Sunday, June 29, 2008

Direct Response Marketing

Direct response marketing can be done through the use of direct mail, infomercials on television or an email marketing campaign. A direct return on advertising allows the customer to specifically purchase a service or product from the advertiser. In other words, the customer is only calling or logging on to the website because they intend to buy something. A specific response plan must be tailor-made to target a predetermined group of people. Advertisements can be mailed to potential customers and current customers as well as past customers. When using direct postal mail or a direct email campaign it is important to understand that unsolicited "junk" mail usually ends up in the trash. In order to get a potential customer to read your advertisement, there are some hints for making a specific marketing campaign unique.

First, an address and name printed directly onto an envelope, rather than a routine mailing address label will stand out as not being junk mail. With an email, it is best to begin the email by naming the person instead of writing "to whom it may concern" or another generic opening. Second, instead of using the third class mail permit, try to purchase the stamp, so the mail looks more inviting and individualized. The idea is to get the potential customer to open the envelope read what's inside and make the call to purchase the product or service, direct response marketing . For an email, it is a good idea to hide all the other email addresses that are being sent. This will keep the potential customer from automatically assuming they were forwarded some junk email.

Avoid gaudiness, unless the service or product calls for it. Keep information short, sweet and informative. Including prices is good if the prices are standardized, for example: the cost of a toy or book rather than the cost to replace a roof. If the price of the product or service is already on the advertisement, then the customer is already aware of the price and is calling anyway to either get more information or to purchase the product or service. Nobody wants to waste their time tying up phone lines for people that just want a price quote. The entire point of an email marketing campaign utilizing direct response marketing is to expect customers to call when they want to purchase. A 3%-5% response rate from direct mail is considered good, so mailing out 100 letters whether through email or postal mail and expecting 50 calls is unrealistic. Typically the response rate is about 1%, with follow up mailings generating the biggest response. In essence, if a business sends out 1000 pieces of direct mail, they should expect between 10 and 50 responses. Hopefully some of those people will purchase the product.

A positive attribute for an email marketing campaign using the specific response method is the ease with which success can be tracked. If sending an individualized email to one type of target group is not getting a good response, the target group or the email itself can be adjusted to see what works best to solicit responses. Keeping emails and unique response pieces short is wise. People do not want to read a long winded ad for a product that they may or may not want. Sometimes a link in an email to request more information is a good idea. This solicits an intended response from the potential customer, which in turn allows the uniquely direct advertiser to send wanted information, make a follow-up phone call, or stop by for an in-home presentation. Those that ask for further information show that they are interested. Sending out an effective email response campaign for direct response marketing is one of the most successful ways to solicit business from a potential customer.

Another way to achieve a wanted response to advertising is to offer a free gift. This is seen all the time when time shares are being sold. Many time share companies offer free televisions or free vacations in exchange for committing 1 1/2 - 3 hours of the potential customer's time to hear a sales pitch on their time share product. A smaller company does not have to offer such a grand gift, but sometimes useful gifts go a long way. Many offer address labels, notepads, magnets, pens, chap stick, etc; all with the company's logo. When selecting an item to be included in an email marketing campaign, it is often a good idea to have the potential customer enter their contact information so that a product can be sent, or so a coupon can be printed. The free gift must be valuable enough that the potential customer will not disregard it. The gift must also be affordable enough that if the potential customer throws it away, it doesn't break the marketing budget. The free gift should also directly relate to the product or service being sold through the email marketing campaign. Taking all these direct response marketing ideas into consideration will ensure some level of success. " A wise man is strong; yea, a man of knowledge increaseth strength." (Proverbs 24:5)

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