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Database marketing combined with direct mail gives you tangible reach and power, not to mention lower costs.

You can then create a direct mail piece tailored to your specific audience and message. Using Microsoft Office Publisher, a business publishing and marketing materials program included in Microsoft Office Small Business Edition, you can create direct marketing pieces efficiently and economically using templates provided within the product. You can also download direct mail templates from Office Online (See Additional Resources for more details). Or, if you’d prefer, you can work with an outside design agency to create your direct mail piece.

Manage Your Expectations

Precisely targeting consumers who are likely to be interested in your products or services hardly guarantees buyers, of course. Having a well-targeted list increases your odds of success. But parents who receive that realtor’s postcard, for instance, might have no desire to move.

Average response rates for direct mail vary considerably, depending on what you’re selling, the package’s appeal, how distinctive your offer is, and the quality of your mailing list.

Overall, a good return on mass mailings to new prospects runs .1 percent to 5 percent. A 2 to 3 percent response is excellent. Anything near 5 percent is spectacular. When it comes to mailings to loyal customers, however - say, your top 10 percent of big spenders - you should expect returns closer to 30 percent and up. Successful mailings depend on clearly defined targets and goals.

Here are the steps to take that will reel in results.

1. Define Your Objectives

Too many entrepreneurs dive into direct mail without a clear-cut strategy. Before drafting copy or evaluating lists, make sure you understand your goals and know what you want the mailer to achieve.

Direct mail can:

• Generate sales.
• Bring in foot traffic.
• Build recognition or brand awareness.
• Acquire new customers or referrals.
• Upgrade customer service.
• Respond to competitors.
• Support other marketing initiatives, such as newspaper or radio ads.
• Build customer loyalty by rewarding top-tier customers.
• Expand your market to a wider audience.
• Test the appeal of new products or services.
• Deliver company news such as upcoming sales or a branch opening.
• Act as a warm-up for later cold calls.
• Stimulate higher purchases from existing customers.

A recent survey completed by the United States Postal Service found that the top three reasons for increased frequency of direct mailers were company growth or expansion, change of strategy, and introduction of a new product. Make sure you’re clear about what spells success. Then make sure you don’t muddy your chances by setting too many goals at once.

2. Test Your Return on Investment (ROI)

You can’t judge a direct mail campaign simply by how many sales you generate. Think about it. Ten purchases from a 1,000-piece mailing may add up to a 1 percent response, but what’s your net cost? If you shell out $10,000 for the mailing, then 10 orders cost you $1000 each. Did you turn a profit? If not, time for Plan B. Recalculate your costs and package.

Figure out how much you must earn from a direct mail effort, not the number of sales. Test your assumptions with a smaller mailing to a select group of your overall list (sometimes called a nth mailing, because it goes to every nth fraction on the list). That will give you enough feedback to edit or refine the package and budget before committing.

3. Polish the Offer

When drafting the copy, look, feel and offer for your mail package, consider the 3 S’s:

Simplify. Do not use this opportunity to brag about your company or include essays about the firm’s history. Inform your customers about the benefits of one item or service. Don’t confuse the customer with choices.

Specify. Tell him about the offer upfront (and preferably on the envelope). Then tell him again. Spell out details - clearly.

Showcase. Put yourself in the customer’s place. Is this an offer you’d respond to? Make sure it’s foolproof. Gift certificates usually work (you can create them

in Publisher or download them from Office Online Template Gallery). Or, try free samples, discounts upon walking into the stop or salon or buy-one-get-one-free. For business-to-business marketing, options include offering seminars, white papers, and discounts.

Don’t forget your call to action. The more ways you allow a customer to respond, the better your chances of getting a response. That includes fax-back and toll free phones, e-mail, postage-paid cards, credit card payments, long-term payment plans and so on.

4. Reward Response

Whenever a customer responds to a direct mail offer, make sure you fully recognize it. Adding a little extra to, say, a free sample offer will keep your new customer coming back. You might build such bonuses into your campaign budget.

Or, you can reserve some extras for an attractive segment of your market - now easily identified with Outlook’s Business Contact Manager program. For instance, if you have key customer or sales lead data filed in another software application, such as ACT! or Microsoft Excel, you can easily import that information into Business Contact Manager to gain a comprehensive, integrated view.

5. One Message Won’t Do

Plan your campaign so you reach the same prospects more than once - preferably more than twice. It’s more effective to send three mailers to 1,000 prospects than one mailer to 3,000 - though the cost is the same. If your list is honed and qualified, then you’ll get better results from frequent mailings. Also consider a timed or sequenced campaign. For instance: Postcard 1 is a teaser. Postcard 2 is a puzzle or half the offer. Postcard 3 delivers the gift. That way, you set up both expectations and recognition.

Finally, perhaps the best part of direct mail is how quickly you discover whether or not it’s working. Results are measurable and definite, with information you can act on. You learn exactly what hooks your customer - or doesn’t. And direct mail is flexible. You can recalibrate or refine at any time.

And when you do invest in a winner, you can rely on it to keep attracting business - so long as you update that list, of course.

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Tips on How to Make Your Direct Mail Marketing Campaigns More Effective.

A recent survey by International Communications Research, commissioned by Pitney Bowes, found that 73% of consumers prefer mail for receiving new product announcements or offers from companies they do business with, as compared to 18% for email. Mail was also preferred by 70% of respondents for receiving unsolicited information on products and services from companies with which they are not currently doing business.

For confidential communications such as bills, bank statements and financial reports, 86% of respondents preferred mail as their channel of choice, as compared with 10% for email, identical to the response in the 2004 survey, which also showed consumer preference for mail at 86%.

Stacy DeWalt, Vice President of Vertical Market Development and Marketing, Pitney Bowes Management Services, said “The research… shows that consumers still prefer mail over email… we continue to find that mail is the most effective marketing tool businesses can use when communicating with their customers.”

The survey also found that 31% of consumers are less likely to discard unopened mail, including new product brochures, catalogs or other advertising materials, while 53.2% are likely to discard unsolicited emails about new products. “In an environment crowded with marketing messages, it’s important for marketers to utilize the most effective mailstream tools available,” said Jeff Marshall, Vice President of Customer Marketing for Pitney Bowes Global Mailstream Solutions. “While mail is the preferred vehicle for reaching consumers, businesses and organizations need to remember that it is critical to target consumers with relevant messages at appropriate times to get a meaningful return-on-investment.”

Specific advantages consumers see in mail versus unsolicited email and telephone calls, according to the report, compared with other communications channels, survey respondents found mail to be:

• Less intrusive… doesn’t interrupt other activities (45.3%)
• More convenient… can be saved and considered at leisure (40.2%)
• Less high-pressured… lets you consider your decision (30.2%)
• More descriptive… lets you picture the offer (22.7%)
• More persuasive… encourages you to respond (12%).

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Read these great tips for networking your business!

1. Have the tools to network with you at all times. These include business cards, brochures about your business, and a pocket-size business card file containing cards of other professionals to whom you can refer new business. You may wish to also have a name badge.
2. Set a goal for the number of people you’ll meet. Identify a reachable goal based on attendance and the type of group. If you feel inspired, set a goal to meet 15 to 20 people, and make sure you get all their cards. If you don’t feel so hot, shoot for less. In either case, don’t leave until you’ve met your goal.
3. Act like a host, not a guest. A host is expected to do things for others, while a guest sits back and relaxes. Volunteer to help greet people. If you see visitors sitting, introduce yourself and ask if they would like to meet others. Act as a conduit.
4. Listen and ask questions. Remember that a good networker has two ears and one mouth and uses them proportionately. After you’ve learned what another person does, tell them what you do. Be specific but brief. Don’t assume they know your business.
5. Don’t try to close a deal. Never, ever! These events are not meant to be a vehicle to hit on businesspeople to buy your products or services. Networking is about developing relationships with other professionals. Meeting people at events should be the beginning of that process, not the end of it.
6. Give referrals whenever possible. The best networkers believe in the “givers gain” philosophy (what goes around comes around). If I help you, you’ll help me and we’ll both do better as a result of it. In other words, if you don’t genuinely attempt to help the people you meet, then you are not networking effectively. If you can’t give someone a bona fide referral, try to offer some information that might be of interest to them (such as details about an upcoming event).
7. Exchange business cards. Ask each person you meet for two cards—one to pass on to someone else and one to keep. This sets the stage for networking to happen.
8. Manage your time efficiently. Spend 10 minutes or less with each person you meet, and don’t linger with friends or associates. If your goal is to meet a given number of people, be careful not to spend too much time with any one person. When you meet someone interesting with whom you’d like to speak further, set up an appointment for a later date.
9. Write notes on the backs of business cards you collect. Record anything you think may be useful in remembering each person more clearly. This will come in handy when you follow up on each contact.
10. Follow up! You can obey the previous nine commandments religiously, but if you don’t follow up effectively, you will have wasted your time. Drop a note or give a call to each person you’ve met. Be sure to fulfill any promises you’ve made.

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