The direct approach

Direct mail can be an effective marketing tool for small firms, a proven and cost-effective way to generate sales from customers old and new. Tom Whitney looks at how to get it right
Whether you choose a printed mailout sent through the post or an emailed communication, an effective direct-mail campaign enables you to convey your product's key benefits to those most likely to buy from you.

Direct mail also gives businesses with limited marketing spend - which is likely to include most small businesses - a cost-effective means of marketing.

Although achieving sales is the ultimate aim, direct mail allows you to cement long-term customer relationships and collect valuable information about customers which can lead to sales in the future.

Advance planning

"Decide what you want to achieve and who you want to respond," advises Jo Howard-Brown, managing director of the Direct Mail Information Service. "Careful preparation is essential if you want a response rate that justifies the cost of the campaign.

"Remember - a poorly planned or targeted campaign will be a waste of your money. A badly written or designed mailshot could simply end up in the bin."

Selling to existing customers is much easier and cheaper than finding new ones. It is much more likely to lead to a positive outcome too, because such buyers are already convinced about your product's worth.

Blanket campaigns are not advisable. Instead, segment the market and identify which group(s) you need to target. Tailor the messages and the delivery means to the target market's needs, tastes and habits.

For distribution, it is likely that you will use your existing database of contacts. If you need more prospects, you can rent or buy a list from a commercial provider.

You must comply with the Data Protection Act, which means you must not contact anyone who has opted out of receiving your mailings. You must also give recipients the choice of opting out of future mailings.

Contents

Consider whether to write the mailing yourself or pay a professional to do it for you. "You only have a couple of seconds to convince the reader your mailshot is worth reading, so the first half-dozen words are crucial," warns Howard-Brown.

"Make sure your message is very clear. Explain what you're offering and what the benefit is." You should address the mailing to a named individual if possible. Make their responding straightforward, leave no room for doubt about what they need to do next and give readers an incentive to reply promptly, maybe a discount.

While email is less expensive than post, the growth of unsolicited emails means yours must stand out. "Email campaigns are incredibly low cost, but the response rate is usually very low," Howard-Brown explains. "If you're planning an email campaign, it's important to have an existing relationship with the contacts or recipients may just press delete."

Because postal campaigns can be costly, start with a trial run before full launch. Send to a representative sample of your target market and see what messages and methods deliver the best response rates.

"A successful campaign should pay for itself," advises Howard-Brown. "You should know how many sales you need to cover the cost of your campaign. When your campaign is over, assess the rates of response and sales generated." Such information will help you to make future campaigns more cost effective and, hopefully, more successful.