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idea3: design your direct marketing program for better response rates |
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| | There are many myths, legends and pseudo best practices out there on what are the most important factors in developing a successful direct response program — so here’s a clear guide to what drives success. |
First, you need a clear goal: industry average is 1-2% so that’s a good baseline to start with, especially if you have no prior history to gauge response metrics. Your campaign should at least start with a modest goal — don’t over promise and under deliver.
Second, you need to design a multi-touch campaign: For example, usually three to four touches in at least two mediums will really improve your chance of success. So let’s say, 2-3 direct mail pieces with corresponding email and at least one phone follow up mid campaign. Don’t fall into the trap of the “one-off” mail piece, phone call or email.
Third, plan for a campaign flow: For example, what happens to non-responders, responders and how do you integrate the direct marketing program with sales process? You don’t need to set everything up perfectly; just plan to work out how your process will be designed to best fit your business.
Fourth, get personal. Personalized segmented messages, landing pages if the response mechanism is web, offers if you can do it — all these elements should be personalized as much as possible. Personalized campaigns can improve response by double-digit percentages.
Fifth, get your priorities straight: List, offer, creative, and campaign design — in that order. Don’t fall in love with an execution without due diligence on the list. No clear offer usually makes it unclear to the recipient what they could receive or how to take action. This also allows you to balance budget versus the number of people you need to target — plan for an ideal cost per customer acquisition number. (With traditional sales, industry averages are around $300 per, which surprises a lot of organizations who perceive marketing as, “too expensive.”
Sixth, design your offer to be part of the sales process. Don’t offer a trendy gimmick that will generate a huge amount of unqualified response. The big giveaway or promotion should only be used for broad-based list generation at best. Focus your offer on information, discounts, or any other item of value that will help identify qualified respondents and move them one step into the sales process.
Finally, and this appears obvious but it should be said: don’t plan a program if you don’t have a functioning, repeatable sales process that is driving the kind of revenue to support ROI on a response program. Start within your means and grow the program complexity and scope to track with real results — that way you minimize the exposure, risk and disappointment that comes with a less than stellar program.
Direct response is truly a process, not an event. Hopefully this provides some guidelines to help you improve your direct marketing program.
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