Using direct mail to build your customer base

Office World News, Sep/Oct 2003 by Stimmel, Craig

Direct mail marketing has proven itself over the last century to be the most effective marketing technique focused on building new accounts. Compared with eMarketing or telemarketing, when combined with outside sales or an effective telemarketing department, direct mail marketing proves itself time and time again to be the best choice for raising the level of company visibility and close business.

Finding new customers has always been the primary goal of any successful business products company. There's no choice-no matter how good your company is, there will always be a natural loss of business due to changes in the marketplace. Companies move, buying influences change and competitors entice switches in loyalty. The resulting loss in business has to be made up and new revenue must be generated over and above existing sales volumes. There is little choice-either grow or die.

Utilizing direct mail marketing techniques, dealers can position themselves to not only reach existing clients, but to garner new business. A well written, consistent direct mail marketing program:

* Can create sales by itself by selling particular products or systems

* Can help build visibility by illustrating competitive advantages of a dealership

* Builds a sense of trust about the company by communicating a series of selling messages focused around a company's unique sales proposition

* Presents strong arguments about why the dealer is worthy of a prospect's business

Creating A Program That Gets Results

Creating a successful direct mail marketing program requires careful thinking and a clear understanding about what direct mail marketing can and cannot accomplish. Direct mail can deliver consistent results if you plan accordingly.

* Set reasonable expectations for your direct mail marketing campaign Direct mail marketing is much like any form of advertising-succeeding because of its consistence, persistence and ability to deliver a series of" buy" messages to the same individuals over and over again

* Acquire (or generate) a good list of prospects. Companies that meet or exceed your account conditions of size, number of employees, or other criteria can be found not only in your internal database but from sources that include list brokers such as D&B Marketing Services and even the reference room from your local library

* Plan a reasonable marketing schedule. An ideal schedule consists of five to eight mailings over a period of three to five weeks. It is important to consider a business cycle that is appropriate to your area and message with mail to match that cycle (See Figure A)

* Create the right mailing piece. From postcards to sophisticated specialty mailing pieces, the look of a mailing piece should be consistent with the message. Some dealers use photographs of their facility, others use a theme such as sports, while still others use cartoons or characters. It doesn't matter what you use as long as it presents your company in a favorable way and gets the message across

* Decide on a specific response. Make sure that you are clear about what you want the recipient to do, whether it is to call, e-mail, fax or stop by the store

* Keep track of responses. Utilize an in-house system to track and measure the results of each mailing program. This system will help to gauge the message you are sending and the interest of the prospect

* Follow up on replies. A follow-up system will ensure that respondents are properly handled. Everyone in your company, from the customer service department to inside and outside sales reps should be aware of the mailing dates, content and any other relevant information

Addressing Cost Factors

Direct mail marketing does not have to cost a fortune. A postcard mailed to good list of qualified prospective businesses should cost you no more than about 50 cents per card mailed. (See Figure B). If you have talent in design, consider using a dot.com printing/fulfillment service such as www.modernpostcard.com. They're a proven vendor who is both inexpensive and reliable.

Alternative To Direct Mail Marketing

While fax blasts and telemarketing are both alternative methods to reach new and existing customers, the Federal Communications Commission (FCC) has passed new regulations that are making direct mail marketing an even more lucrative marketing tool.

Anti- telemarketing sentiments have stemmed "do not call" legislation with specific rules for telephone solicitation. Within 18 months (the transition period), making a call to a company or individual from a list without there being a pre- existing relationship or the company's OK to do so can cost $500 in fines for the first offense - and as much as $11, 000 for subsequent violations per day.

Covered by the same legislation are fax blasts. Companies often utilize fax blasts to communicate specials and promotional programs to existing customers and prospects. Beginning in August 2003, the FCC required written authorization from both new and existing customers in order for faxes to be received. Obtaining the necessary written authorization is a process that is both time consuming and challenging.