Direct mail marketers urged to do their homework
By: Bill LaformeSeptember 18th, 2009
Many businesses understand the value of direct marketing campaigns for the purpose of customer acquisition and retention, as well as lead generation and brand building.
Yet many direct marketers may not be making the most out of their campaigns by failing to research effectively, said the Direct Marketing Association (DMA).
The DMA advised businesses to prioritize market and customer behavior research when developing direct marketing campaigns such as direct mail marketing, noting that tracking studies, pre- and post-awareness research, creative testing and price evaluation can be particularly effective.
"Research enables direct marketers to significantly and continuously improve the performance of their campaigns by connecting them to their target audiences in a cost-effective way which delivers actionable results," said Robert Keitch, chief of membership and brand for the DMA.
Keitch added that direct marketers "all too often" rely on prior campaign results and "broad testing" to guide their marketing campaigns, though these strategies are not necessarily the most effective.
"The power of direct marketing lies in its targeted approach, and to ensure that this precision is maximized, it is vital that direct marketers use all the tools available to them," he said.
Market research can be a valuable resource for small businesses pursuing direct mail marketing because it can help them choose the most relevant messages to include in their mailings, as well as the distribution strategy and even the type of mail.
For example, a company can use tracking studies to ascertain that their customers spend more during certain months or even certain days of the week.
Using that information, the business can design a direct mail campaign that targets those types of customers, sending them a postcard in the days or weeks leading up to the high-volume shopping period.
This approach can take two directions – the postcards can focus on up-selling the customers that are already buying the product or service at that time, or can try to increase conversion rates for customers that have been low in their spending, knowing that they would be more likely to buy during the prime shopping period.
Market research can also help determine which customers to target with direct mailings – for example, if a company discovers that a large portion of their customers are suburban housewives, they can adjust their direct mailing lists accordingly.
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