How To DOUBLE Your Profits From Direct Mail 

Our article published by The Scotsman Guide

by Edward O'Keeffe [1-800-573-5633]

Direct mail should be your most profitable marketing tool. Your mail should be giving you a steady stream of friendly, pre-qualified, profitable customers.

But is this still possible today? Can you really double your profits from your direct mail program? Yes you can. By cutting your costs, improving your letter, building trust with your prospects, using the right envelope, correctly targeting your audience, improving your strategy and tracking your responses you can double the return you are getting on your investment.

Why Direct Mail Works

Direct mail allows you to have a serious, private conversation with your prospects. Mail merge software lets you customize every word, every example and every financial detail on the page for each and every prospect. Direct mail can be highly targeted and 100% customized. No other media gives you this power. Direct mail absolutely works – if you do it right.

Letters or Postcards

Both letters and postcards work, but you need to match your strategy to your mail piece. For most types of  mailings, a letter is the better choice.

A letter has more credibility than a postcard, and this is important when asking consumers to trust you with their business. A letter also lets you take advantage of mail merge software. You can customize data for every prospect, and the more customized your mail piece is, the higher the response you will get. Just remember that your prospects data is private information - it belongs in a sealed letter.

And your letter is four times larger than a postcard. Consumers need information to make decisions, and the more you give them the more likely they will respond.

Postcards are appropriate for other campaigns. For example they work well to remind people about appointments, or to advertise a special price on pizza or an oil change for your car. But if you are selling anything expensive, complicated or professional then you want to send a letter.

The Envelope

The most commonly opened envelope in the United States is the plain white, #10, double window envelope. All of your bills and bank statements come in this kind of envelope and you open them all. This is the envelope you want to use.

The first thing on the envelope your prospect reads is their name showing through the window. Use this to your advantage. For example, you can print a customer account number directly above their name. It should look official and read “Customer Account Number A32 46876  0565” or something similar. When your prospect sees an account number they are much more likely to open the letter.

You can also use this number to track your clients. When a prospect calls, ask for their customer account number and look them up. You make a professional first impression on the phone, you track your response rates, and you have their information immediately in front of you.

The upper window [the return address window] is a very powerful tool for increasing response. If your customer knows who you are you can print your logo, name and return address in full color for a very professional presentation. It helps them to clearly recognize your mail piece.

If you are sending marketing materials to unknown prospective customers you can use many things in this window that will increase interest and your open rate. For Example:

FIRST NOTICE [this one always works].

Control Number: R34-5564-7780

Dated Materials Enclosed

$100 Coupon Savings Enclosed

Urgent Time Sensitive Expires 10/15/2007

Mary Johnson - You Have Been Chosen To Receive This Exclusive Offer

Office Of Financial Reporting

And of course you can add additional information - usually 3 lines. You can show a logo, photo, product, coupon, special offer - anything you want - in full color. It makes you look professional and serious.

The postage imprint on your envelope should look like first class business mail. You can use standard mail of course [and save money], but it should look like first class business mail. It should also not give the city and state from where the mail was dropped – just the zip code. You want the recipient to assume it is local, first class mail.

If you use a return address you want to use a full street address and usually a company name. Do not use a P.O. Box or any negative words. If at all possible you want a local or in-state address.

Do not write anything on the envelope – not a single word. The problem is that you are tipping off the reader. If they see the word “Mortgage” or "Sale" or "Credit Offer" or anything else they might throw it away before they see your fantastic offer and full explanations inside. Let them open the letter and read all the great reasons to call you – don’t blow it on the envelope.

Should you spend extra on those fancy envelopes with full color printing? No. If a regular white envelope will get your mail opened, save the extra 7 cents those expensive envelopes cost and send more letters. For the same money you can send 15% more mail and reach 15% more customers. Spend your money to reach more prospects.

Don’t forget – to win customers you must build credibility and trust. If your envelope is deceptive you are throwing this away. The job of the envelope is to get your letter opened. Keep it simple, professional and safe.

The Mailing List

The importance of an accurate, up to date mailing list can not be understated in direct mail. Out of date information is useless. You absolutely must have the very best list you can get.

But the key to a high response rate is to correctly match your list to your offer. The offer you use in your letter must be highly attractive to your audience or your letter will fail. So the key to a high response is to understand the mailing list you have – who those people are - and then match your letter to it.

Your letter will use every bit of information that is known or can be assumed about the prospect from your mailing list – name, address, credit data, hobbies, debt, sex, ethnic origin, likely prejudices, reader comprehension level and more. The more you know about your prospects from your mailing list, the more personal and accurate you can be in your letter, and the higher response you will get. So make sure your list is up to date and accurate. 

The Letter

To be successful your letter must make an emotional connection with your prospects. No emotional connection – no deal. Human beings are ruled by their emotions. No logical argument will ever sway your clients from their feelings. You must tap into your clients’ emotions by using every method possible. All of the ideas that follow below work with or on your customers emotions.

1. Your letter should never be about you or your company – it’s about your prospects. Your prospects do not care about you or your company – they care about themselves. Always keep the focus on what they get out of the deal.

2. Your letter must make a specific offer. No offer – no deal. Your offer must be attractive and believable. Savings of $400 a month is enough to get a reaction and it is believable – savings of $900 is simply too much for most consumers to take you seriously.

3. Do not be afraid of words – words sell. If your prospect is interested they will read several pages of text. If you can give them 20 good reasons to call you, don’t stop at 10.

4. You must write for reader comprehension. Use small words, short sentences and short paragraphs. Break up your letter with headlines and examples. Write at a 7^th grade reading level. If they get confused you will only make them mad.

5. Use the back of the letter. You are paying a lot of money to send a letter. Use all of the space available to you to tell your story. Keep them reading and you will increase your response rate.

6. Your ultimate objective is to make your prospects feel good. But first you need to make them feel a little pain. You need to remind them of a problem. If you don’t remind them of a problem they won’t reply to your solution. Never assume that they can figure it out for themselves – you must show them the problem and then show them the solution. For example: “Your rates are going up. This will cost you $634.38 per month more than you are paying now. But we have a solution that won’t cost you a dime and will actually cut your current payment by $312 a month….” It’s a problem – solution format, and it works. Remind them of a problem (and get an emotional reaction), and then offer them 100% proof beyond a reasonable doubt that you have the very best solution for them.

7. And this is key to your success –  give your prospects 100% proof beyond a reasonable doubt that you understand their problem and that you have the best solution. Prove to the reader that you are absolutely their best choice and you will win their business.

The Letter Part 2: Proof, Credibility & Trust

Your prospects each have their own prejudices and opinions. Some will believe a guarantee. Others will believe testimonials. Still others will believe certifications and endorsements. You want to use all of these and more to convince them to call you.

Before & After Examples: Before and after examples are easy to understand and highly persuasive. Thanks to mail merge technology, each client gets their own customized version. By using the prospects own financial information within the example you make it absolutely believable. You prove that you understand their current situation clearly and that you have a solution with the “After Example”.

Photographs & Testimonials: Photographs of smiling, attractive people grab attention. These photos tell your story and set the tone for the entire letter – you make people happy. A great photo makes an instant emotional connection with your reader – they can see themselves in the picture. Use happy photographs that represent the ethnic makeup of your target audience. 

Testimonials are placed under the photos. These prove that you have a record of getting results, saving people money and making them happy. Always use testimonials and photographs because people believe them.

Full Color: A full color letter makes you look professional and smart. Your letter will stand out from the crowd. Color is friendlier, and with the proper design it helps to guide your reader to read your letter. Color makes your prospects happier, and you more believable.

Certifications: You want every certification you have on your letter. Any training, licenses or awards should be listed. Your education may be standard in the business, but to the public it is special. By putting it on your letter you make it special, and you build your credibility.

Experience: Your prospects have to believe you have the experience to help them. If you started yesterday then say “Experience You Can Trust”. If you have been around a long time, “20 Years of Experience You Can Trust” is much better – but don’t use anything under 10 years.

Third Party Endorsements: You may not like the Better Business Bureau, but the public puts a lot of trust in that little logo. It is absolutely worth joining the BBB if you are sending mail. Include everything you have on your letter - BBB, NAMB, state organizations, chamber of commerce, memberships – everything.

Code of Ethics: Do you want to stand out from the competition and gain credibility with the public? Then let them know what you stand for. Remember that you are trying to get an emotional reaction from the reader. Tell them what you believe in and how you do business. If they share your beliefs they will trust you more.

Competitive Comparisons: Kick the competition - in a nice, friendly way. Just raise a little doubt about how much extra their bank is charging them. You are the bearer of good news – a friend - and they will call you for a comparison.

100% Guaranteed: Most people believe guarantees and they like them. Guarantee your service. Guarantee a fast answer. Guarantee a free application, comparison, credit report or toaster. Guarantee their satisfaction and you will win their trust.

Give Your Personal Guarantee: When the president of the company or the account executive personally guarantees a customer’s complete satisfaction, people believe it. Put your name, face and signature on it and the public will trust you.

Sign Your Letter: A letter is personal – from you to them. Make it as personal as possible by using your signature on the bottom – in blue ink. And write legibly. A scrawled signature will be interpreted as arrogant by the reader.

P.S.: Restate your biggest claim and give your biggest proof in a P.S. statement. “Our example shows that you can save over $634 a month – starting now – with no out of pocket expenses.” Headlines, captions and P.S. statements are always read. Use them to prove you can save the reader money, make them more attractive, improve their lives, keep them safe, etc.

Free Offers: A free offer will not only improve your response, it also shows you have a lot of confidence in your ability to satisfy your customer. Be absolutely confident in your letter. This will build trust with your reader.

With direct mail you must prove it or lose it. That’s the rule. Never leave your reader with any doubt about your ability to serve their needs. Pack your letter with confidence and trust and they will call you.

Increase Your Profits – Stop Paying Too Much

The fastest way to increase your profits is to cut your mailing costs. There is almost never a good reason to use first class mail. The 11 cents extra you are paying would send 30% more mail. Send the extra mail.

A full color letter in a white, double window envelope, including full mail merge, should cost about 15 cents in volume. A 1 cent savings would send 3% more mail. Send the extra mail.

Standard postage should cost around .24 cents. Always get the actual postage statement from your printer – lots of printers are making money on your postage. Take that money back and send more mail.

What you pay for a mailing list depends, but don’t be afraid to pay 15 cents or more if the list is great. Just track your results so you know what’s really working. And keep using your list until it stops performing. Also, spending money to create a great letter is smart. If you are just copying the next guy then you are not getting the results you should be.

Test & Test & Test & Answer Your Phone

Track everything. With mail merge software you can have a different name, reference number or phone number on every letter. You can also have a different opening sentence or a different offer. This allows you to track your responses. If you can get two more calls per 1,000 letters you could add 25% to the bottom line.

Don’t forget to answer your phone. Statistically less than half of inquiries will leave a message, and 75% hang up after 35 seconds. You need a top notch salesperson answering the phone - even if that means you have to carry around three cell phones.

Finally, don’t let your business depend on a single letter or a single kind of customer. A shift in the industry could put you out of business. You should have several letters targeting at least two different groups.

Direct mail should be your most profitable marketing tool. With the right focus and strategy you can win more business, grow your company and double your profits.

Thanks - and Good Luck With Your Mail. If you are ready to jump start your marketing then call the author of this report, Edward O'Keeffe, directly at 1-800-573-5633. Mail Wholesale & Save!