Those Who Think Direct Mail Can't Work Haven't Tested it Properly. The Secret to This Game of Numbers is Always--Start Small. By Jeffrey Dobkin

When any of my clients tell me they've tried direct mail and it didn't work for them, I always ask, "What exactly was that campaign?"

The response I usually get is, "We mailed to our top 25 prospects and none of them bought anything. Damn, they were our best prospects, too."

I then make a left turn in the conversation and ask, "How many in-person sales calls does it take to make a sale to a new customer?"

The answers vary, but usually the number of sales calls ranges from two to five personal visits. Given that figure, here's what always amazes me: Why an otherwise intelligent person expects a sale will result faster from sending their prospect a sheet of paper in the mail.

Face it. The easiest and most persuasive way to sell a product or service to a customer is face-to-face. As you sharpen your approach, you get immediate feedback.

But direct mail is different. You must convince someone that

• You have what they want

• They should buy it

• They should buy it from you

• Yours is a reputable business

• You will send the order in a timely fashion

In addition, you must do all of the above in a way that will entice them to buy right off the bat. In other words, you must convince them to put money in an envelope and wave to it as they drop it in the mailbox.

Ugh. Very tough. But very possible.

 

THE DIRECT MAIL ADVANTAGE

In person, you can see five or six people in a day. In direct mail, you can reach thousands. Even hundreds of thousands. Hundreds of thousands in one day? That's the advantage of using direct mail. Just ask Publishers' Clearing House.

Direct mail is a game of numbers. Test small numbers first. When you hit on a winner, mail large numbers of your successful packages. This will create a realistic campaign where the odds definitely work in your favor. Direct mailers do it all the time, some with incredible profits. You can, too.

 

WHAT'S A CAMPAIGN?

If you send out 25 letters and call it a direct mail campaign, then you and I have different definitions. A one-time mailing of 25 pieces isn't a direct mail campaign. A mailing to 25 people? Sure--it's a mailing, but not a campaign.

In a campaign, more mail must be sent at one time or sent with greater frequency if it goes to a smaller list. If you need one sale (or one qualified inquiry) from every 100 pieces you send, remember that person may be in the first 25 pieces you mail or may be the 99th person in your list of 100.

What does a successful campaign look like? Let's take a look.

 

TESTING A LIST

A client of mine spent $1,000 for a short campaign selling boxes of taffy. He mailed to 2,000 mail order candy buyers at a final cost of 50 cents for each mailpiece. He received a little under a two percent response. Thirty-eight people ordered at $45 plus $4 shipping for a total of $49. The orders totaled $1,862. He shipped the candy at an all-inclusive cost of $12 per box or $456, so he made $406 in profit.

"Whew," he said. "That was a lot of work and I only made $406." And he left the direct mail business, saying it didn't work for him.

When he told me about his efforts in direct mail, I had only one question. "How long was the list of mail order buyers?" It was from a big direct mail merchant, he replied, and the list was a couple of million records.

I was excited. You see, once you have a winning package in direct mail and you just keep mailing it (seasonal offers excepted), it should just keep on bringing in the same response. So his chances are better than 95 percent that his mailing would be successful in additional mailings.

I then told him I'd be his partner and we'd test the list further. We'd buy 20,000 names and mail to them. We'd mail the same package and, figuring the same response rate, we'd make $4,060. If our response fell into that range, we'd mail to 200,000 names and clear a $40,600 profit. Then we'd mail to all two million names and clear $406,000.

And that's just what we're doing now. And we'll do even better next year.

That's how you make money and how you make direct mail work for you. Test small but reasonable quantities (100 to 200 minimum). Then increase the mailings gradually. When you find a product, an offer and a creative direct response package that works, figure out what it will earn if you increase your mailing size to run the entire list.

Then go to dinner and celebrate.

 

Jeffrey Dobkin, author of the incredible 400-page marketing manual, HOW TO MARKET A PRODUCT FOR UNDER $500 ($29.95), now has a second book UNCOMMON MARKETING TECHNIQUES ($17.95)--33 of his latest columns on small business marketing, exactly like the one you just read. Both books are available in finer bookstores nationwide or directly from the publisher at 1-800-234-IDEA. These books are completely filled with tips and techniques to make your marketing faster, cheaper, more effective and fun. You never learned this stuff in college. Mr. Dobkin cuts right through the theoretical crap and demonstrates a wealth of practical, how-to direct marketing techniques.

He is also a speaker, direct-mail copywriter and marketing consultant. To place an order or to speak with Mr. Dobkin, call (610) 642-1000. You may fax him at (610) 642-6832. Phone orders are welcome with Visa, MC or AMEX. You may also write Dobkin at the Danielle Adams Publishing Company, Box 100, Merion Station, PA 19066. Or visit him at www.dobkin.com. Satisfaction Always Guaranteed.