Direct Marketing 101

Direct Marketing 101Ten Steps to Direct Marketing Success

Agenda

• Background ... what is Direct Marketing?

• Ten steps to Direct Marketing success

What is Direct Marketing?

Direct marketing is an interactive system of marketing designed to effect

a measurable response and/or transaction at any location using one or

more advertising media

What is Direct Marketing?

Direct marketing is an interactive system of marketing designed to effect

a measurable response and/or transaction at any location using one or

more advertising media

What is Direct Marketing?

Direct marketing is an interactive system of marketing designed to effect

a measurable response and/or transaction at any location using one or

more advertising media

What is Direct Marketing?

Direct marketing is an interactive system of marketing designed to effect

a measurable response and/or transaction at any location using one or

more advertising media

Direct Marketing is ...

A one-on-one, person-to-person sales call

Direct Mail

• Outer Envelope

• Sales Brochure

• Sales Letter

• Response Device

Direct Mail

• Outer Envelope:

– The introduction

– One job, get opened

Direct Mail

• Sales Brochure:

– The attraction

Direct Mail

• Sales Letter:

– The argument

Direct Mail

• Response Device:

– The resolution

Successful Direct Mail

Direct Marketing priorities

1. List / Media

2. Offer

3. Creative

10 steps to Direct Marketing success

1. Develop a master financial plan

2. Select suitable products/services

3. Make your offer irresistible

4. Use lists / media that reach best prospects

5. Choose formats that fit your product /service and objective

6. Create advertising that sells

7. Plan for prompt fulfillment

8. Set up an R&D budget for testing

9. Analyze results carefully

10. Maximize customer value through repeat sales

Develop a financial plan

• Establish:

✓ Proper selling prices

✓ Test budgets

• Determine the allowable!

#1

Develop a financial plan

#1

Develop a financial plan

• Develop cash flow charts

• Substitute actual test results

• Expand program step-by-step

#1

Select suitable products / services

• Not all products are suitable

• Repeat business factor ... who are your best prospects?

#2

Make your offer irresistible

• The offer is very important ... more important than copy, graphics, format

• Use the most attractive offer you can afford!

#3

Make your offer irresistible

• Offers to relieve risk

• Price and payment options

#3

Make your offer irresistible

• Some popular offers:

1. Free offers

2. Discount offers

3. Sale offers

4. Sample offers

5. Time limit offers

#3

• Some popular offers:

6. Guarantee offers

7. Build-up-the-sale offers

8. Sweepstakes offers

9. Club/continuity offers

10. Philanthropic offers

Make your offer irresistible

#3

Great rates, low cost

Emotional and rational

Earn more plus a bonus

Use media that reach best prospects

• Start with the best media vehicles to reach prospects

• But, test different media

• RFM important in list work ... and beyond

#4

More TestVehiclesProven

Categories

Use media that reach best prospects

InitialTest Categories

Test Vehicles

Proven CategoriesTest Vehicles

Confirmation TestingProven Categories/Vehicles

Test New Vehicles and Additional Categories

Core Schedule

ConfirmationTestingProven Vehicles

ConfirmationTestingProven

CategoriesVehicles

More TestVehicles

New ProvenCategories

More Test Vehicles

and Categories

#4

Use media that reach best prospects

#4

Choose formats that fit your product/service and objective

• Every medium offers a variety of formats

• Use format appropriate to your target audience ...

#5

Choose formats that fit your product/service and objective

#5

Create advertising that sells

• Why would a stranger turn over hard-earned cash for a product or service they haven’t held or examined?

#6

Create advertising that sells

• Consumers are visual creatures

• Graphics should work with copy

• But, copy sells!

#6

Plan for prompt fulfillment

• Targeted fulfillment designed to stimulate action ...

• Don’t make them wait!

#7

Set up an R&D budget for testing

• Test to keep up with marketplace

• Never stop testing

• Test big things

#8

Set up an R&D budgetfor testing

Control#8

Set up a R&D budgetfor testing

1. Test a single element / approach

2. Record test results3. “Beat the Champ”4. Results statistically

valid

5. Analyze carefully6. Test for yourself7. Results aren’t forever8. Avoid over-testing9. Don’t test what you

can’t roll out

#8

Analyze results carefully

• Study, analyze and interpret

• Recommend specific actions

• Expand on success gradually

#9

Analyze results carefully

#9

Week 2 Week 4

Daypart Cost Leads CPL Daypart Cost Leads CPL

M-F 9A-2P 300.00$ 30 10.00$ M-F 9A-2P 300.00$ 35 8.57$

M-SU 5P-12A 600.00$ 27 22.22$ M-SU 5P-10P 450.00$ 33 13.64$

M-SU 12A-2A 300.00$ 8 37.50$ M-SU 12A-2A 5NCs 8 NA

S/S 10A-5P 300.00$ 33 9.09$ S/S 10A-5P 300.00$ 36 8.33$

Station Total 1,500.00$ 98 15.31$ 1,050.00$ 112 9.38$

Allowable 18.00$

Analyze results carefully

Week 2 Week 4

Daypart Cost Leads CPL Daypart Cost Leads CPL

M-F 9A-2P 300.00$ 30 10.00$ M-F 9A-2P 300.00$ 35 8.57$

M-SU 5P-12A 600.00$ 27 22.22$ M-SU 5P-10P 450.00$ 33 13.64$

M-SU 12A-2A 300.00$ 8 37.50$ M-SU 12A-2A 5NCs 8 NA

S/S 10A-5P 300.00$ 33 9.09$ S/S 10A-5P 300.00$ 36 8.33$

Station Total 1,500.00$ 98 15.31$ 1,050.00$ 112 9.38$

Allowable 18.00$

A reasonable CPL becomes ... a great CPL

#9

• Your best prospects are your current customers!

Maximize customer value through repeat sales

#10

Customer Profit Fan

-3

-2

-1

0

1

2

3

4

5

1 2 3 4 5 6 7 8 9 10 11

Advocacy

Lower Cost

Premium Price

X-Sell

Base Product

Revenue from …

10 steps to Direct Marketing success

1. Develop a master financial plan

2. Select suitable products/services

3. Make your offer irresistible

4. Use lists / media that reach best prospects

5. Choose formats that fit your product /service and objective

6. Create advertising that sells

7. Plan for prompt fulfillment

8. Set up an R&D budget for testing

9. Analyze results carefully

10. Maximize customer value through repeat sales

In short ...

Effective Direct Marketing is simple;

Get the right message,

to the right person,

at the right time!

Thank You

James Hipkin

(415)505-0632