Wednesday, August 6, 2008

Catalog and Direct-Mail Challenges in 2008: “Do Not Mail Legislation – Fight or Flight”

It’s August; it’s time to begin preparing for the holiday season. If you’re a cataloger or direct-mailer, you have the same concerns this year as we do. In the next few blogs, I plan to address these concerns facing you and how to turn them into successful profit-centers for your business.

Catalog and Direct-Mail Challenges in 2008: “Do Not Mail Legislation – Fight or Flight”

Every time I pick up a new printing or marketing magazine, there’s at least a small mention of “Do Not Mail Legislation” which essentially will establish a “Do Not Mail” registry that consumers can add their mailing information into. And as it is believed, this proposed legislation will produce another major hindrance to the success of direct marketers.

Direct marketers are worried that prospective customer volumes will drop-off. Likewise, list-service providers, printers, and mailers believe that their business will be directly correlated to this. It’s time for a “Plan B”.

Plan B should begin by re-evaluating your marketing strategy. For many up to this point, you’ve been utilizing the “spray-and-pray” marketing strategy (meaning, “send a ton of direct mail/catalogs out and hope that you can turn a 3% response rate”). Now while direct-mail continues to be the most effective catalyst to the sales cycle, let’s take a more tactical approach to attracting high-quality prospective-customers.

Consider spending more of your marketing budget on your best prospective customers. Most likely, your best prospective customers are divided into two major groups:
1.) Those customers that currently purchase your products, and
2.) Those customers who don’t currently purchase from you, but demographically are the most likely to.
Focus on producing higher quality print and mail communications for these customers.

Some ideas to begin your thought process:
1.) Don’t send your customers “throw-aways” send them “coffe-table mail”. Meaning, mail your customers pieces that aren’t perceived as marketing tools…or “junk mail”; mail them print pieces that will have a long-shelf life, and a high-quality perception! Be creative; have you ever received a direct-mailer that you showed to co-workers, friends, and family. I have! FYI – The level of quality in a piece of print sub-consciously triggers a perception about the quality of the products/services that are being marketed and the company being represented.
2.) Drive your customers with print promotions. Coupons, freebies, rewards-programs, rebates…regardless of its name, promotions can drive your best customers into your “customer community”. This produces long-term customer loyalty.
3.) Harness the available technology and your data. Have you considered using the data you have on your customers and available data on prospective customers to its fullest extent? Personalized communications and variable data (whether it is as simple as ink-jetting codes or as complex as personalized 4-color graphics and messages) are a way to drive response rates. You have mere seconds to capture a new customer’s attention, so you’d better hit them with something good while you’ve got their eye.
4.) Shock the end recipients’ expectations by changing the look and feel of your piece. Got the “5 X 7 direct-mailer blues”? How about the “8-1/2 X 10-7/8 catalog blues”? Change the size, throw in some die-cutting, use a new stock or coating, try some varnishing techniques…whatever floats your boat! Try something…ANYTHING…new to increase the mere seconds you have capture the recipient’s attention.

I will speak to this further in a future blog called “Overstuffed Mailboxes? Take the JUNK Out of Junk-Mail!” It’s really up to you to begin changing your thought-process with the evolving times. Focus more upon your highest quality customers and your ROI will benefit.

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