Direct Marketing Tips Blog

It’s Not Too Late to Grow Your Local Business—Purchase Mailing Lists

Here in the North East the weather has begun to warm.  Snow is gone and plants are beginning to peak their heads up out of the soil.

If you are a House Painter, Landscaper, General Contractor, Pool Guy or any other Owner of an outdoor based business-you've probably got most of your year booked.  But there are still some opportunities to fit odd jobs in to maximize your profitability this year.

Targeted direct mail to a pre-defined customer prospect list is an excellent way to grow your local business.  Why not buy mailing lists?

 

How Do I Do It?

Here is how I suggest you go about doing this.  There are two different schools of thought you can entertain here as to how to select your prospects. 

#1:       The first is to look at your existing customers and come up with a few characteristics that you see as consistent amongst them.  For example, is there an affluence level?  If so, determine whether you want to target based on estimating Home Value, or Household Income.  Is Age, Gender, or Ethnicity a factor?  Once you've created this "existing customer profile" then you would order a mailing list that targets these elements. 

#2:       The second school of thought is to try to hit the "home-run" Who is your dream customer?-don't mean one that doesn't complain...ask for free add-ons or pays on time.  Rather, what are the demographics of that huge painting job, someone who might need to re-landscape a few acres, need a new pool, want to build an addition, etc...

Of course, you can do both if your vendor can/will run your order as a two part order.  One portion can be from school #1, and the balance can be from school #2.

 

How Do I Figure out Where I want to Mail To?

This really comes down to your own business model.  How far are you willing/able to travel-even with travel expenses added on-to do a job?  There is no perfect answer here it's all your preference.

Here are some ideas of how to decide. 

1. Do you need to stay within the towns/cities that you currently do business in?  If so, order buy town or zip codes.
2. Perhaps you have a central zip code that you do most of your work in and are looking to expand outward.  Then I would suggest doing a radius (It's like drawing a circle around something) in terms of miles outside of a targeted zip code.
3. Le'ts say you are a Nursery, and there are other Nurseries in your area.  You know that your customers typically only drive about 10 or 15 miles to get to your Nursery, otherwise they go to a competitor.  Then I would suggest doing what is called a "Rooftop" radius.  This is a bit more exact than a zip code radius.  It takes the exact location of your business and draws that radius circle using your business location as the center point.

Ok, so you figured out what criteria you want for your list, and you know the geography you want to pull from.  What's next?

 

What are you going to Mail?

What is it you are going to mail?  A letter?  A flyer?  A brochure? How about a nice color postcard?  As mentioned in prior postings, postcards have certain advantages in the mailbox over other media.  Why?  Because you can see what is on a postcard without having to do anything.  It gives you the best chance to get noticed.

Have any questions, please don't hesitate to contact me and I'll be happy to assist you any way I can.

 

How Do I Buy a Great Mailing List?

1. Before you go about finding that great mailing list for your marketing campaign, you need to define your audience. Precisely who is your market? The more precisely you can define your perfect target audience, the better you'll be able to segment your mailing, and the better your response will be.
   
   
2. It is an accepted acxiom in direct marketing that the closer to a consumers' last purchase you can reach them, the more apt they are to be responsive to your offer. Therefore, try to find a list that is updated and cleaned on a regular basis. An old list is more likely to have invalid records on it than a fresh one.
   
   
3. Select a reputable vendor to purchase (remember that lists are "bought" for one-time use only, unless multi-use arrangements have been negotiated beforehand) your list from. The most important criteria is to make sure that they are a member in good standing with the DMA (Direct Marketing Association). If you don't see the DMA logo displayed on their site, don't assume it is safe to use them. You can contact the DMA online at: www.the-dma.org.
   
   
4. Select a list that most closely mirrors your target audience. For example, if you are trying to sell gym memberships in your local area, make sure you target people who have demonstrated an interest in physical fitness and fall within any specific age, gender or income parameters you may have. Don't expect to appeal to just anyone.
   
   
5. Buy only what you can afford. It is important to test with direct mail. Your first try might not work, don't put all of your eggs in one basket.
   
   
6. Don't be afraid to raise your hand. Contact the vendor and ask for their suggestions as to what you should test. They are the professionals and can most likely save you a lot of time and frustration. The biggest decision you will have is whether or not to buy a Compiled List or a Response List.

What is Direct Mail Best for?

If you asked people if they like to get "junk mail", most people would say "no". But don't worry - people really don't hate direct mail. $250,000,000,000 worth of goods and services are sold through direct mail each year in the US alone. And the total continues to grow. According to the Direct Marketing Association, it is growing at 8.6% a year, several times more than the growth rate of the economy. And it's not just a few people. Last year over half of all American adults ordered something through direct mail.

And if you think about it, direct mail-first used by Benjamin Franklin-is a marvel of the modern age. It allows people to buy goods and services from all over the world from the comfort of their own home.

What are the advantages of direct mail?

Direct Mail is infinitely measureable. It is not only one of the most targetable mediums, but one of the most measureable as well. This is important. Think about it: you pick the list you mail to. You in essence pick every single person out who will get your mail piece. They don't pick you. That means you can target a group of people with a highly focused message. The better your targeting, the better your response.

The second huge advantage direct mail offers is tracking. You can carefully measure your results and know exactly what worked and what didn't. With tracking, you not only can evaluate your results, but you can test and refine your message in a way no other medium offers. If you do not do these things when you mail: target carefully and track carefully, then you are wasting a big advantage direct mail offers. But don't worry, we will cover that in more detail later.

Third advantage: Customization. Not only can you target the recipient, but you can customize the message to them.

Other advantages:

• Fast turnaround time (you don't have to wait months for an ad to appear.
• Highly flexible - you can mail about anything and really creative pieces are works of art and often work very well. Direct mail works well for sending out trial samples of a new product, for instance.
• Response-driven - direct mail allows for the response card or the order form, so you can present your message and ask for action, and have a reasonable expectation of getting it.

Measuring Direct Mail

Do Response Rates Matter? Only if you want to be successful. There are a multitude of factors that can impact response rates. Direct mailing list response rates will vary because there are many factors that go into a direct mail campaign-the mail piece itself, your offer or product, timing of your mailing and of course the quality of your marketing list. Begin tracking the results of your direct mail business or consumer mailing list campaign as you start to receive responses. The best way to measure the success of direct mail is to analyze the results to determine your best course of action.

What are the Direct Mail Basics?

Direct Mail Basics

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I originally published this article on my website last October, but thought it made sense to post it here for those who might not have found it prior.

Q:  "What are Direct Mail Basics?"

ListGuy:
When done correctly, direct mail is one of the most effective marketing tools available to small businesses, regardless of industry. Unfortunately, many first-time mailers--and even some experienced ones--overlook some of the basic "rules" for creating an effective direct mail campaign. Here are some proven thoughts to heed when planning your next mailing.

The success of your campaign relies on the following:
1. The accuracy of your mailing list
2. The perceived quality of your offer
3. The appeal of your mail piece .

Many experts speak of the 40-40-20 rule. It states that the mailing list makes up 40% of the success of a mailing, the offer makes up another 40% and the package itself (paper, design, copy) is responsible for the remaining 20%.

Buy a good list
Understand who your best customers are. Select a qualified mailing list provider.
Work with your list supplier to develop the most effective prospecting list for your needs and budget.

Create a powerful offer that will make people want to respond
Make sure your offer is clearly spelled out and easy to understand. Offer something with high perceived value. Don't underestimate the power of the word FREE. Make it easy to respond--via website, email, telephone, mail and/or fax. Offer a money-back guarantee if appropriate. Repeat your offer, response options and guarantee as often as possible.

Create an appealing mail piece
Your mail piece should reflect your company's positioning and sales strategy. If you are perceived as exclusive, unique or high-end your mail piece should reflect it. If customers buy from you primarily based on low pricing, your mailer should have a "budget" look and feel to it. Keep your copy simple by using clear, short and descriptive sentences.
Personalize the piece. Use a call to action tell the reader what you want them to do and by when they must do so.