What Response Rate Will Your Mailing Get?

response rateIt’s one of the most common questions new direct marketers ask.

A few years ago, The Direct Marketing Association analyzed over a thousand mailings and found that the average response rate was 2.61%. However, your mileage will vary. I’ve gotten 11% at The DMA, and was delighted to achieve .2 or even .4% at The Economist.

Here are a few general guidelines:

How to improve response rates

  • Offer something for free or at a low cost
  • Use a targeted list (not the biggest, not the least expensive, but the one that best matches your business and your product)
  • Aim to generate leads rather than direct sales
  • Require a low level of commitment (in time, effort, or money)

Factors that decrease response rates

  • Response requires payment
  • The list doesn’t match audience well enough (sending pooper-scooper offer to people who don’t own dogs)
  • The product or service is expensive
  • Responding requires a high level of commitment (in time or money) or it’s just too hard

For example, this mailing will get a great response (but may bankrupt you)

(sent to a list of men between 35-55)
Free 60″ Sony Plasma TV
Claim yours at www.freeTV.com

This one is guaranteed to fail:
(sent to a list of women ages 25-25 in New York City)

Free Whale Blubber!
Claim yours at www.whaleblubber.com

You’ve got to balance cost, commitment, offer, list, copy and design to maximize your return.

12 Ways to Turn Your Failed Marketing into a Gold Star Winner

gold star
(This post is a continuation of yesterday’s post: Top 12 Reasons Your Marketing Failed).

1. Choose your list carefully

The list/audience is the most important part of your campaign. The best list isn’t the cheapest list, it’s the one that most closely matches your ideal customer AND contains names of people who have previously responded to similar offers. For example, if you are promoting an event, you’ll want names of people who have attended (and paid for) similar events. Banking CEOs will read different blogs, Web sites, or magazines than executives in the trucking industry. Don’t try to reach everybody; just the people who fit your ideal customer profile.

2. Offer something appealing

The more appealing the offer, the better the return. It should reflect your audience’s problems (and offer a solution). If you sell water filters, offer a free tap water analysis. Why this works: 1) free is always good; 2) it gets you an appointment to meet the prospect; 3) once people see what’s in their water, they’ll be more convinced they need a filter system.

3. Make it easy to respond

Keep registration and sign-up forms simple. The fewer fields, the better. Put your contact information (online and off) on your Web site, your brochures, and your postcards. When you get questions or inquiries, answer them quickly and personally. Avoid canned responses.

4. Use the right medium (or fish where the fish are)

Twitter or texting is great for youngsters, but older people are more likely to respond to a television ad or a magazine. Research the demographics of your audience and adapt your campaign accordingly. For example, Hispanics are more likely to open direct mail than non-Hispanics. If you’re not sure, see #6.

5. Write copy that offers benefits

A guarantee is great if it’s specific: Guaranteed. Period. Or, if it offers a clear benefit: risk-free guarantee; use it for 60 days, if you are not satisfied, we’ll return your money. More on this in #12.

6. Pick two or three channels

A small business doesn’t have the time or the resources to use every possible marketing medium. Besides, your customers may not be in all those places. Instead of going “wide”, go “deep.” Focus on two or three; test to see which gets the best response. Or, survey your customers and ask how they prefer to be contacted.

7. Create an emotional selling point

You may think you’re selling say, water filters, but you’re really selling safety, purity, and peace of mind. Focus on that, not how many particles per million your system filters out.

Put it in terms that speak to your customers about their hopes, aspirations, and dreams. What do they want? To save time? To feel better? It doesn’t have to be complicated. An employer with chronically late employees may dream of someone who comes in on time.

8. Talk about your customers’ problems (not your 25 years in business)

Instead of discussing what you do, or how long you’ve done it, reframe the discussion to focus on the customer. Understand their headaches, and offer them a painkiller.

For instance, trade show exhibitors often have to pay high shipping and delivery fees to transport their exhibits. The fact that your exhibits are 28% lighter may seem obvious to you, but it will be a godsend to your customers.

9. Stand out from your competitors

What makes you special or remarkable? Is your service worth talking about? Your guarantee? Your biodedegradeable detergent bottles?

Some examples:

  • Tumi guarantees their umbrellas. If it’s broken, they’ll replace it. No questions asked, no arguments, no filling out your name, phone number, and mother’s date of birth. Just guaranteed.
  • AppleCare will fix your Mac; even if they have to send someone to your office to do it.

10. Write a great headline

Many “award-winning” ads have failed in the marketplace. Why? Because the judges read every word, knew the industry, and were familiar with the contestant’s work. The public doesn’t do that. They’ll glance at the headline, and if it’s appealing, they’ll skim the rest. Here are some tips forwriting headlines that sell.

11. Specify exactly what your customers get by using your product

There’s a reason that Ivory soap is marketed as 99 44/100% pure. It stands out more than nearly 100% would. Many years ago, brewers advertised that their beer was pure. Big headlines proclaimed each brand’s purity in ever increasing type sizes. Then, Schlitz started showing a plate glass room with beer cooled in filtered air, describing how each bottle was washed four times in live steam, and how the brewer drilled down 4,000 feet for pure water.

The truth was that ALL beer was made that way, but nobody said so (since it was “obvious” to the brewer). It wasn’t to the audience though. Beer sales shot up and Schlitz went from 5th to #1 in a few months.

The pictures made the brewing process look different, the copy demonstrated that it WAS pure, and the ads created an emotional reason to buy the beer.

12. Demonstrate you solve problems the customer worries about

Use their language (not industry jargon). Small business owners won’t know (or care) that your computer security software has automated secure offsite incremental backup, redundant connection methods, and intrusion prevention with automatic addition of entries while under attack. They will care if you tell them that it cuts down on the threat of viruses, drastically reduces junk mail, and automatically keeps data safe from attack.

Photo: porcelaingirl (feelslikeceleb)

Top 12 Reasons Your Marketing Failed

fail test1. Sending a mailing to the wrong people.  A free set of steak knifes won’t get a response from vegetarians.

2. Offering something nobody wants:  free dog poop!  Or, a bra dryer!

3. Making it hard to respond.  Nobody can find the telephone number, see the buttons, or take the time to answer 23 questions.

4. Using the wrong medium.  You’re using Twitter to reach senior citizens.

5. Writing boring copy:  “We’ve been in business 25 years.  We guarantee our work.  Please buy from us.”

6. Trying to use every medium (direct mail, email, speaking, magazine ads, directory listings, articles, and banner ads) and spreading your message and resources too thinly.

7. No emotional selling point (not what your product does, but how it makes people feel).

8. Talking about yourself (see #5), instead of about your customers.

9. It’s indistinguishable from your competitors.

10. Great copy, but a poor headline, so nobody looks at the headline or reads the ad.

11. Being too vague; promising great results without specifying what they’ll be.

12. Failing to show how you solve a problem the customer cares about (maybe a way to quickly clean up all that dog poop?).

Tomorrow, 12 ways to turn your failed marketing into a winner.

Photo adapted from: http://www.flickr.com/photos/92239147@N00/462868700/ elginwx

Why Do People Buy From You?

3D Realty Handshake

It may not be why you think. Greg discovered that people who buy green energy systems do it to be socially responsible. This discovery made his client realize that they were competing with both construction companies and charities. It also led to possible new partnerships with nature and conservation organizations.

Bodo talked to trade show attendees and found that the people who bought platinum lab materials were more concerned about durability than price.

Asking your customers questions can lead to new ways of marketing your products, open avenues for building new partnerships, and help you to better focus your marketing efforts.

There’s no point going on about the 12 colors your 42″ plasma TV comes in if what people really care about is the great picture (or the bragging rights).

How can you find out?

Ask them. Email a short survey (you can use surveymonkey or even Google docs), or make a few phone calls. Find out what’s on their minds. You may get a few surprises. You may also find new possibilities.

What Kinds of Marketing Do You Use?

Today, I thought I’d open up the floor to you (the readers). I’d like to know what kinds of marketing you’re using.

Are you mostly old school offline (TV, print, postcards, direct mail)? Or, are you focused on Web tools? Are you the king (or queen) of social networking, blog comments? Email?

Please share what you’re doing and whether you were satisfied with the results.

xurbie