23
Back to Basics: Effective Direct Mail on a Small Scale Kristin Sine-Kinz; Direct Marketing Services Eric Mower and Associates Don Thompson; Director, Americas Marketing Honeywell Imaging and Mobility formerly Hand Held Products

Back to Basics: Effective Direct Mail on a Small Scale

Embed Size (px)

DESCRIPTION

 

Citation preview

  • 1. Back to Basics: Effective Direct Mail on a Small Scale
    • Kristin Sine-Kinz ; Direct Marketing Services
    • Eric Mower and Associates
  • Don Thompson ; Director, Americas Marketing
    • Honeywell Imaging and Mobility
    • formerly Hand Held Products

2. Session Objectives

    • Definesmall scale
  • Small scaleperspective on:
    • Where to start
    • Building a Campaign: List, Offer & Creative
    • Fulfillment
    • Tracking
  • Case study presentation
    • Strategies that exemplify success on a small scale
  • Q & A

3. What doessmall scalemean?

  • Small mailing quantities maybe 50K or less
  • Budget does not allow for high-end creative
  • Cant rely on the same testing principals as large scale campaigns
    • Test one variable at a time
    • Let the tried-and-true methods lead the way

4. Where to start

  • Clearly define your audience
  • What differentiates your product from the others
  • Campaign goals:
    • Lead generation vs. Immediate sales vs.Awareness
    • Database building
    • Growing market share
    • Measures of success

5. Where to start

  • Audience questions
  • Helpful past experience
    • Integration with other tactics
  • Commitment
    • 1 mailing does not equal a campaign

6. Building a Campaign:List 40%

  • Efforts will fail if you dont target the best prospects
  • House list or customer database
  • List rental 98% mailable
      • Direct Response Lists
      • Compiled Lists
      • Controlled Circulation Lists

7. Response List vs. Compiled List Benefit Response Lists Compiled Lists RESPONSIVENESS Usually out-pulls compiled UNIVERSEGenerally delivers more name volume. SELECTIVITY Good psychographic selections about individuals, lifestyle & purchase patterns. Good demographic selections. COST Can be less expensive to rent. UNLIMITED USE Rented for a specific purpose. Negotiable VOLUME DISCOUNT Negotiable Negotiable 8. Building a Campaign:List 40%

  • Thesmall scaleperspective:
  • Minimum quantity requirements usually 5,000
  • Usage plan ahead when it makes sense; i.e. rent for 12 months unlimited use
  • Leverage value-add lists
  • Email lists
    • More costly to rent
    • Vendor will not send you the list

9. Building a Campaign:Offer 30%

  • In order to catch the fish, you must dangle the right kind of bait
  • Qualified vs. Unqualified Offers
    • Must fit with your campaign goals
  • Impossible to predict which offer will generate the best response rate for a given product or service
    • Test, test, test

10. Building a Campaign:Creative copy 15%, layout 15%

  • Formats:
  • Options are endless
    • What format generates the most cost-effective response rates?
    • Impossible to predict with 100% confidence
  • To evaluate direct mail creative you should focus on
        • How many responses did it generate?
        • Were the responses qualified enough?

11. Fulfillment

  • With all the details that go into planning a campaign, its easy to forget about fulfillment. This is a very important brand interaction for your prospects and/or customers.
  • System to collect responses online, call center, PO Box
  • Team designated for responder follow-up sales, call center
  • Fulfillment packages distribution of company collateral and white paper(s)

12. Small ScaleFulfillment Considerations

  • Bandwidth
    • Might actually be more cost effective to hire a fulfillment house vs. assigning internal resources
  • Leftover printed stock
    • Print on demand
    • Distribute electronically
  • Need to create materials for distribution
    • Be creative; what can I repurpose? What can I create that will have multiple uses?

13. Tracking

  • Its all about applying what you learn; you will want to consider the following for maximum results:
  • System of measuring campaign against measures-of-success that were developed up front:
    • Doesnt need to be a sophisticated online system
    • A simple spreadsheet can do the trick
  • Time built-in to react
  • A place to house data thats collected

14. Case Study: 20052007 Transportation Vertical Direct Mail Campaign Honeywell Imaging and Mobilityformerly Hand Held Products 15. Marketplace Challenge

  • Honeywell Imaging and Mobility distributes its image-based data collection solutions worldwide.
  • With a small market share in the transportation industry, the manufacturer faced the challenge of:
  • Low brand recognition.
  • Need for more information about the marketplace and customer demands.
  • Need for better understanding of how to position its products as solutions rather than commodities.

16. Objectives

  • Collect valuable purchase/needs/sales qualification information from prospects.
  • Build a database.
  • Lay the groundwork for future campaigns.
  • Create opportunities.
  • Sell product.

17. Honeywell Frequency Strategy

  • If you mail them more, they will buy more
    • Add 40-50% of a mailing's response by a follow-up to the same list within a month; i.e. telemarketing, multiple mailing waves.
  • 4X frequency per year; conducive to:
    • Establishing the brand.
    • Positioning as knowledgeable leaders in the transportation industry.
    • Frequent communications with prospects/customers can motivate them to consider you more often.

18. Honeywell List Strategy

  • Dont put all your eggs in one basket; diversify.
  • Mix of rented lists and in-house database
    • Looking for synergies with advertising; boosts frequency and supports response.
    • List response analysis after each mail drop to aid in future list selection.
    • Responders from rented lists are added to the in-house database for future marketing.

19. Honeywell Offer Strategy

  • Sell the offer, not the product.
  • Unqualified Offers
    • Premiums paired with relevant white papers
    • Why? Fill the funnel & build the database
  • Offer presentation
    • Half price vs. Buy oneget one FREE
    • Colored offer box
    • Image of offer item
    • Attainability
    • UrgencyLimited time offers work. Use a specific date.

20. Honeywell Creative Strategy

  • Self Mailers
      • Branded family look/feel
      • Developed control creative by testing tried-and-true methods
  • Mail package HOT Spots
      • Return address area, Addressing area, Teaser mail panel
  • Repeat your message... repeat your message
  • Incorporate multiple response options
  • The "yes/no" response technique
      • If you give a prospect the option to say no, they are more likely to say yes

21. 22. Campaign Results

  • ~1,700 leads
  • ~230 opportunities
  • ~$23,000,000 in potential revenue

23. Thank you.

  • Any Questions?
  • Do not hesitate to call/email if I may be of assistance:Kristin Sine-Kinz, Eric Mower and Associates, 585.389.1817(p) or[email_address]