In January 2001, a non-profit organization decided to initiate a new marketing campaign. For the first time in its 120-year-old history, the organization opted for a direct mail package to solicit donations. The group turned to distributorship PrintConcepts, Allentown, Pa., for help. But rather than immediately starting a full-blown campaign, Mike Fisher, CDC, president of PrintConcepts, suggested a more cautious--and cost-effective--approach.
"Since they were new to direct mail, we had to develop a control package--a litmus test for all future packages," says Fisher, who has sold direct mail for eight years. First, the distributorship helped the client obtain a mailing list. "There is some science to this," Fisher says. "We want people who are responsive to direct mail and are responsive to the non-profit's cause." PrintConcepts purchased 10 mailing lists--with a total of 500,000 names--from a list broker.
Next, the distributorship developed
three test packages, all featuring the same theme: In an emotional appeal
for donations, the non-profit organization presented the case study of a girl
celebrating her 16th birthday in the hospital. The first direct mail package
included a personalized 8 1/2 x 11-inch letter, a #10 outgoing envelope and
an 8 1/2 x 11-inch sheet of mailing labels as a gift for the recipient. The
second package, mailed in a 9 x 12-inch envelope, included the letter and
a sheet of wrapping paper as a gift. The final package featured the letter
and a birthday card in a #10 envelope. Recipients were encouraged to mail
the card to the hospitalized girl.
PrintConcepts divided the mailing lists into three groups and sent the packages a few months apart. The package that drew the best response--and was the most expensive to produce and mail--was the second one in the oversized envelope. It became the control package for gauging the success of future direct mail campaigns. Last year, the non-profit organization mailed four other packages in an array of creative formats, ranging from simple #10 envelopes to flashy 9 x 12-inch ones.
But Fisher says testing isn't a one-time deal. Next month, the distributorship will mail another package with an oversized envelope and wrapping paper to confirm its initial results. "We're still trying to ensure that that's our control package," Fisher says. "So many factors have affected the results, things like [Sept. 11] and the anthrax scare." The search for an accurate control package--and the ideal direct mail campaign--is never-ending, he says.
Striking a Chord
Industry experts estimate that direct mail generated $480 billion in sales in 1999--a gain of almost 70 percent over recent years--and is growing faster than ever. In fact, it's estimated that direct mail sales will surpass $720 billion by 2004. Many distributorships say direct mail is a lucrative product line. "A lot of these orders are [worth] six figures," Fisher says.
Direct mail often is used by companies selling particular products or services through targeted mail advertisements, and it's popular with associations, schools, foundations and political groups--organizations that want to gain the public's support.
Direct mail can include a variety of direct-response pieces, including catalogs, cards, letters, brochures, pamphlets, fliers, video tapes, audio tapes, diskettes and promotional items. It can be delivered through the mail or through other delivery services.
Direct mail often involves multiple components and, as a result, offers distributors the opportunity to sell outgoing envelopes, business reply envelopes and more. However, the multiple components also require distributors to be knowledgeable about commercial printing, traditional printing, marketing, personalization, assembly and mailing.
Direct mail customers are abundant because most companies need to market themselves in order to survive. Retail stores, computer software companies, internet service providers, insurance firms, contractors, car dealerships, credit card companies, hotels and resorts, and telecommunications businesses are good prospects. Others include medical offices, sports teams, publishing firms, art museums, theatres and associations.
Singing the Blues
Distributors new to direct mail may be surprised by the amount of time required for even small direct mail projects. Many distributors don't have the time, expertise or equipment to handle direct mail projects from creation to mailing entirely on their own. They often must coordinate the efforts of service bureaus, commercial printers, mail houses, ad agencies and others. As a result, the potential for problems can be great.
Many direct mail pieces are extremely time-sensitive, some with 1-day turnaround. If such promotions or newsletters arrive late, your clients will have thrown their money away.
Working closely with the post office also can be frustrating. Distributors who fail to stay up-to-date on postal regulations can cost their customers thousands of dollars. Certain paper weights or size specifications could cost a premium if items don't fit specifications for mail automation.
Thanks to Transcontinental Solutions, Newtown, Pa., for assistance.
* Sell a system, not a printed
product.
"We look at the entire process holistically," says Mike Fisher, CDC, president of distributorship PrintConcepts, Allentown, Pa. "Selling the printing is secondary." First, the distributorship researches and provides mailing lists tailored for its individual customers. Next, it concentrates on package design, keeping the client's budget in mind: What will the package look like? Should it be a self-mailer? A box? After making creative decisions, PrintConcepts selects the ideal manufacturer to print the package. Finally, the package hits the lettershop, where recipient data is merged, mailing pieces are coded, packages are constructed and so on.
* Start with the right names.
Align yourself with a knowledgeable mailing list broker or data house, Fisher says. This partner should provide mailing lists geared toward clients' needs, clean up the lists, certify lists through CASS and add data fields, if necessary. (CASS stands for Coding Accuracy Support System, a program developed by the postal service to ensure that address correction and enhancement software functions correctly. Corrections made by the software, such as adding ZIP+4 codes and standardizing street names, qualify mail for postal automation and discounts.)
* Learn about mail houses.
Mail houses assemble and insert printed elements of direct mail pieces and label, sort, tag and deliver the packages to the post office for mailing. Because mail houses are critical spokes in the wheel, Fisher recommends visiting them and understanding how they operate.
* Stay updated on postal regulations.
Mail automation is improving, but it still has restrictions. A machine that sorts a 6 x 9-inch envelope can't sort a 9 x 11-inch envelope. Similarly, bar code readers can't read handwriting. It's important to know and understand how the mail will be handled before the direct mail project leaves the starting gate.
* Expect delays.
Allow time for delays associated with outputting artwork and receiving materials from clients. Also, consider charging for problems that require significant time to solve.
