with a better, more precise, more complete picture of who really uses and would potentially use your products and/or services.

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Unfortunately, I did not have the opportunity to attend the 2011 DMA’s annual conference in Boston earlier this month.  However, I always try my best to discover some hidden treasure(s) from that show in particular.  This year, I was able to uncover a “Creative Quiz” that was administered by direct marketing guru Mr. Alan Rosenspan to those who took his course at the DMA event.

His DMA Certificate Creative Course was designed to help attendees develop, recognize and encourage more effective creative work.  The course showed how to recognize great creative work, what to look for, and what to avoid; how to know if something will work before it goes out; and also how to motivate creative people to do their best work.

This isn’t an endorsement or anything for Mr. Rosenspan.  Instead, I am just trying to set the table for 15 of Mr. Rosenspan’s creative quiz questions.  The 15 questions are posted here with the answers at the end.  Good luck.

1) What should be the goal of creative work?

a. It should make you laugh

b. It should make you think

c. It should win an award

d. It should make people respond

2) What’s the 1^st question to ask of any direct mail package, print ad, e-mail or press release?

a. How much does it cost

b. Is it original

c. Does it have a big idea

d. Will people like it

3) How many messages should be included in your creative work?

a. One

b. Two

c. At least three

d. As many as will fit

4) It’s a good idea to encourage people to spend more time with your direct mail, website, or other communications?

a. True

b. False

5) You should always make your customers and prospects look good – never put them down?

a. True

b. False

6) You need to develop a good brief or Creative Strategy Form to get good creative work

a. True

b. False

7) Direct Marketing has to work harder than other forms of advertising because;

a. It’s more expensive

b. People don’t like direct marketing

c. It’s measurable

d. It has to get people to act

How can you increase credibility in your direct marketing?

a. Use specific facts

b. Use numbers and lists

c. Use testimonials from customers

d. All of the above

9) How important is the offer in direct marketing?

a. Not important

b. Somewhat important

c. Critical to it’s success

10) You should give creative teams at least one month to develop effective concepts

a. True

b. False

11) How can you add value to your direct mail package?

a. Add information that helps people

b. Add tips or advice

c. Add a recipe

d. Add something to make them smile

e. Any of the above

12) How can you add urgency?

a. Show photographs of people in a hurry

b. Tell them how much they will benefit

c. Give the offer a deadline – “respond by” date

d. All of the above

13) People are more motivated by fear of loss than by prospect of gain?

a. True

b. False

14) The more targeted a direct mail package is – the more effective it will be

a. True

b. False

15) In general, the direct mail format that produces the highest response rate is;

a. A self-mailer

b. A postcard

c. A box or dimensional mailing

Before I go onto providing you with the answers at the bottom of this issue, I am going to leave you will a little philosophical comment that was made to me a while back.  Unfortunately, I do not remember who the individual was in order to give them their due credit; the statement has to do will providing limits in order to create one’s unlimited potential.  The statement was:  “LIMITS CREATE UNLIMITED CREATIVITY.”  Just something to ponder.  It’s a discussion worth pursuing at another time.

For the answers to the above test, email info@BBDirect.com with the “Answers to Les Goldstein Tips – Issue 88″ in the subject line.  Thank you!

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Everyone knows the 3 Musketeers of direct marketing;  LIST – OFFER – CREATIVE.  While it’s vitally important to pay attention to them; LIST (prospect and current customers), OFFER (WIIFM; what’s in it for me) and CREATIVE (how to capture one’s attention), if you’re not paying attention the 4^th Musketeer – TIMING – you are truly missing out on a HUGE opportunity.

TIMING:  What is it you say?  Allow me to give you a few samples:

New Movers:  Did you know that 60% of all new movers also purchase new furniture?

Recent Weather Disasters (especially in our country’s northeast):  Local roofing companies were mailing “Storm Damage” post cards inviting inquiries.

Birth of a new child/grandchild:  How can you pass up a cute photo of your new bundle of joy?

How about a person just getting ready to sign up for Social Security?  What do you think they may be interested in?

Snow Shovels:  Would it make good sense to be marketing them in the spring?

Fundraising:  It has been shown that as much as 40% of all funds contributed by mail are donated within the final 2 months of the calendar year.

Think about these and more.  What work’s  best with your company or industry?

Timing can be viewed from several different aspects.  One is a life-style change.  Moving -  Obtaining one’s driver’s license (if you want to go down that road J) – Marriage -  etc.  Let’s not also forget the idea of current events.  Again, the recent bad weather – How about those cities where their sports team may make it to the World Series – Milwaukee, St. Louis, Detroit and Texas?  There are opportunities to be had when you seriously look at the timing of things as well.

Just to put something out there in the market place, for the sake of putting it out there has its drawbacks.

In a nutshell here’s what you need to be thinking about;

1) Have something good to say (again, think from the customer’s point of view – sell benefits not features)

2) Say it well

3) Say it often

4) Say it to the right people

One for all and all for one!!

For those of you who have Monday, Columbus Day off, enjoy.  Remember, there will be no mail delivery.

Feel free to respond with questions, comments, topics that you would like to see addressed in future issues.

Thanks to those who have expressed kind words about these tips.  I appreciate your encouragement.

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Know that one of the major factors in influencing purchase decisions is confidence. The road to confidence is paved with credibility.

Having the lowest price won’t help you much if your prospect doesn’t trusty you in the first place. Offering the widest selection and the most convenience won’t aid your cause if your prospect thinks you’re a crook.

You’ve got to face up to the glaring reality that prospects won’t call your toll-free number, access your website, mail your coupon, come into your store, visit your trade show booth, talk to your sales rep, talk to you on the phone, or even accept your generous freebie if they aren’t confident in your company.

Time zips on by. Your prospects can’t afford to waste it or their money with companies that haven’t earned their confidence. In order to earn that confidence — no stroll in the park, as you’ve most likely learned — you’ve got to use specific marketing tools and use them properly. I emphasize “properly” because even a smart bomb isn’t a valuable weapon if it lands on your foot.

You have to think in terms of getting down to the business of achieving and deserving credibility. All your marketing materials, whatever you say or show with your main message, also carries — an unstated, yet powerful communiqué to prospects.

Company 1 offered a superbly written direct mail letter on very inexpensive stationery is going to be quite different from the same message offered by Company 2 on costly stationery that looks and feels exquisite.

The paper stock carries a strong message. So does the indicia, real or metered stamp. The typeface speaks volumes and the printed — or handwritten — signature is even more eloquent.   Company 2’s letter has superb stock, a clear and elegant typeface and a hand-signed signature, using blue ink and a fountain pen. These are tiny details. Tiny but nuclear-powered.

Not surprisingly, Company 1’s, even though worded exactly like Company 2’s letter, will not draw as healthy a response because of its weak subliminal message. A powerful subliminal-message inspires confidence.

Entire marketing plans fall by the wayside because inattention to seemingly unimportant details undermines the prospect’s confidence — even if that confidence was earned elsewhere.

An amateurish logo makes a company seem like an amateur. Any hint of amateurism in marketing indicates to prospects the potential for amateurism elsewhere in the company – and throughout the company.

Absolutely everything you do that is called marketing influences your credibility. The influence will be positive or negative, depending upon your taste, intelligence, sensitivity, and awareness of this power.

Be aware of it the moment you start operating your business, and if not then, right now. It’s never too late to begin.  Begin the quest with the name of your company, your logo, your theme line, location, stationery, business card, package, brochure, business forms, interior decor, website, fusion marketing partners, even the attire worn by you and your employees.

Communicate even more credibility in the people you employ, the technology you use, the follow-up in which you engage, the attention you pay to customers, the testimonials you display, your trade show booth, your signs, and surely the neatness of your premises.

You gain credibility with your advertisements, listings in directories, columns and articles you write, and talks you give. You gain it with your newsletter. You gain it by your support of a noble cause such as the environment or natural products.  All these little things add up to something called your reputation – your brand.

Credibility is not automatic but it is do-able. Give a seminar. Work hard for a community organization. Nudge customers into referring your business. Word-of-mouth is omnipotent in the credibility quest. The idea is for you to establish your expertise, your authority, your integrity, your conscientiousness, your professionalism, and therefore — your credibility.

ACTION STEP:
Spend some time this week looking closely at the messages you send to the world about your business. Which areas need to be improved? What can you do this week to build your credibility?

As a direct marketing specialist with the United States Postal Service, my colleagues and I will gladly work with you on your quest for the “Holy Grail”.  Feel free to give me your thoughts and/or comments.  That road to eating that elephant is one bite at a time.

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