Is It Okay to Break the Rules?

Rules are made to be broken. At least, that’s the way the old saying goes. Many so-called “rules” are simply guidelines for what most people think is acceptable.

For instance, you should change your car’s oil every 3,000 miles. Always put your napkin in your lap at dinner. Only wear white shoes in the summer.

If you break these rules, what’s the worst that could happen? Your car’s performance might decrease. You stain your good pants. You look goofy wearing white shoes in January.

But what if there’s an upside to breaking the rules?

You discover that your car performs just as well when you change your oil every 5,000 miles, and you save money on oil changes. Or, you find that wearing your napkin tucked in at your neck keeps you from staining your shirt. And, you start a hot new fashion trend by wearing white shoes in winter.

What about in direct marketing? Do we have to follow the rules?

Test your knowledge of some basic direct marketing rules. Take this true or false quiz and see how you do. Remember that these “rules” are based on what many experienced direct marketers believe. You may still be able to break them and have amazing success. We recommend testing to see what works for you. The answers are at the bottom of the page. Good luck!

1. T or F — A weak offer to a well-targeted list will produce a better response rate than an excellent offer to a poorly-targeted list.

2. T or F — As a rule, the sole purpose of envelope teaser copy is to present the offer.

3. T or F — A mailing with a letter but without a brochure will almost always outpull a mailing with no letter.

4. T or F — After opening the envelope, the prospect will look at the letter first.

5. T or F — Repeated tests have shown that the cost of providing a business reply envelope is justified by increased response.

6. T or F — About five times as many people will read a headline as read the body copy.

7. T or F — As a rule, a premium will sharply increase response. However, as the response rate goes up, the quality of responses goes down.

8. T or F — As a rule, a blue ink signature in a sales letter will produce an equal response as one printed in the same black ink as the letter.

9. T or F — As a rule, mail delivered to consumers on Saturdays and Mondays will have the poorest response rate.

10. T or F — As a rule, the most effective postage on a direct mail promotion is a single stamp.

There's a time to follow the rules and a time to break them. If you're going to break them, at least follow these two rules:

1. Test everything.
2. Test only one thing at a time.

Should the letter come from someone in marketing, customer service, or the president of the company? Test it. What is the best P.S. for your letter? Test it. Should you include a phone number to reply or just a reply device? Test it. Should your brochure be two-color or four-color? Test it.

But, be sure to try one thing at a time. Say you change your envelope, letter copy, and try out a new list. Response rates improve dramatically. How will you know which one increased response?

It's important to know the basic direct marketing rules. Then, you can go out and break them!





Answers:
1. True. If you’re mailing to the wrong people, the best offer in the world will receive a poor response.
2. False. The number one goal of the teaser is to get the recipient to open the envelope. Anything beyond that may be counter-productive.
3. True. The personal aspect of the letter makes it one of the primary elements in a successful direct mail package.
4. False. You have no way of knowing which piece the prospect will look at first. Some will go to the letter first, others to the brochure, and still others to the reply device. Each piece must be designed to capture the reader.
5. True. The easier it is to reply, the more likely a prospect will respond.
6. True. Most people are skimmers and will look at the headline first.
7. True. While more people will respond, many respond simply to get the premium. It is best to look at conversion or follow-through rates when using a premium.
8. False. Blue ink will typically pull better than black ink.
9. True. Many believe that Tuesday is the best day for prospects to receive mail.
10. False. Many marketers have found that multiple stamps pull better than a single stamp.

What Motivates People to Act?

Why are you reading this blog right now?

You may have conducted a Google search that brought you here. Or, you may have clicked through from the Allegro website. Or, maybe you simply stumbled onto it.

Why are you still reading? Simple curiosity? Are you looking for specific information? Are you just bored?

Each of these reasons can motivate someone to act. Are there other motivators? You bet. How can you use different motivators to prompt a prospect or customer to take the action you want?

The Old Motivators.
You have probably heard the famous quote by Henry Ford when talking about the Model T, “You can paint it any color, so long as it's black.” Although it has never been proven that Mr. Ford actually said that, it does capture the business approach of the early 1900s. Companies produced mass numbers of exactly the same car, tool, or bag of flour, and people bought them. Little thought was given to why consumers picked that particular product. Often it was the only choice available.

It wasn’t long, though, before commodity items began to compete with each other for the buyers’ attention and money. For instance, flour companies began to gain brand recognition and repeat purchases by creating bags with bright colors and flower prints. Women would then recycle the bags to make clothes and quilts. The flour had appeal because its bag could satisfy multiple needs.

Soon companies discovered that sales and discounts were a great motivator for getting people to buy. In the 1920s, one author wrote that love, gain, duty, self-indulgence, and self-preservation were the five motives to buy. With the emergence of radio and TV, marketers began using sex and status to promote products. Marketing efforts were focused on building brand recognition through repetition and catchy jingles.

The New Motivators.
In the late 20th century, consumers’ motives became more sophisticated and complex. As people had more discretionary income and a plethora of products and services to choose from, it became more challenging to reach them with a compelling message.

As with most direct marketing topics, the experts today don’t agree on what motivates consumers to act. Hershell Gordon Lewis, in his book Direct Mail Copy that Sells!, states that the four great motivators are fear, guilt greed, and exclusivity. Bob Stone says his book Successful Direct Marketing Methods, “People respond to any given proposition for one of two reasons: to gain something they do not have or to avoid losing something they now possess.”

From the old to the new, all of these motives have one thing in common: they appeal to emotion. Most of the time, the reasons for acting on a direct marketing offer are guided by emotion and may even be irrational.

I recently bought a bright orange purse. Did I need another purse? No, I already had a purse that worked just fine. But, I wanted the orange purse because it matched my bright orange car. (That's another story about emotional purchases.) My husband just bought a gigantic crowbar. It's as tall as me. Does he need a crowbar that big? Could he live without it? Yes, but what if he should encounter a situation where he "needs" a crowbar that big? Now he's got one.

What motivates someone to buy an orange purse or a humongous crowbar? It's an emotional decision. I wanted the purse because it makes feel good to carry it. My husband wanted the crowbar because it was too cool to pass up.

Now may be the time to test new appeals and motivations. What is old may be new again. Or, it could be time for a unique, innovative approach or format that you haven’t tried before.

Just remember, people are emotional and irrational. Appeal to human nature!

When Is It Time For "Fresh" Creative?

Should you change a direct mail format if you can save on printing or postage costs? Can your design become tired? Is it appropriate to change your copy or appeal based on world events?

It can be difficult to let good creative go. On the other hand, it can be costly to change your package creative simply for the sake of change.

What the heck is “creative?” As direct marketers, we throw the word around all the time, but what does it mean? According to Webster’s Desk Dictionary of the English Language, creative
means “resulting from originality of thought or expression.”

Creativity, as it applies to marketing, is hard to define. It is elusive, yet obvious when you see it. A creative idea takes something familiar and presents it in a new and compelling way.

The goal of direct mail creative is to compel your customers and prospects to act. The bottom line is that good direct marketing creative should get results.

There are times when fresh creative is needed. The most obvious reason for a change is when response rates start to slip. However, it’s important to know why response is declining so that you can make the appropriate changes to the creative.

Here are a few factors related to your creative that may lower response.

When creative becomes dated.
Some direct mail packages seem timeless. An excellent example is The Wall Street Journal direct mail package with the well-known letter that begins, “On a beautiful late spring afternoon, twenty-five years ago, two young men graduated from the same college.” Similarly, many not-for-profit organizations have packages that have worked, unchanged, for several years. Yet, in most cases, creative can become dated over time. Graphic elements and design that was innovative and cool when first developed can begin to look old and uninteresting. Copy that had just the right tone and tempo can become flat and lose its appeal.

When your list becomes tired.
After multiple mailings to the same list, you may experience list fatigue and response rates will decline. It may be time to modify the creative to give prospects a fresh look, offer, or message. In addition, other mailers — including the competition — may be mailing to the same audience, which can detract from your response. Once again, a new creative approach can regain your prospects’ interest.

When the audience’s motives change.
Although the saying goes that people don’t change, their motives can. For instance, if your audience is maturing, they may change from being motivated by messages about entertainment and fun to messages that relate to family and security. When a product is new, the audience may be motivated by novelty, but as they become more savvy, the motive may change to value or quality. It’s important to keep motive top-of-mind in the creative process and change your creative appeal to fit the current motives of your customers and prospects.

When outside influences change.
Many external factors can impact a program’s results. For instance, in recent times, the economy has been wreaking havoc on once-solid response rates. In addition, national or global events can change the way customers and prospects respond to mailings. Even what the competition is doing can change people’s perceptions of your industry, product, or service.

When the product or service changes.
Since the product or service you are promoting is the driving force behind your mailing, any modifications can dramatically affect your creative. For instance, if you improve your product or service, add a new feature, or have something new to promote, your creative should reflect that. If a software company introduces a newer, upgraded version, the creative would be freshened up to reflect the new features and benefits.

When your offer changes.
The offer is a key aspect of the strategy behind a direct mail program. If your offer is given a fresh approach, the creative will need to reflect that as well. For instance, if you start offering a free trial, discounted price, limited time offer, amazing premium, additional benefits, or special donor recognition, the creative should promote it.

When your audience changes.
When you target a different audience or even segments within your overall target market, you may need to fine-tune your creative to better reach them. For instance, you may find that your mortgage customers vary in age, marital status, income level, and hobbies and interests. You can create mailings that talk specifically to their needs. Young couples without children may be interested in travel and leisure activities. Couples with college age children may be looking for ways to help pay for their children's education. You can develop fresh creative that appeals to each audience.

When you can save money.
Another reason to rethink the creative approach for a program is when you can gain cost-efficiencies through different printing methods or lower postage. For example, you may find that slightly modifying the dimensions of your package will allow you to save on envelope costs, print more efficiently, or meet postage guidelines that qualify you for a lower rate. You may even find that you can entirely leave out a piece of a package and still maintain the same response!

As you can see, there can be many reasons for freshening up your creative. No matter what the reason, there’s one thing you should always do: test.

Is it time to give your package a fresh, updated look? Test it. When the economy is tight, should you change your copy to be less lighthearted and more serious? Test it. Should you try a two-color brochure instead of a four-color one to save money? Test it.

You get the idea...

Are You Cutting Through the Clutter?

As consumers, we are in sensory overload. From the time we wake up until we go to bed, we are bombarded with marketing messages. You hear ads on the radio or TV as you get ready for work. You read the promotion on the back of your cereal box. You see more ads as you flip through the morning paper. Then it’s billboards and signage on public transportation. Next come e-mails, banners, magazines, telemarketing calls, more TV…

Consumers are overwhelmed. We have too many options, too many choices to make, and too much information. Grocery stores in the 1970s stocked about 7,000 items. Now we have 30,000 items to choose from. In the 70s, we were exposed to 300 to 500 ads a day. Now it’s somewhere between 3,000 to 5,000 a day.

Confusion and complexity are your enemy. Too many benefits are confusing. Complex explanations are, well, complicated. Simplicity works. Keep in mind that some of the best campaigns have simple messages. A Timex is reliable. Campbell’s Soup is good. Crest fights cavities. Read The Wall Street Journal, and you will be successful.

Simplicity works at every stage. Simple strategy. The best strategies are based on a single concept that can be summarized in a few words. Simple creative. Copy that is short, sweet, and easy to read. Clean graphics that support the message. A simple, compelling offer. Make it easy to respond. And, most importantly, make sure you follow through on what you promise.

Whether you’re talking to consumers or businesses, the first challenge is to get noticed. Here are some ideas to help you cut through the clutter:

Try a new format.
Industries often get stuck in a rut thinking that they are supposed to use a certain format. If you typically send home equity offers in a #10 envelope, try a different envelope size. If you are targeting businesses, experiment with dimensionals. They stand out in the mail and often get past the gatekeeper.

Stay relevant.
Attitudes change quickly. What used to motivate customers and prospects last year — or even last month — may not work now. Your message needs to ring true with your audience. Businesses that were motivated by containing costs may be more interested in results. Consumers may be interested in saving time. By saying something that speaks to their needs or concerns at the moment, you can cut through the clutter.

Be personal.
Part of making your message relevant is making it personal. To be more personal, you may need to segment your audience by message, offer, or location. For instance, you may find that business prospects in different industries have different needs. A software company may use your product or service differently than a financial services firm. You may have customers that are sensitive to price and want to know when they can get a bargain and others who want what is trendy or want high quality. Knowing how to talk to your customers and prospects on a personal level can help them pick you out of the crowd.

Make sure you listen.
Listen to your best customers. You can cut through the clutter by finding out what they want. Learn how they want you to communicate with them. You may find that business customers would like a separate section on your Web site that supports their needs and helps answer questions. Customers may like to receive e-mails with special offers.

Make customers feel special.
Send customers a special thank you for purchasing from you with an incentive to buy again. If customers feel a special connection with your organization, they will look for your communications.

Have a great offer.
The offer is still the most important part of a good direct marketing effort. It needs to appeal to your audience. If you’re reaching businesses, it may be a free trial, guarantee, or reward for listening to your sales pitch. If you want to intrigue consumers, you need to stand out from the competition. Try something new. The right appeal will grab their attention.

Get specific.
If you generalize, you may lose them. People want to know what they’re getting, what it will do for them, how much it will cost, and when they can get it. Be as specific as possible with your message and offer. Quote facts and figures of past success to business customers. Use testimonials or demonstrations to show consumers what they’ll get. The faster customers and prospects can understand your message and offer, the closer you are to capturing their interest and making the sale.

Keep it simple.
We need to say it again. Today’s consumers are busy. They need to understand what you can do for them right away. If they can recognize your company or organization and make a quick connection, that’s even better. Business customers will learn to recognize you as reliable, fast, or affordable. Customers will like the quality of your products, your great customer service, or how well you know them.

Even through the clutter, consumers continue to respond to marketing offers. They respond to the ones that move them. They respond to simple messages and great offers from organizations they trust. Make sure that every communication you have with your customers and prospects counts.

What To Do When Budgets Get Tight

It’s hard to turn on the TV without hearing the dreaded “R” word. You guessed it: Recession. Some economists would argue it’s just a blip on the overall economic radar while others are preaching impending doom. I tend to agree with the former outlook. In fact, it seems that America has talked itself into a recession.

The first step to dealing with a possible recession is: Don’t panic. This is not a time for radical changes in your marketing plans. We have found that the best approach is to continue doing what you’re doing.

A dangerous response to a slowing economy is to wait it out for a few months and see what happens. At Allegro, we have been talking with several companies who are putting their marketing plans on hold for a quarter or two to see how things will pan out. By delaying, these companies will end up playing a game of catch-up later on.

We recommend making minor tweaks to your current programs to take into account the changing economy. This is not a time for conducting extensive tests. If the economic downturn is temporary, which most believe it is, then by the time you have your test results and are ready to act on them, they won’t be relevant any more. That’s not to say you shouldn’t test. Once again, we would say to continue doing what you’re doing. Test as you were, but be sure factor in the slow economy as you analyze the results.

Here is a list of some things to keep in mind as you review your company’s direct marketing programs:

Look at your target audience.
You may want to really think about who you are targeting. Are you reaching the best customers or prospects for a particular product or service? Is it the right audience? You may find that your product or service is better suited for a different target market during harder times. For instance, it might be worth investigating a higher income bracket than you typically target.

Review your offer.
Does your offer still make sense? You may need to offer a different price incentive or offer a group of products or services. Many financial companies are offering customers free services if they have multiple accounts with the institution.

Think about the tone and message.
What motivates a prospect when times are good may be different than what hits home when money is tighter. Or, you may feel that your message is still right on. Unlike consumers of the
past, we are used to a certain lifestyle, and it takes a drastic shake-up for us to change our spending habits. For instance, Wal-Mart's “Save money. Live better.” theme works even better in a slow economy.

Check out the competition.
If your competition has cut back on its mailing schedule or print advertising, that’s all the more reason you should be mailing or advertising. Your customers and prospects will still be buying, and if you’re the name they see, it’s more likely that they’ll buy from you.

Look for cost-efficiencies.
While we don’t advise you to scrimp or stop your marketing efforts, we would encourage you to take a look at areas in which you can gain cost-efficiencies. For instance, it may be time to look for ways to cut production costs. Or, you may consider using direct marketing agencies that are results-oriented and can efficiently manage programs for you.

The main benefits of direct marketing are its highly targeted nature and ability to get proven results. When budgets are tight, direct marketing is often the discipline that comes through in slow times. With direct marketing, you can target those customers and prospects who are most likely to respond. In addition, you can immediately see the results of your marketing dollars and can make adjustments accordingly.

What Should You Test?

Should you test a live stamp versus an indicia? When do you test entirely new creative? Can the copy on your order form dramatically affect results?

As with many questions in direct marketing, the answer is, “It depends.” You may have heard someone say, “Direct marketing testing is a science.” And while testing requires a scientific approach, it is also an art. It takes experience, some finesse, and common sense.

If you find yourself thinking, “There’s no need to test that because it ALWAYS…” then you may be proven wrong. In direct marketing, things are constantly changing. What worked last year, last month, or even last week, may not work now. That’s why testing is so important.

Whether you’re marketing to individual consumers, businesses, or donors, you are still dealing with people. And people are fickle. Attitudes, motivations, wishes, dreams, and goals can change overnight.

Many direct marketers have found that the direct mail packages that performed well a few years ago are not working as well today. That’s why it’s important to continually test your package elements to make sure they are in tune with the needs of customers and prospects.

However, you can get “test happy.” You should be careful to test only those things that have a reasonable chance at beating your control.

Here are two key factors to consider when thinking about a test:

1) How much money will the test result save you?
2) What can you do with the results?

For example, if you are sending out a package and want to test mailing it first class versus standard mail, you need to determine if the anticipated lift in response will be enough to overcome the additional postage costs.

The point of testing is to improve your return on investment. The ROI equation can be satisfied in three ways:

1) increasing response while keeping costs steady,
2) keeping response steady while lowering costs, or
3) spending more to improve response significantly.

Big tests have the biggest opportunity. If you can work on the strategy, message, creative, and offer, test those first. In acquisition, always test multiple lists and list segments. Formats can also have a big impact on results. A 9 x 12 package versus a 6 x 9 may make a dramatic difference in response.

Sometimes less can be more. Through aggressive list testing and segmenting, you may be able to mail less with greater response. You may be able to eliminate a package insert while maintaining the same response rate. At Allegro, we once tested eliminating a premium from a package and actually increased response from certain list segments. The only way to know if you can get by with less is to test it.

There are also times that call for significant package changes. Even highly successful controls will eventually wear out. The marketplace or attitudes can change and response rates may begin to lag. Also, when testing acquisition mailings, it can be highly profitable to try an entirely new creative approach or package format. In some instances, a new package can become an instant breakthrough success.

Here are some of the significant areas to test:

• product or service features
• mailing lists
• envelope appearance
• number/type of enclosures
• strategic approach/appeal
• price or donation amount
• offer statement
• copy tone and message
• premiums
• overall package format
• timing of mailing

Always test any changes against what is currently working. If you’re going to test entirely new creative, put it head-to-head against what has been working for you. If you’re testing lists, always test one or more proven lists at the same time so you can have comparative results. If you’re testing copy, price, or offer, it’s also better to test more than one option over several lists rather than to test one package on one list. The more you are able to compare results among different approaches and lists, the more confident you can be that your test results are reliable.

Testing is part art and part science. It takes creativity, discipline, and the willingness to take some risk. And, you may just be rewarded with a higher return on your investment.

Tips to a Good Dimensional Mailing

I believe in the value of dimensional mailings. There are programs and situations in which a dimensional format can increase response and return on investment.

As with any mailing, it’s list, offer, and creative that will make the program successful. However, with a dimensional mailing, it's important to keep in mind that you will have much more invested in the mailings on a per piece basis. Here are some tips to make sure your dimensional mailing gets the response you need to make it a highly successful mailing.

Relevance is key.
A dimensional mailing needs to be relevant to the audience. The creative for the mailing should fit the audience and the message. If you include a premium, it should be tailored to fit your message. If you talk about helping a prospect “juggle” many responsibilities, then the premium might be a set of juggling balls. Send a beach towel if you’re offering ocean-front timeshares. Perhaps send half the premium or a hint of the premium in the initial mailing with the promise of fulfillment when the prospect meets with your salesperson.

Check your list – twice.
As with any mailing, the list is critical to the success of your dimensional mailing. If you’re sending a postcard, you may be okay with sending it to the wrong contact in the hopes that will be passed on to the appropriate person. With the high cost of a dimensional mailing, you want to be sure you have the right contact. It’s worth an upfront phone call to clean and update your list before mailing. An added touch is to let the person know that you will soon be sending them an oversized package.

Write a great letter.
Your unique packaging will get you in the door, but your letter must still make the sell. You can incorporate clever puns or play with words to tie the letter to the theme of the package. Just be sure that you also clearly get your primary messages and offer across to readers. Make your letters so persuasive that your prospect picks up the phone and calls you.

Make a good offer.
Remember that the goal of the mailing is to get a foot in the door. You want to create interest and make a strong case for you company so that the prospect will take your call and agree to meet with you. Offer the prospect something for meeting with you. It could be a special rate, discount, or additional premium that relates to the upfront premium included in your dimensional package.

Maintain your company or brand image.
While a dimensional mailing is an opportunity to be more creative and stretch the branding guidelines, you still want customers and prospects to recognize that it came from your company. Use your company logos, colors, and overall design elements to tie the dimensional package in with your other direct marketing materials.

Consider a mailing series.
Sending a series of two or three dimensional mailings can be even more successful than a single dimensional. You can send items in each mailing or promise to deliver a premium at an in-person meeting. Keep the message and design similar throughout the mailings to create a consistent theme.

Call to follow-up!
Another way to increase the response rate of a dimensional mailing is to call recipients and follow-up. It is a great conversation starter. You open the call with, “Did you get the blue tube…?” or “Have you received the bright yellow box I sent you…?”

Dimensionals offer a fantastic opportunity for fun, adventurous creative, as long as it makes sense for your product or service and your audience. Make sure it’s something the audience will value. If the dimensional mailing is a let-down, the disappointment will overshadow the benefit of your offer.