There’s a very common misconception about the history of advertising, and that’s the idea Arron Montgomery Ward created direct mail catalogs. While Ward was a pioneer, he was far from the first.
Top 7 Statistics For Direct Mail in 2017
With the business world about to enter into the last quarter of the year, it is a good time to take stock of direct mail’s effectiveness in 2017 so far. Although the volume of direct mail went down last year, direct mail garnered a larger percentage of all mail. With technology and other tools to improve the timing of direct mail, this year’s statistics have shown that direct mail is not only still relevant in the marketing world, but that it is, in fact, one of the most successful channels available to marketers. Here are the top seven statistics for this year so far.
Household Response Rates Are at 5.1%
Yes, that decimal is in the right spot. According to compu-mail, direct mail has earned the highest response rate, with email and paid search at .6%, social media at .4%, and online display at .2%. Part of the reason why response rates are so high with direct mail is an increase in tools and information through technology that has enabled well-timed and personalized direct mail marketing campaigns.
77% of People Sort Through Their Mail
Many marketers are finding it difficult to get prospects to open emails. I personally usually delete without even looking any extraneous emails and promotions. It has just become routine, which is unfortunate for marketers, for I can only imagine how many other people are like me. Average open rates are typically below 20% in comparison to mail. I for one always sort through my mail, and when I see something that stands out, I usually take a few seconds to see what it is, which bodes well for direct mail.
Every $167 Spent On Direct Mail Resulted in $2,095 Of Sold Goods
I believe that ROI speaks for itself, but one must ask what industries reaped the most benefit from direct mail. The largest users of direct mail include companies that offer financial services and also consumer packaged goods. With print still playing such a large role in marketing, coupled with cost-effective green methods of print, one can only imagine that direct mail will still be a major component of marketing campaigns going forward.
98% of Consumers Bring Their Mail In The Day It’s Delivered
Many are concerned that after putting all of the effort to create a personalized direct mail piece that it will just end up in the trash with the rest of the junk mail. If it does, it is probably not due to a diminishing trend in the public’s responsiveness to direct mail, but rather the direct mail piece itself missing the mark. As the above statistics provided by the U.S. Postal Service exemplifies, whatever you send out will get eyes on it. Whatever happens after will, for the most part, be within your power to control.
Customer Response Rates Increased Year-Over-Year by 48%
Companies who have never thought of using direct mail would be smart to start considering using it as one of their marketing channels. Not only did customer response rates increased, but prospective response rates more than doubled with a reported 190% increase. As noted by the DMA, this is in part due to the “pairing of mailings with digital intelligence. “
Adding A Person’s Name and Color Can Boost Response Rates By 135%
We have discussed the importance of personalization time and time again, and if for some reason you didn’t believe it before, then perhaps this statistic can lend some credence to this idea. Personalization, particularly with the introduction of variable data printing, is now within reach of most budgets. And in turn, can improve your ROI, and make the money you spend go a greater distance.
Print Is 43% Less Annoying than the Internet
Bottomline, we all hate spam. I for one get irritated when advertising videos start on websites yet it is nearly impossible for me to find it to shut it off. Many of us have become blind and aggressively against online advertising in many ways. That is why direct mail is refreshing to most since it is usually personalized, relevant, and recognized as something that took a lot of effort on the part of the company sending it. This makes the consumer feel important and valued, which at the end of the day, is just good marketing.
If you are familiar with the ins and outs of direct mail, then you have probably heard of variable data printing. Variable data printing is on-demand printing in which components of the printed copy, such as text, images, and other things, are changed from piece to piece without slowing down the process. This enables marketing teams to create highly personalized direct mail pieces, which can be a game changer for your business. Here are five reasons why you should consider using variable data printing for you next big marketing push.
More Bang for Your Buck
First and foremost, the greatest benefit you can reap from using variable data printing is getting a better ROI. With greater personalization, response rates should be higher, putting your money to better use in comparison to other approaches. And if you are thinking that the internet is where all the action is at, think again. Interestingly, 66% of Millennials are more likely to use a voucher if they have a physical copy, with 36% of people under the age of 30 saying they look forward to checking the mail every day. Direct mail is still a big player in the marketing world. Coupled with the personalization offered with variable data printing, it is an invaluable tool to have in your pocket.
Integration with Online Marketing Campaigns
Most marketing strategies conducted by businesses utilize multiple channels to improve their effectiveness so that they do not put all of their eggs in one basket. You can take personalization to the next level with custom QR codes and personalized URLs. Integrating variable data printing with an internet campaign is an effective way to get more engagement and response with your marketing campaigns.
Personalization Does Not Mean Slow Turnaround
When many of us think of personalization, we worry about how much time will have to be put into building the campaign for each individual we are targeting. But as we have mentioned before, variable data printing offers the ability to personalize without slowing down the process. Time is money, but variable data printing will provide a quicker turnaround than you might expect.
Segmentation on A Larger Scale
Variable data printing yields you the opportunity to take your data segmentation and apply it directly to various marketing pieces. You can target an individual based on their purchase history, their interests, age, and many other indicators that detail what kind of things a person will be interested in. Increasing your marketing campaign’s relevance to a particular individual will resonate more than with something that is more generic or not as personalized.
Tracking Becomes Much Easier
Tracking the response rates and other data metrics is much easier with variable data printing. Marketers have to constantly interpret data to formulate conclusions about customers so to improve and curtail campaigns. By making it more personalized with QR codes and personalized URLs, you can track the response rates of your target audience much more clearly than with other strategies.
With variable data printing, you can nurture current and new relationships with customers by acknowledging their uniqueness rather than grouping them into a more generic group. This will not only make them feel valued, but also set them up to have greater brand loyalty. Find out how you can foster long lasting customer relationships through variable data printing with One Stop Mail.
How To Target Baby Boomers: A Direct Mail Strategy
According to the Population Reference Bureau (PRB), the number of baby boomers currently in the U.S. numbers around 76 million. That is almost one-quarter of the entire U.S. population, making them a prime target for marketers. One of the best ways to reach the baby boomer generation is through direct mail. However, it is critical that you don’t approach this like your other direct mail marketing campaigns. Here are some things to keep in mind as well as some useful tips when developing your direct mail marketing campaign targeting baby boomers.
Besides Their Population Size, Why To Target Them
The baby boomer generation controls approximately 70% of all disposable income in the U.S. This generation is quite affluent and empowers them to make buying decisions. But this does not explain why direct mail would be a good marketing channel to use. According to Neil Patel in his article, “How to Reach Baby Boomers, Gen-Xers and Millennials with Your Online Marketing,” the baby boomer generation “are more likely to respond to direct mail campaigns than any other generation.” Another factor to consider is how many of them are reaching retirement age, and have more free time to engage with content. According to a Marketing Chart Study that surveyed purchase influence among baby boomers between the ages of 50-68, they found that “more than 3 in 10 survey respondents reporting that direct mail had influenced them to purchase a product or service during the prior 6 months. Interestingly, that was the most commonly-cited purchase influencer of 16 identified, ahead of word-of-mouth and online consumer reviews.” With these things in mind, you can see why direct mail is a prime marketing option. To make sure that your campaign reaches them effectively, keep these things at the forefront when crafting your message.
Be Straightforward Rather Than Creative
When you are drafting your copy, make sure that your message hits home on everything and does not come off vague. According to the Entrepreneur in “5 Ways to Effectively Market to Baby Boomers,” they say, “seniors want to see everything spelled out in print. It’s far more important to use the right language than catchy copy.” Any sort of ambiguity or lack of information can cause them to not trust your offer or leave with them unanswered questions. This is why the article goes on to say, “Address every potential question a user may have. Include the answers in printed brochures, direct mail materials, and make the information easily available on the website.” Brainstorm all of the questions that someone may have after your reading your copy, and find a way to work the answers into the final marketing piece.
Dump Conventional Wisdom
Many of us have a certain predisposition to retirees, which misleads marketers into thinking falsely about baby boomers. In Eric Cosway’s article, “Send baby boomers direct mail and let the magic unfold,” he states that, “conventional wisdom has long been that retirees value comfort, stability and the relaxation of a quiet life. Just as they defied the conventional wisdom of their era as teens, baby boomers are defying today’s stereotypes of retirees.” It is important not to cater your message with this in mind, for it will most likely fall flat on its face. Cosway makes a good point that the baby boomer generation actually shares more things in common with their children than they did with their parents, such as, “adventure, change, achievement, and happiness.” He boils it down to one basic principle, “don’t make them feel old.”
Shoot Straight and Focus The Message
Considering how the baby boomers are quite receptive to direct mail and are in a position with greater spending power that other generations, you want to make sure that you nail your message. Your call-to-action should be very clear and simple. When composing your copy, don’t leave anything out. Any question unanswered is just one more reason why they should throw your copy in the trash rather than following through with the action you want them to take. And lastly, keep their personal values in mind, and flush the retiree stereotypes down the toilet.
Direct mail has solidified itself as a key component of any multi-channel marketing campaign. However, those that develop the most successful direct marketing campaigns know how to avoid these four common mistakes. It is important not to overlook the importance identifying your audience, having up-to-date mailing lists, not developing a captivating offer, and finally an overly complicated call-to-action.
Identify Your Audience By Their Response Rate
Not only should you be targeting a specific audience, this group of prospects should have a history of responding well to your marketing initiatives. According to Craig Simpson, author of “ 10 Direct Mail Marketing Mistakes to Avoid,” he states you should, “…spend some time analyzing your best buyers. What is their demographic? What are their other interests? Then use that information to define your most promising mailing universe.” In the end, putting in that little bit of extra work will set your campaign up for an increased chance at success.
Select and Update Your Mailing List with Clean Data In Mind
This piece of your direct mail marketing campaign is the most important. As Robert W. Bly states in his article “ The 12 Most Common Direct Mail Mistakes…And How to Avoid Them,” that “in direct marketing, a mailing list is not just a way of reaching your market. It is the market.” He goes on to say, “a great mailing package, with superior copy and scintillating design, might pull double the response of a poorly conceived mailing. But the best list can pull a response 10 times more than the worst list for the identical mailing piece.” Craig Simpson recommends two things that can help improve your list: make sure if you use a list broker that he or she is reliable and compare the list to the National Change of Address list to ensure you are sending your materials to your prospects current residence. Once you have established the best list for your campaign, then you can go ahead with the design and message of your copy.
Make An Offer They Cannot Refuse
A common mistake is to push the product in your copy and not your compelling offer. Robert W. Bly defines the offer as “what the reader gets when he responds to your mailing.” This can take shape in a variety of forms, but the most obvious way to garner someone’s attention is to entice them with something free. Take their wallet out of the equation, and you increase your prospect’s chances of responding. Bly continues with, “your copy should state the offer in such a way as to increase the reader’s desire to send for whatever it is you offer. For example, a catalog becomes a product guide. A collection of brochures becomes a free information kit.” Consider what you sort of compelling offer you can include in your campaign and place less emphasis on trying to sell the product. Though the sale is the ultimate goal, with direct mail, you want simply engagement and response, which will lead to that sale you ultimately want to achieve.
Simplify Your CTA
When you are crafting your direct mail CTA, you should reduce it down to as few steps as possible. Most people these days won’t bother with following through if there are too many steps or if those steps are not clear enough. In “ 5 Direct Mail Mistakes Marketers Should Avoid,” by Vignesh Subramanyan, he says, “ don’t ask your prospects to complete more than three tasks. For example, don’t send respondents to a web page that asks them to fill out a form. Make your call to action as simple as possible to complete. ” Limiting your CTA to three tasks is a good rule of thumb, but if you can get it under three, your chances of getting a response will only increase.
Laying the Foundation for Direct Mail Marketing Success
By identifying your most responsive audience, updating your mailing lists, crafting a great offer, and implementing a simple CTA, you can build a direct marketing campaign that will have a higher chance of success. Avoiding these 4 common mistakes won’t necessarily mean your campaign will automatically be successful. You still have to put together a complete mailing package after you have put the necessary work into seeing what design or style works best. However, avoiding these mistakes from the beginning will save you from wasting time and money.
With the dawn of the new year, it is time to look ahead at what trends will take shape. At the center of discussion will be direct mail. However, we will also look at some of the more general marketing trends that will play into direct mail’s destiny.
Omnichannel and Data Driven Marketing
Two of the biggest things that marketer analysts are predicting for 2017 is an increase in omnichannel and data-driven marketing. More businesses, specifically retailers, are getting more accustomed to the idea of having customers start a purchase on one device and finish on another or in-store according to Eliza Fisher, Marketing Strategist and Editor at Social Annex, Inc.
Connected to omnichannel success is the analysis of data from 2016. Devin Fitzpatrick, Founder, and CEO of CDF Consulting predicts that data will be king. The first step with any marketing campaign is to understand the customer first. To get a better understanding of how to reach your targeted audience, analyze as many layers of data as possible.
What This Means For Direct Mail
Based on the previous two trends, direct mail will be affected in a positive way. This is due to direct mail’s strengths as a marketing asset. Firstly, direct mail is great at driving results through other channels. With direct mail, you can further advance your omnichannel efforts. Secondly, it is a perfect for targeting specific audiences. This plays into data-driven marketing. By wielding your data surgically, you can greatly increase your personalization and reach your desired audience with a relevant message.
With Personalization Comes Variable Printing
Part of the above domino effect that marketing trends will have on direct mail, we will see businesses making greater use of variable printing. It is now easier and more affordable for companies to print direct mail marketing materials with greater variety. According to Arrow Marketing, small businesses are starting to realize that local marketing efforts can be improved with a direct mail campaign. In fact, they state that direct mail still makes up 43% of local retail advertising, and 76% of business owners say that their marketing strategy combines digital with print communication.
2017 Outlook: Direct Mail Integral To Marketing Success
With omnichannel and data-driven marketing trends predicted for 2017, we have seen how this will make direct mail an important part of company’s marketing campaigns. Due to direct mail’s ability to drive customers through different channels, deliver highly personalized messages to targeted audiences, and remain affordable with variable printing, we expect to see another productive year for direct mail.
If you are a small business owner, you know that it is do-or-die to reach your customers with resonating dialogue. The main reason why small businesses fail to accomplish this is due to a poor marketing strategy. Even though we live in a highly digital age, direct mail allows businesses to bypass spam folders and get a piece of copy in the consumer’s hands.
The Effectiveness of Direct Mail
According to a Compu-Mail article called “25 Direct Marketing Statistics Prove Direct Mail Works,” 56% of customers find print marketing to be the most trustworthy type of marketing. This is due to the fact that direct mail offers small businesses the ability to get more personal with their message. This makes the customer feel less like a name on a list and more like a valued individual whose needs want to be met by your brand. Moreover, many recognize that it takes more effort to personalize a physical piece of copy rather than an email. With 70% of Americans saying mail is more personal than the internet, it may be time to consider using direct mail to reach your customers in a more meaningful way.
What Kinds of Copy Should You Send?
There are many things you can send to customers to ensure that your business stays top of mind. You can send postcards, coupons, brochures, catalogs, and other sorts of promotional materials. When trying to draft a design of your copy, you should be mindful of three things: eye-catching visuals, a strong message, and a clear action. All of these aspects need to then be tied together in a way that is personal for the customer. Without that key aspect, your copy will not have the glue to stay together when it gets into someone hands, and will most likely fall on deaf ears.
Who Should You Target?
The old method of mailing to as many people as you possibly can in the hope someone finds interest in your brand is just not feasible. This is especially wasteful for marketing budgets. The best way is to build customer profiles by figuring out who would be your ideal customer. From there you need to learn as much as you can about this customer like their age, demographic, and shopping habits. Of course, this will require more work if you are trying to target a whole new group of people that have not heard of your brand. You should also be targeting your current customers, for it is much easier to maintain current customers that have than it is to get new ones.
Start Your First Direct Mail Campaign
Direct mail is still an effective method for reaching your customer base. With highly personalized messaging complimented by stunning visuals, you can improve customer engagement and response with your marketing campaign. Take advantage of the direct mail’s versatility by sending different kinds of copy. Start physically connecting with your ideal customer with One Stop Mail, and begin breaking down the digital barrier that separates your brand from reaching eager ears.
Often we judge an advertising campaign’s success by the amount of conversions, new customer acquisitions, or revenue. Without a definitive incentive or variety of tracking methods, it can be nearly impossible to tally the actual success of a campaign. Try to think of the last time a customer came into your business and without being asked gleefully said, “Hi! I just wanted to let you know I found you on Google or I came in because of ‘X’ marketing you did.” More than likely the experience is extremely rare if it has occurred. When tracking methods are implemented properly, the guesswork is eliminated and campaigns become more transparent through analytics.
The best use tracking methods will allow a company to understand the progress and success of an advertising campaign without reliance on the customer to take additional action.
A tracking phone number can help understand conversion from cold prospect to a warm lead. With a dedicated tracking number, you can isolate the number of phone calls from one specific campaign. For example, Nick’s Pizza may use the tracking phone number (949) 555-5555 for his Direct Mail Marketing campaign only. The phone number (949) 777-7777 is used on a landing page tied to a Google AdWords campaign. Both phone numbers get forwarded to (949) 123-4567, the main line for Nick’s Pizza. Nick can use the dashboard provided by his tracking service, Call Rail, to see how many calls are coming into each line. Nick is able to identify that in a 30 day period his pizza shop derived 327 orders as a result of sending out 2,000 Direct Mail Postcards.
Cut out coupons are a great way to manually track offer redemptions. Tom’s Automotive is offering $10 off an oil change and $20 off a synthetic oil change to new customers. In addition, there are many great offers like a coupon for a completely free electronic diagnostic, a $60 value. In order to redeem the offers, the customer must cut out and present the coupon at Tom’s Automotive. At the end of the promotion, Tom is able to tally how many redemptions were made in addition to the total revenue spent by those customers and average customer spend. Tom is able to determine that offering a significant discount on an oil change allowed him to bring in 41 new customers and those customers spent $193 on average.
Companies trying to generate leads with Direct Mail Postcards or Mailer Letters can find great success and lead handling efficiency when using reference codes. Student Solutions, a student loan debt relief agency, has purchased a database of 100,000 individuals who have graduated college and are delinquent on their student loans. Their IT team has uploaded all prospect information into their CRM and attached a unique reference code to each prospect. Student Solutions utilizes Variable Data Printing to print letters that have the first and last name of each recipient alongside their unique reference code. Having a personally addressed letter created a higher conversion rate. The reference codes provide the Student Solutions employees a simple and nonintrusive method to bring up the prospects information when they call in for assistance. New sales can be filtered by all reference codes with the prefix PJ36. The company determines that mailing out 100,000 postcards created 3,000 new customers and generated $700,000 in gross profit.
This article is part 3 of a 4 part series covering:
Branding or Marketing?
What Makes an Offer Irresistible?
Direct Mail Tracking Methods
Crafting a Successful Direct Mail Campaign
A successful marketing campaign will be meticulously crafted from beginning through end to maximize conversions. The core foundation of creating a successful campaign begins with establishing an irresistible offer. Whether a lead magnet, tripwire or standard promotion is used, incentive’s will determine whether a prospect turns into a client. Understanding that not all promotions are created equal is paramount in crafting the perfect offer for your business.
The quid-pro-quo of marketing, a lead magnet requires the business provides a freebie in exchange for an opt-in or participation from the prospective customer. A few examples of irresistible lead magnets can include free product, a significant discount, product trial or giveaway.
- Tony’s Pizza gives a voucher for an absolutely free personal pizza to new residents in the city.
- AAA+ Automotive provides absolutely free basic diagnostic via an OBD Scanner to get people in his shop.
- Grandview Timeshares provides a $100 restaurant gift card in exchange for participating in a presentation.
- Sarah’s Insurance gives all prospects a $10.00 gas card for getting an insurance quote through her agency.
Creating a low barrier entry point for prospective clients is a great way to let consumers test a company’s products or services without having to commit to a large purchase. A tripwire aims to capture a greater amount of new customers by casting a wider net and luring them in with a low-cost offering. An example of this might be an HVAC business offering a cleaning and inspection for $49.00. This provides a service which may not be incredibly lucrative but allows the company to do business with the homeowner. As additional services are needed it becomes easier to sell the client higher priced items or services based on the established business relationship.
Examples of great tripwires include:
- Perfect Auto & Mechanic is offering a $30.00 oil change and multi-point inspection where they hope to identify additional repair needs.
- A’s Pizza & Brewery sells $2.00 slices during lunchtime to help increase familiarity with their dinner menu and ideally bring the whole family.
- West Park Valley Dealership is offering a $300.00 ‘Sell Your Car’ detailing package which gets your vehicle to a pristine state. Their emphasis is to get people to test drive and buy vehicles since they know the detailing customers are looking to sell their vehicle.
A promotion can simply be a discounted percentage or variable offer and still produce a high conversion rate. Although standard promotions are most commonly seen in marketing, they are often poorly implemented. One of the most important aspects of a standard promotion is to include an urgency factor such as a time constraint for redemption.
Examples of standard promotions include:
- Jeff’s Dog Grooming offers 15% off a bath and haircut service.
- Golden Hair Salon is marketing a promotion that gives $10.00 off a cut and color.
- Ray’s Tires is giving a 4th tire free when you purchase 3 at full price.
Not All Offers Are Created Equally
Keep in mind consumers are advertised constantly and in every aspect of life. Via cell phone apps, Facebook, Instagram, billboards, radio, TV, you name it. An offer has to really sizzle to make a consumer decide to purchase or opt-in. A great incentive will be the differentiating factor between you and your competition. If you own a lawn care business, you know that 95% of your customers will need to use you more than once, so it makes logical sense to offer a steeper initial discount in an effort to persuade the prospect to choose you over the competition. Here are offer incentives ranked from most to least effective.
FREE – Everyone loves free. When Iron Strength Karate is gearing up for summer and back to school promotions they offer a completely free karate uniform. Dave, the owner, understands the initial investment eliminates the entry barrier for most families and is able to maintain most students as customers for years. Due to the
Dollar Amount Off – Getting a set amount off a product or service is great. Consumers don’t have to guess or do the math to understand the savings and benefit. Customers will be more inclined to frequent your business versus competition and have increased loyalty if they feel you provide a good value.
Percent Off – We’ve all see discounts ranging from 5-75%+ off. Although consumers do redeem these offers, they’re often difficult to understand. Unless a buyer thoroughly knows your pricing beforehand, it’s tough to get an idea of true savings and often requires a calculation. This method makes it difficult for a consumer to understand the value. Additionally, many buyers feel that percentage discounts are played out and often feel prices are artificially inflated to give a false sense of savings.
Ultimately what you’re willing to spend or give in exchange to acquire a new customer will depend on what you are willing to invest to earn the client over your competition. It makes far more sense to invest in a new client upfront rather than having to win them over from the competition. The cost of a new customer with incentives factored in can actually have a higher customer value over customers acquired without incentives. Consumers see marketing promotions as a positive benefit and are much more likely to become loyal, repeat customers.
This article is part 1 of a 4 part series covering:
Branding or Marketing?
What Makes an Offer Irresistible?
Direct Mail Tracking Methods
Crafting a Successful Direct Mail Campaign
Branding or Marketing?
Anytime you’re creating a new marketing campaign you find yourself asking a sleuth of questions. Will the objective of your campaign be to increase brand’s reach, acquire new customers, monetize your existing customer base or if you’re like most– are you unsure of what to expect? Understanding the difference and setting the correct expectations will infinitely improve mediocre advertising tactics and allow you to make the most of any campaign.
What’s the Objective?
If your marketing department functions like most, you’ve got an annual budget and department expectations that were established by upper management during the latter end of the previous year. We’re past the halfway mark and now the pressure is on, we need results. One of the most frequent questions we get is, what’s the difference between branding and marketing?
Brand Awareness – Think billboards. You’re driving on the freeway and see a catchy ad with cows telling you to eat more chicken. Some drivers familiar with the brand will get a laugh out of the billboard while others unfamiliar with the brand may connect the logo with a restaurant they see occasionally. The goal of this marketing method is to increase awareness and be visible to as many people as possible. Strictly defined sales goals are not to be expected of this method and more often than not, you won’t see strict tracking methods implemented with brand awareness campaigns.
Marketing – If the name doesn’t say it loud enough, direct action result based campaigns strive to provide a trackable increase in conversions. Whether the conversion metric is more newsletter signups or an X increase in new customers that translates into a Y increase in revenue, your campaign has set expectations and goals. Examples of these campaigns include coupons, limited time offers and opt-in campaigns.
Increasing brand awareness may nearly impossible to correlate with monetization. For branding, reaching new, existing and potential customers is the objective. An example of an awareness through conversion cycle for a brand awareness campaign can look start with a direct mail postcard or billboard ad designed to peak your interest.
Fictitious pizza chain Chewy’s Pizza has been experiencing a slump in sales for nearly a decade. A focus group has revealed the brand’s image is struggling due to its low-quality pizza’s and sub-par taste. The pizza chain has decided to revamp its entire operation and will now use high-quality ingredients and focus on an artisan pizza rather than provide a bottom dollar product. The general perception of the brand needs to improve. Chewy’s Pizza runs radio ads, tv commercials and send postcard mailers to all homes within a 4-mile radius of a franchise in each market.
The advertisements emphasize a brand revitalization and commitment to top quality ingredients and taste. The messaging directs people to pizzamatters.com, a website the Chewy’s Pizza created to build value and modify existing perception of the brand. The company is monitoring campaign impact by keeping a close tab on the amount of unique and return visitors to the website. A conversion will be counted anytime an individual watches a video about the company’s new image or signs up for the mailing list.
For many SMB’s it is crucial to understand if a marketing effort is profitable, has the potential to become profitable or perhaps it’s a complete wash. Direct action result based campaigns strive to provide a short customer monetization cycle with a trackable value tied to each conversion. The ideal way to track campaign effectiveness is to use a variety of calls-to-action and tracking methods that will simplify the how the results can be segmented.
Fictitious company Lazer manufactures computers and computer peripherals. The company has 50,000 addresses of previous customers but is having a difficult time engaging its fan base through emails and social media. Robert, Lazers sales director, has been tasked with spearheading a sale in an effort move stagnant inventory and make room for upcoming new products. The company decides to mail a scratch to win postcard to all previous customers. The direct mail marketing postcard offers vary with incentives ranging from 5%-50% discounts and a select few postcards have online-store gift cards or free item redemption codes.
The offer codes needed to redeem the incentives will allow Lazer to track how many customers redeemed offers, the campaign participants’ average spend if individuals purchased additional products and additional data to determine lifetime customer value and the potential for future monetization. Data shows Lazer that the campaign was able to provide a significant increase in revenue and was able to re-engage previous customers who had not made purchases in a long period of time.
Which Do I Use?
Although branding and marketing can function in tandem, it is important to understand the difference in order to craft a successful advertising campaign. If your goal is to spread the word far and wide, branding could be the best solution to your advertising woes. Marketing campaigns have the benefit of being incentive based and allow time constraints to increase urgency. Next week we will discuss the difference between good offer and a fantastic one.
This article is part 1 of a 4 part series covering:
Branding or Marketing?
What Makes an Offer Irresistible?
Direct Mail Tracking Methods
Crafting a Successful Direct Mail Campaign
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