Direct Marketing Consultant Reveals Top 3 Response Killers

Direct marketing (or any marketing effort) suffers from these barriers in client companies. Most of them fall within the realm of common human weaknesses. They may hurt the whole business enterprise and not just the direct marketing program.

1. Worshiping at the idol of the status quo

Clients often fixate on the status quo despite evidence that shows the need for a new direction.

This management flaw remains the biggest response killer for almost all marketing programs. But the idea that "if it ain't broke, don't fix it" serves to restrain growth.

Successful direct marketing programs need a lot of work to remain successful. No matter how successful, direct response rates will drop over time. Direct marketers understand that their job entails ongoing program replacement. 

This means frequent testing designed to beat existing controls. 

Managing effective direct marketing programs over the long term requires controlled risk taking. 

2. Working in the haze of routine

Human nature has a way of lulling managers into a dangerous comfort zone.

Here's what I hear from clients who face clear evidence that they need to upgrade their processes.

- "We've worked with this vendor for over twenty years. We're not going to consider other vendors."

- "Our internal database procedures cost us new sales and opportunities. But we don't want to outsource the work. That move makes us uncomfortable."

- "Taking production outside will cost much less and deliver superior print quality. Outsourcing the work would help our customer image. But we don't want to reallocate internal jobs."

- "We don't think our prospects want to read a letter. All we've ever done is send postcards because they are less expensive than other formats. So we don't want to test other options."

3. Not challenging the company's direct marketing efforts

Clients should never assume that their vendors or staff observe best direct mail practices. Yet many clients rarely challenge the marketing work so long as it is profitable. 

Perform these evaluations at least once every one or two years.

- Audit the database and direct mail deliverability levels.

- Audit all direct mail production to assure quality and competitive pricing.

- Check internal procedures for accurate database input processes.

- Review inbound telephone scripts, inquiry response procedures and  accurate response tracking.

These three response killers do not go away. These are not tactical issues but strategic management issues. If left alone, they will kill long term marketing success.

Experienced consultant may attempt to correct these issues. But it is a waste of talent and energy without CEO support.

Have you found ways to overcome these barriers in your company? If so, how did you do it?

Ted Grigg

Ted Grigg is a direct response strategist who helps growth-focused companies reduce risk by identifying weak assumptions before they become costly mistakes.

Over the course of his career, Ted has evaluated several hundred million dollars in direct response testing across direct mail, digital, print, television, telephone, and other channels. His work combines direct response strategy, acquisition economics, customer analysis, creative evaluation, offer development, and disciplined testing.

Ted has worked on both the client and agency sides of the business. That experience gives him a practical understanding of the pressures facing executives, marketing teams, agencies, and service providers—and of the problems that arise when activity, media volume, or creative preference replaces a clear economic objective.

His consulting work helps organizations examine such questions as:

  • Are acquisition goals economically realistic?

  • Is the allowable Cost Per Sale supported by customer value?

  • Are targeting, offers, creative, media, and response paths working together?

  • Are tests structured to produce reliable business decisions?

  • Are unproven assumptions being treated as facts?

  • Is the organization measuring sales outcomes rather than convenient proxies?

Ted’s experience includes the development of direct mail and multichannel acquisition programs for insurance, healthcare, financial services, technology, nonprofit, manufacturing, retail, transportation, communications, government, and business-to-business organizations.

For a national direct-to-consumer insurance company, he developed a direct mail format that defeated established controls and helped expand the productive use of compiled prospect lists from less than 10 percent to more than 30 percent of total direct mail circulation within one year. He also planned Medicare lead-generation programs for more than 60 regional and national HMO and PPO organizations, with some programs exceeding sales projections by as much as 60 percent.

Ted founded Wyse Direct, a direct marketing division of Wyse Advertising in Cleveland, where he developed acquisition programs and helped launch a new technology product for Seiko Instruments by generating a predictable flow of qualified sales leads for its national sales organization. As vice president of new business development for the Grizzard Agency, he helped broaden the agency’s strategic capabilities and pursue new commercial and fundraising opportunities.

He is the author of The HMO/PPO Marketing Plan—A Step-by-Step Guide, published by Executive Enterprises, and has written numerous articles and conducted webinars on direct response strategy, testing, creative development, and marketing economics.

Ted earned a Bachelor of Arts degree from Abilene Christian University and completed two years of graduate study at Texas Tech University. He is the founder of DMCG, LLC.

http://www.dmcgresults.com
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