Direct marketing explained
It’s in the name and in simple terms is marketing directly to your target audience.
Direct mail has historically been at the centre of direct marketing campaigns, this has been complimented by email and telephone marketing and more recently through direct messaging on social media platforms.
Direct mail remains at the forefront of direct marketing whilst email and telephone marketing have come under increased scrutiny and regulation.
Direct marketing is a direct approach to an individual, person or company.
Which is the best form of direct marketing?
There is not a simple answer what works for one company’s product, service or message may not work for another.
Whilst we have seen most success in direct mail, it is down to the target market.
A continual mix would be the best strategy
What is a target market?
Your target market are your future potential customers who you should market to, to make them aware of your services.
How to define your target is dependant who your product is applicable to and would therefore buy your product or service.
The first starting point are the sector your existing customers are in.
Perhaps break your customers down by their SIC (standard Industry classification), research a list and direct mail companies within the same business type.
Dependant on the sector it is important not to have a conflict of interest with any of your existing customers.
What is my ROI?
As with any marketing your return on investment should be constantly measured
The cost of retaining customers with great customer service is something we pride ourselves on with our direct mail services.
Offering great customer service is also far easier and less expensive than the acquistuistion of new customers.
Equally, business evolves and customer sectors change, just look at the poor retail companies who have been so hard hit recently.
So the need for new customers is continually required to under pin your business and to continually reinforce its infrastructure.
Your return on investment is calculated by taking the total cost of your campaign , dividing it by the number of enquires and calculating the cost per lead
The cost should be then balanced in relation to the value of a sale to you.
How much should we spend on marketing ?
Base it as a percentage of turnover?
Ask yourself what is a customer worth to you in a year?, is it a one off sale or is their repeat business ?
On googling one comment, suggested it should be 5% of turnover
“I just wanted to know what the norm/average percentage marketing spend is in relation to monthly turnover?
I’m sure it depends on industry sector etc, but I just wanted to establish a bottom line that I can perhaps work off and thus use as a benchmark for future marketing plans & budget.
You are right – it greatly depends on the industry you are in. a VERY ball park figure we use is around 5%.
What’s more important is to make sure you spend it in the right places – and monitor that it is working.
NB Give marketing time , don’t expect instant results , it is a gradual process of communicating.
Some ‘guru’s’ suggest it takes 7 touches of communication to get your messages read
Equally don’t be wasteful.
Select a target market, in your ‘sweet spot’ that you regularly communicate with, then have a more general approach for a wider market
Where do I get the data from and how do I know the right places to market to ?
The first port of call is right in front of you on your computer system, and its free !!!
Your existing data, take time out to analyse where you have had success, do your home work and build a profile of the sectors you have been successful in.
Once done look at the market size within your region and company profile, then buy the addition data required.
This is not a one-hit wonder, if only life were that simple !!!
One of our most successful customers has developed their approach , with instructing us to manage their database and regularly rotate the data and the message, primarily through direct mail, we have been doing this for over 15 years and regularly send between 50 -100,000 letters per month
What’s the best way to monitor campaigns ?
“Seeds”, pardon the pun are plants in your data !!
These are simply addresses know to you that are placed within your data so you can analyse when the campaign lands , how it looks and it’s a great way of preparing for the work involved in handling the enquires
There is there more to direct mail than direct marketing
Of course, we send invoices, bills, statements, membership packs, incentive items, financial reports; but in fairness all could and should be used to increase customer loyalty and potential sales.
Direct mail campaigns with Herald Chase?
Enlist the help of Herald Chase and we can manage the entire direct mail campaign process with you from concept through to delivery. Why not call us today on 0118 947 4888 to discuss your direct mailing campaign requirements? You can also contact us via our contact us page. We very much look forward to hearing from you.