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SmartTalk E-Newsletter Articles - September 2008

The Elements of a Successful BTB Direct Mail Campaign
Let me be your eyes and ears at the DMA Convention & Exhibition

The Elements of a Successful BTB Direct Mail Campaign
By Karen Riley

How We Doubled Response and Tripled the Average Order
of an Already Successful Marketer


Our client is a specialty printer and promotion company who uses direct mail as one of his primary ways to generate revenue. He asked us to come up with a new reorder package with the objective of increasing his repeat sales of individual products.

We applied the principles of SmartResponse™ - the strategic development process we use to create on-target creative - and examined his control effort, offer, creative approach, and overall production. We also looked carefully at the composition and buying behavior of his database. We discovered that a significant portion of his customer base yielded an unusually high average order during acquisition efforts.

We reasoned that these buyers, and perhaps others who were currently spending less, not only liked the product our client was selling, but also had marketing budgets that might yield additional product sales during different times of the year.

As a result of our findings, we recommended that the client go beyond a single reorder effort, and consider a multi-package campaign that would combine reorders with cross-selling offers and incentives. In doing this, the client could accomplish his primary objective of increasing reorder sales, and also accomplish a number of additional marketing objectives that could positively affect his bottom line now, and well into the future:

• Maximize the individual value of existing customers
• Maintain a continuing dialogue with customers and cultivate the relationship
• Develop offers/incentives/creative approaches that encourage immediate ordering
• Determine the most profitable frequency of mailings
• Identify the industries and products with the best long-term sales potential
• Achieve an acceptable return on investment during the test phase

Ideally, personalization would be considered a test variable in these direct mail efforts, especially considering the existing relationship and the high average-order value. However, due to the limited size of the different segments within the customer file, we reasoned that testing would likely not yield empirical results and would not be a reliable predictor of future efforts. We therefore decided not to use personalization but to hold the option open for later efforts when the database was sufficiently large.


Let's take a close look at what The MDI Group's creative team put together to achieve these different objectives in the first package of the campaign.

1. OUTER ENVELOPE:
We used multiple incentives on the front of the OE and a bold 10% discount graphic on the back to entice the customer to open. All elements are simply designed and easy to read at a glance.

2. ONE-PAGE LETTER:
Clean, inviting art direction from top to bottom combined with a powerful benefit headline encouraged readership. The lead reestablished and rewarded the existing relationship. We gave the customer multiple response options and time-limited the discount offer to encourage rapid response. The certified voucher increased credibility.

3. BROCHURE (2-SIDED):
We took a popular product and gave it choice positioning in the brochure, and also included a free sample in the package, because the product featured 3-D artwork, and only by seeing the 3-D effect in person could the customer understand the power of the product to gain attention. To give the customer a range of choices beyond the standard reorder, we put additional products on both sides of the brochure at different price points.

4. PREMIUM FLYER:
We added a "FREE GIFT" flyer to the offer to encourage orders and used a large color image of the premium along with bulleted benefits.

5. ORDER FORM:
We repeated the discount offer boldly with expiration date. Easy-to-understand shipping charges and payment methods facilitated ordering.

Our SmartResponse™ process used disciplined thinking, a solid understanding of the target audience, and the experience that comes from years in the business to create this package. With the creative tactics noted above, plus a redesign of the order form to simplify the ordering process, we helped to double the client's response rate and triple his average order from previous reorder-only efforts.


Let Me Be Your Eyes and Ears
at the DMA Convention & Exhibition

Are you going to Las Vegas on October 11th for the 2008 DMA Convention & Exhibition? If you are, let's be sure to catch up with each other.

However, if you're not attending, let me be your eyes and ears at the convention and at some of the best conferences and seminars.

Just drop me an email at kriley@themdigroup.com and let me know if you would like information on a specific subject. I'm intending to make the most of the seminars and would be happy to share information with you when I return.

The show features more than 100 educational sessions, plus roundtables, case studies, white papers and research reports. Here's a broad list of the categories the show will cover, so let me know which subjects interest you the most:

• Acquisition & Prospecting
• Creative Strategies
• Database & Analytics
• Emerging Channels
• Direct Marketing Basics
• Multichannel Integration
• Online Marketing
• Production Strategies
• Retention & Loyalty

I'll also be publishing an email synopsis of what I hear and see while walking the show. I'll let you know about any important trends and opportunities I pick up.

Thanks,
Karen

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