Have you ever sent a letter to prospective customers asking them to buy one of your books? If so, you have participated in direct mail marketing — one of the most efficient and effective selling techniques. If you think it’s too old school for you, then consider this: 55% of Americans read the news, 95% have telephones, 98% have television sets. However, 100% of Americans have a mailbox. Therefore, it is your only 100% opportunity to hone in on your targeted audience.
There are four components to a successful direct mail campaign: the Creative, the List, the Offer and the Results.
1) Creative: Of course you want your direct mail piece to be eye-catching and informative. How you present your offer to your list has to be done professionally so that all of the emotional hot buttons are triggered while also maintaining interest and going for the sale. Some of the best copywriters are paid thousands of dollars to write a single sales pitch letter, simply because the creative aspect of your campaign is that important. If your budget allows it, consider using variable data printing, which personalizes each letter to its recipient using demographics such as male/female, geographic region, etc. Even just a first name is effective in grabbing attention.
2) List: Although your current customer base is incredibly valuable, it will be necessary to continuously seek out new customers as well. Your current customers will only buy so much. Aside from that, you will lose customers every year for various reasons. A good way to replace your eroding customers is by acquiring targeted mailing lists. It’s great to have a fantastic book but unless you can get it in front of the correct audience, it’s all for naught. The best list for you may be expensive, and you can expect to pay per name. The more targeted the list of prospects, the better. If you are selling a book on, say, surfing, you want to find a list of people who surf AND who buy books on surfing. If you get a list that is cheap or free, that doesn’t mean it’s a good one. In fact, you want to be absolutely sure you have a solid list before you start sending out direct mail offers and accruing postage fees. Acxiom® and Dun & Bradstreet® are examples of companies that sell lists. You can also work with a direct mail advertising company who can walk you through the entire campaign, such as Modern Postcard.
3) Offer: What you offer in the direct mail campaign needs to be exclusive to the group, while also being priced to make a profit for you. Make an offer that will get the recipient to act quickly, such as directing them to your website to see a sample chapter, free gift or autographed copy if they respond by a certain date. The options are unlimited, so you can test lots of different ideas to see which offers produce the best outcomes.
Keep the offer simple: One or two QUICK benefits: “Save time and money with our services!” or “Stay warm this winter!”
Give a reason to continue reading: “See the other side for big savings!”
Make a big promise and be sure you can fulfill it: “Order now and enjoy a full head of hair in three weeks!”
Include an expiration date… create a sense of urgency or exclusivity. The most compelling direct mail pieces have a call to action.
4) Results: A direct mail campaign which produces more than a 2% response is considered successful. Lower than a 1% response is typical. You then need to take into account the conversion rate (the conversion of responses into sales), assuming the campaign is designed to produce responses or inquiries and not just actual sales.
Do not engage in a 100,000-piece nationwide mailing your first time out of the gate. Try 500 or so at first and see how it goes. This way you can tweak the results, eliminate certain demographics and introduce others. Think of this kind of marketing as a long play that takes some honing. Aside from sales, some additional metrics to consider are the number of orders, how many offers were redeemed, how many responses by phone / email you received and the estimated future value of your new customers. Track your responses carefully. Enter them into a CRM system like ACT!®, Goldmine®, Salesforce®, etc., put them into an Excel® spreadsheet, put them in a box or record them in a notebook. Track them and make sure they are updated regularly, if possible. A mail house can assist you by checking your list against their national change of address software, and provide you with any move updates so you can follow your customer base.
Not all books can be sold successfully through direct mail. The topic must be of interest to the targeted audience and the price must be sufficiently low to encourage people to respond with an order. Tell them why the information in your book will be of interest to them. In closing, you might find it interesting to know that direct mail came back in a big way in 2011, increasing by $10 Billion and gaining another 5% in terms of total ad spend share. Each dollar spent on direct marketing yields, on average, a return on investment of $12.05. By comparison, each dollar spent on non-direct mail advertising yields an ROI of $5.29. (Source: DMA ‘s Power of Direct Marketing; 2011 Edition).