How to Triple Your Direct Mail Response
How to improve your direct response marketing with customer analysis
Develop a strategy that determines who your best customers for retention and lifetime value purposes are.
The first step in the process is analysis and trying to determine your best customers.
You begin this process by looking at their history
Taking that data to predict which customers are most likely to buy your services when they walk through the door or Website.
From this you segment customers most likely to purchase.
From this analysis you are able to develop a mailing campaign and this will be good enough to get a significant return on investment.
Focus on the top 20%….
Since they provide 80% of your revenue.
How do you create a model that is focused on this segment of your database?
With an acquisition strategy…
You start by asking your best customer the right questions….
Like, why did they choose your particular product over the thousands of others on the Internet? You take this information and conduct studies to segment buying behavior of customers to understand how your customers go about buying the products that you sell.
You need to find out more by asking….
- What they watch or read before purchasing
- How they go about purchasing as far as the process
Than you focus your advertising based on the answers that your customers provide. You start by testing your copy that is segmented towards your high value customer (top 20%). Since this is where your return on investment is generated from.
The other factor that you should consider when you consider promoting to this group.
How did your acquire this customer through direct mail, email or Website capture? If you acquired through direct mail than this tells you that they respond well to direct mail and the probability purchasing again is high.
Customer lifetime value
This is retention and determined by the number of relationships that you have with the customer. How much revenue is this high valued customer able to produce over his lifetime in my database? You must score this customer as far as revenue generated and identify if the probability is high that they will purchase again.
Determine if they shop on the internet before purchasing online and develop new products to fit the needs of this customer.
Once you e-mail segments, track how they differently they react to messaging options. Free 100 leads from InfoUSA from your neighborhood or across the country you choose or call me for more details buy mailing lists Guaranteed Business Information at Hoover’s
Direct Mailing lists and NCOA Compliance
Is Your Business Losing Thousands of Dollars in Postal Savings!
For Not Complying with Postal Mandates Pitney Bowes recently surveyed respondents to a Business Insight mailer that said that only one-third use manual updating procedures when mail is returned to them from the National Change Address due to incomplete internal customer database lists.
This indicates that few companies are cleaning their lists or a regular basis and taking advantage of discounts being offered from the postal service for using NCOA services.
The new postal mandates this year include Move Update Standard will first be billed an additional 7 cents per assessed piece.
The Pitney Bowes study conducted just recently queried more than 50 executives and IT managers who conduct high-volume mailings in the insurance, finance, communications and utility industries.
Only 39% of respondents in the survey said they have an automated process in place to deal with returned mail from NCOA and ACS methods.
Lost postal savings opportunity
The conclusion is that most mailers are not taking advantage of mass mailing savings by keeping their internal databases clean and up to date.
This also indicates that the overall marketplace hasn’t fully updated as a move to update strategy.
The goal of the Move Update Standard is to reduce the volume of undeliverable-as-addressed mail which costs the federal agency billions each year to process. This mandate was effective as of November 2008, requiring businesses to update their bulk mailing list for both First Class and Standard Mail.
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Direct Marketing Mailing
Direct Marketing Strategy
Over the last 30 years, direct marketing mailings has seen tremendous growth in worksharing and personalization.
Worksharing allowed everyone to keep costs down and gave people their own systems and logistics, this was a measure that was initiated by the USPS in the mid-70’s. But personalization of mailing pieces in the 90’s powered the success, this was due to the sophistication of databases and the ability target the message to specific groups of people which gave direct mail marketing it’s competitive advantage.
During the 90’s more companies became more interested in desktop programs to do segment marketing and to launch direct mail campaigns from their own offices. Not only was direct marketing strategy more focused with database marketing but mailers were able to reduce costs by mailing smaller quantities from their own in-house databases.
In the 1990’s direct mail marketing pieces were becoming more creative and standard mail had hit a 100 million pieces and direct marketing reached a new high in total advertising budgets. The creativity of direct marketers were still improving this evolutionary time. The context could now be variable and you could now personalize and segment your mailings all at the same time.
Direct Mail Personalization Evolution
Personalization makes the offer relevant to the consumer since it is direct personal communication. The one-on-one marketing relationship marketing began here. Now the relationship has began online, the marketer is no longer just getting out the message but now he is getting immediate feedback from his customer.
Direct Marketing Ideas and Todays Economy
The times are like no other in the history of the USPS since volume declined by 26 billion pieces in 2009, but the declines in direct mail volumes as a percentage were not as great as most other advertising channels, like newspaper, radio and TV.
Plan Your Direct Marketing Strategy with
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