Ralph Elliott, PhD Vice Provost and Professor of Economics Emeritus

Director, Seminar Marketing InstituteCopyright 2003, 2006, 2007, 2009

Web Marketing to Adult andGraduate Students – Aslanian Group

  

How to Integrate Direct Mail into Your Web Marketing

• Permission marketing…direct mail may be his/her preferred method of communication

• Mix the media…don't put all your eggs in one basket… you may get media fatigue, so mix the media

• Shelf life…your direct-mail package will have a longer shelf life than an email

Why Direct Mail?

• Surprise your best customers and clients…a personally signed letter will lift your first-time customer repeat rate and your regular customer retention rate

• Uninvited drop-in guest…you can send a direct-mail package to a rented mailing list and produce an inquiry, but to send an offer to a rented email list may not be a good idea

Why Direct Mail?

• Perceived value…your direct-mail package will have more perceived value because the recipient knows you had to bear a higher cost of sending relative to email

• Personalization…print-on-demand allows targeted messaging

• Compare the ROI…of your direct mail relative to the payoff for other strategies

Why Direct Mail?

Signs You May Need Direct Mail

• Declining email open rates• Increasing email opt-out rates• Declining email click-thru rates • Declining ratio of sales to emails sent • A rise in ISP blocks • An increase in spam complaints

• A rise in your pay-per-click bids to maintain a third or better position for key words

• A drop-off in Google ad click-thru rates (SEM)• A drop-off in web-site conversions because of

poor traffic quality • A rise in the cost of getting a high organic or

natural ranking (SEO)• Too much time cost for various social media

Signs You May Need Direct Mail

• Average visitor time on your web-site is below one minute and going down

• Percentage of new web-site visitors is not growing or declining

Signs You May Need Direct Mail

Some Issues to Consider

• What is your existing inquiry-to-customer conversion path?

• What is your existing first-time-customer repeat rate?

• What is your “regular” customer retention rate?

• You may want to test direct mail as an alternative conversion path

How You Can Use Direct Mail

1. An inquiry generator to drive traffic to your landing page from a rented list

2. Follow-up on an inquiry

3. A mechanism for bringing back a first-time customer for a second program or lifting retention rates on “regular customers”

4. Communication with the “Gatekeeper”

1) An Inquiry Generator to Drive Traffic to

Your Landing Page from a Rented List

• Builds internal database of inquiries for email, direct mail, and telephone marketing

• Allows two-step marketing to a large potential universe of names

• Allows you to clone existing customers

• Allows you to capitalize on growth in your best market segments/niches

Use Direct Mail to Invite Prospects/Suspects

Clients Customers

Inquiries/Leads

Prospects Suspects

Use Direct Mail To Get More People into the Funnel

Promotional Package to Rented Mailing Lists

• Compiled . . . . . . Blanket Your Market

• Circulation Publications Associations

• Response InquiriesBuyers

30% to 200%over compiled

30% to 500% over compiled

]

]

List for Rental

• Higher Education Student Applicants• New list — Higher Education Student

Applicants — Interactive Marketing Solutions — This file contains individuals looking to improve their lives and advance their career. They are motivated students searching for higher education and scholarships for a variety of majors. The average age of prospects is 27, and their average income is $37,000. Sixty-two percent are female.

List Selection and Usage Issues

• Look for 90-day “hot line” names (recency)• Do geo select based upon existing customers• Avoid delivery on Mondays and the first day

after a holiday • The best lists are for one-time usage only

Do a Merge-Purge to Find Multi-Buyers

• Merge-purged names…those that appear on two or more lists…will out-pull any single list from which these names have been extracted

• Called multi-buyers, these names are great candidates for second or third promotions

• Some providers do the merge and purge and use only the duplicates

Duplication with the House List

• The higher the duplication between your customer list and a rented list, the higher the likelihood the rented list will work

• If there is a 25 percent duplication rate (same names) between List “A” and your customer list, then List “A” would have an 86 percent chance of success 

• If the duplication between your customer list and List “A” is under 10 percent, List “A” would have only a 3 percent chance of success

How to Reduce the Impact of Duplicates in the Absence of a Merge/Purge

• Geographical segmentation• A maximum number of names per company• Staggered promo drops• Printed justification on direct mail • Acceptance

A Good List Broker

Contact Mark Lewis at Lewis Direct  lewismails@aol.com  or at  303.494.0730 for a free data base recommendation on which lists you should be using.

Direct Mail Self-Mailer Options

• Standard postcard 3½ x 5• Jumbo postcard, 6 ½ x 11½ • Slim Jims, which is an 8½ by 11 tri-fold• Letter size brochure: 11 x 17, folded 8 ½ x 11,

folded to a 5 ½ by 8 ½ with a tab• Flat: 11 x 17 folded down into 8 ½ x 11

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Envelopes Outperform Self-Mailers

THIS

Or this

Should generally draw better than this

XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX

Direct Mail Envelopes

• Brochures in envelopes with cover letters outperform mailings without cover letter

• Personalized cover letters outperform non-personalized cover letters

• Metering your postage on an envelope will outperform preprinting the indicia

• A street address as your return address will outperform a post office box

• Ink jetting the address will outperform putting a cheshire label or pressure-sensitive label on the envelope or brochure

• Window envelopes will outperform non-window envelopes

• Right-hand windows will outperform left-hand windows

• Envelopes with headlines such as, “Enclosed is the information you requested,” will outperform envelopes with nothing on the outside

Direct-Mail Envelopes

Headlines for Your Envelopes

• A headline on an outgoing envelope will often produce more responses than an envelope without a headline

• A “teaser” headline out-pulls blank envelopes• A “pitch” headline usually out-pulls a teaser

headline

How Prospects Read & Respond to an Envelope Mailing

• Time spent looking at the envelope…7 seconds

• Sequence used by prospect when looking at copy/graphics on the front of the envelope: (1) prospect focuses on his/her name and checks for misspellings, (2) prospect looks at the headline, (3) prospect looks at the corner to see whom the mailing is from, (4) prospect examines the postage used

• Length of time prospects scan your brochure…60 seconds on average

• Sequence readers look over brochures…headlines and then body copy

• Normal eye flow for scanning a brochure• Eyes look for a “Z” pattern on the front • Sideways U…the reader enters at upper right,

follows the sideways U pattern to middle left, and then exits at lower right

How Prospects Read & Respond to an Envelope Mailing

Window

Return

Postage

Headline

How Prospects Read & Respond to Your Letter

• First they scan from top to bottom, looking for highlighted words/phrases (headlines, subheads, capitalization, underlining, and so on)

• Same pattern is followed throughout the letter whether one page or multiple pages

• Next, reader checks who wrote the letter and moves on to the postscript before returning to the top of the letter (all done in a matter of seconds)

Enter the VIP Number and Pre-Populate Landing Page

Let the prospect chose his/her preferred methods of

communication

Create a download center at your web site

Capture full contact details prior to the

download

Offer Landing-Page Incentive to Get People to Give Mailing Address

Use Several Blog Options to Hold Visitors

Offer Quick Response to Inquiries

Promise Follow-up within 24 Hours

Let’s Do the Numbers

• Assume $500 for 1,000 mailings• Assume 5% response rate• Therefore, 50 inquiries per 1,000• So, $500/50 = $10 per inquiry • Assume 10% of the inquiries convert• So 5 become customers• Final cost is $500/5 = $100 per customer

2) Use DM to Follow-up on an Inquiry

• Use the twenty-four-hour rule and follow up immediately

• Use first-class postage on your follow-up direct mail

• Enclose an extra copy of the brochure/order form to increase response rates via viral marketing ( Use “route to” banner)

• Enclose a one-page cover letter with your promotional package

Using DM to Follow-up on an Inquiry

• Personalize the response by listing the prospect’s name/address on the inside of the letter

• Always thank the prospect for responding• Provide enough information to close the sale• Include a strong “call for action,” listing your

URL, name, phone number, and email address

Use Various “Offers” in Your Follow-up Mailings to a Seminar Inquiry

• Questions the boss/parents need answered before granting approval to attend/enroll

• A sampling of who’s attending • Delayed billing • More information on the conference

handouts/proceedings • Help booking discounted hotel rooms • Travel discounts • Testimonials of participants at the last sell-out

session • A copy of your iron-clad guarantee

3) Use Direct-Mail Cover Letters & Envelopesto Market with a Memory to Customers

• Bring back first-time customers and regular customers by “marketing with a memory”

• Do special “top-of-the-pyramid” letters with RELEVANT DIALOGUE--recognizing past participation/information

• Tailor/personalize the message to what you know about the customer

High Recency Low

Mon

etar

y Va

lue/

Activ

ity

High

Low

Segment Your Participants & Allocate Resources Accordingly

Direct Mail to Thank First-Time Customers

• The most important sale you will ever make to the customer is the second course…Why? 

• Because a two-time buyer is twice as likely to buy again as a one-time buyer

• Recognize first-time customers so that they will come back for a second program

• Also, communication will reduce buyer’s regret

Convert First-Time Customers in Repeat Attendees

• Remember the “rule of two

• 60 to 70 percent of the individuals who “buy” a second time will stay with you for five or six years

Length of Cover Letters

Should draw better than front and back of

the same page

THIS2 pages

Personalize Cover Letters

Dear Mr. Jones:

Dear Sir/Madam:

THISShould generally draw better than this

Twenty-three Ways to Increase the Impact of Your Letters

1) Make the letter look like a letter2) Make the letter sound like a letter3) Personalize the salutation4) Start the letter about the prospect, not about

your program 5) Write the letter in the first person6) Start the letter with a short sentence (14

words)

7) Tailor your letter to your audience segment8) Be sincere9) Add a powerful P.S. to create a sense of urgency 10) Start your letter with a provocative question11) Use “problem/solution” model12) Feature an appropriate testimonial13) Use 10- to 12-point type

Twenty-three Ways to Increase the Impact of Your Letters

14) Send letter from conference chairpersons

15) Sign letter in blue ink

16) Remember that two signatures out-pull one signature

17) Ask for the registration more than once

18) Provide several ways to respond

19) Yellow highlight the most important benefit

Twenty-three Ways to Increase the Impact of Your Letters

20) Tell what will be missed by not attending

21) Tell how many other people have responded

22) Write to only one person

23) Include the word “You” as often as possible…don’t “We-We” all over your prospect

Twenty-three Ways to Increase the Impact of Your Letters

The 60-Second Promo Examination Clock

Use These Variables to ‘Dress’ the Direct-Mail Package

1. Size: Big generally means important. Small generally doesn’t. Standard size will reinforce a “me too” quality. Off-size will create a feeling of difference, which may, or may not, be desirable. Like dress lengths or tie widths, there are “in” sizes and “out” sizes.

2. Paper Type: Glossy, dull, textured, laid or bond? Which one to use? Wool, cotton, nylon, linen or polyester? It all depends on the mood you are trying to create. Crisp, focused photographs might look best on gloss. A conservative paper would be better suited to a “letter” or “memo” format for corporate presidents. Generally, spending a bit more on quality paper, or paper that conveys the feeling of quality, pays off.

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Variables to ‘Dress’ the Direct-Mail Package

3. Paper Color: Shocking, or subdued? What are you trying to communicate? And to whom? Whites, earth tones and buffs tend to reinforce a feeling of sincerity. Pinks, oranges and yellows tend to attract attention, often diminishing the perception of quality. White is the lowest cost and probably the least dangerous. “Relevant” is another guideline. Make sure materials are relevant to your audience, program, location and style.

4. Paper Weight: Heavy usually conveys quality; light can mean flimsy. But paper weight and type are interrelated. There is paper that is “bulky” that may work for you at a lower cost.

5. Fold: Standard, creative, accordion, fan fold, threefold? Functional or aesthetic? How does your brochure travel, read and appear? Keep asking these questions, and you will come up with the right answers. Avoid being too cute or cumbersome. Try to be straight forward and comfortable.

6. The Package: Envelopes, letters, postcards, response vehicles, special inserts, etc., all must be considered. All components deserve the same attention you give to your shirt, blouse, tie, pants, skirt, jewelry, sweater, etc.

Variables to ‘Dress’ the Direct-Mail Package

Let’s Do the Numbers

• Assume direct mail cost of $500/1,000• Assume a response rate of 5/1,000• Response rate is 0.5%• Desired revenue/1,000 = 5 x $500• Desired revenue/1,000 = $2500• Therefore, price/ person should be $500• If response rate is 1.0%, price is $250

4) Use Direct Mail for B to B Multi-Party Marketing

• In addition to Inquiries, Customers and Clients

• Gatekeepers…Collect Approving Managers…Send Certificate, Thank You, In-House, Team Discount

• Human Resources…Collect V.P. HR and/or Use SHRM and ASTD

• Drive HR to your on-line PDF Catalog

Technique to Capture Database Names Plus

Follow-Up to Participant’s Colleagues

Communicate with the Boss

• On B to B courses, send a thank you note to the attendee’s boss. List the dates of other sessions and mention the availability of in‑house training. Also, stress “ team attendance” in your correspondence.

• Invite the boss to a “speakers’ showcase” so that the gatekeeper gets to know your presenters/faculty.

Invite the Boss to a Speaker Showcase

Six Direct-Mail Recommendations

1) Use effective tracking techniques

2) Integrate DM into the promotional series

3) Use DM to re-activate the “deadwood”

4) Use appropriate postal endorsements

5) Build & use a DM suppression file

6) Rent out your direct-mail list

1) Key Code Direct Mail to Track More Effectively

• Key coding…including a unique code in each promotion so that the performance of the promotion…or various elements of the promotion…can be tracked

• Without tracking, it’s impossible– to “roll out” test promotions with any confidence

– to know which of your promotions are successful and which are bombs

Tell the Customer the Location of the Priority Code

2) Use Direct Mail to Optimize the Response Rate of the Promotional Series

• Study web-site analytics and email link tracking data to identify prime prospects

• Split test direct mail vs. email vs. telephone• Let the prospect know where they are in the

series with each promotion• Multi-channel to keep up response rates• Study “decay rates” by market segments

Brochure/Email/Website Mix

• Brochure and website should play off each other

• Your direct mail may still be your primary way to generate leads or inquiries

• Some providers allocate as much as 75% of their promotional budget to direct mail

• Some seminar programs that have completely dropped brochures/direct mail have incurred sizeable financial losses

3. Use Direct Mail to re-activate the “deadwood”

4) Use Appropriate Postal Endorsementsfor Standard Mail (U.S.P.S)

Address Service Requested

• Months 1-12: Mail piece forwarded; separate notice of new address provided; address correction fee charged. Forwarding at no charge

• Months 13-18: Mail piece returned with new address attached. Standard Mail (A) weighted fee charges

Postal Endorsements (U.S.P.S)

Forwarding Service Requested

• Months 1-12: Mail piece forwarded; no charge

• Months 13-18: Mail piece returned with new address attached. Standard Mail (A) weighted fee charged

Return Service Requested

Mail piece returned with new address or reason for non-delivery attached. Standard Mail (A) single piece rate charged

Change Service Requested

Separate notice of new address or reason for non-delivery provided; in either case address correction fee charged; mail piece disposed of by USPS

No Endorsement

Mail piece disposed of by USPS

Postal Endorsements (U.S.P.S)

5) Build & Use a Direct-Mail Suppression File

• A suppression file will eliminate those audiences whom you wish to avoid in your solicitations

• A suppression file eliminates low probability or otherwise undesirable recipients from your data-base universe

• You enhance your organization’s image in the marketplace by respecting the wishes of those people who have indicated that they are not interested in receiving your solicitations

6) Renting Out Your Direct-Mail List

• $1.00 to $3.00 for each name per year

• High selectivity will increase list appeal

• Some providers give attendees option of not renting out their names

• Review reputable firms that want to rent

• Use a “list manager” to market your list

Renting Your List to Others

• Get a sample of the promotion from those who want to rent your list

• Rent to competitors only if they will rent to you

• Name-for-name exchange vs. renting

• List fatigue vs. pump priming

• Seed the file to check on unauthorized use

Ralph D. Elliott, Ph.D.elliot@clemson.edu (one t) 864.710.2815