As a former marketing professor and current direct, social media and digital marketing consultant, I am often asked about old school direct marketing and its rules, terms and analytics. I created this simple direct marketing primer for a client who was looking to enter the direct mail space. About the author: Jim Gilbert, is the CEO of Gilbert Direct Marketing, Inc, and President of The non-profit networking and education organization - The Florida Direct Marketing Association. Jim is a former adjunct Professor of Marketing teaching at Miami International University. He can be reached at jim@gilbertdirectmarketing.com, or follow him on twitter: @gilbertdirect. or Linkedin: www.linkedin.com/in/jimwgilbert/en

1. About Direct
Marketing
Presented by Jim Gilbert, President,
Gilbert Direct Marketing, Inc.

2.  "There is only one valid definition of business
purpose – to create a customer. Companies
are not in business to make things…but to
make customers.”
-- Peter F. Drucker

3.  Direct Marketing (DM) is an interactive
system of marketing that:
 Uses one or more advertising media to effect a
measurable customer response
 Or transaction at any location
 And stores information about that event in a
database.

4.  Database used
to capture
response (and
non response)
 Data to be used
for future
decision making
and targeted
promotions! Database
Demographic/lifestyle
data
Customer contact data
Transaction data

5. Database Analysis Promotions ROI
Lifetime
value

6. Convert
inquiries
Retain
reactivate
customers
Build
loyalty
Find “Like”
customers
Cross sell
products
Database

7.  Two way communication between customer or
prospect and company.
 Sometimes called interactive marketing.
 No middle man.
 Copy writer is the “sales person”.
 Measurable, database always used. Direct marketer
always accountable.

8.  LifetimeValue (LTV): the net revenue stream generated by a
customer, or customers over time. Includes all income less
expenses. (also known as cLTV)
 Direct Response Advertising:The strategic and tactical element of
direct marketing that includes, direct mail, print ads, direct
response television and internet promotions.
 RFM (Recency, Frequency, Monetary), an analysis and list
selection tool that allows for targeting prospects and customers
from a customer database from best to worst.
 Select: a segment of a list or database. A subset of the the total
universe. Usually used to drill deeper into as list to increase
results. For instance, more recent names (selecting last 6 months
will provide better results than older names.

9.  Indirect path to final
consumer.
 Product manufacturer “loses
control” of the sales cycle.
 Manufacturer let’s go of
responsibility.
 Advertising and branding
lead the way.
 Not very efficient!
Final Consumer
Retailer
Wholesaler
Manufacturer

10.  Direct path to final consumer.
 Manufacturer retains control of
the sales process.
 Manufacturer responsible for
success and failure.
 Direct response advertising
leads the way.
 Branding seen as secondary to
getting orders, leads, web visits,
etc.
 Efficiency gained via
understanding full sales cycle.
Results & ROI
Manufac
turer
Consumer

11. List or database
Target customer
Direct response
promotion
Response and
Analysis
Decision
making/Research

12. Advocate
Multi buyer
Single buyer (try-er)
Prospect
The goal of
the direct
marketer is to
move people
higher up in
the hierarchy.
Each level has
a progressive $
value attached
in terms of
worth the the
company.

13.  Generate new customers at the lowest
possible cost per acquisition.
 Maximize customer lifetime value via
repeat purchases.
 The goals of every direct marketing
organization need to be exclusively
focused around the above!!!

14.  The process must start with
customers:
 Who are they?
 What do they need and want?
 Where are they located?
 When are they ready to buy?
 How much will they buy? How often?
 Why do they buy?

15.  Direct Mail Marketing is a “test and roll”
business!
 Test the smallest quantity possible.
 Use response and statistical analysis to project results over
entire universe
 Most test list orders between 5,000 – 10,000
 Selections: drill down into list and allow for most bang for
list renter buck (tightest match to your customers)
 Selections add revenue to list order.

16. Direct Marketing 40/40/20 Rule

17.  For success, Concentrate your efforts as follows:
 40% on finding the right list that most closely matches
your target market. (Lists are CRITICAL to your success)
 40% on developing the most compelling offer you can to
stimulate your target market market to respond.
 20% on developing creative that “speaks” your offer
benefits in the most meaningful way to your target
market.
▪ Includes media, vehicle, layout, design, format, copy.

18.  Presented by Gilbert Direct Marketing, Inc.
 Email:
 jim@gilbertdirectmarketing.com
 Blog:
 http://gilbertdirectmarketing.com/
 Linkedin:
 http://www.linkedin.com/in/jimwgilbert/en
 Follow me onTwitter:
 http://www.twitter.com/gilbertdirect/