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Direct Mail - the Deadly Sin Of Not Testing



by Robert Wilkinson

If there's one thing that makes direct mail a reliable method of drumming up new business, then that would have to be the ability to test if different versions of a mailing pack achieve a better return on investment. Having processed many mailings over the years, I can attest that, more often than not, clients don't test at all.

Not testing is commercial suicide. In today's competitive climate, if there is anything that can be done to reduce the cost of acquiring a customer, then it must be done. It's a no brainer.

You decrease your direct mail costs by the application of a little common sense and by testing, which produces the best response.

We'll take the example of a direct mail pack that comprises five parts in all.

The parts of the pack are as follows:

1) Envelope
2) Personalized letter
3) Brochure
4) Leaflet/Order form
5) Business reply Envelope

Looking at this, you might think it's complete -- but we've forgotten the most important part of all:

6) The data

Experience shows that the most important part of the mailing is the data, so we must test this part. A badly-produced, but well-targeted letter will almost certainly produce a better return than a well-written, badly-targeted letter.

You may have a particular target audience already decided ... for example, lawyers. You will be able to get lists of lawyers from more than one source. Those sources can be tested. You'll also have the option of mailing to a named individual, or to a job title, so you can test that too. So far, that's at least four permutations, provided you only use two data suppliers. It would be six if you used three suppliers.

If you didn't narrow your field to one sector, then the choice of tests to run could be massively increased -- but there really isn't any need to take it to the extreme.

Looking at the envelope, you have a huge number of choices here. You can send plain with a stamp, or printed with a message. You could make the material from an unusual paper, print in full color, or use different sizes. You could print different designs, or use different taglines.

Depending on how your envelope is made, you may be able to run multiple designs for a minimal charge. The nature of some jobs is that they are printed 2 or 3 or up on a sheet, so you will be able to produce equal quantities of more than one design. Even if it's not free, chances are that it won't be that expensive for a plate change.

For the letterhead: you can change the paper. Studies by paper merchants have shown a 20% increase in response just by changing to a textured paper. The copy itself on the letter can be changed. Offers can be changed.

The number of options to test here is almost limitless.

With the leaflet, the same applies as for the letterhead. Copy, material, imagery; they're all fair game for testing.

Last but not least, we move on to the BRE (Business Reply Envelope). There's not a huge amount you could test here. White or manila envelopes, perhaps? Maybe even a colored BRE? If it isn't going to cost a lot, why not try it?

Using these methods, over time, you can increase the effectiveness of your mailings. Always test, even when you think you have the perfect maling pack, continue to run a test campaign against it, even if the difference between the two is really quite small. If you continue to do this, your costs to acquire a customer will continue to fall steadily.

There is an almost infinitely large and limitless opportunity for testing if you look. Maybe it's this huge scope for testing that puts people off, but I think it's just a lack of awareness of what you can do.

You don't need to complicate things. Just run two mailing packs with one difference between them and continue to replace the poorest performer.

Robert Wilkinson is the owner of http://www.arhiann.com , a print, design and direct mail business specializing in direct mail and envelope production for small and medium sized businesses.


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IP: 38.103.63.62
Date: 08 January 2009