Posts filed under Direct Mail

A Guide to Direct Mail in Canada

Canada Post dreamstime_xs_118255640.jpg

Direct Mail strategies that work consistently in the US tend to work in other Western societies. But the implementation process takes a different route. Canada is an example of different implementation processes that experienced direct marketers should consider before undertaking any mailing in this country.

At the time of this writing, high tariffs to produce mail in the US encourages mailers to print and mail in Canada. This is one reason why local direct mail houses and large US firms like RR Donnelley do a significant volume of direct mail in Canada. 

There is a national goods and services tax of 5% and a Provincial Sales tax 7% on production in British Columbia. No Provincial sales tax is charged on postage, but there is a 5% GST tax con postage.

One advantage to mailing in Canada is the exchange rate. At this time, every $US is worth $1.32 Canadian. Spending $100,000 Canadian dollars on mail equals $75,000 US Dollars. 

The first thing to consider is that all compiled names in Canada emanate from Canada Post. The strict privacy laws and their unique access to the Canadian census forms the nexus of available compiled names.

Canada Post offers an internal targeting service that was established about 5 years ago. For a fee, they create customer profiles using client databases to target names using demographics and Prizm 5 analytics. Home ownership, annual income, household composition, type of dwelling and so on are indexed for accurate targeting. There are well over 100 data points for each address for a file totaling 14 million address in the country.

Response lists are small and often not worth testing for some mailers due to inadequate scalability. Compiled names from Canada Post offer the primary list source for Canadian prospect mailings

When working with US or Canadian based printers, they should have a strong working relationship with Canada Post. Some large printers in Canada actually perform their own analytics having direct online access to the Canada Post files.

Another difference between US and Canadian mail are the three categories of available postage in Canada. Here are the three types of Canadian bulk mail.

  1. Neighborhood mail (NM) that distributes mail without a name or address. The price per piece is C$ .092 per piece. Postal code selection is available with clusters of 20 addresses per code in urban areas and up to 2000 addresses in rural areas. Targeting consists of all the same variable as the more expensive mailing categories listed below. But the targeting is done at the postal code level and not per household. the lack of addresses and names means that these files are not purgeable or able to delete no mail names or existing customers.

  2. Postal Code Targeting (PCT) allows the use of addresses but no names. The cost per piece is C$ 0.281 per piece. The advantages over neighborhood mail other than an actual address is the ability to make selections at the household level. The improves targetability and makes the list purgeable by deleting customers from prospect mailings and other house file names such as inquiries that require a different treatment than prospects.

  3.  Personalized Mail (PM) offers the same benefits as standard mail in the US with names and addresses. The cost per piece is C$ 0.3638 per piece. As with PCT, the names are targetable at the household level and purgeable.

There are other interesting aspects beyond the Canadian list selection processes. For example, the postage meters are customizable at no added cost with the sender’s company logo. One additional benefit is that compiled list rentals are included in the postage costs.

As for the creative executions, the formats, offers and language are identical to the US. the only exception are the spellings that follow European English norms such colour instead of color. If mailing in Québec, of course, the creative should be sent either as English with French running parallel or French only.

I hope you found this Canadian mail primer helpful Please let me know if you have questions or need support with your direct mail planning and creative development.

Posted on April 17, 2019 and filed under Planning, Direct Marketing Strategy, Direct Mail.

Three Deadly Direct Mail Myths

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The direct marketing principles in this article apply to other direct channels such as print, DRTV and permission email. These principles are generally accepted by direct marketing professionals who know what they know through empirical testing. In other words, for direct marketers, this knowledge does not come from customer surveys where customers say one thing but do the opposite when they pull out their checkbooks. But rather these answers are based on actual behavior and results taken from thousands of direct response tests performed across virtually every industry and audience.

1. Great creative execution is as important to a successful direct marketing program as the offer.

This is false.

A great offer will out pull almost any well executed creative execution.

Brawn wins over beauty in direct response marketing. In fact, slickness often reduces response. But all things being equal, make your offer easy to understand. Match it with well thought out benefit copy to show the prospect how to win by buying your product.

2. Words like FREE and INTRODUCTORY are so overused they have lost their effectiveness.

Again, this is false.

These words continue to increase response as they have for generations. I do believe, as some have concluded, that a good brand has become more important than ever in a world overflowing with new products. But wisely incorporate news and compelling FREE offers if given the opportunity.

For one high-end jewelry retailer, we overcame the concern we had about weakening the brand with words like FREE by converting the FREE offer into a Gift Certificate. The offer was a $100 free gift certificate for any past customer who purchased over $500 or more of product in a single visit if purchased within the next 30 days. It was the most successful traffic builder they had ever created.

3. Successful direct marketing copy should strive for brevity above all, because the audience of today has little time to read.

The opposite is true. Longer copy that spells out the benefits for responding to your offer now gets higher response rates. Oh, but you might say, my executive customers and professionals don't have the time to go through that much copy!

That seems logical, but long copy pulls better because your copy must neutralize buyer resistance.

Therein lies the key - the buying audience. This is the group that will actually respond to you and not everyone who receives your message. You are talking in full only to those prospects who intend to buy or respond to you for more information. Those .03%-2% of the direct mail recipients will actually read much of the copy. The balance of the recipients will scan your headline and your offer deciding not to proceed further.

Added to that, you want to do all you can to address your buying audience's questions and objections right then. It will often be your only chance to make the sale.This applies to all audiences.

I have tested long versus short copy across many professions and demographics. This included working moms, high-level executives, insurance sales representatives and physicians. The tests came back with the same answer. Write the complete story., even if it requires a lot of copy.

In future posts, I will address other assumptions about direct marketing creative work that hamstring direct mail efforts.

Posted on January 5, 2019 and filed under Direct Mail.

How to Beat Direct Mail Controls

Creating a direct mail test package

Creating a direct mail test package

If you are like most direct mail creative people, you've lost more than you've won.

Some super controls have resisted many attempts to beat them. The discouraging part is that those direct mail winners often look unlikely to win.

They follow the rules, but seem to lack the creative spark that separate them from the pack. So how do you beat them?

I think the secret lies within the offer itself. This is what makes the target audience respond to mail for high response rates. Repositioning the offer may make a big difference. For example, "two for one," "50% off" and "half price" represent the same offer. This repositioning alone may make the difference between success and failure.

Format also plays an important role

Test envelope formats containing a personalized letter and response form with a simple flyer. Stay away from heavy dependence on postcards or self-mailers. They rarely work as well on a cost per sale or cost per lead basis.

Reviewing the poor performers reveal copy and layouts to avoid. You should also look at competitor mailers that repeat. Direct marketers will not remail loosers.

Don't think great design, humor or witty copy like a brander

Concentrate on the recipient's problem and how your product will solve it. Sell with conviction, testimonials and third party endorsements. Use as much copy as you need to answer anticipated objections. Most of all, build urgency whenever possible.

Remember that direct response mail must sell. Do not entertain or impress the audience with flawless prose or award winning design. Focus on the need of an individual recipient and create an irresistible need to respond now.

Avoid stop action copy in the letter that stop the reader in the middle of your message. Mention links, phone numbers and references to other pieces in your mailing at the end of your letter. 

Successful direct mail revolves around a central theme or the main selling proposition. Don't try to do too many things in your selling message. Reduce the number of decisions your are asking the reader to make.

Strive for breakthroughs rather than incremental improvement

Breakthroughs happen only by testing significantly different creative executions. Test everything at once without worrying too about what element might make a huge difference in response.

A 25% plus reduction in the cost per sale or cost per lead qualifies as a breakthrough.

In your testing, don't spend too much time trying to figure out exactly “what” made the big difference. Take your gloves off and concentrate on testing different offers and main selling propositions.  

Posted on June 6, 2017 and filed under Direct Mail, Direct Response Creative.

How to Increase Your Direct Mail Response with pURLs

For decades, marketers believed that combining messages through many channels increased response rates. During my career, several tests proved that this strategy works most of the time.

These same tests looked at the cost of combining several channels to support each other. I tested these combinations on an A/B split basis against single channel approaches. 

For this reason, I think all companies should leverage the Internet when promoting with traditional media like direct mail. Personalized URLS leverage your direct mailing with a landing page to lift response.

Most responses today come through an Internet based application or ecommerce website. This gives the respondent 24-hour access to a user-friendly format to buy your product. 

 Notice the personalized URL in this direct mail letter.

A pURL enabled mailer merges the domain name with the recipient's name. When typing or clicking the pURL, the displayed landing page contains the recipient's name. You can also insert other relevant information that is available in your database within any landing page.

Here's an example of a pURL landing page.

According to a Boingnet study (a company that provides advanced pURL support and reporting), pURLs can increase response by 3x for B2B campaigns. This higher response assumes you follow up each pURL with a phone call, email. and other appropriate channels. pURLs that are not supported with detailed reporting and response follow-up do not work as well. Here's an instance where automation makes a significant difference.

The following flow chart shows how to set up an effective pURL system that will increase response rates and reduce your Cost per Sale.

With proper support, adding pURLS to your direct mail program does not have to keep you up at nights. Please contact me if you want to test such a campaign for your company. My email is tedgrigg@dmcgresults.com.

 

Posted on October 4, 2016 and filed under Direct Mail, Database Marketing.

The 3 Most Successful Direct Mail Formats

Self-mailer, jumbo postcard or window envelope direct mail package? How do you pick one? What package should you use to generate leads or sell your product?

Assuming you have determined your offer and selected your mailing lists, then you must choose your direct mail format.

Do not pick your format based on cost alone. The proper format will pay for itself and improve profitability. The trick is to make your decision based on what works most of the time. Do not try to reinvent the wheel until you have tested your direct mail many times.

Your first package format choice

The Classic Package

The Classic Package

Your first direct mail tests should use the proven envelope direct mail format. It's used most often because it works. The package contains three elements inserted into an outer envelope.

  1. A #10 outer envelope with single window 
  2. A personalized one or two-page letter with the address showing through the window
  3. A personalized response device produced with the letter
  4. A #9 Business Reply envelope for the response device
  5. An 81/2 X 11 flyer as needed to lift response

More often than not, added package elements will improve response rates.

Your second most successful format choice

The Snap Pac

The Snap Pac

The most effective format of all time is the official looking Snap Pac. It contains the same elements as the Classic Package. It usually beats existing direct mail controls using the same content. This rarely happens based on format alone except for the Snap Pac.

My favorite size is the 6 X 9 personalized Snap Pac containing a letter, the reply form, lift note and reply envelope.  

Some heavy mailers such as banks, insurance companies, and large associations use this format. Some companies use the Snap Pac as their super control. This means that they have been unable to beat it with repeated tests after many years.

Your third format choice

The Self Mailer Front Side

The Self Mailer Front Side

The Self Mailer Back Side

The Self Mailer Back Side

Only after you have tested one or both of the above should you go to my last format choice, the self-mailer. This mailer is self-contained using no outer envelope.

It consists of a  folded brochure with an included coupon or response piece. Postcards of all sizes fall into this category. 

Rarely containing letters, these formats work best with existing customers who know your product. Postcards do not create the emotional pull of the letter. Some self-mailers incorporate a personalized letter to create a hybrid package.

Simple postcards work best for couponing and discount offers that need little copy support.

The other options

There are other choices beyond these three formats that meet specific needs.

For example, new perfume introductions may use scratch and sniff to use another sense. A manufacturer of a new flooring material may insert a product sample in a box to flooring retailers. The applications for 3-dimensional formats are endless.

A hybrid Classic Package that contains a solid object the recipients feel through the envelope prompts them to open the package out of curiosity will increase response.

The key point when selecting formats: your first choice is the Classic package first. If that doesn't work, then another less expensive format will not likely make your mailing successful. It's better to concentrate on your offer and list testing rather than cheapen the format. 

 

Posted on August 15, 2016 and filed under Direct Mail, Direct Marketing Strategy, Planning.