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Performance Driven Direct Marketing

Direct Marketing Group

Tom Tester Business Development Manager


• DMG Profile• DMG’s Areas of Expertise

– List & Hygiene – Creative– Production

• Why DMG?– Single Source Provider– Reduced Production Cycle Times– Measured Results– People

Presentation Overview


• Founded in 1978• Based in Eden Prairie, MN• $60MM+ annual revenue• 150,000 s.f. facility• 250+ total employees• Full range of direct mail services• Focused on financial services• Fast growing company

DMG Profile


Core Client Market Segments: • Credit card companies • Insurance companies • Financial institutions/banks • Mortgage companies • Service industries • Major retailers• Non-profit organizations

Common Experiences Pre - DMG: • Experiencing poor results • Tired creative/list• Experiencing pain in the production• Short or over burdened staff• Missing mail dates• High costs per acquisition• Quality issues• Client service issues• Need to consolidate suppliers• Need to reduce production cycle time

DMG Core Client Base


List Services:

– New Customer Acquisition

• DirectSource2™• DirectMAX ™• Alternative lists• Alternative media

– Database Monetization• Partnership marketing• New product

development

– Database Analytics• Profiling• Modeling

– Database Management• Privacy/security

– Systems/Processes– Personnel/Training– Facilities/Audits– Disaster recovery

• List hygiene– Presort/CASS/NCOA

– DirectMAX ™– Merge/Purge/Selects

• Custom programming

List Services


Production:– Pre-press

• Scan/proof/correct• Direct-to-plate

– Print• Sheetfed & web• Up to 8 colors

– Binding & Finishing• Cut, fold, stitch• Glue, punch, shrink

– Envelopes• Custom capability• Large die library

– Personalization• Ink jet/Laser/MICR• Match mailings• 100% mailings

– Lettershop• Inserting• Affixing• On site post office

– Inventory Management & Fulfillment• Literature management• Kitting/hand assembly

Production Services


Direct Mail Design & Strategy:

– DM strategizing:• Concept/Format• Creative/Design• Copy writing

– DirecTest™ :• Test matrix• Test multiple cells/lists• Evaluate winners• Rollout winning features• Establish control test bed

– DirecTest™ Response Analysis

• Cost per acquisition• Response rates;

conversion rates• Return on investment;

lifetime value• Summary campaign

analysis; utilizing program results

Strategic/Creative Services


Direct response lift is impacted primarily by the following three factors…

– List 40% – Offer 40% – Creative 20%

Thus, the “40/40/20” Rule

The 40/40/20 Rule


Why DMG?


Single Source Capabilities:

– List services– Strategic creative services– Data processing– Pre-press– Printing– Envelope print & convert– Binding/finishing– Lettershop/mailing– Fulfillment

Values of a Single Source:

– Cycle time reduction – efficient production (see example next slide)

– A single point of contact– Quality Consistency– Supplier consolidation– Structured to manage program

growth – Greater consistency in

on-time deliveries

DMG - A Single Source


Value of People/Service:

• Experience/Knowledge– Average # of years of DM

experience = 18 • Single point of contact for DP,

print, lettershop, fulfillment• Understand client’s perspective• Focused on problem solving• Measured on results• Ownership involvement• Daily production meetings • Daily client updates

People/Service:

– Characteristics of DMG’s Representatives:• Integral • Dedicated• Strong sense of urgency• Committed to excellence• Detailed communicators• Highly organized• Accessible• Flexible

DMG’s People/Service


Creative Services

Account Manager

Print Production

Scheduling & Quality Assurance

ClientPostal

OptimizationData/List Services

DMG’s People/Service


Measured Results:

– Response rates– Conversion rates– Cost Per Acquisition– Return on Investment– Lifetime value– Summary campaign analysis – DirecTest™

• Creative alternatives• Multiple cells• Multiple lists

Values of Measuring:

– DMG’s performance is 100% measurable – creating ultimate accountability

– DMG’s success is in the results– DMG brings a proven strategy -

not guesswork - to improve results– DMG is willing to invest in the

client’s success

Measurable Results


• Focus on minimizing non-deliverable mail

• Decrease production cycle time

• Comprehensive production and project management – one facility

• Direct mail strategic consulting

• A focus on increasing returns and reducing acquisition costs

• Performance Driven Direct Marketing

DMG Value Summary

Direct Marketing Group’s

DirecTest MethodologyBuilding New Control Packages –

Fast & Efficiently



1. Create annual marketing plan that includes regular testing2. Develop & institute a proven testing strategy3. Build a portfolio of concepts for future testing; modify as

new findings are established4. Creative approach:

• Develop imitative concepts• Develop enhanced imitative concepts• Develop distinctive concepts

5. Carefully track results as a guide to future testing; modify for long term purposes

6. Consistently focus on lowering cost per acquisition (CPA)7. Build new accounts (profit will follow)

DMG Testing Principles


DirectMAX™ :

– Most acquisition campaigns have a 5–10% non-deliverable rate– Our experience in the collection industry shows that rate to be

15% - 25%– Cost of mail at $1.00 per piece (list, print, & postage) using a 15%

non-deliverable rate will equal significant savings.– Average response for low yield/non deliverable segments before

DirectMAX ™ is 1/3 of the total file response; the average increase in response post DirectMAX ™ for the same segment is 300%.

– With DirectMAX™, DMG can take your worst responding segment and turn it into your BEST responding segment.

DirectMAX™


Summary

Direct Marketing GroupOne direct mail operation | All services offered!DMG’s operation is one of few in the United States that can provide web & sheet fed printing, envelope printing & converting, data processing, personalization, lettershop, and fulfillment – all internally. In addition, our experienced creative and list services teams help to develop winning direct mail strategies and select optimal mailing audiences. What are the values of working with DMG? Faster throughput…more consistent quality…less time managing suppliers…and most importantly, improved overall results!

For more information contact: Tom Tester Business Development ManagerDirect: (952) 975-5026Email: [email protected]

mailto:[email protected]

http://www.directmg.com/