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Direct Mail Lead Gen Doesn’t Have to Bust the Budget

Many direct marketing articles tout digital tactics for generating sales leads. But at AccuList USA, we can attest to the continued lead-gen effectiveness of traditional direct mail for a range of our clients, including online retail and publications. Direct mail has higher response rates while avoiding some of the challenges of SEO, social media and e-mail, such as rapidly changing rules, deliverability/visibility issues and a crowded competitive space. But what about the cost of direct mail?  As a recent MarketingProfs post highlighted, there are direct mail options that can effectively deliver leads without busting the marketing budget!

Sales Letters Are Proven Workhorses

A No. 10 envelope that includes a one- or two-page letter and a reply card is an expensive, simple and effective way to reach prospects with something likely to be opened and read (unlike many e-mails). Of course, response depends on the proper targeting of the prospect lists and the personalized content of the letter. The letter should identify a problem, present a solution and offer a “freebie” of value, such as a brochure, sample, demo, evaluation, information kit or anything else that will get a response so that salespeople can follow up with qualified prospects.

Postcards and Flyers Are Lower Cost Options

A postcard is an inexpensive alternative to a letter, with low print costs and lower postage rates, as long as you stay within the minimum size of 3.5″ x 5″ and the maximum of 4.25″ x 6″. Because there is less room for the sales message, offer copy needs to be simple with a clear call to action. And because there is no additional response device, postcards need to stress a website address or a phone number. To drive traffic to a retail store, make room for directions or a map. Similarly, flyers are cheap and great options for local small businesses or businesses that want to appear small (read less expensive). Printed on ordinary paper, folded in thirds with a tab to hold it closed, and addressed with a mailing label and stamp, the result doesn’t have to be beautiful to be effective. Put the main message on the inside and teasers and mailing information on the outside so that, when you read the address, the folded side is on the bottom and the tab is on the top.

Court Attention With Invitations and Special Delivery

An invitation doesn’t have to be printed in formal lettering on cream card stock in a fancy hand-addressed envelope. You can draw people to an event or offer in a way that seems more personal and important just by using the words “You are invited…” An invitation can use a letter, a postcard or a flyer for an open house, special sale, product demonstration, etc. The key is to make the event seem exclusive and the invitees special in some way. Another way to make a mailing seem special is to use FedEx or other quick delivery service. The package content can range from a simple personal letter to a video or product sample. A special delivery package is a guaranteed open, but, because the delivery method is more expensive, it is usually limited to a smaller group of select targets.

For the complete article, see http://www.marketingprofs.com/8/cheap-direct-mail-tools-generate-sales-leads-fast-rieck.asp

Format Drives Differences in Direct Mail Results

In planning direct mail campaigns, marketers often turn to standard industry benchmarks courtesy of the annual “Response Rate Report” from the Data & Marketing Association (DMA), soon to be a division of the Association of National Advertisers (ANA). However, while general direct mail response rates for house lists (5.1%) and for prospect lists (2.9%) far outpace those of digital media, the mailing piece format selected can make a key difference in expected results.

Mailer Format Shifts Response Metrics

For example, an oversized flat envelope package tends to deliver the highest response rate: 6.6 % for a house file and 4.9% for a prospect list. Next most effective in terms of response are postcards, with a house file response rate of 5.7% and and a prospect names’ response of 3.4%. At the tail end, but still far above digital efforts, comes the standard letter format, with a 4.37% response rate for house names and a 2.5% response for prospecting.

Balancing CPM & ROI in Format Selection

Some marketers hesitate over the more expensive oversized flats, which have the highest cost per thousand (CPM) among formats at $481 for house files and $467 for prospect files. Which is why postcards continue to win fans among B2C and B2B marketers, with the lowest CPM among direct mail formats benchmarked. However, despite their higher CPMs, the solid response rates of flats mean they can deliver the highest ROI (37% and 30% for house and prospect names, respectively). Postcards and letter packages, meanwhile, are tied in terms of ROI, with house mailings garnering a 29% ROI and prospecting turning in 23% ROI.

Purchase the whole report or see a free summary article for more data.