Articles
Why would any company use direct mail today?
by John GrahamWhy would any company use direct mail today? Perhaps the most direct answer
is simply that direct mail reaches people––the right people––in
more ways than one.
It’s no accident that web-based companies rely heavily on direct mail to
reach prospects. The largest credit card marketers like MBNA, Citicorp and Chase
all depend on direct mail to connect with precisely the right prospects.
Even so, it may come as something of a surprise that 56% of the marketers participating
in a recent survey planned to increase their spending on direct mail in 2005.
The same direct marketing trend survey by Kern Direct points out that direct
mail beat out search engine marketing, print advertising, e-mail and e-newsletters.
Universal McCann’s director of forecasting, Robert Coen, predicts that
2005 direct mail spending will come in at $51.5 billion, up almost 10% over 2004.
If direct mail is growing, then why did so many marketers seem to abandon it
almost overnight in favor of email, web advertising and web sites? There were
two reasons.
First, there was a massive migration to “the latest technology.” Like
so many other new tactics, electronic marketing tactics were adopted without
proof of effectiveness. The lemming-effect set in almost immediately. Everyone
was doing it and no self-respecting marketer wanted to be out of step or worse
yet, “left behind” or thought of as a latter-day Luddite. That wouldn’t
look good on their resumes. Direct mail was dropped like the proverbial hot potato.
The second reason was cost. As soon as banner advertising and “email blasting” became
available, the promoters of electronic marketing emerged from the woodwork with
their promises of reaching tens of thousands of buyers at a fraction of the cost
of direct mail. If that wasn’t enough, it was all so quick and easy to
implement. Agree today and hit the button tomorrow. It was nothing less than
a feeding frenzy, as we all know. Yet, it was little different from the telemarketers
who first promised qualified leads and then the “ready-to-buy” appointments––or
any of the other get-it-quick marketing schemes that hold out the lure of easy
sales.
Now, the migration is back to direct mail and the reason for the move is simple: the
other communication tactics failed to deliver the promised results, while “opt-in” requirements
put the brakes on email blasting, just as it did on consumer telemarketing. Even
more to the point, the constant bombardment was too much for customers to bear
and they increasingly rejected what they viewed as intrusive techniques.
So, again, “Why direct mail?” Whether it’s car manufacturers,
cell phone companies, credit card distributors, magazines, computers or just
about any other product or service, direct mail has regained its former popularity.
Here are reasons for its resurgence:
1. Everyone takes mail seriously. The emphasis is on everyone
because mail is compelling. We wait for the mail to arrive and we complain
if it’s late. When there is no delivery on holidays, we feel deprived.
When arriving home, we can hardly wait to “go through the mail.”
We want to see what’s in the box for us. At the office, we stop
whatever we’re doing when the mail arrives. In other words, we
view mail as a priority.
2. Mail is tangible. You can touch, hold and handle mail, which gives it
more of a feel of reality. You can also toss it in the trash if it fails to connect
with your needs or imagination. But it takes more than a click to get rid of
it.
3. Mail has a more personal feel to it. If your name is on it,
it’s yours, even if it’s a postcard. Getting an electronic
Hallmark card isn’t the same as getting a Hallmark card in the
mail. At the same time, we give the most attention to the mail that seems
the most personal. We reject the mail that’s nothing more than
an “ad”
and we accurately label it “junk mail.”
4. It’s easy to retrieve it. Experienced marketers aren’t surprised
when they receive a telephone call or have a response card returned months after
a mailing. The ability to put a direct mail piece aside until there’s more
time to review and read it is common. While this is certainly possible with electronic
media, it appears to occur far less, perhaps because email is designed for instant
action.
The case for direct mail is compelling. Yet, its effectiveness is controlled
by a number of critical factors:
1. Direct mail must be customer focused. While it seems almost unnecessary
to even suggest this, going through a stack of mail only confirms how rare it
is to find a mailing that accomplishes this simple objective. Just notice what
percentage of the message is on the seller or the product and not the customer.
Is the focus on what the customer can do for you or for what you can do for the
customer? Bank of America’s CEO described MBNA, the highly successful credit
card company that his bank was acquiring, this way, “I see them as a sales
machine.” He’s wrong, dead wrong. MBNA is a creative, unrelenting,
colossal marketing machine, not a sales machine. The difference
is anything but subtle because it’s so fundamental to MBNA’s success.
MBNA’s entire focus is on understanding exactly what customers want and
then giving it to them. It’s the marketing that produces sales.
2. Choose the right list. Mailing lists can be had on the cheap
… and they are worth exactly what you pay for them. More to the
point, they are marketed on the cheap because there are those who either
cannot or refuse to appreciate value. Is $3, $5 or $10 a name too much
to pay if the list is a perfect fit for what you’re marketing?
Most lists don’t come in at that cost level but lists can be another
example of getting what you pay for.
3. It must be personalized. Anything less is diminished in value.
There’s a major difference between the mailing that says you are
“pre-qualified” for a credit card and the one that states
the amount for which you are pre-qualified. While using individual names
is essential, personalization must include how the offer relates to the
individual.
4. Make the offer compelling. Another credit card offer arrived
in the mail. While I had tossed the others, I opened this one because
it promised up to 15 months interest free on purchases. The
length of zero interest period caught my eye and the fact that it applied
to purchases and not just transfers was appealing. Direct mail is not
a “cheap”
way to attract customers. It’s a serious tactic that produces positive
results if taken seriously.
5. Stay with it. Like any other marketing effort, there is always more than
one reason why direct mail fails to deliver expected results. At the top of the
list is repetition and this is where most direct mail falls apart. Why should
we allow ourselves to think that recipients should be interested in what we drop
in their mailboxes at a particular moment? The task of attracting a group of
prospects and turning them into customers results from creating a plan for a
direct mail campaign that rolls out over a period of time and unfolds the total
message through a series of meaningful contacts.
6. Providing response opportunities. Effective direct mail is made interactive
by offering the recipient ways to communicate with you in a variety of ways,
whether by mail, phone, fax or online. While that’s essential, there’s
another dimension that deserves attention. Direct mail should give customers
options that fit their needs, wants and expectations. They should be able to
ask questions, obtain information, tell you how and when to contact them and,
of course, express interest in making a purchase. The task is one of giving them “room” or
freedom so they feel comfortable with us.
As an indication of the value direct mail can deliver, a survey by Peppers and
Rogers Group, a management consulting firm specializing in customer-focused business
solutions, reveals that direct mail contributes more to establishing a relationship
between a business and its customers than print ads, TV, radio, email, Internet
or telemarketing. The finding is expressed this way by Peppers and Rogers, “Now
more than ever, consumers value organizations that make an effort to communicate
and build a relationship through the mail (57%).”
And like any type of relationship, it doesn’t happen overnight, depends
on being totally genuine and must maintain an appreciation for what’s important
to the customer.
John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing and Break the Rules Selling, writes for a variety of business publications, and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, MA 02170; 617-328-0069; jgraham@grahamcomm.com.