How we carry out direct mail campaigns

WHO: Darryl Gould, managing director of DPA Marketing Services.

WHAT: A Huddersfield-based marketing firm that provides telemarketing and direct-mail services to small businesses.

THE ISSUE: Generating orders by using direct-mail campaigns.
THE SOLUTION: "The business was set up in 1996, since when it has grown to having 25 employees. We provide highly targeted direct-mail campaigns to small local firms. We can carry out the whole process, from sourcing mailing lists and writing the content of the mailout to distribution and gathering feedback.

"We also conduct our own campaigns to source new business. It enables us to send out questionnaires and gather market research. We encourage people to reply by offering incentives such as money-off vouchers or free entry into prize draws.

"Before starting out, decide how many sales leads you're trying to generate, which will help you to decide how many mailouts you need to send. The average response rate is three per cent. However, if you follow up by telephoning people you've targeted, the response rate typically increases to around 30 per cent.

"Direct-mail campaigns are often linked to key dates within a particular industry. For example, financial-services firms often do a lot of marketing in January and February, because it's close to the end of the financial year.

"There are Data Protection Act-compliance issues. For example, you mustn't mail or call anyone who has opted out of being contacted under the Mail Preference Service or Telephone Preference Service."

LESSONS LEARNED:

"Don't send thousands of mailouts to everyone you can think of. Get hold of the most up-to-date contact list you can and send mailouts that are well targeted.

"Rather than using your own database, it might be better to buy a list. Mailing lists are not expensive: typically, 15p to 20p per contact name.

"Online campaigns are worthwhile if you have a strong client list and can target named individuals. Otherwise, respondents are likely to delete your email. A mailout by post is tangible and a lot more personal than receiving a mass email.

"While a postal campaign might be more expensive than email, in general, it's likely to deliver a higher response rate."