From graphic design to postage regulations, direct mail sales test distributors' resourcefulness.
What, exactly, are distributors' responsibilities in facilitating direct mail campaigns for customers? How knowledgeable must they be about target market profiling, mailer design and content, database management and postage regulations? It all depends on the customers' experience with direct mail and the particular projects being worked on.
Here, three suppliers specializing in direct mail—Stephen Wertz, president of Hampton Business Forms & Mailing Services, Conklin, N.Y.; Kathy Poirier, marketing manager for B&W Press, Georgetown, Mass.; and Bob Nesbit, president of SourceLink, Andover, Mass.—discuss ways to ensure a positive experience that leads to future collaborations between the distributor and the customer.
Know Thy Supplier
Nesbit observed that while it's typically the end-user—perhaps working with an ad agency—who handles mailer copywriting, distributors will occasionally have to handle this aspect of a project, as well as layout and design elements. In addition to copywriting, SourceLink's creative services include 2-D and 3-D direct mail piece designs, with the 3-D mailer designs proving especially effective at generating high response rates. "Distributors who can assist with copy and design to improve response or reduce costs add value to the relationship and secure the customer," said Nesbit.
Obviously, first-time direct mail customers will tend to require help in all facets of the job, and all three contributors strongly recommended partnering with an experienced, reputable supplier.
For example, Wertz stressed that "mail piece design is critical," and that distributor involvement in this area is a huge responsibility. "Chances of a successful campaign increase if the piece is uniquely designed and makes a stand-out impact. But, an improperly designed mailer can get held up in the postal system and can cost the customer major money in additional postage," he cautioned.
"Suppliers can provide distributors with key questions to ask their customers and offer guidelines to avoid problems," Wertz added. "Key areas we focus on with our distributors include design, timing, making an impact statement and the overall appearance of the piece."
Poirier pointed out that B&W Press simplifies what can otherwise be an overwhelming task for distributors and their customers. "We offer electronic templates that include all of the necessary design elements to create one of our formats," she said, "including direct response two-way mailers, fundraising appeals, subscription renewals, bind-in order form envelopes, catalog wraps and credit card applications. The customer only needs to supply the message."
Understanding the target market is a major factor in designing an effective mailer. Nesbit observed that many distributors do research and look at what seems to be working in a vertical market where the customer is concerned. "Data modeling and analytics can be effective tools to reach the target market and improve customer return on investment," he said.
According to Poirier, "If a distributor works within a certain market, then he or she should be qualified to understand the target market. However, most companies are pretty savvy and know their market and where they fit in."
While it isn't the norm for distributors to research a customer's previous direct mail pieces and what the customer's competition is sending out, she added that it couldn't hurt. "Obviously, to know what the competition is doing is always helpful. If distributors want to endear themselves to customers, the more they do to ensure the mailings' success and the easier they make it to do business with them, the greater the chances are for repeat business."
Special Delivery
Getting the mailer to the intended recipient and tracking response is, of course, the main objective. Wertz pointed out that solid database management, including list maintenance and list cleaning, is essential. "When multiple lists are used, there needs to be careful coding of those lists to track which are more effective," he said. "And, when purchasing a prospect list, it's important to utilize a good, solid list source with effective criteria for compiling the list."
He added that Hampton Business Forms & Mailing Services offers merge and purge services and list maintenance, and has the capability to image special messages and/or key codes on the mail piece in various ink colors for tracking and charting list results. "Laser personalization is also very popular now," he continued. "With the recipient's name on the letter and the envelope, the piece looks less like junk mail."
"When it comes to list files and results tracking, distributors' responsibilities vary," observed Nesbit. "But, the most successful distributors increase their revenues by assisting in list selection and response analysis."
"Most companies keep a house list and will often rent lists that are then combined with the house lists, with duplicates culled out," explained Poirier. "While list procurement and response tracking is usually handled by the customer, very small companies and first-time direct mailers will look to distributors for assistance."
Cash and Carry
Not surprisingly, Poirier noted that postage is the most costly line item within a direct mail campaign. "It can run into the tens of thousands of dollars depending upon the size of the mailing," she said. "Postage is an up-front cost. Once the pieces are mailed, you no longer have leverage for payment."
Poirier explained that B&W Press runs lists through its postal software to calculate the postage required for a job and then faxes the customer a statement. "Customers may submit a company check seven days prior to mailing in order to assure that sufficient funds are in the account or, for a faster turnaround, conduct a wire transfer," she said.
Given the expense involved, distributors interested in providing the best possible service to their customers should familiarize themselves with postal issues and ways in which a competent direct mail house can help customers control costs.
For example, Hampton Business Forms & Mailing Services and B&W Press both offer CASS (Coding Accuracy Support System) certification, which improves the accuracy of carrier route, five-digit ZIP, ZIP+4, and delivery point codes that appear on mail pieces by providing useful diagnostics for correcting deficiencies.
Hampton Business Forms & Mailing Services also uses PAVE (Presort Accuracy, Validation, and Evaluation), United States Postal Service (USPS)-certified mailing software that manages and manipulates data as needed. Said Wertz, "Distributors can learn the dos and don'ts of direct mail by joining a local Postal Customer Council (PCC)."
A PCC (www.usps.com/nationalpcc) is a forum for mailers to discuss local mailing issues with their local postmaster. It's also a place where members can exchange ideas and suggestions on new USPS products and services, improving service and the understanding of mailers' needs.
"Distributors can also contact their local bulk mail center and set up an appointment or attend classes and seminars on mail piece regulations and design," continued Wertz. "Hampton Business Forms & Mailing Services also holds luncheons to promote direct mail, and we're developing a question-and-answer sheet directed at distributors who are hesitant to sell direct mail that should help answer the tough questions."
Distributors who begin now to orient themselves to direct mail sales will reap the benefits well into the future. "Given e-mail's inherent limitations in reaching target markets and recent government restrictions on spam, advertisers will increasingly be looking to direct mail as a cost-effective means to get their messages out," Wertz concluded.
By Maggie DeWitt