How to Triple Your Direct Mail Response

March 25, 2010 by
Filed under: Direct Marketing Mailing 

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

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