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everything you've ever wanted to know about direct mail...

3011 Views 13 Replies 5 Participants Last post by  mailman, 
M
Hey all,

I've been thinking about posting something along these lines for quite a while. Hopefully it will address some common questions and gives you guys the info you need to make decisions regarding your current/future direct mail campaigns. The following relates to all of you in the residential re-paint market and with the onset of the upcoming 2008 Postage increase (May) combined with the warmer weather, I figure there's no time like the present, so here goes:

In my experience, there are lots of components to a successful direct mail campaign. I could bore you all to tears about any one of these, but I tend to concentrate on three main ones:
  1. THE LIST, or "who" you're going to send something to;
  2. THE PIECE, or "what" you're going to send them;
  3. THE MONEY, both "why" you're going to send it to them, and "why" it makes sense for you to do so.
For today's post, I'll concentrate on the first one and then depending on your feedback and interest level, I'll be happy to post more.

MAILING LISTS

For painting contractors, there are usually two different kinds of mailing lists: a consumer list - names and addresses of people/households that meet certain consumer/demographic criteria like income, home value, age of home, square footage, presence of children, etc.; and a resident/occupant list - addresses only (usually) of households that meet certain geographic criteria like ZIP Code, neighborhood, Carrier Route, County, or a radius around a jobsite/shop location, etc.

Both types of lists have advantages and disadvantages and these are dependent on your needs. Consumer lists are more targeted and precise; they have more selections available; they have names; and they can go a long ways towards "pre-qualifying" your message. However, consumer lists are more expensive (naturally); they have lower quantities; and due to the overall concentrations of a consumer list (relative to what the USPS sees for an area) they mean you pay higher Postage. A Res/Occ list gives you complete and total coverage for an area; they have higher quantities (which can be a +/-); they are very affordable; and again, due to their concentrations, they help you qualify for unbelievably low Postage. However, they usually do not have names associated with the address (if they do, the names can be outdated...people move, but addresses don't); you have very few qualifiers to select from (single-family vs. multi-family); and the sheer quantities can be overwhelming.

Both types of lists are readily available from a number of sources. The only thing you should be aware of is that most of the mailing list compilers (with one major exception) offer their mailing lists on a single-usage rental basis. The reasons for this are varied, but they center around the desire to keep the lists (and the information in them) accurate and up to date and therefore, valuable. Do they enforce this? Yes. The lists are "seeded" with dummy records that end up going to one of their subsidiaries/agents. This way, if you rent the list for a one-time use and they get 5 postcards from you, they can show up on your doorstep with a van full of lawyers.
  • What type of list should you use?
  • Who do you want to reach?
  • What are you trying to accomplish with the campaign?
Let me know by posting if you think this is good info. And if you want, I'll be happy to post more.
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vermontpainter
Mail-

Nice post, thanks.

What are generally accepted as the most effective pieces?

Perhaps you could rank the top 3 types of piece and also offer some insight as to production costs of each.

I am assuming brochures would be a top item...is there any data as to bi-fold, tri-fold effectiveness, etc.?

Also, what is recommended as far as balance of text to pictures?
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M
Scott,

I'll be talking a little more regarding "the piece" in the near future. I was thinking that would be the second of three installments and I hope to get into production issues then. But, for now, I'll offer some observations:

"Most effective" depends on your goals. If your goal is to make phone ring, then an oversized postcard works well. If your goal is to provide lots of information or introduce a new product/service line, then a tri-fold brochure provides you with the necessary space for "copy" and can work well. If your goal is to stay in touch with your existing customer database on a regular basis, then a newsletter can provide the right format and frequency to do so. If your goal is to establish or reinforce your brand awareness, then perhaps a combination of all three may be desirable.

In my experience, most guys use direct mail as a means to generate leads (make the phone ring) and generate sales. Most guys don't have a ton of info to pass on to the recipient (at least at the point of initial contact); their message is short and sweet. Therefore, if I had to pick a #1 it would be the oversized postcard. It allows you the opportunity to deliver your message with a simple turn of the wrist. You don't have to factor in the "open-ability" factor (getting them to physically open the piece).

Tri-fold vs. bi-fold and pictures/copy balance are rather difficult design issues to make blanket statements about. My only observation regarding this is that two things you guys are all selling are color and service; and photo's work great to convey images of color and customer statements work well to convey good service. The balance of the two depends on your personality...both personally and as a company.
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MAK-Deco
I would like to know what a good ratio is between how many pieces compared to how big your company is. Too little is ineffective and a waste of money? too much may generate too many leads and force someone to hire guys too quickly and for go a good process for picking the right guys and or turning down leads and thus hurting any possible referral from a lead.
Just a thought I had...
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M
MAK-

Good point. Is being too busy to answer the phone a good thing or a bad thing? Maybe that's a topic in and of itself.

Regarding the ratio, perhaps a good way to do this is to work some numbers backwards...

Start with the desired end result. For example, I want my direct mail campaign to generate [X] amount in additional sales. In order to do this, my phone must ring approx. [Y] amount of times. Apply a response rate [Z] you're comfortable with (more about response rates - "THE MONEY" - in the near future) to get to a ballpark quantity.

Obviously, there's more to it than just a simple math equation, but it's a direction to consider.

Hope this helped.
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bikerboy
This is timely! Was getting ready to research a mail campaign first by going over past posts on the topic (timhag where are you) then contacting some of the companies that offer that service.

Which brings me to this question: Do you use a service that does it all or print your own and "rent a list", then mail them yourself? Any advantages/Disadvantages?
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M
BB:

When you say "you" do you mean you, or do you mean me? If you're asking what you should do, then there's a couple of ways to answer that question...but they all really come down to the question: "What's your time worth?"

Yes, it is possible to undertake a direct mail campaign on one's own. But ask around and see what everyone who has done/is doing it has to say (hint: it's not fun). And yes, there are companies that will do it all for you.

I look at it a lot like filing your company taxes. Is it possible to do it on your own? Sure. Is it cost-effective?
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vermontpainter
Mail

This is a very informative thread. Looking forward to learning more. Thanks.
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N
mailman said:
MAILING LISTS

For painting contractors, there are usually two different kinds of mailing lists: a consumer list - names and addresses of people/households that meet certain consumer/demographic criteria like income, home value, age of home, square footage, presence of children, etc.; and a resident/occupant list - addresses only (usually) of households that meet certain geographic criteria like ZIP Code, neighborhood, Carrier Route, County, or a radius around a jobsite/shop location, etc.

Both types of lists have advantages and disadvantages and these are dependent on your needs. Consumer lists are more targeted and precise; they have more selections available; they have names; and they can go a long ways towards "pre-qualifying" your message. However, consumer lists are more expensive (naturally); they have lower quantities; and due to the overall concentrations of a consumer list (relative to what the USPS sees for an area) they mean you pay higher Postage. A Res/Occ list gives you complete and total coverage for an area; they have higher quantities (which can be a +/-); they are very affordable; and again, due to their concentrations, they help you qualify for unbelievably low Postage. However, they usually do not have names associated with the address (if they do, the names can be outdated...people move, but addresses don't); you have very few qualifiers to select from (single-family vs. multi-family); and the sheer quantities can be overwhelming.

Both types of lists are readily available from a number of sources. The only thing you should be aware of is that most of the mailing list compilers (with one major exception) offer their mailing lists on a single-usage rental basis. The reasons for this are varied, but they center around the desire to keep the lists (and the information in them) accurate and up to date and therefore, valuable. Do they enforce this? Yes. The lists are "seeded" with dummy records that end up going to one of their subsidiaries/agents. This way, if you rent the list for a one-time use and they get 5 postcards from you, they can show up on your doorstep with a van full of lawyers.
  • What type of list should you use?
  • Who do you want to reach?
  • What are you trying to accomplish with the campaign?
Let me know by posting if you think this is good info. And if you want, I'll be happy to post more.
Click to expand...
Buying mailer lists can be very costly! This is why I spend time compiling list's myself. I drive around my target towns and with the voice recorder from my Blackberry I record the streets that I am interested in. I then use public search records for the street names to obtain the correct address numbers. I make my labels and address to "resident" and keep the lists and use them several times a year. I also use the same services to find homes that have sold in the last 90 days and send them mailers as well ....6 times a year. And I obtain another mailer from a private service that gives me everyone that has pulled a building permit in the areas I want for a small fee.

I have never had luck in newspaper ad's or phone books. Direct mailers are the best form of advertising I use. You can make it very profitable if you have a little imagination and are well motivated to do it yourself.

Please don't email me for my cards or the services I use. There are several samples online and many services that can be used. Do some digging.

Advertise and give yourself every opportunity available to make bids and sales. Be a Rainmaker.
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MAK-Deco
I lists that I have bought averaged about 2-3 cents per address not sure if that expensive or not, I get just the streets I select using a program that uses Google maps.

They send me the list as a excel doc in which I can mail merge into word for printing on avery labels.
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vermontpainter
NEPS.US said:
Please don't email me for my cards or the services I use. There are several samples online and many services that can be used.
Click to expand...
Can you share with me what cards/services you use? Better still, can you do a mailing for me? :thumbup:
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vermontpainter said:
Can you share with me what cards/services you use? Better still, can you do a mailing for me? :thumbup:
Click to expand...
I like to help ...but the last time I posted about mailers I got a ton emails wanting a copy of my cards and directions on how to do it. No ambition ........ There were a few guys I talked to that were very nice and I hope they do well ...but some were :jester:
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bikerboy
mailman said:
BB:

When you say "you" do you mean you, or do you mean me? If you're asking what you should do, then there's a couple of ways to answer that question...but they all really come down to the question: "What's your time worth?"
Click to expand...
Actually meant you as in you. I don't have alot of time, or am computer savvy enough (yet) to develop my own mailer and system.
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M
Got it. How about if I shoot you a PM? Thanks.
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