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It may have a dreadful reputation, but direct
mail can be a highly effective way of improving your profits.
Because your main experience of direct mail
is probably from large credit card lenders or insurance companies,
you may think direct mail is a very expensive way of promoting
your business, something that’s all too complicated and best
left to the big boys. Think again. Direct mail can work wonders
for your business. Scaled down, it can be a very personal way of
making contact with your customers.
What is direct mail?
Direct mail is a method of communicating, in
written form, with a known set of current, potential or lapsed
customers. Your communication is sent through the Post Officel.
The communication can be for any of the following reasons:
·
To tell prospective customers about your business
·
To tell current customers about a special offer or
promotion
·
To remind lapsed customers about your business and
maybe make them a special offer
Where should you start?
Don’t panic. Direct mail is simple as long
as you stick to the rules. It is important not to stray from them,
as this will only dilute the impact of your mailing and make your
campaign less cost-effective. Remember: you are trying to send the
right offer, to the right customer, in a way that will encourage
them to buy your product or service.
Find your databases
Current and past customers: Yes, you do have a database, it may be
on the back of old receipts or in a guest register, or simply in
your reservations book, but it exists.
Potential customers: You can get hold of a list of potential
customers. Approach your local Chamber of Commerce, or the tourist
board. They will have some databases available to you if you are a
member for a nominal fee.
Get spring-cleaning
Collect all your names and addresses on a simple computer database
so you can print off labels. A typed label will help ensure that
your mail arrives and has a professional edge.
Make sure all addresses are complete. That means: full title and
surname, house number or name, street, town or city and, above
all, the postcode. There is no point in sending a piece of direct
mail that has an incomplete address.
Choose your target market
You need to categorize your target market into potential, current
and past customers. It will probably be necessary to further
divide them into business and leisure customers. If you can, add
this categorization to your electronic database. If you can’t,
make sure you set up a reference system. Remember: it’s quality
that counts. Don’t be tempted to lump together different
markets; you’ll be wasting your money.
Decide on your message
Take time to craft a suitable offer that will appeal to your
target market. The key is to ensure that you tell your reader
quickly in the text what you are offering him and that it is
appropriate to him. You could say: “The Seagull Restaurant would
like to welcome you back to dine with 20% discount.” Make sure
your offer is simple, of good value and relevant to your target
market.
Keep it simple
Keep your costs low by not trying too hard and not trying to be
too clever. A simple letter, well written, on good quality paper
and with a strong offer will be as attractive as a pop-up,
all-singing-all-dancing mailshot. You may want to add a flyer,
produced by a local printer . (See the article on advertising
for guidance on putting together an advert or flyer).
Stuff your envelopes
The sad truth is that manual labor costs money. Anything below
1,000 items is manageable in-house, and you should stuff your
direct mail packs within the business if you can. If you have to
farm the job out, your local high-street printer should be able to
undertake the job for you, for a fee.
Track the response
You need to track the business generated by your direct mail
campaign. Keeping your staff informed and interested in your
marketing activity will help ensure that when you get enquiries,
they are checked for origin.
However, you may want to add a response mechanism to your mailer
so you can see what works best and focus on this next time round.
Set up a reply-paid address section on your mailing. To do this:
·
Pick up a Response Services leaflet from any main
post office
·
Complete the form and pay your deposit:
·
Follow the guidelines for the presentation of the
reply-paid details on any printed matter.
·
Finally, when the responses do come in, update your
database every week so that you can improve its quality with
minimum time and effort.
How much will all this cost?
To keep track of your likely costs and
establish how profitable the campaign is likely to be, make sure
you have asked yourself, and answered, the following questions:
Who am I trying to attract?
How many contacts do I have that are good
quality?
How much will the mailer cost to produce?
What is the envelope cost?
Is there any cost for stuffing the envelopes?
What is the total cost of postage?
What is the TOTAL COST of all elements?
What offer can I make that will be
attractive?
What business is likely to be generated?
How will I know which bookings relate to the
promotion?
How will I track the success rate?
What is the likely increase in business of
all the responses?
Is it still profitable for me to carry out
the campaign?
Remember that direct mail produces a response
on average of 2-3%. It doesn’t seem like much, but it could give
you the business edge you need, or bring in your next big
customer. What matters is the value of the business coming in.
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