EAST COAST GRAPHICS

In an annual survey conducted by Exact Target on effective media channels, the results came back rather surprising to most, but not to all. This survey is probably one of the most un- biased reports completed in recent years, especially considering that it was written by an email marketing provider. Here’s a direct quote from this report:

“Still wondering about the best channels through which to deliver your messages when you’re trying to boost your bottom line? Consumers are more likely to purchase based on messages they receive through traditional media. In this year’s study, we included direct mail, television commercials and infomercials as channels through which consumers may have been directly influenced to make a purchase.

The research shows: Direct mail has directly influenced more consumers to purchase than any other channel. “76% of consumers have been directly influenced to purchase products through direct mail.”

Some of the findings from this report were the statement that email is obviously very popular, but only 15% of people like to receive marketing messages via this channel! This confirms our view that email is more of a communication medium and not ideal for ‘push marketing’ purposes.

So you ask yourself this question? I have been sending out direct mail (postcards, catalogs, flyers, brochures) pieces for years only to see a decline in response rates. Yes, you are right! Response rates have hit all time lows in direct mail, but “why” we ask? The all holy answer is: We are too set in our “old school” ways declares Thomas Glenn, VP of Business Development for East Coast Graphics (www.EcoastGraphics.com) of New York. The idea that the more we send out, the more we will reap in rewards is not true anymore!

The truth, as stated earlier in this article, is that “direct mail” is still the MOST effective marketing channel today! But direct mail and print is changing, just like everything else we have grown accustomed to in this world. “It is more important today than ever that direct mail campaigns be integrated with multichannel online campaigns,” declares Thomas Glenn.

Two Tips to Increase Direct Mail Response Rates
1: Targeting a specific audience: Targeting is the forgotten secret to really high response rates. Look to send out different messages to different audience sectors. It’s just TOO hard to create one compelling copy that suits everybody. You are better off sending out four different pieces than one “one size fits all” printed mailing piece.

2: Be creative and different: Send out pieces that catch your audience’s attention. Way too often I come home to open my mailbox only to find a sea of white #10 envelopes says Glenn. Be different think “out of the box.” Think of a good commercial you saw on TV during the Super Bowl or a great radio commercial you heard on the way to work. You would probably agree with me, that 9 times out of 10 those advertisements were imbedded in your head because they were different but clever in their own little way. This is how you and your company should be approaching your direct mail. Don’t be afraid to be creative or different in your direct mail. Use oversized postcards, catalogs with catchy images on the cover or an envelope with a lot of bright color to help grab people’s eyes. Make your logo and website address easily visible. Remember you want your direct mail piece to stand out from that “sea of white #10 envelopes!” Even if the intended audience does not act on that offer at that time, make your brand be remembered just like that Super Bowl commercial!

To learn more about how we can help you or your company with your direct mail needs.

Contact: Thomas Glenn Vice President Business Development
East Coast Graphics, Inc.
Telephone: 631.231.9300 xt.11
Hauppauge, NY 11788
www.ECoastGraphics.com
tom@EcoastGraphics.com

(Extract by Ethan Boldt, editor-in-chief, Inside Direct Mail)

Wow, times have changed. In the two-plus years in my job as editor of Inside Direct Mail, the multichannel universe has exploded.Few direct mail pieces and the companies behind them can afford to be without a comprehensive and coordinated multichannel marketing plan – and the Web site as a major part of it all.

“It is more important today than ever that direct mail campaigns be integrated with multichannel online campaigns.” “The goal of every marketer in our rapidly evolving direct marketing landscape must be to deliver speed and convenience to consumers by enabling them to engage and transact easily via the channel they are most comfortable with.”

For many, usually sooner than later, that inevitably involves their Web sites, perhaps moments after prospects get the mail pieces. Here’s how your Web site can best support your direct mail (and vice versa).

1. Be very consistent.

According to Bloom, direct mail works most effectively with Web sites when the offers, creatives and engagement processes are consistent across the multiple channels. In some ways, it’s remarkably simple: Consumers driven online by direct mail are most likely to convert on Web site offers when the look and feel of their Web site experiences are consistent with the look and feel of their direct mail experiences.

“The objective of a Web site must not be to compete with direct mail,” Bloom points out. “Rather, Web sites must enhance the consumer’s multichannel experience.” He mentions that while the golden ticket for each company always should be to increase the consumer’s total engagement across all marketing channels, it’s vital for companies to track the performance of each channel in contributing to that engagement. One easy way to track the impact of direct mail on Web site traffic is by including a specific source code or tracking number on the direct mail piece, which consumers must then type into the Web site to “unlock” valuable rewards.

But consistency must not be confused with replication. Bloom mentions that one of the worst things you will see is the marketer that takes the same content from a direct mail piece and basically slams it onto a Web site without modifying anything-content, text, even the layout itself.

2. Go beyond simply calling out the URL in the mail piece.

In addition to prominently calling out the URL multiple times in the direct mail piece, Bloom mentions that there are many effective strategies for promoting Web site traffic.

“Offering desirable Web site-only ‘rewards’ certainly captures everyone’s attention,” he says. Such rewards could be discounts, coupons or exclusive offers available only on the Internet. “What’s really happening here is that the companies are using their Web sites as a real draw to get consumers excited in coming to them and then reward them [for their visit],” he describes.

Also, Bloom suggests teasing consumers with informative excerpts from Web site pages to promote interest and incorporating universal Web site icons-like the pointing finger, hourglass or other recognizable “moticons”-into the direct mail creative to demonstrate that you are an Internet-friendly multichannel marketer.

3. Understand the growing and vital role of the Web site in direct mail.

“Not long ago, I would have said that a Web site supports direct mail,” says Gary Hennerberg, a copywriter and direct marketing consultant based in Colleyville, Texas. “Today, I think direct mail supports a Web site. I’m not sure you can ‘integrate’ direct mail and your Web site, (read comment below), but there certainly must be continuity and consistency of offers.”

Bloom agrees and states that Web sites at the very least should deliver an additional and convenient channel for consumers to engage with companies. “It was a common misconception in the early years of the Internet that the consumers who shopped and purchased via the Internet were a completely disparate group from the consumers who shopped and purchased via direct mail. That is certainly not the case anymore, and traditional direct mail buyers are clearly the very same consumers who are now also shopping online via Web sites,” he explains.

4. Approach your customers in a very coordinated fashion.

With so many tools at a marketer’s disposal, it’s easy to overdo it and be inconsistent with messaging as well as not maintain a good frequency of touches.

For Datran, Bloom has found good contact sequencing to be sending an e-mail one week short of an in-home date for the direct mail piece, and then following up that direct mail piece a week later with an e-mail. “What you want to avoid is a mail piece showing up in the consumer’s home with no regard to any of the other offers they are getting via other channels,” he reminds.

5. Instill their confidence with the Web site.

Many direct mail buyers still approach Web sites with caution, so you must reassure them immediately about the security [and credibility] of your Web site.

“One of the most critical aspects of any Web site are the corporate branding elements-logos, taglines, images, etc.-which convey to consumers a consistent and reputable experience that builds their confidence and assures them that by transacting online they will enjoy the same quality buying experience as they have always enjoyed via direct mail,” states Bloom, who says that other strategies to build consumer confidence online are to include logos reflecting transactional security, prime credit cards accepted, Good Housekeeping seals, industry awards, etc.

6. Optimize your Web site, and keep it evolving!

The general aim of the Web site is to keep customers actively involved with your company and expand their opportunities for engagement.

“The best ways to do that are by providing the latest information about your company and by delivering a logical, intuitive, relevant and rewarding experience,” says Bloom.

Hennerberg offers a cautionary note, however. “I think there should be a huge concern to anyone using direct mail who is pushing response to a Web site. When a consumer reads direct mail, and you point her to your Web site, she might research other offers for identical products using keywords and key phrases that organically bring up competitive offers. If the direct mail offer didn’t sell her on doing business with you, she might find a competitor online, who has optimized their Web site, and get a better deal than you were offering,” he warns. In other words, optimize your Web site to cut down on such a possibility.

Lastly, Bloom doesn’t want you to think of your Web site as a static tool in your marketing arsenal. “This is an ongoing, evolutionary vehicle. The beauty of it is that there are very short lead times to make improvements.”

According to a recent InfoTrends Study (The Future of Direct Mail, since 2006), direct marketing is currently at a 4.5 percent compound annual growth rate (CAGR), and is projected to continue this level of growth during the next 10 years. Coincident with the rise in direct marketing is the increase in both print-on-demand and variable printing; together they are slated to account for more than 170 billion color and black-and-white impressions.The question marketers and advertising agencies continue to ask is: What is fueling the steady rise in creation and implementation of one-to-one marketing programs? The answer is: We are. The same InfoTrends study showed that consumers prefer-by twice as much-highly personal messages over mailings with only a name and address. Non-personalized messages were preferred by less than 18 percent of respondents.

Evoking Action

Clearly there is great interest in using personalized communications with relevant text, images, and graphics to gain attention, increase readership, and, most importantly, evoke action. With the emergence of powerful Web-enabled marketing programs and integrated cross-media communications, the worlds of print and electronic media are coming together to generate significant improvement in achieving business objectives.

How do marketers get started, and what are the strategies that must be employed to realize these gains?

The first step in creating and implementing a one-to-one marketing campaign is to realize there are steps. There are many different types of marketing materials and programs that can be deployed, and understanding the context and complexity of these can dramatically improve your chances of success.

Let’s start at the beginning, or what could more accurately be referred to as “E-Z personalization.” Many personalized print programs involve materials as simple as two-sided, full-color postcards. They can be as “one-to-one” as any other collateral, are economical, and often break through marketing clutter with clever imagery immediately seen by the recipient, in contrast to pieces where envelopes are hiding your messages.

In addition to postcards, there are numerous applications that use personalized content, including calendars, newsletters, and even sales and marketing materials. Interestingly, although “versioned” marketing materials are usually not thought of as one-to-one, these programs often lead to more advanced variable programs. Starting with versioning is a great place to experiment with what one-to-one marketing has to offer.

An emerging category of one-to-one marketing can be called “image-intensive communications” and includes applications that use more advanced databases, oftentimes relational, and rich VI content. These campaigns have images that change for either small groups of recipients, or for one recipient at a time. They can also incorporate special capabilities, such as image personalization and data-driven graphics.

Over two thousand years ago, a Chinese General named Sun-Tzu outlined his strategies and principles for warfare. If you believe as I do, that all marketing is like warfare, then his theories of war are still valid today, even more so.

In today’s highly competitive marketplace it’s not good enough to just get a new account; you’ve got to make sure that your competition doesn’t! I know, that sounds mean and vicious and goes against the precept of “Live and Let Live,” but in reality, someone has to lose and better your competitors than you. To quote Sun-Tzu, “Generally, in battle, use the common to engage the enemy and the uncommon to gain victory!”

Here’s where the true power of 1:1 marketing and variable data digital printing gives you a valuable “uncommon” edge against your competition. Today, all businesses are facing the same challenges:

1. Acquiring new customers in a cost-effective manner
2. Keeping the customers they have
3. Increasing the amount of services or products the customer buys
4. Making a profit

Let’s use as an example two Japanese restaurants in the same marketing area as our armies and their territories as the battlefield. Restaurant A places an ad in the local newspaper for $300 and generates 5 customers ($60 per new customer) same with Restaurant B. Each customer brings 2 people with them to eat and the cost of the meal averages $60 for 3 people, breaking even on the cost of running the B&W ad in the paper, but still losing money on the cost of the meal. This becomes a loss leader. Restaurant A thanks the customer and the customer goes their way. Restaurant B asks the customer to fill out a Special Event Club card listing all birthdays and anniversary dates where they will receive a gift in the mail (in this case 15% off the entire bill, in other cases a free special appetizer or dessert). Every month for a year, both restaurants run the same ad and receive the same response, but after the first year, Restaurant B has compiled a database of over 4,000 names.

In year 2, Restaurant A is still running a newspaper ad every month for $300 and losing money on loss leader meals. Restaurant B, however, has tapped into its database and sends out about 350 full color personalized postcards a month listing the patron’s name, birthday or anniversary with a special 15% discount off the entire bill if used within 5 days of their birthday. Cost of the personalized postcard is only $1.37 each with postage. Response rate is averaging 20% and with the dinner charges pretty much the same, over $4,200 in business is generated from this tactic alone every month. Restaurant B no longer needs to run an ad in the paper and it has increased its overall marketing costs by a mere 17%. It has also generated over 10 times the business, and best of all, the profitability.

Imagine each year, they are adding another 4,000 names to the list. Hmmm. Sun-Tzu was right! Every restaurant (and business) in America should be compiling a database of their customers in order to approach them in the most cost effective manner, but do they? Now, here’s the real kicker. I receive almost 200 pounds of mail a month. Each piece pretty much has my name either on a sticker or in 10pt black dot matrix ink, telling me right on the front of the piece that this is not a special offer. Most of these get tossed during triage, but occasionally a mailer does come to me that stands out, has my name in a nice font and in color and in some cases, actually contains data which interests me. This means companies are spending millions of dollars every year trying to get my attention (and decision makers like me) but fail. In fact, the average response rate is just about .005%. If the average cost is around a dollar, the cost of just converting a “suspect” to a “prospect” can be well over $200 based on a 10K print run.

Try sending them a birthday card for $5 followed by a telephone call. I bet they get on the phone with you and with the $195 you saved, you both can enjoy a nice Japanese dinner (at Restaurant B of course).

Want to improve your response rate? Here’s what the experts know:

• The most important part of the mailer is where the name of the receiver is (duh). It should be attention-getting (in color) and it should have something on it that teases the receiver (me) into wanting to open it. It should also be personalized with the prospect’s name larger than 14pt. type.
• Black type on yellow is the most attention getting color combo, but keep testing unusual colors (I have had interesting success with lavender and turquoise when sent to certain market segments).
• Lumpy mail gets more attention than flat mail (generally), so packaging is very important, if you can send a well decorated box, with a premium or pop-up, do it. If you can personalize the pop-up with the prospect’s name on it they will show it around and keep it forever.
• Pop-ups work by engaging the receiver (like a toy) and if they are done well, they can effect a smile (and even a pass-along rate), but most can’t be personalized. My favorite is the personalized hand-folded origami fish mailers. I use them for very special events and clients who need to get results fast.
• After all of the above, the most important element is the offer! It should be easy to understand, be the best offer (take the worst case scenario – 16 of your competitors are mailing to the same person, your offer must be the best), have some sense of urgency (a deadline for the offer) and, a guarantee of satisfaction!
• Next, it should have an easy to find response mechanism; a BRC (postage paid business reply card) an 800 number (free call), or a website address.
• Finally, it should incorporate a tracking element so you can determine if this or that database, list or offer is working for you.
• In creating your pitch, “sell the sizzle not the steak,” describe the benefits of your product or service, not the service.

The beauty of using variable data, full color on-demand digital printing is that you can test offers, price points, just about anything, in lots as small as one. This process helps you develop the most effective “sales cycle starter” quickly, inexpensively and most importantly, profitably. Digital on-demand printing offers you the elegance of change at the touch of a button, making regular offset “one size fits all” offers, virtually obsolete.

What I have also discovered in over 25 years of direct marketing is this: most clients have no idea how much it costs them to convert a suspect to a prospect, then to an appointment, then to a sale.

When you put it all together, if you sent a box of fancy pastries with a personal note to a prospect, and had it delivered at 9am, odds are by 10am they will take your call and thank you. Cost, about $35.00 (with delivery), response…priceless. Now, that you’ve got your prospect on the phone, the fun really begins.

Bonzai!