Aslanian Presentation In Chicago

Web Marketing to Adult and
Graduate Students – Aslanian Group
How to Integrate Direct Mail
into Your Web Marketing

Ralph Elliott, PhD
Vice Provost and Professor of Economics Emeritus
Director, Seminar Marketing Institute
Copyright 2003, 2006, 2007, 2009

Why Direct Mail?

• Permission marketing…direct mail may be
his/her preferred method of communication
• Mix the media…don't put all your eggs in
one basket… you may get media fatigue, so
mix the media
• Shelf life…your direct-mail package will have
a longer shelf life than an email

Why Direct Mail?

• Surprise your best customers and clients…a
personally signed letter will lift your first-time
customer repeat rate and your regular
customer retention rate
• Uninvited drop-in guest…you can send a
direct-mail package to a rented mailing list
and produce an inquiry, but to send an offer
to a rented email list may not be a good idea

Why Direct Mail?

• Perceived value…your direct-mail package
will have more perceived value because the
recipient knows you had to bear a higher
cost of sending relative to email
• Personalization…print-on-demand allows
targeted messaging
• Compare the ROI…of your direct mail relative
to the payoff for other strategies

Signs You May Need Direct Mail

• Declining email open rates
• Increasing email opt-out rates
• Declining email click-thru rates
• Declining ratio of sales to emails sent
• A rise in ISP blocks
• An increase in spam complaints


• A rise in your pay-per-click bids to maintain a
third or better position for key words
• A drop-off in Google ad click-thru rates (SEM)
• A drop-off in web-site conversions because of
poor traffic quality
• A rise in the cost of getting a high organic or
natural ranking (SEO)
• Too much time cost for various social media


• Average visitor time on your web-site is
below one minute and going down
• Percentage of new web-site visitors is
not growing or declining

Some Issues to Consider

• What is your existing inquiry-to-customer
conversion path?
• What is your existing first-time-customer
repeat rate?
• What is your ―regular‖ customer retention
rate?
• You may want to test direct mail as an
alternative conversion path

How You Can Use Direct Mail

1. An inquiry generator to drive traffic to your
landing page from a rented list
2. Follow-up on an inquiry
3. A mechanism for bringing back a first-time
customer for a second program or lifting
retention rates on ―regular customers‖
4. Communication with the ―Gatekeeper‖

1) An Inquiry Generator
to Drive Traffic to
Your Landing Page from a Rented List

• Builds internal database of inquiries for
email, direct mail, and telephone marketing
• Allows two-step marketing to a large
potential universe of names
• Allows you to clone existing customers
• Allows you to capitalize on growth in your
best market segments/niches

Use Direct Mail
to Invite Prospects/Suspects

Clients
Customers
Inquiries/Leads
Prospects
Suspects

Use Direct Mail To Get More
People into the Funnel

Promotional Package to
Rented Mailing Lists

• Compiled . . . . . . Blanket Your Market

• Circulation Publications
Associations ] 30% to 200%
over compiled
• Response Inquiries
Buyers ] 30% to 500%
over compiled

List for Rental
• Higher Education Student Applicants
• New list — Higher Education Student
Applicants — Interactive Marketing Solutions
— This file contains individuals looking to
improve their lives and advance their career.
They are motivated students searching for
higher education and scholarships for a
variety of majors. The average age of
prospects is 27, and their average income is
$37,000. Sixty-two percent are female.

List Selection and Usage Issues

• Look for 90-day ―hot line‖ names (recency)
• Do geo select based upon existing customers
• Avoid delivery on Mondays and the first day
after a holiday
• The best lists are for one-time usage only

Do a Merge-Purge to
Find Multi-Buyers
• Merge-purged names…those that appear on
two or more lists…will out-pull any single list
from which these names have been extracted
• Called multi-buyers, these names are great
candidates for second or third promotions
• Some providers do the merge and purge
and use only the duplicates

Duplication with the House List

• The higher the duplication between your
customer list and a rented list, the higher
the likelihood the rented list will work
• If there is a 25 percent duplication rate
(same names) between List ―A‖ and your
customer list, then List ―A‖ would have an
86 percent chance of success
• If the duplication between your customer list
and List ―A‖ is under 10 percent, List ―A‖
would have only a 3 percent chance of
success

How to Reduce the Impact of Duplicates
in the Absence of a Merge/Purge

• Geographical segmentation
• A maximum number of names per company
• Staggered promo drops
• Printed justification on direct mail
• Acceptance

A Good List Broker
Contact Mark Lewis at Lewis
Direct lewismails@aol.com or
at 303.494.0730 for a free data base
recommendation on which lists you
should be using.

Direct Mail Self-Mailer Options

• Standard postcard 3½ x 5
• Jumbo postcard, 6 ½ x 11½
• Slim Jims, which is an 8½ by 11 tri-fold
• Letter size brochure: 11 x 17, folded 8 ½ x 11,
folded to a 5 ½ by 8 ½ with a tab
• Flat: 11 x 17 folded down into 8 ½ x 11

Envelopes Outperform
Self-Mailers

THIS Should generally
draw better than this
XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX

Or this XXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXX

23

Direct Mail Envelopes

• Brochures in envelopes with cover letters
outperform mailings without cover letter
• Personalized cover letters outperform non-
personalized cover letters
• Metering your postage on an envelope will
outperform preprinting the indicia
• A street address as your return address will
outperform a post office box

Direct-Mail Envelopes

• Ink jetting the address will outperform putting
a cheshire label or pressure-sensitive label
on the envelope or brochure
• Window envelopes will outperform non-
window envelopes
• Right-hand windows will outperform left-hand
windows
• Envelopes with headlines such as, ―Enclosed
is the information you requested,‖ will
outperform envelopes with nothing on the
outside

Headlines for Your Envelopes

• A headline on an outgoing envelope will often
produce more responses than an envelope
without a headline
• A ―teaser‖ headline out-pulls blank envelopes
• A ―pitch‖ headline usually out-pulls a teaser
headline

How Prospects Read &
Respond to an Envelope Mailing
• Time spent looking at the envelope…7
seconds
• Sequence used by prospect when looking at
copy/graphics on the front of the envelope:
(1) prospect focuses on his/her name and
checks for misspellings, (2) prospect looks at
the headline, (3) prospect looks at the corner
to see whom the mailing is from, (4) prospect
examines the postage used

Respond to an Envelope Mailing
• Length of time prospects scan your
brochure…60 seconds on average
• Sequence readers look over
brochures…headlines and then body copy
• Normal eye flow for scanning a brochure
• Eyes look for a ―Z‖ pattern on the front
• Sideways U…the reader enters at upper
right, follows the sideways U pattern to middle
left, and then exits at lower right

Postage

Return

Window
Headline

Respond to Your Letter

• First they scan from top to bottom, looking for
highlighted words/phrases
(headlines, subheads, capitalization, underlinin
g, and so on)
• Same pattern is followed throughout the letter
whether one page or multiple pages
• Next, reader checks who wrote the letter and
moves on to the postscript before returning to
the top of the letter (all done in a matter of
seconds)

Enter the VIP Number and
Pre-Populate Landing Page

Let the prospect chose his/her
preferred methods of
communication

Create a download
center at your web site

Capture full contact
details prior to the
download

Offer Landing-Page Incentive to Get
People to Give Mailing Address

Use Several
Blog
Options to
Hold Visitors

Offer Quick Response to Inquiries

Promise Follow-up
within 24 Hours

Let‘s Do the Numbers

• Assume $500 for 1,000 mailings
• Assume 5% response rate
• Therefore, 50 inquiries per 1,000
• So, $500/50 = $10 per inquiry
• Assume 10% of the inquiries convert
• So 5 become customers
• Final cost is $500/5 = $100 per customer

2) Use DM to Follow-up
on an Inquiry

• Use the twenty-four-hour rule and follow up
immediately
• Use first-class postage on your follow-up
direct mail
• Enclose an extra copy of the brochure/order
form to increase response rates via viral
marketing ( Use ―route to‖ banner)
• Enclose a one-page cover letter with your
promotional package

Using DM to Follow-up
on an Inquiry
• Personalize the response by listing the
prospect‘s name/address on the inside of the
letter
• Always thank the prospect for responding
• Provide enough information to close the sale
• Include a strong ―call for action,‖ listing your
URL, name, phone number, and email address

Use Various ―Offers‖ in Your Follow-up
Mailings to a Seminar Inquiry
• Questions the boss/parents need answered before
granting approval to attend/enroll
• A sampling of who‘s attending
• Delayed billing
• More information on the conference
handouts/proceedings
• Help booking discounted hotel rooms
• Travel discounts
• Testimonials of participants at the last sell-out
session
• A copy of your iron-clad guarantee

3) Use Direct-Mail Cover Letters & Envelopes
to Market with a Memory to Customers

• Bring back first-time customers and regular
customers by ―marketing with a memory‖
• Do special ―top-of-the-pyramid‖ letters with
RELEVANT DIALOGUE--recognizing past
participation/information
• Tailor/personalize the message to what you
know about the customer

Segment Your Participants &
Allocate Resources Accordingly

High Recency Low

High
Monetary Value/Activity

Low

Direct Mail to Thank
First-Time Customers

• The most important sale you will ever make to
the customer is the second course…Why?
• Because a two-time buyer is twice as likely to
buy again as a one-time buyer
• Recognize first-time customers so that
they will come back for a second program
• Also, communication will reduce buyer‘s
regret

Convert First-Time Customers in Repeat
Attendees

• Remember the ―rule of two
• 60 to 70 percent of the individuals who ―buy‖
a second time will stay with you for five or six
years

Length of Cover Letters

THIS Should draw better
than front and back of
2 pages
the same page

Personalize Cover Letters

THIS
Should generally
Dear Mr. Jones: draw better than this

Dear Sir/Madam:

Twenty-three Ways to Increase
the Impact of Your Letters

1) Make the letter look like a letter
2) Make the letter sound like a letter
3) Personalize the salutation
4) Start the letter about the prospect, not about
your program
5) Write the letter in the first person
6) Start the letter with a short sentence (14
words)


7) Tailor your letter to your audience segment
8) Be sincere
9) Add a powerful P.S. to create a sense of
urgency
10) Start your letter with a provocative question
11) Use ―problem/solution‖ model
12) Feature an appropriate testimonial
13) Use 10- to 12-point type


14) Send letter from conference chairpersons
15) Sign letter in blue ink
16) Remember that two signatures out-pull one
signature
17) Ask for the registration more than once
18) Provide several ways to respond
19) Yellow highlight the most important benefit


20) Tell what will be missed by not attending
21) Tell how many other people have
responded
22) Write to only one person
23) Include the word ―You‖ as often as
possible…don‘t ―We-We‖ all over your
prospect

The 60-Second Promo
Examination Clock

Use These Variables to ‗Dress‘
the Direct-Mail Package

1. Size: Big generally means important. Small generally doesn‘t.
Standard size will reinforce a ―me too‖ quality. Off-size will
create a feeling of difference, which may, or may not, be
desirable. Like dress lengths or tie widths, there are ―in‖ sizes
and ―out‖ sizes.

2. Paper Type: Glossy, dull, textured, laid or bond? Which one
to use? Wool, cotton, nylon, linen or polyester? It all depends
on the mood you are trying to create. Crisp, focused
photographs might look best on gloss. A conservative paper
would be better suited to a ―letter‖ or ―memo‖ format for
corporate presidents. Generally, spending a bit more on
quality paper, or paper that conveys the feeling of quality, pays
off.

Variables to ‗Dress‘
3. Paper Color: Shocking, or subdued? What are you
trying to communicate? And to whom?
Whites, earth tones and buffs tend to reinforce a
feeling of sincerity. Pinks, oranges and yellows tend
to attract attention, often diminishing the perception
of quality. White is the lowest cost and probably the
least dangerous. ―Relevant‖ is another guideline.
Make sure materials are relevant to your
audience, program, location and style.

4. Paper Weight: Heavy usually conveys quality; light
can mean flimsy. But paper weight and type are
interrelated. There is paper that is ―bulky‖ that may
work for you at a lower cost.

Variables to ‗Dress‘
5. Fold: Standard, creative, accordion, fan fold,
threefold? Functional or aesthetic? How does your
brochure travel, read and appear? Keep asking
these questions, and you will come up with the right
answers. Avoid being too cute or cumbersome. Try
to be straight forward and comfortable.

6. The Package: Envelopes, letters, postcards,
response vehicles, special inserts, etc., all must be
considered. All components deserve the same
attention you give to your shirt, blouse, tie, pants,
skirt, jewelry, sweater, etc.

Let‘s Do the Numbers

• Assume direct mail cost of $500/1,000
• Assume a response rate of 5/1,000
• Response rate is 0.5%
• Desired revenue/1,000 = 5 x $500
• Desired revenue/1,000 = $2500
• Therefore, price/ person should be $500
• If response rate is 1.0%, price is $250

4) Use Direct Mail for B to B
Multi-Party Marketing

• In addition to Inquiries, Customers and
Clients
• Gatekeepers…Collect Approving
Managers…Send Certificate, Thank You, In-
House, Team Discount
• Human Resources…Collect V.P. HR and/or
Use SHRM and ASTD
• Drive HR to your on-line PDF Catalog

Technique to Capture Database Names Plus
Follow-Up to Participant‘s Colleagues

Communicate with the Boss

• On B to B courses, send a thank you note to
the attendee‘s boss. List the dates of other
sessions and mention the availability of
in-house training. Also, stress ― team
attendance‖ in your correspondence.

• Invite the boss to a ―speakers‘ showcase‖ so
that the gatekeeper gets to know your
presenters/faculty.

Invite the Boss to a
Speaker Showcase

Six Direct-Mail Recommendations

1) Use effective tracking techniques
2) Integrate DM into the promotional
series
3) Use DM to re-activate the ―deadwood‖
4) Use appropriate postal endorsements
5) Build & use a DM suppression file
6) Rent out your direct-mail list

1) Key Code Direct Mail to
Track More Effectively

• Key coding…including a unique code in
each promotion so that the performance of
the promotion…or various elements of the
promotion…can be tracked
• Without tracking, it‘s impossible
– to ―roll out‖ test promotions with any confidence
– to know which of your promotions are successful
and which are bombs

Tell the Customer the Location
of the Priority Code

2) Use Direct Mail to Optimize the
Response Rate of the Promotional Series

• Study web-site analytics and email link
tracking data to identify prime prospects
• Split test direct mail vs. email vs. telephone
• Let the prospect know where they are in the
series with each promotion
• Multi-channel to keep up response rates
• Study ―decay rates‖ by market segments

Brochure/Email/Website Mix

• Brochure and website should play off each
other
• Your direct mail may still be your primary way
to generate leads or inquiries
• Some providers allocate as much as 75% of
their promotional budget to direct mail
• Some seminar programs that have
completely dropped brochures/direct mail
have incurred sizeable financial losses

3. Use Direct Mail to
re-activate the
―deadwood‖

4) Use Appropriate Postal Endorsements
for Standard Mail (U.S.P.S)

Address Service Requested
• Months 1-12: Mail piece forwarded; separate
notice of new address provided; address correction
fee charged. Forwarding at no charge

• Months 13-18: Mail piece returned with new
address attached. Standard Mail (A) weighted fee
charges

Postal Endorsements (U.S.P.S)

Forwarding Service Requested

• Months 1-12: Mail piece forwarded; no charge

• Months 13-18: Mail piece returned with new
address attached. Standard Mail (A) weighted fee
charged

Postal Endorsements (U.S.P.S)

Return Service Requested
Mail piece returned with new address or reason for
non-delivery attached. Standard Mail (A) single
piece rate charged

Change Service Requested
Separate notice of new address or reason for non-
delivery provided; in either case address correction
fee charged; mail piece disposed of by USPS

No Endorsement
Mail piece disposed of by USPS

5) Build & Use a Direct-Mail
Suppression File

• A suppression file will eliminate those
audiences whom you wish to avoid in your
solicitations
• A suppression file eliminates low probability
or otherwise undesirable recipients from your
data-base universe
• You enhance your organization‘s image in
the marketplace by respecting the wishes of
those people who have indicated that they
are not interested in receiving your
solicitations

6) Renting Out Your
Direct-Mail List

• $1.00 to $3.00 for each name per year
• High selectivity will increase list appeal
• Some providers give attendees option of
not renting out their names
• Review reputable firms that want to rent

• Use a ―list manager‖ to market your list

Renting Your List to Others

• Get a sample of the promotion from those
who want to rent your list
• Rent to competitors only if they will rent to
you
• Name-for-name exchange vs. renting
• List fatigue vs. pump priming
• Seed the file to check on unauthorized use

Ralph D. Elliott, Ph.D.
elliot@clemson.edu (one t)
864.710.2815

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