The Goal Of Direct Mail

[David Hunter]

So, I just signed up for The Doberman Dan Letter and got a little welcome kit with CDs to listen to in the car.

As I was headed to the office today, Doberman Dan was talking about direct mail (I love-Love-LOVE direct mail). One thing that really caught my attention was...

The goal of direct mail is to "break even."

Not to make a profit, but to break even. Why you ask? Because, your goal is to collect as much contact info as you can from prospects so you can later sell them on your backend products... That's where the real profits come into play.

Also, your goal is to build your own "in-house" list. It's cheaper to sell to your current customers than to get new customers.

Remember this the next time you start your direct mail campaign!

[vangogh]

Interesting. I never would have thought that, but I can understand where the idea comes from. It's using direct mail to turn a prospect into a loyal customer. The value to your business pays out over time instead of in direct response to the mail itself.

From what I read though, direct mail usually does better than break even.

[David Hunter]

I never thought that either.

Also, Doberman Dan says if you're making a profit then you need to mail more out and do what it takes to get more prospects because that's where the real money is, once they become a loyal customer.

[Paul]

I assume the lesson was referring specifically to internet based businesses, where the direct mail drives the prospect to a website. I do disagree with that concept for traditional retail or services.

We did a tremendous amount of direct mail for high ticket retail furniture and the sole purpose was to get them in the store to purchase. There was no back end sale strategy. We did the same with quick serve restaurants; the point was to get them in the restaurants. Almost all local non-internet businesses use direct mail primarily for immediate conversions.

Direct mail is a great agressive and proactive marketing tool in certain circumstances, but you have to be careful with the expense. It has to be well planned and thought out.

[David Hunter]

Hi Paul,

Even if you use direct mail for furniture or restaurants, the goal is to get the new clients back into the stores and sell them other items (maybe the client bought a couch and now you want to sell them end tables, or a bed, etc.). Collect as much info as you can from the get go and then market to the appropriately.

I definitely agree it has to be well planned and thought out. Otherwise it could be a huge expense where you never see a return. Yikes!