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Marketing Tips - Issue 47

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%




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.


Marketing Tips posts authored by Leslie Goldstein of the USPS.