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Archive for the ‘DM Data Advanced’ Category

Direct Mail Strategies for the Multi-Location Business

December 10th, 2008

Optimizing your direct mail investment dollars for multi-location campaigns is done by considering the printing and mailing service efficiency of the entire campaign.  With cost cutting strategies to be shared among franchise owners to data capturing techniques for the head quarter marketing arm, the multi-location business can benefit from a number of simple strategies as shown below.

Printing Efficiency
Probably one of the largest expenses to your direct mail campaign is printing.  And with each store location all mailing various messages at differ times to different audiences, the process can be a monumental headache.  Ideally, your goal is to shore up as much of this print waste as possible.  One of the things you should consider is garnering all the information from each of the franchise owners in terms of what they are mailing, who they are mailing to, and what kind of response they are achieving.  Most multi-location business owners believe they know and understand their current customers already, but there is a difference between how they would describe their customers, and how one of the several national databases that compile mailing list information would describe their customers.  It’s an important distinction to be made because with this understanding, not all locations are the same.  The goal is to develop uniformity throughout your locations.  The more each of your store locations can share in their information, the better their overall response will become.  And printing the same or similar mail pieces all at the same time is far more efficient than each location manager going through the campaign execution process.

Many printers will have partnerships throughout the U.S. where it makes economic sense to print your west coast location pieces on the west coast, and your east coast on the east coast, rather than have all printed in the Midwest and have the U.S.P.S. deliver all of them individually.  Today’s digital technology allows us to easily forward the digital copy to anyone for a quick quote per volume right along with the mailing list provided in digital format.

Direct Mail Competition
Though there may be a strong demand for your product.  People may see your products and services differently as compared to they see your competition.  In one market, your product may be well received, while in a different market your competition may maintain the market lead.  Therefore, direct mail can be an excellent medium to capturing new business if you know who to go after.  Some multi-location mailers will combat the competition by mailing heavily in area’s their competition has a strong hold, while mailing less where they already have a strong presence.  This defensive strategy works well when your product and your client’s product are more similar.  The mail focus with defensive direct mail is to build brand and position your brand differently as compared to the competition.

The more you know about what your competition is doing, the better you’ll be able to campaign against them, differentiate your business products and services, and learn from your competitions mistakes.

Data Mining Opportunities
Your current list of customers may be the single most valuable asset to your business.  When it, you can make better decisions as to who to mail to in the future, and how to communicate to them.
One of the more popular data mining techniques it to enhance your mailing list database of existing good customers with a variety of demographic elements.  This is done by appending information to your existing customer database in an effort to better describe what these people look like, and especially what they do not look like.  What’s really interesting is to then compare how your customers look like as compared to the average population within the market they reside.  In many cases, you’ll find that your customers have something in common and capitalizing on this commonality is the key to mailing smart and lifting response.
With multi-location mailing, data mining can help predict both who to mail to in a new market, as well as identifying a new location for your next business opening.

Pooling Interests
Many franchise businesses utilizing direct mail as a way to increasing their business traffic will pool their marketing efforts to achieve higher discounts on printing, mailing, and mailing list data costs.  They will also share the results of their direct mail campaigns to learn from each other faster.  As a way to avoid competing with each other, they will also identify store boundaries so as to not duplicate the efforts of the other store.

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Brand Marketing

December 9th, 2008

When done properly, developing a direct mail marketing campaign that fosters a continuing communication thread with your customers drives response rates upward.  While many direct mail marketers test one mailing list once, then move onto the next one, they ignore the value in creating brand awareness and the potential for an enriched relationship.  Courting new customers is about getting to know your prospects and them getting to know you, rather than one night stands.

Direct mail is a great way to drive traffic to your corporate website.  People readily flow from a message in the mail to more information in on the internet.  According to the U.S.P.S, many professionals prefer that vendors follow up by direct mail to apprise them of any new developments, rather than checking the website for updates.

Include a Business Reply Mail card to turn your direct mail marketing campaign from a monolog to a dialog.  Sales leads are far more qualified if they are familiar with your business products and services as well as your business being familiar with their own unique needs and preferences.

It’s not just the databank of information on your clients that’s of value, but it’s what’s this information does to you as a brand in your business and marketing evolution.  The database of marketing information you collect from the various direct mail marketing campaigns is useless if you do nothing with it.  Likewise, the more you can put this database of information, the better you’ll be able to make positive adjustments to way you communicate with your direct mail prospects and direct mail customers.

With direct mail marketing, finding a good mailing list is only half the battle.  Augmenting your message to fit the mailing list audience is the other half.  By listening to your audience, and developing new ways to change in area’s that fit what you’ve learned from listening, you maximize your ability to utilize your direct mail marketing campaign.

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How do you rate your mailing list provider?

December 9th, 2008

Consumer Direct Marketing

Mailing lists come in all shapes and sizes and even more so, mailing lists can vary greatly with respect to price.  When it comes to your acquisition mailing, there are a number of pitfalls to avoid, thus increasing our chance for maximum response.  A good list broker can navigate your way through pitfalls, or plop you plum in the middle of one.

Repackaged Compiled Data
A common practice for some mailing list brokers is to filter a subset of a larger database of compiled consumers, and repackage that subset as its own response database.  As an example, a mailing list broker could simply draw a count of golfers from a compiled source which includes an interest or behavior select of golfers.  If the universe count for this subset is large enough, the list broker may call this “Swing Pro Golf Masterfile” and charge $110/M for the direct mail data.  The actual cost for such a mailing list should run more in the neighborhood of maybe $50/M.  Though these records may truly be golfers and worthy of a test, it’s not a true representation of the mailing list.  The compiled file may have multiple contributors to this interest select.  Some “golfers may have purchased a subscription to a monthly newsletter while the other records may be from a golfer who stated on an online survey that they have an interest in golfing.
Another significant problem with this “repackaging” is that the mailer may have already exhausted the use of the compiled source and is looking for additional records to test.  Unless the mailer suppresses all previous mail files, they will unknowingly mail to the same records of a previous campaign.
Therefore, it’s important to ask the right questions of any new mailing list broker.  If the mailing list being presented is considered “managed”, ask for a usage report that will tell you of other direct mailers who also have used this list and if they’ve not only tested the file but had continuation on this file.  Ask how the file was compiled and when the records were captured.  If the “managed” list is of its own entity at all, there should be a website for the Newsletter or Publication subscription.  There should be a location on the web for the online survey or a sample of the survey questions that have been asked.  The name of the file should include a brand that’s at least recognizable by Google.  Golf Digest subscribers will be found by Google over Swing Pro Golf.  If not, there’s a good chance the file is a repackaged, over priced compiled subset being labeled as a specialized response file.

Broker Experience
There currently isn’t a license or certificate or any required training to become a list broker.  Most anyone can become a broker of data by taking a few hard knocks and learning your way through.  Most brokers work as an account manager to become acquainted with the types of files available and how to best use them.  They then graduate as quickly as they can sell it.  Many brokers get their start by “faking it until they make it”.  It’s important to listen to your gut feeling on the conversations you have with your prospective mailing list broker.  Ask others within the business of who they recommend, take references, and conference more experienced mailers in on a conference call to have them listen in and ask questions of your prospective mailing list broker.

Test first then test again
Whether you have multiple files you’re testing or just one, it’s important to test the response of a file before you exhaust your entire budget on one list.  Your mailing list broker should work with you to make complimentary recommendations on multiple lists for consideration.  Test each list and measure the response with 5,000 to 10,000 records each.  Then mail a second test of new records from the same file to a larger sample of say 40,000 to 50,000 records.  If this campaign performs the same as the first smaller test, then you’ve got an accurate read on how the rest of the campaign will perform when using that file.  If your mailing list broker pushes to purchase in a manner that’s anything to the contrary, you’re probably dealing with an inexperienced mailing list broker.

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The Evolution of Online Mailing List Access

December 9th, 2008

Reseller Services

In relative terms, people do not change much.  We buy some of the same foods and wear some of the same cloths as we did 10 years ago.  So unless there’s physical relocation of your residence, or a life change event that occurs in your life, generally speaking, you’re probably the same person you were the last time you checked.  What has changed is a direct mail marketer’s ability to access mailing lists.

In the last 10 years, the internet has enabled businesses create new tools for building a custom mailing list.  Not only have targeted mailing lists gotten better, but the delivery of mailing lists has also become easier.  Just 15 years ago, only 5% to 10% of the mailing lists were transmitted to the customer via the internet.  The other 90% was mailed to them on a disk, magnetic tape, or printed label.  Today, well over 99% of all mailing lists are provided via the internet.  Data is simply attached to an email and off it goes.  If the file is too large for email, the file is uploaded to an ftp site and sent out.

With the advent of the concept of Web 2.0, direct mail marketers can now easily visit a website, and for no charge, run their own counts.  Because they are doing the work of running the count themselves, a price discount is usually provided for online orders.

Running your own counts and placing your own orders is a relatively simple process.  Once issued a login and password, you can simply choose the criteria by selecting geography, and whatever select filters you wish to create their list.  The results are nearly immediate in that the count is emailed to your inbox.  If the count quantity is to your liking, the list can be purchased on the same site and the order is emailed to you immediately.  The interactive tool is available 24/7 and the online systems are getting smarter and smarter as the need requires.

If you’re thinking about utilizing this type of technology, be sure your online mailing list site provides support consultation.  It’s important to be sure you’re familiar with what you’re ordering.  This technology is so easy to use that it’s very easy to order something you may not want.  If the online count & order site isn’t supported by a live help, look for another one.  Not only should the support be familiar with the functionality of the site, they should also have intimate knowledge of the databases they host.

It is strongly recommended that if you’re new at direct mail and still learning your way.  Be sure you discuss your objectives with a direct mail consultant.  Mailing to the wrong audience can turn a potentially successful direct mail campaign into a costly disaster.

If you’d like to talk with a direct mail professional about your upcoming campaign, visit www.bbdirect.com.  BB Direct has an excellent online count & order system that’s fully supported by a team of experienced direct mail professionals.  You can find it at www.bbdirectleads.com.

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The Job of a Mailing List Broker

December 9th, 2008

Purchase Mailing List

The job of a mailing list broker is not merely to sell you a list.  Selling you a list is but the final stage of the process.  A good list broker will do far more than just sell you something.  They will get to know your direct mail campaign, review your previous campaign details, evaluate what’s worked and what’s not worked, and finally make recommendations.

Too often the direct mail marketer is conditioned to take full responsibility in choosing what audience they will ultimately mail.  This is similar blaming Main Street for the Wall Street problems in our most recent debate over if we should have bailed out the U.S. financial system.  When home buyers sought their new home and a mortgage to finance it, they relied on the lenders to tell them how much they could afford.  They trusted that their loans were properly underwritten with the home buyers best interest in mind.  This too is the assumption of many a direct mail marketer trusting today’s mailing list brokers.  Many mailers expect that the list broker has their interest in mind.  The fact of the matter is that, just like so many mortgage brokers compensated on making a deal, many mailing list brokers focus on the sale of the list over if the list is appropriate for the campaign.

It’s important for the direct mail marketer to become familiar with the experience of the mailing list broker, just as it is to become familiar with the principals of direct mail marketing.  Before beginning on any direct mail campaign, it’s vital to consider your break-even point, cost per customer, if the competition is making a marginal profit while using direct mail, has direct mail worked for your business in the past, is your expectations inline with reality, is your ideal prospect attainable using an acquisition mailing list, and what message will you convey to your direct mail prospect to achieve response.  These are important questions to be asking yourself but even more so, is your mailing list broker experienced enough to provide thoughtful answers to these questions?  If not, you should seriously consider shopping around for another data provider.

The job of a mailing list broker goes well beyond simply running a count and placing an order.  Ask your prospective mailing list broker for examples of who they’ve recently worked with in your field and what kind of repeat business have they generated from these customers.  There’s truly no better way to judge if a campaign was success than if the mailer decided to mail more of the same.

Does your list provider have referrals they can share with you?  Take an additional day to reach out to a few of these referrals and challenge yourself to learn something from these referral mailers.  The more you learn the better off you’ll be.

It’s up to you to look to your list provider as a partner in your plan for success.  Don’t be afraid to demand more from your mailing list broker.  Successful mailers don’t get successful from getting lucky with their list choice, they are successful because they are continually learning the in’s and out’s of their campaign.  Lean on your broker for help and guidance.  You’ll improve your ability to mail successfully and your mailing list broker will develop a long-lasting customer that comes back over and over again.

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Direct Mail Marketing Response Theory

December 9th, 2008

Search Mailing List

Direct mail marketing response theory is the belief that over time, not only cost may change, but the same prospects may respond differently to the same direct mail campaign.  What a direct mail marketer achieved 3 or 4 years ago with the same list, same mail piece, and same offer may not be possible today.  The campaign cost have likely increased in several areas while at the same time, response for the offer may have decreased.

Direct cost change occurs in several areas.  Cost will change with paper due to the fluctuating cost of pulp and postage may change do to the ever increasing cost to deliver your mail.  Both paper and postage cost changes in an irregular fashion and is difficult to predict when or how much.  Your mailing list cost most likely hasn’t changed as advances in technology keep pressure downward on the actual cost to the direct mail marketing business.

Indirect “cost of goods sold”doesn’t affect the response requirements for figuring your breakeven analysis.  But if, over time, your cost of goods sold increases, unless you increase your product price, your gross profit decreases which will require a different response to achieve the same outcome.  If your cost of goods sold increases, you’ll need a higher response to breakeven.  If your “gross profit” increases due to a decrease in “cost of goods sold” or price increase, your response requirement for breaking even will decrease.

Your direct mail response percentage rate will likely also fluctuate due to a variety of reasons.

Need – A personal need for your product or service may change over time.  This happens when a persons priorities shift in their life.  As an example, the need for dating service disappears when an individual finds their match and is married.

Ability to pay for your product – Whether your product or service is purchased with cash or is financed, if the ability to pay for a such a product diminishes, you will see a decrease in response to your direct mail campaign.

Competition – Your competition may offer a superior product or price that affects the interest in your product or service.

Diminishing market – The number of available prospects doesn’t directly affect the response rates in a given direct mail campaign.  But if the available prospects, in a given market, decreases to a point where you are unable to mail as many as you’ve mailed before, then your cost per piece may increase thus applying pressure on your ability to break even.

So the main point to take away with this blog post is to remember, that changes in the market (and beyond) may affect your ROI, but you can consider each of these points mentioned and make changes yourself.  Consider where you purchase your printing services.  If you’re mailing the same or more, it may be wise to discuss your campaign pricing with your vendor or shop around to find the same product at a better price.  You should also closely monitor your competitions direct mail.  What are they doing differently than you are and are they testing or are they consistently mailing the same over time.  If they are mailing the same, it’s likely that that mailing is performing well.  Also consider making changes to your mailing list such that you are able to better fit your product to the prospective customer.  And finally, with the technological advances in direct mail data, you may likely find additional segments within your target market.  If so, develop a variety of mail piece versions to better pitch your products and services.

Understanding the economics of direct mail helps the direct mail marketer make adjustments to their mailing list, offer, and mail piece creative.  The more you’re able to monitor the changes in the market, the competition, and the changing cost associated with your advertising, the better you’ll be able to stay profitable and grow your business.

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