| by Sharon Macaluso, Georgia SBDC As a small business consultant, I hear it all the time: "Direct mail is a total waste of time and money. I sent 5000 direct mail pieces and no one responded." It is true that direct mail can be a costly and ineffective way to market a small business. With typical response rates of 1% OR LESS, why would anyone put effort and dollars into this form of marketing communication? The answer is that direct mail can be effective in certain situations. Direct mail, which would include postcards, brochures, letters, or catalogues, should require a response in the form of an immediate purchase or inquiry. Just mailing information can be a futile effort. In addition, direct mail works best for those businesses that have a specific target market. Small businesses, to be successful today, SHOULD have a highly specific target market or "niche." If the situation calls for direct mail marketing, perhaps the most important part of the mail campaign is "the list." Why? Because the first consideration in any marketing activity is to define the most likely customers. The more precisely a business can define its target market the better it will be able to aim mailings to this audience. As a result, it will receive better response rates. prenotazioni albergo BolognaMail lists can be created internally or through list rental. The least expensive list would be one the company creates on its own through its existing customer database or through resources such as the yellow pages or Hanes Directory. If a company decides to rent a list from a mail list management company, also referred to as a "list broker," there are a number of important choices the company should make. Listed below are just some of the questions a small business owner should ask the broker: - five star hotel in ParisHow old is the list? People move, businesses go out of business, move, or have new owners. Although most reputable companies will pay for postage on returns or offer a certain guarantee level, this small compensation doesn't help much when the company is staring at sacks of useless mail pieces.
- What is the guaranteed delivery percentage? Never accept anything less than 95%, and even this rate is only fair. There are companies that provide a 98% or 99% guarantee.
- How targeted is the list? Consider the company selling a clothing line to pregnant women. A list of women who have purchased maternity clothes from another manufacturer or a list of women who subscribe to a magazine targeted specifically to pregnant women would be preferred over a list of women who are simply in their childbearing years.
- ERROR MSGHow recently and how frequently have the consumers on the list made a purchase? Consumers who have made frequent purchases and have purchased in the last one to two months make up a preferred list.
- How often has the list been rented? One that is rented too often may be experiencing mail burn-out. Likewise, a list that is never rented may not be garnishing positive results.
Mail list companies will require a minimum purchase, typically anywhere from 2000 to 5000 names, whether all the names are used or not. Costs will vary depending on the makeup of the list—consumers versus businesses—and the list source. These costs range on average of $60 to $200 per thousand. Before investing in a list rental, the small businessperson would be wise to seek counsel. Consultants with the network of Small Business Development CentersBudapest hôtels may help the business owner determine if direct mail is appropriate and, if so, whether the list should be created internally or rented. Other issues in retaining the services of list rental companies will also need to be considered. Consultants with the Small Business Development Centers provide free and confidential one-to-one consulting to small business owners. Continue to Part 2, Maximizing Response > > See also: Marketing, Advertising & Sales |
