Direct Marketing Defined

Direct marketing is a term used to refer to all media activities that generate a series of communications and responses to and from a potential or existing customer.

Primarily, direct marketing is concerned with the management of customer behaviour. It is used to complement the strengths and weaknesses of other communication disciplines.

To put this another way, advertising and public relations provide information and develop brand values, but sales promotion, direct marketing and personal selling drive response.

Direct marketing is just one aspect of integrated marketing communication which needs to be  used appropriately as part of a sensible, clear communication strategy.

The mechanisms and methods of direct marketing are old and proven. Despite new technology, they still apply in the digital age. A good database and a direct appeal work as well now as they did in the age of mail only.

Having an accurate and up-to-date database of contacts, a relevant offer and a concise message is essential. It’s most effective when part of a relationship with customers, or when the customer has given permission to be contacted in this way.

Any medium that can be used to deliver a communication to  a customer can be employed in direct marketing, including: e-newsletters; telemarketing; online display ads; bulk unaddressed mail; flyers; brochures, and mail pieces that are sent directly addressed to individuals at their business or home.

Each of these communication types or channels has a different use and can be combined for greater impact. How you decide which to use comes down to which channels your customers or prospects will respond to best, and the cost efficiency of one over the other.

For example, letterbox flyers can be very cheap, particularly if you have a very local catchment and deliver them yourself. The response will depend on how well your piece stands out from all the others and how relevant your offering is to the household.

A large retailer might combine a letterbox drop with a national TV and press campaign, in which case householders might be on the lookout for the catalogue in the letterbox and so the readership would be improved.

Timing can be something that is difficult to get right with any advertising. It could be that an email sent to a business prospect during their busiest sales period is overlooked, but during their slow time gets their attention.

Direct mail and email campaigns

Direct mail has a reputation for being ineffective, but well-directed, carefully worded mail pieces, especially those with good offers, can get good results and improve sales. With the significant increase in digital marketing, direct mail has become much less common and, when used appropriately, can deliver significant cut-through and improved results.

Some key points to consider for a successful direct mail or email campaign:

1. Targeted communication

   Your communication should be targeted i.e. it should be directed to the person that has a need for your product or service and can make the decision to buy.

   To achieve this you need to do some preparation. After deciding your target market, phone them to find out the name of the person who makes the decision to buy. If you’re mailing to your customers, you should already know that person’s name, but check from time to time to make sure that you still have the currently correct name.

2. Offering value

   Your communication must contain something significant and compelling. Do not send an item if all it does is say who you are and what you do. If you do this, then the response will, most likely, be zero. If you are going to put the time, effort and financial investment into direct marketing, make it worthwhile.
   If you are communicating about a new product, some commonly used offers are:

   • Two for one;

   • Buy one get one free;

   • Discount off the normal price;

   • Free trial of a new product, service or a guarantee; and

   • Complimentary gift or gift certificate towards other purchases.

   Whatever you offer, make sure it is of value to your customer. Offer something that enhances what you are selling and appeals to your customer.

3. Consistent message

   Make sure that your direct marketing content aligns with the messages in your other communication platforms such as your website and social media, and that they all support each other.

4. Unique offering

   Make sure your direct marketing piece stands out from the pack. For email marketing use images where appropriate, legible text and consider your company’s branding. For the traditional mail route, use coloured paper, attach novelties to your letter, include vouchers that are validated on purchase, use unique-sized paper or envelopes – be imaginative! Make sure you test everything that you do. Do not send out thousands of letters hoping that they will work. Trial test samples, send out small quantities with variations and, most importantly, measure what works best.

5. The 80/20 Rule

   It is much easier to get existing customers to buy from you than it is to get new customers to buy. You will always get a better response from existing customers, or previous customers, than from new customers.

6. Be persistent

   You may not get a good result from your first attempt, but you will find that the more often you send mail to your customers or potential customers, the more likely they are to respond positively.

   By being persistent you will be building a profile of your business. The more that customers and prospective customers know about your business, the better the response will be. A key part of your marketing strategy must be to stay in touch with existing and past customers and regularly market to potential new customers.

7. Reward loyalty

   Give away something occasionally without expecting anything in return. It could be something as simple as a birthday or Christmas card, or something valuable to them in their business - like an article about improving sales or about trends in their industry, new technology, or information of current interest. If the gift has a perceived value, the customer is likely to be impressed and you will have improved your relationship with them.

Some direct marketing best practices

1. Time

   Include an offer that needs a reply by a certain time to ensure that you get an immediate response.

2. Referral

   One way to get a list of potential new clients is to go to another business (not a competitor) that also sells to your market. Get them to endorse your products to their database of clients in return for an endorsement of their products to your customers.

3. E-bite

   Send an audio or video link about your product or service and the benefits you offer to your clients.

4. Incentivise

   Incentivise repeat business by offering a discount for multiple purchases and remember to always time limit the offer. Customers should be told of the offer at the time of purchase and then reminded by a direct marketing communication after an appropriate time period, i.e. when it is likely that they might need your product or service again.

5. Post purchase

   Send a thank you note to recent customers. Ask them for their feedback and for a referral to their friends, family, or business connections.

6. Get creative

   If you are having a special event, sale or open day, give it a theme. If you use direct mail send out your mailings or invitations with that event’s theme. For example, a party theme might have a party popper and toy whistle. One that worked well had a beach theme and a bag of sand was sent. It generated 80 new account customers for the business just by being different.

Finally, remember a couple of special points

Remember, to make your direct marketing offers time sensitive. Give people only one or two days to respond to the offer or give an early bird discount or addition. The idea is to get your prospective customers to act immediately. Once the recipient has put your correspondence aside there is a high chance that it will not be picked up again.

Test, Test, Test. This cannot be stressed enough. Code your messages or make slightly different offers so that you can compare the response that each message gets.

As time goes by you will find out what works best for each type of market. Then you can work with the most successful messages to improve your results.

The action plan or direct marketing should include the following:

1. Decide who is in your target market for each direct marketing promotion;

2. Ensure they have a need for your product/service and make sure that you know the names of the purchasing decision makers;

3. Think about how direct marketing will work in with your other marketing and sales activity;

4. Design your direct marketing piece using a theme, or around a special event;

5. Ensure it has a compelling offer;

6. Make it time sensitive;

7. Test several variations to see which gives you the best response;

8. Code or differentiate each direct marketing piece to make sure you can measure individual success; and

9. Always give recipients the option of being removed/unsubscribed from your list with an apology for any inconvenience caused by the contact.