Proper Planning Pays!

The purpose of this report is to give an overview of direct mail marketing and arm you with the knowledge you need to make the right decisions regarding your direct mail program.

Don't Waste Your Money

You would be amazed at the amount of money that is wasted in direct mail versus other forms of marketing. Our goal is to keep you from wasting your money and to show you how to skillfully use direct mail.

The process falls into 8 basic steps:

Direct Mail Marketing Program Concept
Program Strategies
Mailing List Database
Post Office Input
Package Design
Print Production
Mailshop Services
Analysis and Projections

The more complicated the project the more time will be spent on each step. However, even with the simplest project you will need to spend time working on each step. These eight steps are best thought of as a preflight check list. The item you fail to check will be the one that nails you.

1. Direct Mail Marketing Program Concept

This is where it all starts. You must determine your goal. What precisely do you want to do? This may be as simple as sending a postcard reminder for a sale. Or, it could be as complicated as a catalog mailing using 253 different lists and 19 different offers. But it all starts with a goal.

This is the point where you want to think big. Tests, offers, mailing lists and design are all up for grabs. Many times you can do two or more things without increasing cost as long as you plan correctly from the start. If you think big at this point you can always cut back later. However, it is difficult and costly to increase the scope of a project when it is in production.

2. Program Strategies

The strategic plan is where you detail everything you want to accomplish. Letters What offers do you want to test? How should you set up the tests? How many names should be used in a test? Do you have a valid control? Which list(s) will you use?

The questions are almost endless. Many direct mail users start down the road to disaster at this point. It's not enough to have answers, you need to know the questions. All the questions. This is where you need to spend time and money to insure success.

One very important point you need to keep in mind is the fact that direct mail can be measured precisely, unlike other methods or marketing. In fact, this is the reason many advertising executives hated direct mail in the early days. Someone is accountable for the results. Basically you know how many pieces you mailed out, you know the response and the cost. So you can calculate response rate, cost per order, average order value and any number of test results. These results will give you the ability to make projections about future mailings. Don't treat this step lightly.

3. Mailing Lists and Databases

Over the last 40 years direct mail has been called many things, some kind, others not so kind. But the one name that best describes it today is "Target Marketing." With the many enhancement features available, you can truly target your market.

With the changes occurring at the post office, it is not enough to target the market. You must make sure the post office will be able to deliver your mailing. Statistics show that 30% of all third class business bulk mail may not be deliverable due to inaccurate addresses.

If your mailing list contains 30% bad records then why mail them? The problem is you don't know which addresses are bad. Here is where a good mailing service can help. Your database can be checked against a CASS certified database, the Coding Accuracy Support System ( CASS) is a process designed by the U.S. Postal Service to improve the accuracy of any database. At the same time, the software will standardize the address to meet postal automation requirements.

In addition, your list can be checked against the National Change Of Address list (NCOA) which will update your list if any names have moved in the last 18 or so months.

4. U.S. Post Office

Whether you love it or not, you will need to factor the post office into your planning at the beginning of your project. While automation is improving performance it has some restrictions. Unlike human hands, a machine that sorts a 6" x 9" envelope can't sort a 9" x 12" envelope. Bar readers can't read hand writing. So when you plan a mailing you need to know and understand how your mail will be handled at the post office.

A good mailing service will work with you to make sure your mailing receives all possible postal discounts. It is always best to show your mailing service a copy of your design before you go to print, to ensure that the piece is designed with postal requirements in mind. Automation has its rewards when you play by the rules. Always play by the rules.

5. Package Design

At this point you can start the design process. Once you have a tight comprehensive layout be sure to let the Mail Piece Design Analyst look at it again.

Earlier it was mentioned how amazing it is the amount of money wasted in direct mail. The bulk of it is wasted at this point in the project. Remember, most designers are not mechanically minded. They are worried about the look of the piece, the choice of ink colors, the weight of the paper. Few are concerned with production costs or even whether the brochure will fit into the envelope.

There are designers who have no concept that the brochure they're working on needs to go into an envelope. Or that a costly special envelope would need to be manufactured to accommodate the brochure. This is not a blanket indictment of all designers, however, there are few who understand the mailing process. There are fewer who understand the changes occurring at the post office. Always have your mailing service look at your design before going to print.

6. Printing Services

The amount of printing you produce will determine your method of purchasing. If your volume is low you will probably be best served developing a strong relationship with a medium size commercial printer. Let this printer handle all of your printing needs. Your total printing volume will make you a good customer. You may not receive the lowest price but you will receive good service and that's what you want.

Print brokers are another route to consider. Many business owners believe brokers cost them money. Good brokers usually buy from trade printers at prices far below the street prices. They can mark up the job and still be competitive. However, brokers serve another purpose. When you work with a broker you basically are hiring a production staff. The broker is on your side of the desk and looks out for your best interests. What ever direction you go, be sure the person who is responsible for print purchasing knows and understands direct mail.

7. Mailshop Services

You will want to choose your mailing service with care. Today, anyone with a postage meter thinks they're a mailing service. You'll want to consider the following:

1. What type projects has your mailing service handled in the past?
2. Take a close look at your prospective supplier's current client list, and call them for a reference.
3. Generally a mailing service maintains its own local postal permit. Determine which post office is used and contact the postmaster. Does the post office have problems with the mailing service? Does the mailing service have problems with count verification? Explain your program to the postmaster so they understand your needs. You will want to develop a relationship with the postmaster your supplier uses in the event problems occur.

8. Analysis and Projections

For those who love the business, reading the results of a mailing is the ultimate high. All the planning and testing now boils down to real numbers. Direct mail is unlike any other marketing method in that you can accurately read the results. You know how many you mailed, the response total and the revenue raised. You can determine response rate and the average order or gift value.

With the results of your tests you will be able to project the response of roll-out mailings. After some experience you will become the company mystic. However, don't let your ideas skew the tests. Always set-up fair tests and believe the response.