What's More Important to Response? The Creative Execution or the Offer?

Written By Ted Grigg

This question came up when the editor for Inside Direct Mail contacted me for an interview related to offers in direct mail. I knew that he was contacting a number of other direct marketers in the US. So I was interested to see what he came up with.

Lo and behold. I was the only one in the bunch who thought that the offer was the most important predictor of response!

I am quoting from the June, 2008 issue of Inside Direct Mail in the article entitled "Expert Offer Development Can Ignite Response" by Etna Bolt.

DMCG Results

Here's how the interviewees answered one of the questions.

"Question: Do offers drive response more than creative does?

Gary Hennerberg, owner of the direct marketing consultancy Hennerberg Group in Colleyville, Texas answers: If you're a believer in the 40/40/20 rule[List/Offer/Creative], then you'd say offers drive response more. My opinion, molded by tests I've conducted, is that creative drives response more than offers. I think the 40/40/20 rule no longer applies in our culture in which we live today.

Bill Shelton, president of the direct marketing agency Left Field Creative in St. Louis answers: As a brand creative at heart, I want to tell you that it's all about brand and all about message, but I think it works hand in hand. I don't think you can necessarily say that one is more important than the other... if we do our job and market the creative properly, we're going to get a better response if we have the two working hand in hand.

Ted Grigg, principal of the direct marketing consultancy DMCG based in Lewisville, Texas answers: The offer is central and holds a starring role in effective direct response copy. This does not mean that the offer is the main selling proposition. But it is the spark that stimulates interest and prompts immediate orders... the offer is a major part of the creative development. I do not separate the two functions. I believe that yes, the offer is more important in predicting response than the creative execution.

Perhaps we should list the elements that define creative execution. These include the following.

1. The design including photography, color, typography and general look and feel of the package.

2. The tone of the language.

3. The use of case studies or testimonials to support key product benefits.

4. The package format such as self-mailers versus classic envelope packages.

5. The main or unique selling proposition.

6. Production quality such as stock and color registration.

7. The list of benefits of the offered product.

There is no doubt that in the absence of a compelling offer, that professional application of all of the creative execution elements will make a big difference in response. But a good offer often makes the difference between break even response and a real money maker package.

In fact, in the absence of a highly targeted list or a strong offer, the best package in the world will not perform well. So it takes all three --- proper targeting, great creative execution and a good offer.

In my experience as a consultant, all three areas are challenges for clients. But where they most often fail is in the development of a strong offer.

The big direct response enemy for all marketers is human inertia. And good offers overcome this powerful human trait. Without it, most direct marketing efforts will not get enough response to warrant expansion.

The major predictor for dramatic response increases rarely involve yet another tweak of the creative execution elements. It usually involves a new offer.

What is your take on this issue. Can you share an experience that would help answer the question about offers versus creative execution?

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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