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What is a good return on a mailing? This commonly asked question usually gets misleading answers. Frequently, you hear something like, "around 1.5 to 2 percent." How do you really evaluate success in direct-mail promotion? Before you can say that any percent of return is good or bad, you have to do a little statistical homework. Study your records to see what the results have been from your previous mailings.
A comprehensive tracking system is an important part of all direct-mail efforts. Tracking responses enables a company to learn what works and what does not work. Effectively monitoring your efforts will save you time and money by eliminating elements of a campaign that are not effective and by highlighting successful features.
There are a number of issues to consider when tracking a direct-mail campaign. One of the most important elements is reaching the right audience, which means using the right list. Keep track of the lists that generate responses and those that do not. Combine responsive lists with new lists for future mailings.
Experiment with different packages, recording how each performs. This is done by using source codes printed on your mail pieces. After you have some experience with different approaches, you can design a package based on what works for your particular product or service. It is possible that a well-designed package will fail because it was mailed at the wrong time of the year or month. The best indicator of when to mail is your existing sales pattern. Keep track of the performance of mailings at various times of the year.
Another important issue to monitor is the way the pieces were mailed. If a mailing went by first class, did the response rate justify the additional postage costs versus standard mail?
Direct mail is designed to sell a product or service. If only a small percentage of inquiries is converted into sales, consider modifications in the campaign. Monitor the cost of the mailing to determine whether revenues justify the expense. If your ROI is not high enough, you may want to consider testing new packages.
There is no single correct method to track responses of a direct-mail effort. Each company should establish a system that best fits its budget and staff capabilities. If you are using an order form or response card, and will never be speaking directly with a customer, consider coding the form. An inconspicuous mark or symbol, such as a slight variation on the return address or a letter code on the reply device, will make it easy to track the origins.
If you are using a toll-free number, ask callers how they heard about your product or service. Some mailers slightly alter a product name or price in each version to facilitate tracking.
According to Joel Martin, author of "Advertising Trade Secrets," sending a series of letters can boost sales: "Direct mail advertisers frequently send just one letter to a prospect. Response rates often double the second, third, and fourth time the same prospect receives a mailing. Repetition and continuity are two important ingredients in getting people to even read what you have to say. Treat each letter as the only one the prospect will ever see, even though it's part of the series."
There are numerous ways to handle follow-ups, and an effective system should be planned before the initial mailing. Issues to consider when developing your plan include:
- How many staff hours are needed?
- How much effort can be expended and still be profitable?
- What vehicle for follow up is the most effective?
Never neglect an inquiry. Treat those obtaining product information the same as prospects who intend to buy. Many mailers find that information seekers become important clients in the future. Follow up in a timely fashion. Regardless of the sales potential, each inquiry should be answered within two days of receiving it.
It is important to answer inquiries on a personal and friendly level. If you cannot afford to handle each request in this manner, consider sending a semi-personal reply. Make certain you give potential customers a complete answer to their questions. If you need additional time to find specific answers, let them know.
To help route inquiries, post a chart listing specific department responsibilities. Use forms to record inquiries received. It should be tailored for your product, but be general enough to ensure long-term use. Information that should be recorded includes:
- Who made the inquiry?
- Who is responsible for follow up?
- The date of inquiry
- Percentage converted into sales
- A list of items sent to inquirer
Good luck on your direct mail endeavors No matter what you do, remember that nothing happens until somebody sells something. Good Hunting.
George's company, ProTrain, is available for special assignments in sales training, management, and marketing. He can be reached at georgemreinfeld@juno.com.
author: By George Reinfeld