Mailer Madness
Many Americans have adopted the “I want it, and I want it now” mentality. Few individuals enjoy waiting the five- to seven-business day standard delivery time when expecting an important package. Until our order arrives, we run to our mailboxes with the same enthusiasm as a child on Christmas day. But before finding what we want, we often confront a mailbox overflowing with unsolicited pieces of direct mail, or what many consider “junk mail.”
Nevertheless, a lot of companies continue to incorporate direct mail into their business strategies. According to an article published in The New York Times, the United States Postal Service (USPS) estimated that in 2006, marketers sent out more than 114 billion pieces of direct mail, including catalogs, credit card solicitations and coupons. But are these marketing
efforts showing worthwhile results?
In its March 2007 issue, Target Marketing, a sister publication of Print Professional, revealed survey findings based on the input of 262 respondents (consisting of B-to-C and B-to-B marketers). Thirty-two percent of respondents said direct mail delivers the strongest ROI for customer acquisition, while 31 percent claimed direct mail has a strong ROI for customer retention.
E-mail came in a close second to direct mail, with 32 percent of the participants choosing this method for customer acquisition, and 35 percent believing e-mails result in strong customer retention. These results are not shocking. Constant technological advancements, such as sophisticated Web applications, are making it easier for B-to-B marketers to promote products even faster to potential and existing customers.
In the world of direct mail, what turns wasted revenue into fruitful corporate gains? Is it the message of the mailer? For example, will end-users be inclined to open a mailer that makes an appealing offer such as increased lines of credit? Or, will end-users succumb to a guilt tactic?
Upon writing this article, I personally received a direct mail piece from a reputable movie rental company urging me to “be a good friend” by passing along trial cards for the corporation’s services. Perhaps individuals will be inclined to open a personalized mailer instead. Add e-mails and climbing postal rates to the mix, and marketers are faced with difficult decisions.
To learn more about what end-users want in a direct mail campaign, Print Professional decided to compare and contrast the perspectives of two experts well-versed in the message and packaging of direct mail pieces:
• Grant A. Johnson, president / CEO of Brookfield, Wisconsin-based Johnson Direct, a full service marketing communications agency.
• Jim Herrin, envelopes & packaging segment leader of DuPont Nonwovens, Wilmington, Del.
PP: What makes for a successful direct mail campaign? How does your company stay competitive?
Johnson: The most important part of any direct mail program is the mailing list. It accounts for 40 percent of your success. The next most important thing is the offer (30 percent); then, new creative (20 percent); and timing (10 percent). Most people skip the lists and offer and jump into brand new creative [or] formats. That’s the wrong approach ... focus first on lists, then offers and then creative. ... [Also,] the fastest way to ensure success is to communicate relevancy to your customers and prospects. [Remember,] the customer [or] prospect is in control today, not the marketer. Thus, it is imperative to test different messaging to determine what works best for each segment that you market to.
Herrin: Several factors impact a successful direct mail campaign. These include a good, accurate list ... an understanding [of] the audience ... an envelope that captures immediate attention ... and an attractive offer. The DuPont Graphics business stays competitive in the direct mail field by continuing to offer DuPont Tyvek envelopes products that not only provide secure delivery of contents, but that also enable designers to create strong, bold images [to] attract attention and inspire response[s].
PP: How is e-mail affecting traditional paper-based direct mail campaigns? Is there a way to marry these two strategies to double success rates?
Johnson: E-mail does work well in combination with traditional direct mail when combined [with] an audience of current clients. You will see more and more e-mail tests with the rise in postage rates, and as a way to supplement direct mail. Traditional direct mail is still a much better medium for new client acquisition. Keep in mind that good viral e-mail (passing along to a friend) is also worth doing, as you are more likely to view and open e-mail from someone you know rather than [one from] a stranger.
Herrin: E-mail has actually enhanced paper-based direct mail campaigns by becoming one more spoke in the relationship-building wheel. These two strategies can be brought together by using one as an invitation to communicate (the paper-based vehicle) and the other as the ongoing communications tool (e-mail).
PP: Describe any new mailers or design aspects that your company is incorporating into its product line.
Johnson: Official-looking mailers are working judging by the amount in my mailbox. ... Oversized [pieces] can be very effective simply because the majority of mailers will design smaller [pieces] to save postage with the current rate increase. Thus, you will see fewer oversized pieces and they will stand out in mailboxes.
Herrin: DuPont will be introducing Tyvek Plus, a coated envelope product. ... Tyvek Plus is stiff and [has] greater friction, making it easier to handle in mail production. It offers improved inkjet printability for printing of bar codes and variable information, offset and flexographic printability for bolder, more appealing images.
PP: What are some popular requests you receive from your customers? Based on current trends, what are your future predictions for the direct mail industry in relation to customer needs and wants?
Johnson: I am seeing use of microsites (promotional or product-specific websites) used in conjunction with direct mail to provide more information. Mailing smarter is a request we often receive, and that means making sure your databases are accurate, up-to-date and [in compliance] with USPS guidelines. We also get requests to make all media measurable, and that means incorporating websites, microsites and reporting metrics in all we do and tracking each medium used. Direct mail is important to our economy and [the] nation’s psyche. Have you ever gone to your mailbox and not received mail that day? It’s an odd feeling.
- People:
- Grant A. Johnson