Direct Marketing Tools - The 3 Letter Sequence

Let's say I'm starting up a business as an insurance broker. I've purchased a database of two and a half thousand clients. What system or method should I use? Direct mail then follow-up with SMS and then phone call. What I would do if I had a limited amount of people that I was going to contact? The one thing I would do is take that list and send out a three-step sales letter sequence. So what I mean by that is the is three letters sent out over 20 days. That's the first thing I would do. And the letters would basically say, "Hey this is who I am." You would obviously have a strong offer or a strong benefit, and a strong call to action.

After the three letters I would do a follow-up with regular customer newsletters on a monthly basis, particularly if you've got a limited market. I think this is really, really critical. Because it's about sales but it's also about developing the relationship and when the current supplier lets them down you are the next choice so to speak. So let me just go into this a little bit more detail.

So I'm an insurance broker and I've got two and a half thousand clients. Let's say they're business people. The first letter would go out talking about the potential problems they could face as a business person without insurance. And then I would offer a free consultation or a free report or whatever. The second letter would go out saying, "Hey you didn't respond. I'm not sure why. I thought it might be for a number of reasons. I thought you may have some questions." And then I would go through and answer the questions. So question one might be, "I don't believe in insurance." And then you have the answer. Question two might be, "I don't think it will happen to me." And then you have the answer. Question three is, "Why should I choose you? I've got so many people to choose from." And then you have the answer and so on.

So that's a really powerful process. And then the third letter might be, "Hey this is the last offer. These are the benefits you're going to get from talking to me. These are the disadvantages you're going to get from not dealing with me and this limited time offer will expire in 10 days," and stick to that. And then what you can do with the follow-up newsletter is make it more relationship building and you might have other offers within those relationship building messages. So it's quite a powerful process by doing that and then following up with just regular contact to that group of two and a half thousand people.

I would encourage you, if you don't have a lot of resources, rather than sending out to two and a half thousand at once you might send 50 at a time and that way it fits within your budget and it becomes self-funding. So you send out 50 at a time. You send the three letters. You follow up with a phone call and say, "Hey you got the three letters." If you follow up with a phone call you'll probably increase responses significantly. I would say by as much as five, six, 700 percent. So that's the strategy which I would take if I was an insurance broker.

A Creative Marketing Strategy Most People Forget

I recently moved into a new house and as we were moving in I came upon a creative marketing strategy that any small business can use...and the best part is that it's just about free and is incredibly effective.

Here's what happened.

We bought our bed from a local furniture store named "EFO" (I'm not sure if they only local or a national chain).

When the bed came to the house, the delivery men did the simplest target marketing strategy I've ever seen - all they did was hand me a small postcard giving me $20 on my next purchase...just for filling out a tiny little survey that took me about 20 seconds to complete.

Now some people might think that the importance was that I took the survey, but honestly I don't think they cared about that.

What happened when they offered $20 off my next purchase is that I immediately thought..."wow, $20 for 20-30 seconds of work...nice!"

Which, as you can imagine, did 2 things.

#1 - It developed an instant rapport with the company.

#2 - I ended up going back to that same place and doubling the price of my original order (we got our couch from there as well, which was roughly the same price as the bed).

Now I'm not saying that a creative marketing strategy like this completely caused me to go back to them, but I can tell you one thing...it definitely made me more likely to go back.

And you might be saying, well...it's only $20.

Yes, it's only $20...but it's the fact that they were giving me $20 JUST to fill out a tiny little survey.

And as marketer myself I knew all the psychology going on behind it and that they just wanted to get me back in the store, but for someone who didn't know better...I think this marketing strategy model is a great one to follow.

All you have to do is simply change your offer and tailor it to your own clients or customers.

Little, no-risk offers like this not only help you get the customer back into your place of business, they help show that you're different from your competitors.

Here's your homework.

Think of some type of creative marketing strategy you can do that will help generate rapport with your target audience, and implement it immediately!

Green Marketing - Fundamentals of a Successful Direct Marketing Campaign

There are three elements to a successful green marketing campaign: being credibly green, addressing a need, and communicating in an environmentally friendly way. We will explore each in more detail.

First: Credibility. This requirement is somewhat unique in the realm of marketing. Consider the scenario where Harley-Davidson had to certify that all employees ride motorcycles or Whole Foods had to attest to the good eating habits of its employees. Neither do, of course.

If you are going to make green marketing claims, however, the first place your customers will look in assessing those claims is at you. Have you determined your environmental impact and are you taking steps to mitigate it. You need not have eliminated all environmentally unfriendly practices, but you should disclose them along with your plan to address them (sooner or later).

As part of establishing your green credibility, you should seek to obtain valid third-party certification and you should demonstrate executive level (ideally CEO) commitment to sustainable business practices. The third-party certification can come from any of array of private or non-governmental organizations with business practice evaluation programs. The executive level commitment should be on-going and incorporated into regular business oversight policies and procedures.

Second: Address a Need. This is the fundamental purpose of business overall, but often gets lost in the complexities and mythology inherent in green business. Products or services must solve for a need or leverage a trend in order to be successful. Green products and services do not get a pass just because they have environmentally friendly attributes.

Consumers, for the most part, are unwilling to pay more for environmentally friendly products, services, or green attributes added on to existing products and services. So address the need, just do it in a green way.

If you are incorporating green attributes into an existing product or service, be clear and specific with your claims. Set the green benefits in context and communicate in a straight-forward way. Any hype or promotional tonality is likely to ensure your audience views the message with a high degree of cynicism.

If you designing entirely new green products or services, then identify the need, and address it in an environmentally friendly way. Thus, you may reformulate a product using environmentally friends raw materials and manufacturing processes, but it still must perform as well as non-green competitors, and may only yield a modest price premium (if at all).

Third: Communicate using Eco-friendly Channels. One example of a recent perceptual shift is in financial services. Until recently, solicitations were viewed negatively primarily because of concern around the security of personal information and the potential for identity theft. Now those solicitations are a predominantly a bad thing because they kill trees. Imagine the reaction if a [paper] solicitation arrives in the mail offering a green product or service: instant credibility loss.

Be creative about how you promote the product or service. Investigate and leverage new channels, such as solar power billboards, or street advertising. Go beyond soy inks and recycled paper to leveraging virtual channels and viral marketing. Both are lower impact methods of getting the message out. Green is becoming very popular. Do it right by taking these fundamental steps and you will stand out; building a lasting, engaging relationship with your customers.

Attending Live Events - This is a Marketing Strategy That Will Build Your Internet Business

Attending live events has been the best way for me to connect with new prospects and continue my education. Last year I attended 13 conferences and seminars, and my business took off like gangbusters. I believe you must think about your strategy for doing this before you sign up to attend a live event, in order to make the most of it in the months to come.

My mentor, Armand Morin, puts on at least seven events each year. I usually attend most of these, depending on my schedule. I always go to Big Seminar, and this year will be the last one. I get a lot out of hearing the different speakers and connecting with the people in the audience. In 2009 I won 25K in his 'Better Your Best' contest, and this year I get to crown the next winner.

His other events consist of only his training. Three full days of learning how to make changes to my online business has made a huge difference to me. I choose which of these events to attend by taking a look at the venue - my goal is to be in as many cities as possible - and to make sure it fits with my personal schedule.

I also attend several events each year that are held by people outside of my marketing circle. This enables me to meet people I would otherwise not have connected with, and to learn other perspectives on building my own business on the Internet. I also do lots of business while I am there.

Write down your goals for the coming year, and see if attending seminars and conferences would be a good addition to your business model.

How to Develop the Right Direct Marketing Mix For Your Business

Direct marketing is a type of marketing that communicates directly with the prospect or customer. It should have a clear call to action and is often measurable. It is generally used to acquire or retain profitable customers. There are a number of different channels available to you, each offering different benefits and costings.

Direct Mail

Every household in the modern world no doubt receives several mail shots per year. This is often referred to as junk mail generally because many people don't like receiving it through their letterbox. Because of this negative connotation it is critical that any Direct Mail that you send is highly targeted and personalized. The more personalized and relevant your mailing is, the higher your response rates will be. If you have a large customer base, it is beneficial to segment them based on the data you hold about them. This way you can try and personalize your message to that particular group.

Within your letter you need to have a clear call to action so customers know how to buy your product or service. If you are a complete beginner it would be beneficial to employ a creative agency to support you, however this could be costly.

The biggest advantage of Direct Mail is that it is completely measurable so you can track how it is performing incrementally. You would need to set up a no contact control cell within your mailed population in order to understand who would have bought your product anyway. In terms of cost, Direct Mail is generally more expensive than online channels due to the postage costs so it is probably an option for a more established business with a larger marketing budget.

Door drops

Door drops are less targeted mail shots or flyers delivered through your letterbox. They are not addressed to the householder personally. You will have seen local takeaway and taxi cab firms use door drops and they can be effective as a localized marketing strategy for acquiring new customers. If you can offer a discount this will increase your response but don't expect to see great results.

Telemarketing

This is another form of direct marketing that can be intrusive so proceed with caution. There are outbound and inbound options depending if you call the customer or they are calling you. You must ensure that you have permission to contact them by phone otherwise you could be breaching data protection laws. It is beneficial to position the call as a courtesy call prior to offering any product or service. This will put customers at ease and make them more receptive to talking to you. This can be an expensive channel as you have the network charges to cover as well as staff if you don't have time to make the calls yourself.

Email marketing

Email marketing follows the same principles as direct mail in that you are mailing to your prospects or customer base. Again this is a measurable channel and is cost effective as you don't have the postage costs to consider. The barrier to email marketing can be the filters that classify emails as spam. This could mean that your prospects don't actually receive your email. This channel is a great way for you to connect with your customers or prospects and offer them real value.

Direct Sales

Direct sales is not specifically direct marketing as it generally involves sales agents selling your product or service but it is another option for your marketing mix. You could employ a direct sales agency to sell your product on your behalf for a fee. This channel can be cost effective if you have the right staff and a relevant offer for the customer.

These are a handful of direct marketing channels to consider when you are planning your marketing activity. Each one has their own merit depending on your objectives for your business and your budget. Always bear in mind that it is important to have more than one marketing channel in your portfolio in case you start to see a reduction in your response rates. This can often happen when you are in a saturated marketplace.

Effective Direct Mail Marketing Strategy

Today most people think about marketing on the internet. While there are many internet strategies, a direct mail marketing strategy may be the one thing that works best for your company. The traditional type of direct marketing strategy has been around for a hundred years. It has also been studied and tested for that long. Some of the strategies that seemed to work were simple yet unique. Things like mailed items being addressed to a person, not just "mail box holder", promotions that expire and a call to action are all part of a direct marketing strategy.

Today's direct marketing mail strategy in order to be successful, involves a loss leader. This is usually a free or a heavily discounted giveaway that sounds good enough for people to send away for the item. This enables the company to follow up with other products that can be sold.

In today's economy even upscale consumers are looking to save money. So-called value pack coupons are a very effective way to target particular consumer segments and to generate meaningful results for an advertiser.

One of the better known value pack coupon mailers is Valpak. The familiar blue foil envelope typically arrives once a month and contains a mix of ads from local, regional, and national advertisers. Valpak mails to all the major markets in the Unites States and to addresses in three Canadian provinces.

Value pack advertising is a cost effective direct mail marketing strategy for businesses to reach consumers because the cost of each mailing is shared by many advertisers. In fact, it is usually possible to reach each household on a mailing list for a small fraction of the cost of a stamp. Advertisers can track their results with value pack ads too, because each redeemed coupon can be recorded so the exact return on investment for each coupon campaign is available. Feedback from each mailing tells advertisers whether the message is effective and if the targeted demographics are responding. The successful direct mail marketing strategy always involves testing and keeping track of the results to make sure you are getting the most benefit for your company.

Direct Marketing Plan Checklist

When developing your marketing campaigns, whether they are direct marketing or online advertising, there is "homework" to be done before hand. Planning helps reduce risk and increase likelihood of success. This checklist provides the essential planning information and activity required to create a successful direct marketing campaign.

   1. Executive Summary
   2. Situation Analysis - Marketing environment, economic trends and competitive analysis. Analysis is not just a collection of information but an analysis of importance and impact of information (Not just the What, but the Why).
   3. Target Group Profile(s) & Analysis - Know your audience(s) Opportunity and Issues Analysis - Including SWOT (Strengths, Weaknesses, Opportunities, Threats)
   4. Goals and Objectives: Quantitative - Build lead database, acquire new customers, cross-sell, new product introduction, prospect cost per lead, acquisition cost, retention, Win back cost, return on advertising Qualitative - Increase customer satisfaction, enhance brand perception, etc.
   5. Marketing Strategy - Including differentiation/positioning/uniqueness
   6. Tactics
   7. Test Plan - Direct marketers always TEST! List/media, offer, visuals, copy
   8. Budget/Financial - Budget, Breakeven scenarios (0 profit, % profit, etc.)

Direct Marketing Creative Strategy & Campaign Plan Checklist

   1. Advertising Objectives - Primary (e.g., response, sales), Secondary (e.g., brand awareness)
   2. Marketing Messaging - "The Promise"
   3. Product/Service Description - Benefits, benefits, benefits. Practical, emotional
   4. Customer Problem Creative Must Solve
   5. Media Plan-Media Mix and Budget
   6. Creative Strategy - Know your audience!
   7. Offers and Call-to-Action - Hard offers, soft offers
   8. Direct Marketing Essentials - Urgency, ways to respond, messages/affiliations to reduce risk in mind of customer
   9. Copy/Layout
  10. Legal - Know FTC, FDA and FCC advertising guidelines. Disclaimers. Self-regulation

When it comes down to fundamentals: The right offer to the right person at the right time. Relevancy and personalization are ways to win better response in direct marketing. Test, test, test...and track, track, track.

Business Strategy Direct Marketing Consulting - How to Overcome Your Biggest Business Weakness

When it comes to direct marketing business strategy, sometimes its hard to get out of your own way. Over the years I've had clients get far too hung up on things that appear to be obstacles, instead of focusing on the strengths their business has, especially strengths they have over their competition.

Today I'm going to give you a critical problem-solver that helps you do this. And if you use it wisely, it will make you more money than you ever believed possible. In fact, this is one of the most important pieces of information I've ever given out, because it's one of the strongest direct-marketing strategies available, and it isn't very widely known. And it's also very easy to use.

See, regardless of what you do or who you're selling things to, savvy marketers know the fastest way to make yourself different from your competition is to turn any perceived or real weakness you have, into a unique strength.

For instance, one time a client came to me with a problem that's not uncommon: he had a run of bad employees and because he'd been occupied with the growth of his company, he wasn't managing them effectively. As a result, his company was now trying to "break free" of their reputation of offering poor customer service.

What most people would do, is stick their heads in the sand and try and hide from this. But that's exactly the wrong thing to do. Just as wrong as one of your children trying to hide from a mistake they made, as opposed to taking full responsibility for what they did, and promising to do better in the future.

And this is exactly what I recommended my client do. See, if you've screwed up and provided bad service in the past, the fastest and cleanest way to rid yourself of this reputation, and to actually make customer service a hallmark of yours... is to openly acknowledge the problem with your customers. Explain why this happened... politely apologize... and then talk about all the new quality control procedures you now have in place, to make sure this won't happen again.

And... if you're also now willing to back up your new customer service with a no-risk guarantee, not only will your customers and clients believe you're being sincere, but this is also a great opportunity for you to now make some kind of an offer to your customers. To ask them to let you prove yourself to them, at no risk. Something like a one-time-only, "Let us make it up to you offer."

What cements this, is the guarantee you're giving, so make sure it's completely risk-free, and if possible, risk-free "plus." So maybe you can offer a money-back guarantee, "plus" $25 for any inconvenience caused.
This is THE fastest and most honorable way of turning things around and making a perceived weakness... your newfound strength.

Not to mention, the credibility and integrity you'll have with your customers for taking responsibility for your actions.

Always turn a weakness into a strength. Always turn what's unique about you, into what's normal, and then justify how anything else other than this, must be inferior.

If you're smart enough to do this, you'll make a killing, plain-and-simple. Just make sure your business strategy is consistent with what you're good at, and of course, consistent with what your marketplace wants.

Direct Marketing Postcards - How to Increase Marketing Campaign Response Rates

Direct marketing postcards are one of the oldest tools of the trade. Businesses online and off have been sending out brief postcards for years. The goal is to get the word out when they have a big sale or pick up a new product, as well as just to keep their name out there for branding purposes. With the popularity of online marketing today many businesses are turning away from direct mail marketing, but this is a big mistake.

Sending postcards through "snail mail" is just as effective today as it was years in the past. In fact, when done correctly, a direct marketing campaign using postcards can be more effective than an email marketing campaign.

Email campaigns are useful, but everyone has spam filters on their email account and many delete email messages before they even open them. With snail mail you at least have the moment that they draw the postcard out of the box and glance it over. If you can grab their attention in that moment you can get them to take action and go the next step.

That first glance out of the mailbox is equivalent to the subject line of an email marketing message. The difference is with direct marketing postcards you don't have just words to play on. All of these things play into how responsive someone is to a postcard:

* The images
* The fonts
* The message

One very clear, interesting image is all it takes to grab the attention of someone who has just drawn your postcard out of their mailbox. The image has to be relevant to whatever you are promoting with the postcard, but otherwise you are encouraged to use your creativity and come up with something that will really grab interest.

The message of the postcard and the font used can also grab the viewer in the moment they give it that glance-over. The font has to be very clear and easy to read and a bold color that pops off the background helps as well.

Avoid cluttering up the postcard so there is nowhere for the eye to focus. Pick one small message and create one great headline that will jump off the postcard at your viewer. Smaller font can be used for additional details, but be sure it doesn't clutter the main headline so it stands out clearly with a second's glance.
All of these things have to come together in order for direct mail postcards to bring the best results. Some common mistakes that can reduce the return rate on a postcard campaign include:

• Putting more than one product, service, or main idea on a single postcard.
• Cluttering the postcard with images so none of them stand out.
• Using very small fonts or type print that is very difficult to read.
• Using imagery or headlines not directly related to the business or promotion being advertised.

In conclusion, it is also important that you have a really great list of addresses to use for your direct marketing postcard campaign. If you aren't sending the postcards to people within your target market you aren't likely to get the response you really want. Make sure to find a list that includes people who may actually want to take advantage of your promotion.

Attending Live Events - This is a Marketing Strategy That Will Build Your Internet Business

Attending live events has been the best way for me to connect with new prospects and continue my education. Last year I attended 13 conferences and seminars, and my business took off like gangbusters. I believe you must think about your strategy for doing this before you sign up to attend a live event, in order to make the most of it in the months to come.

My mentor, Armand Morin, puts on at least seven events each year. I usually attend most of these, depending on my schedule. I always go to Big Seminar, and this year will be the last one. I get a lot out of hearing the different speakers and connecting with the people in the audience. In 2009 I won 25K in his 'Better Your Best' contest, and this year I get to crown the next winner.

His other events consist of only his training. Three full days of learning how to make changes to my online business has made a huge difference to me. I choose which of these events to attend by taking a look at the venue - my goal is to be in as many cities as possible - and to make sure it fits with my personal schedule.
I also attend several events each year that are held by people outside of my marketing circle. This enables me to meet people I would otherwise not have connected with, and to learn other perspectives on building my own business on the Internet. I also do lots of business while I am there.

Write down your goals for the coming year, and see if attending seminars and conferences would be a good addition to your business model.