Introduction To Direct Mail Marketing

1. Introduction to Direct Mail
The Basics of Direct
Mail Marketing
Rev 1/2009

2. Let’s Talk About Direct Mail
Around $60 billion dollars is

spent each year on direct mail
Why is so much money spent on

direct mail?
It Works!

3. On any given day, the average
customer will be exposed to 2,904
media messages, will pay attention to
52 and will positively remember 4.

4. Today’s Media World
Mail
Amplifies
all media

5. Think About This……
55% of Americans read a newspaper

95% have telephones

98% have television sets

E ve rybo dy’s got a mailbox


6. Attributes of Direct Mail
Flexibility
Target ability 

Measurability Accountable
 
Privacy

Convey

Builds customer

complex
relationships
messages
Personal

Tactile
Great ROI 

Creates impact


7. Direct Mail vs. Mass Media
M a s s M edia
D irec t M a il
A dvertis ing
 Rifle approach
 Shotgun approach
 Measurable
 Difficult or
 Personal
impossible to
 Generates
measure
response  Generic
 Creates an image

8. W hy D irec t
M a il?
Direct Mail can help the customer:
Prospect for new customers

Generate qualified sales leads

Establish and maintain relationships

Cross-product sell to existing

customers
Generate customer loyalty

Solicit potential donors

Communicate information


9. Direct Mail Response Rates
Typical Direct Mail campaigns bring in
around 1-3% response rate
1 to 1 Marketing campaigns, personally
relevant campaigns can achieve 10-
20% response rates
Multichannel Marketing will help boost
response rates

10. Other Advertising Response Rates
Overall Average Response Rates
 Telephone 7.44%
 Direct Mail 2.55%
 Catalog 2.41%
The media with the poorest overall response rate
performance were those with the least capability
to narrowly target customers
 TV 0.24%
 Newspaper 0.31%
 Magazine 0.35%
 Radio 0.48%

11. People Like to Get Direct Mail
What’s the first thing you do when you

come home?
Most people sort mail into 2 piles:

Relevant

It’s personal

 They know something about me
A g oo d o ffe r s e n t to th e rig h t pe rs on
Junk

Stuff that’s not for me

 Goes right into the trash can
A g oo d o ffe r s e n t to th e w ro n g pe rs o n

12. People Like Direct Mail
56% say receiving mail is a “real

pleasure”
94% value the privacy of mail

55% “look forward” to discovering

the Mail they receive
67% feel Mail is more personal than

the Internet
Source: USPS

13. The Mail Moment
98% of households collect, assess,

and sort mail every day
77% say they sort their mail

immediately
…while only 57% of households

check their personal e-mail on a
weekly basis
On average, peo ple s pend 30

m inutes eng a g ed with their mail
when they sit down to manage bills,

14. People Like Direct Mail
Mail gets message into waiting hands

98% of consumers bring mail in the day it’s received

77% sort through mail immediately

Mail takes you to the person in charge (the Mail

“CEO”)
90% determine what mail to keep for review

81% review financial documents

84% are principal grocery shoppers

The Mail Moment is an opportunity to reach

consumers to shape opinions and influence
decisions
M ail c re ate s a m om e n t yo u w on ’t w an t
to m is s
Source: USPS

15. People $pend through Direct Mail
Consumers spend around $600 billion a year

through direct mail.
Businesses spend more than $200 billion per

year.
More than $100 billion is donated to charities

On average in the United States $167 is

spent on direct mail marketing campaigns
per person each year. ($60 Billion Industry)
W ith a n o ver $2,000 per pers o n
return, tha t’s a 13 to 1 R O I !

16. Recipient Advantages of Direct Mail
Convenience

Study and re-read materials

Written record

Review quickly

Show information to others


17. The Beginning…
Every successful Direct Mail
program begins with one
important question:
“What is your customer
trying to accomplish? ”

18. The Beginning……
Direct Mail Components
Creative/Design

Lists / Databases

Offer

Package

Data Processing

Personalization

Production


19. Lists
Many say that the LIST accounts

for as much as 40% to 60% of the
success of a mailing
40-40-20 rule


20. T he W ro ng L is t
Great Offer T he

Beautiful Copy W ro n

g L is t
Stunning Design

Strong “Call to

Action”

21. T he R ig ht L is t
The Right List…

Has the right geographic

location
Has the demographics that fit

the best potential customer
profile
Has the quantities available to

satisfy marketing needs

22. L is t L ing o
List Rental – Licensed usage of a list

Multiple Usage – Use of list more than

one time (for a period of 12 months)
Demographics – The statistical

characteristics of human population
(age or income) used especially to
identify markets
Psychographics – Lifestyle

characteristics of a consumer database
(buying preferences, hobbies, etc.)

23. T ypes o f L is ts
House Lists

Response Lists

Subscription Lists

Contributor Lists

Inquirer Lists

Compiled Lists

Consumer Lists

Business Lists


24. H o us e L is ts
A list of current customers and

prospects
This is the real value of a business

Its important to capture as much

information as possible
Baseline info

Name, address, zip+4

Purchasing History

Additional Demographics

Birthdays, family status, housing, etc.


25. Types of Response Lists
Buyers

Subscribers

Expires

Inquiries

Members

Change of Address

Attendees

Donors


26. Response Lists
Customer Lists

People that have responded to specific

direct mail programs and offers
Victoria’s Secret, L.L. Bean

Subscriber Lists

Subscribers to magazines, newsletters and

subscription services
Subscribers to People Magazine, Golf Digest,

etc.

27. Response Lists
Warranty / Registration Lists

People that have bought and

submitted warranty or
registration cards for specific
products
Owners of appliances, Dell

PCs, Sony TVs, etc.

28. Response Lists
Advantages

Highly targeted

Higher response rates on related

products and services
Lists available to cover virtually any

product or service

29. Response Lists
Disadvantages

High cost of rental (7.5 to 15 cents

per name – or more)
 Requires approval of mailing piece
You probably cannot use to market a

competitive product
Difficult to purchase for very specific

geographic areas
 Most lists do not have sufficient
counts to satisfy demand

30. C o m piled L is ts
Business Lists

Consumer Lists

Compiled from

multiple public
domain records
Telephone books

Government records

Census Data


31. C o m piled C o ns um er L is ts
Current Resident
1124 Elm St S
Evanston, IL 60606
Occupant lists

Full saturation – no name, just “Occupant” or

“Resident” (Also known as OCC/RES lists)
Consumer lists

Includes name

John Adams
1124 Elm St S
Evanston, IL 60606

32. C o m piled L is ts
Benefits

Wide coverage

Easy to obtain

Low price - $.02 - $.05 per name

Volume discounts

Disadvantages

Not as highly targeted as response

lists

33. Compiled Business Lists
Always include business name and

mailing address
Contact names

Necessary when mailing to large

businesses
Outdated data can hurt your response

rate
Title or function is often just as effective

Business demographics

Include type of business, sales $, number of

employees, etc.

34. B us ines s L is ts
Often don’t have contact names

Most lists are compiled

Available universes are smaller than

consumer lists (about 15,000,000 total
establishments)
Major Suppliers

Acxiom

 Dun & Bradstreet
 Experian
 InfoUSA
 Trans Union Business Information Services

35. Information Contained on
Business Lists
Company Name and Address

Job Titles

Business Type (NAICS Codes

– formerly known as SIC
Codes)
Business Size

Number of employees

Sales volume


36. T he K ey to L is t S elec tio n
Find out as much as possible about
the present customers…then get
as many more prospects as you
can who are just like them!

37. T hing s to C o ns ider
Where are the customers located?

3 mile radius, city, state, nationwide, etc.

Do they have certain demographics?

Families, Homes, Income, Education, etc.

Do they have buying preferences

(psychographics)?
Wine, Fishing, sports cars, etc.

Are they a specific type of business?

Restaurants, retail, schools, etc.

Do they already own a certain product?

Boats, computers, homes, etc.


38. The Offer

39. T he O ffer
What the consumer or contributor looks

for and responds to from the piece.
Always think from the addressee’s

standpoint…“What’s in it for me?”

40. T he O ffer
Four Types of Offers:
The benefits of membership

Sale - discount off the full price

Free - free gift…..or “buy one get one free”

Guarantee - trial offer or money-back


41. The offer…continued
Gives consumers or contributors a

reason to respond to the Direct Mail
Piece….. “A C all to A c tio n ”.
The offer should tell the customer or

donor the details. What exactly should
they do? Bring it in? C all, Fax, E -mail,
S ubs cribe, or S end in money.

42. The Key Steps…..
G uide yo ur c us to m ers to :
Make the offer clear.

Don’t offer a variety of products/services that

will muddy the message.
Choose one product to spotlight. Be specific.

If you are asking for money...

Th e n A S K !!!!


43. 3 Things All Successful Direct
Marketers Know
The consumer, not the product, must
1 be the hero.
Communicate with each customer or
2 prospect as an audience of one.
3 Answer the question, “Why should I?”

44. The Package

45. C o m m o n P a c k a g es
#10 Packages

Newsletters

Announcements / Thank You

Seasonal / Charitable

Postcards

Catalogs, Program Guides

Calendars

Statement Processing

Membership Mailings

Personalized Notepads

Self-mailers

“Solutions That Stick”

1 to 1 variable color


46. D irec t M a il P a c k a g e
Design of the “vehicle” is very

important.
Quick read (Postcard)

Detailed informative letter

Invitation

News

Notices

Color Brochures


47. Marketing Considerations
What’s the
Who’s the
competition
audience?
doing?
What
What’s special
response is
about my
desired?
product/offer?
What’s the Why should
ONE most the audience
important act NOW?
benefit?

48. Design Considerations
Who’s the audience?
What’s the budget?
Is our message clear?
Are we providing an easy response
method?

49. Definition of “Good Mail”
Tangible, personal

communication
Connects with the recipient in a

striking way
Compelling feel, look, line of

copy, etc. that makes the
recipient feel important
Provides an experience


50. Direct Mail Package
Financial implications will

typically drive the design of the
package along with the expected
ROI of the project or campaign.
Calculating the breakeven will

help determine what vehicle or
package the customer will use for
their program.

51. Direct Mail Package
Return on Investment (Example)

10,000 piece mailing

Cost per piece = .30 ($3,000)

Postage @ .14/each = ($1,400)

3% response @ an avg. $25 gift

300 gifts = $7,500

ROI Return on Investment = $3,100


52. Samples

53. Data Processing
CASS (Coding Accuracy Support
System)
A USPS testing program
offered that evaluates and
certifies the accuracy of
addresses through postal
coding software. CASS
Certification is required

54. Data Processing
CASS
What will it do for the customer….
Address matched to National Address listing

of USPS, verifies deliverability
Standardizes address block (removes

punctuation, abbreviates, zip correct)
Appends +4 to zip, creates delivery point

barcode
If address does not match:

Kicked out with code detailing reason for

undeliverability

55. Address Hygiene
NCOA - National Change of Address:
An addres s correction service provided to
mailers through US P S licensees
Required for First Class automation mailings

unless ancillary endorsement line is
preprinted on piece.
4 years of Data - updated every 10 days

Includes reporting options for customer

Eliminates back end cost and data entry of

ancillary endorsement service

56. Address Hygiene
NCOA - National Change of Address
What will it do for the customer….
Update movers on data file

Mail piece gets delivered to the correct

address the first time, no delays
Important address updates available for

customer to update their list
Complies with USPS move update

requirements
Eliminates cost of address correction fees and

data entry costs

57. Endorsements
R e turn S e rvic e R eques ted
• N o fo rw a rding , o nly return. N ew a ddres s no tific a tio n
pro vided. M a ilpiec e returned w ith new a ddre s s o r re a s o n
fo r no ndelive ry a tta c he d.
C ha ng e S ervic e R eques ted
• N o fo rw a rding o r return. N ew a ddres s no tific a tio n pro vide d.
S epa ra te no tic e o f new a ddres s o r rea s o n fo r no ndelive ry
pro vided; m a ilpie c e dis po s ed o f by U S P S
Fo rw a rding S e rvic e R e que s te d
• Fo rw a rding a nd re turn. N e w a ddre s s no tific a tio n pro vided
o nly w ith re turn. M o nths 1 thro ug h 12: m a ilpiec e
fo rw a rde d. M o nths 13 thro ug h 18: m a ilpiec e re turne d w ith
ne w a ddre s s a tta c hed. A fte r 18 m o nths o r if unde livera ble
a t a ny tim e: m a ilpiec e returne d w ith rea s o n fo r no n-delivery
a tta c hed.

58. Endorsements
T em p— R eturn S ervic e R eques ted
• P ie c e s returned w ith ne w a ddre s s o r rea s o n fo r
no ndelive ry a tta c he d. I f tem po ra ry c ha ng e o f a ddres s ,
piec es fo rw a rded; no s epa ra te no tic e o f te m po ra ry c ha ng e
o f a ddre s s pro vide d.
A ddres s S ervic e R eques ted
• Fo rw a rding a nd re turn. N ew s epa ra te a ddre s s no tific a tio n
pro vided. M o nths 1-12: m a ilpie c e fo rw a rded; s epa ra te
no tic e o f new a ddre s s pro vided (m a nua l $0.50, elec tro nic
$0.25 e a c h). M o nths 13-18: m a ilpiec e re turned w ith ne w
a ddres s a tta c hed. A fte r 18 m o nths o r if undelivera ble a t
a ny tim e: m a ilpiec e returne d w ith rea s o n fo r no ndelive ry
a tta c hed.

59. M a il C la s s ific a tio ns
First Class Automated Mail

500 or more pieces (average .35 cents per

piece up to 1 ounce, letter size)
Usually delivers in 1 - 3 days

Standard Automated Mail

200 or more pieces (average .25 cents per

piece up to 3.3 ounces, letter size)
Usually delivers in 7 - 10 days

Non-Profit

Requires Non-Profit authorization from Post

Office (average .15 cents each, letter size)

60. M a il C la s s ific a tio ns
Important to Customer

Cost of stamp / piece

Speed of deliverability

Test results

Publicly funded organizations, Standard

mail tends to be more favorable
For-profit entities, First Class mail pulls

better response
N o te: A stamp can be added to a non-

profit mailing, thus giving the look of a First
Class Mailpiece.

61. M a il C la s s ific a tio ns
1st Class Mail - (1-3 day

delivery)
Personal Correspondence

Bills

Statements

Proxy’s

Refer to RATEFOLD (handout) for
postal rates.

62. M a il C la s s ific a tio ns
Standard Mail - (7-10 day delivery)

Solicitation Mail (Fundraising)

Donor Mailings

Membership Mailings

Coupon Mailings

Product Roll Outs

Registration Mailings (Conventions or

Conferences)
Refer to RATEFOLD (handout) for postal rates.

63. Applying Postage to Mail
Piece
Stamp

Precancelled – no post

office markings
Affix inline on inkjet or

offline off inserters
Meter

Meter inline on

inserters or offline on
inkjet
NON-PROFIT ORG.
Indicia
 U.S. POSTAGE
Preprinted (litho) or PAID

inkjetted MAILED FROM
ZIP CODE 06101
Permit numbers
 PERMIT NO. 2990
Mailed from zip code


64. The End!