Small businesses may be missing out on an important marketing channel if they miss direct marketing opportunities. In this presentation, Jeanne Grunert, president of Seven Oaks Consulting and an award-winning direct marketer, shares and dispels 5 myths many small business owners believe about direct marketing.
Five Direct Marketing MYTHSDispelledJeanne Grunert │ Seven Oaks ConsultingDirect marketing, content marketing, writing serviceswww.sevenoaksconsulting.com
What Is Direct Marketing?Direct marketing is an interactive system ofmarketing that uses one or more advertisingmedia to effect (cause) a measurableresponse and/or transaction at any location,with this activity stored on a database.- Direct Marketing Association
Why Use Direct Marketing?• Direct mail continues to achieve an averageof 4% successful responses. (DM News)• Direct marketing is personal, one-to-onemarketing.• Direct marketing is measurable – for everydollar spent, you can calculate the ROI.
Examples of Direct Marketing• Direct mail letter• Direct mail package• Catalog• Email marketing• Radio commercialswith direct salesmessage• Online ads calling for adirect response• Print ads with tear off,mail in order form• Television“infomercials”• TV sales channels suchas HSN, QVC
Myth #1: People Hate “Junk” MailThe Myth• People hate junk mail. Idon’t read it, so nobodyelse does, either!The TRUTH• 64% of consumers surveyed“still value” traditional mail(USPS)• Direct mail boasts a 4.4%rate, compared to emailsaverage response rate of0.12% (DM News)• Direct mail has a responserate of up to 10 to 30 timesthat of email — and evenhigher when compared toonline display ads (DMNews)
Myth #2: Bad for the EnvironmentThe Myth• Direct mail contributes ahuge amount of waste toour landfills!The TRUTH• Direct mail makes up lessthan 2% of all householdwaste (DMA).• Catalog marketers arechanging to recycled paperproducts.
Myth #3: I don’t need to use DM.The Myth• I don’t need to use directmarketing. I run an ad inthe newspaper.The TRUTH• Do you know how manypeople your ad actuallyreaches – and how manyresponse? And of thatamount, how many buyfrom you?• Direct marketing can tellyou this, and more.
Myth #4: Direct marketing isexpensive.The Myth• Direct marketing is reallyexpensive. Only bigcompanies can afford it.The TRUTH• Email marketing isinexpensive if you developyour own list.• Direct mail can beinexpensive usingpostcard marketing.• ROI comparisons mayindicate DM has a lowercost per contact thantraditional mass media.
Myth #5: I tried it and it didn’t work.The Myth• I sent out a directmarketing letter once. Itdidn’t work. So, therefore,direct marketing doesn’twork.The TRUTH• One letter that didn’t workdoesn’t mean the entiretactic is wrong for yourbusiness!• The offer may have beenweak, the timing poor, orthe wrong list chosen.
How can my business start a directmarketing campaign?• Do you have a product or service to sell to aunique, easily identifiable audience?• Can that audience be reached through directmarketing channels?• Can you establish systems (database) totrack responses?• Are you willing to integrate direct marketingwith your other advertising?
What contributes to DM success?OFFER40%LIST40%CREATIVE20%Contribution to DM Success
Contributions to DM CampaignSuccess• Offer = 40%– What you are selling– Premiums or gifts with purchase (incentives)• List = 40%– Audience, email list, mailing list– Target the right customer with the right offer andyou have a good chance of success• Creative = 20%– Visual design, format– Graphics, photographs– Copy (Headlines, copy, call to action)
Get Started• Do you have a marketing plan for your smallbusiness? Quarterly and yearly plan? Writeone or hire someone to write one.• Start your mailing list or opt-in email listnow.• Run the numbers – can you realistically sellenough to recoup your costs and make aprofit?
THANK YOU!Jeanne Grunert, PresidentSeven Oaks ConsultingDirect marketing, content marketing, writing services for small businesswww.sevenoaksconsulting.comEmail: firstname.lastname@example.org