How Often Should I Mail?

Let’s confine this question to acquisition and customer development activity. Let’s also broaden it to include email and direct mail.

The answer is, “As often as the advertising continues to earn an appropriate return on the investment.”

For fundraisers, it is not uncommon to mail the core names up to 24 times a year. On the other hand, acquisition appeals may go out to control lists from 2 to 4 times a year before the response rate begins to drop to an unacceptable level.

With the advent of cheap email communication, however, it is no longer enough to evaluate contact frequency based on cost. If judged on this basis only, the outcome will hurt the brand. Over-communicating with existing customers has become a real temptation for many companies in the presence of a low cost medium like email.  

For direct mail, the financial barrier restrains excessive communications.

One of my BtoC clients has a small target market and needs to generate relatively large volumes of leads. At about the 8% penetration level, their response rates began eventually dropped from 1-2% to .1-.2%.

As penetration deepens, the cost per lead increases dramatically.

Unless this client finds a way to increase the size of its database or create new product offerings that create demand with existing names, his business will decline for lack of new prospects.

In your experience, when does high frequency begin to damage the brand or when does it no longer pay to mail?

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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