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 marketing 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. 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.
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