You’ve probably heard that bad addresses can kill the ROI on a direct mail campaign. But what are the numbers behind it? Just how costly can bad addresses be?
In a webinar sponsored by Epicomm, the Association for Leaders in Print, Mail, Fulfillment, and Marketing Services, the presenter told us just how much impact they can have. Mark Rheaume, national postal affairs director for AccuZIP, provided some eye-opening numbers:
- On average, 4% of organizations’ mailing lists are undeliverable. (That’s on average. For many companies, this number is higher.)
- For mail that achieves the five-digit presort rate, the cost is $.383. This means that, for every 1,000 mail pieces returned as Undeliverable as Addressed (UAA), you lose $383.
- For standard rate mail pieces, minimum postage for presorted full-service mail is $.254. This means that for every 1,000 returned, you lose $254.
If you have endorsements in there, these numbers rise exponentially.
When you send out a direct mail campaign, you want every piece to count. That’s why things like the list, the message, the offer, the call to action, and smart targeting and personalization are so important. When that piece lands in the recipient’s mailbox, you want it to hit its mark.
Make sure that each piece reaches its intended target by regularly cleaning up your mailing list so that every piece arrives at its destination. Talk to us about services like CASS, NCOA, and data enhancement services (such as deceased suppression or apartment append) so that your direct mail delivers maximum results!
(Data taken from “How to Dramatically Increase ROI by Adding Value to Your Existing Direct Mail Piece,” sponsored by Epicomm and hosted by Printing News on May 4, 2016.)
People don’t just buy from companies they like. They buy from companies they trust. When you send out direct mail campaigns, it’s important to keep this in mind. Let’s look at five ways you can establish trust with your customers.
- Use solid, believable content. Leave the extravagant claims and cheesy superlatives to the late night infomercials. Make your headlines and body copy factual and believable. Back up your claims. Be specific so people know that you are representing the product accurately.
- Write for your audience. If your marketing copy sounds generic, recipients might not feel that your claims are genuine. It’s hard to trust a company that is willing to sell anything to anybody whether they really need it or not. Target your offers, marketing copy, and calls to action to each target audience specifically so they recognize your claims as true.
- Credible design. Marketing copy can be superficial and cheesy, and so can design. If you use five different fonts and clutter the design area with tons of images and an impenetrable sea of text, your piece will look unprofessional. If your design looks unprofessional, your company will too. Avoid super tiny fonts because they make it look as if you are trying to hide something.
- Use real people. Customer testimonials are great for establishing credibility, but they have to be from real life people. Use names, locations, and pictures of smiling faces when possible. Assure readers that these are actual people, not customers you made up.
- Proofread your text. Spelling and grammar errors don’t make for a professional image. Have a professional editor or proofreader get a final set of eyes on your copy to ensure that there are no mistakes.
When it comes to direct mail, there are no shortcuts. Be sincere. Be credible. Present not just a great product, but a company that people can trust.
Do you have enough data in your marketing list to make your targeting as effective as it can be? If not, you can work with a reputable list provider to add fields that create exponentially more value.
This extra insight can enable better targeting. It can also save on your mailing costs. For example, if you’re a home renovator, you should know whether someone owns or is renting their home. If they own their home, you want to know when it was built. If the house was built in 2015, they aren’t likely to be renovating any time soon.
Most of us know you can refine a marketing list by age, gender, ethnicity, and household income. Here is a list of some of other data types you can use, as well:
If you sell services related to the home:
- Homeowner or Renter
- Square footage and lot size
- Length of residence
- Estimated home value
If you sell services related to automotive:
- New or used car
- Make and model of car
- Estimated value of car
If you sell services to specific age groups:
- Presence of children in the home
- Presence of young adult
- Presence of an elderly adult
Other consumer services:
- Home business indicator
- Business owner indicator
- Deceased indicator
- “Green aware” indicator
There are hundreds of different ways to refine data. You can also find out if someone donates to nonprofits, likes to participate in sweepstakes or contests, or even if they are known to respond to direct mail. Some indicators are based on modeling. Others are based on data sources.
Before sending out your next mail campaign, talk to us about your marketing goals and let us help you explore the wealth of data available to greatly enhance your efforts and return even more powerful ROI!
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