The recent Do Not Call list and increased response rates make direct mail an even more attractive option.
There's a really good reason why executives from a company such as Crabar/GBF, Dayton, Ohio, want to further penetrate the direct mail market. As representatives for a leading manufacturer, they recognize a good thing when they see it, and direct mail is definitely a good thing.
After all, it is the only method of advertising that can produce a very accurate measured response and, despite its overwhelming saturation of the postal system, businesses and consumers still open and respond to it—actions that ring the sweet sound of victory in the ears of end-users and the distributors who made the print sales.
"We know how powerful direct mail can be, and we know how well we can benefit by providing more of it through our distributors," said Lowell Lumpkin, Crabar/GBF national sales manager. "It is a product that we've been focusing on greatly since Crabar and GBF merged."
Direct mail is so powerful, in fact, that Vertis—a Baltimore-headquartered provider of technology-based integrated marketing and advertising solutions—reported in its May 2003 direct marketing survey that response to direct mail has risen by 12 percent since 2001, and that readership has remained steady across all demographic groups. It also indicated that industries benefiting greatly from this means of advertisement included nonprofit and direct life insurance.
But, for a distributor, there are many other reasons to promote such a product. For instance, Tracy Wissmann of PXGraphics, Toledo, Ohio (a division of PrintXcel, Englewood, Colo.), said that direct mail products and services offer a natural extension of the print products on which they have built their existing relationships. In addition, she said that increasing use of direct mail by smaller businesses due to short-run programs and by larger business due to the federal Do Not Call list makes it an attractive market.
"If distributors do not provide direct mail to their clients, competitors will," Wissmann said. "This product has many uses, such as supporting customer relationship management programs, introducing new products or services, soliciting new customers or cross-selling products to customers."
Lumpkin agreed, explaining that direct mail is a product that enables distributors to become more actively involved in a customer's business. "Because there are more components to this product, more communication is required," he said. "Increased communication leads to a better understanding of a customer's needs, which leads to more business, and so on."
And, because direct mail comes in all shapes, sizes and formats—such as window envelope packages, closed-face envelope packages, self-mailers, in-line finished pieces and collated mailers—it is something that can mean more choices for end-users and greater profits for both distributors and manufacturers.
"Profits can vary depending on the program, but it will always be more profitable than forms," said Kevin Mullarkey of Alliance Business Systems, Broomall, Pa., "because direct mail involves more work. One has to communicate with multiple sources—from an envelope company and brochure manufacturer to a letter shop and list house—to complete a package."
In addition, Wissmann said that the margin on sales is very good since direct mail is a specialty product providing distributors and manufacturers with an opportunity to add value and margin through the delivery of unique, consultative print programs that enable clients to grow their businesses.
"Do Not Call" Benefits
While considering the benefits of direct mail from a relationship and profit standpoint, distributors may also want to make note of its increased demand for steady (and possibly repeat) business—something that may become more prevalent due to the passing of the Do Not Call list.
"The Do Not Call list, which is growing every day, is going to provide the biggest advantage to any distributor handling highly targeted, personalized direct mail," said Mullarkey. "In fact, we're working on a project now for a client who relied on telemarketing in the past. If the response rate is impressive enough, he said he will use direct mail more often."
Wissmann concurred, adding that direct mail has always been the most widely used form of promoting products and services to customers.
"How the list might greatly affect direct mail is in the business-to-consumer sector, where telemarketing is the most utilized forum," she said. "This list should increase the use of direct mail and e-mail marketing in that sector."
D-Mail vs. E-Mail
Speaking of e-mail marketing, many print industry experts have strong opinions about its use and how it affects direct mail campaigns. Some are positive, and others are not. What remains constant is that printed direct mail has certain advantages over computer-based communication.
"Response rates for direct mail should always beat those of e-mail," said Mullarkey, "because most people only look for, open and respond to e-mails they expect to receive from people they know."
With the overwhelming influx of e-mails received every day, Mullarkey pointed out something we all know to be true—that questionable, unrecognized e-mails are usually deleted to save time and save the computer.
"Another downfall of e-mail is the possibility of a virus," he warned. "How does one know that he or she won't contract one when opening an unrecognizable message?"
Attractiveness and tangibility are other benefits of direct mail since it can be looked at, held and evaluated closely for greater discernment. E-mail, on the other hand, doesn't maintain as high a credibility factor.
Wissmann, however, offered an alternative perspective on e-mail vs. direct mail. Instead of placing the two methods in opposition, she explained that a good marketing approach should incorporate both direct mail and e-mail. "For instance, if a mailing with a coupon or gift certificate enclosed is going out, then a week before the end-user receives it in the mail, an e-mail message can be sent announcing that the end-user should keep checking his or her mailbox to look for a surprise," she said.
Points to Ponder
Because direct mail marketing involves so many complexities, Lumpkin, Mullarkey and Wissman offered their own extra words of advice for putting together a winning package for clients.
Said Wissman, "If a client is going to personalize a mailing, then make sure the list names are right. Nothing turns potential customers off as much as spelling their names incorrectly, or addressing them as Misters when they are Misses."
In addition, she reminded distributors to make sure the direct mail piece is within postal specifications, and that personalization, color and a special offer make the difference between a .5 percent response rate and a 90 percent response rate. "You get what you pay for in the end," she said.
Mullarkey, on the other hand, specs out direct mail pieces himself since he uses multiple vendors, but he did say that it is important to flight check all artwork sent by clients and look for the usual problems, such as missing fonts, low-res images and missing artwork.
And, while many distributors use multiple vendors as a cost-saving tactic, Lumpkin recommended that distributors new to direct mail utilize the expertise of a single-source manufacturer capable of coordinating the entire process under one roof—from pre-flighting graphic files to print production and mailing. This way, no matter what the product—whether it's a simple envelope package or a complicated multi-web product—the distributor is free to continue making sales calls, while an experienced customer service representative manages the production process. "If something goes wrong, such as an incorrectly sized envelope, there is just one area of responsibility to turn to," he said.
All in all, many in the industry agree that direct mail is a vital means of success for distributors. It's a product that expands offerings, provides great margins and develops better, long-term working relationships.
By Sharon R. Cole