Direct Mail enigma

[Mike LeCompte CPF]

Periodically and like clockwork, we direct mail our customer database. This current mailing has seen existing customes come in for work to be done and we ask"O, did you get our mailing?" A tremendous number have said "no"

Now I KNOW they've been mailed to: some offer the explanation that "O the kid (or husband or wife) probably threw it away"

So my question is: do all of you face the same problem of customers getting your mailing piece and someone in the family tossing it before it's used or seen?

And, how do you get around this or provide bigger impact?

I'm thinking of calling our top 500 customers and saying somethin glike "don't forget our offer we sent you expires in two weeks" or some such thing just to gettheir curiousity going.

Wonder if anyone else has ideas on this

[AWG]

I think it depends on the piece - we currently have 2 postcards in circulation, with fairly small (even for direct mail) response rates.

I find that our newsletters (bigger, harder to miss, more info) generate bigger and better responses.

We've even had some customers come in or call thinking they've MISSED geting the newsletter - that's usually our sign a new one is due.

Tony

[MnSue]

To track direct mail response more effectively, offer a free (something/upgrade/give away) or an added discount for "bringing in the postcard" with them at the time of purchase.

Also, display your current postcard/marketing piece at your design counter. It invites discussion - and you can better gage how the customer is reactin/perceiving your message(s).

There are many, many good marketing ideas in this forum (search archives), and great books on marketing responses that have been recommended. Search for Betty Newman's posts. She has great marketing insights.

Good luck - and stay consistant in your marketing efforts!

[Jerry Ervin]

What you may be experiencing is what they call "Top of Mind Awareness" in the advertising world.

The customer did receive your mail item. They looked at it and saw "Great Frame Up" and tossed it without giving it another thought. Then a week or three later they found something that they really wanted to get framed. Who did they think of?

The mailed piece did exactly what you wanted it to do. You can't track it because they didn't bring in a coupon or even remember getting the postcard. But it still worked.

I know that "Top of Mind Awareness" works. However, if I am unable to closely track the results it is hard for me to spend the bucks.

[Mike LeCompte CPF]

MnSue: yeah, we do that stuff too. Best marketing book I've seen period is Jay Goltz/s Street Smart Entrepreneur. Forget about all the great ideas in there, the point that he's also in the business is a huge plus too.

Jerry: yeah, know about "top of mind awareness" and using Lifesaver as a POS we can track very effectivelywhich advertising works and which doesn't

[JbNormandog]

I asked the mailman about what he thought of my mailing.

His advise was go for a larger postcard. He said the smaller ones get stuck in magazine and catalogs and don't make much of an impact.

I am begining to think about a newsletter. Has anyone that does postcards done these as well and which do you prefer?

[MnSue]

Variety is also the name of the game. Mix it up a bit so your marketing pieces don't become routine and all look the same.

And your right, Jerry, about the Top of mind awareness. That's where Coke, McDonald's, etc focus their attention - "Branding your business in the customers mind" so your business becomes the - go to - for framing.

Remember to also focus on developing the referral business and add that reminder to your marketing pieces. Ask every new customer that comes in the door - how did you hear of us? Reward the referring customer! You'll start noticing a select few people who always refer you and they can be rewarded to a nice "spa" day. It's not always directly about the frame shop - it's about the BUZZ created about the frame shop that can create business.

[Rick Granick]

We always do our postcards 5-1/2" x 8-1/2", black on bright pink cardstock. Those are hard to miss.
:cool: Rick

[Jay H]

Originally posted by Mike LeCompte CPF:
yeah, know about "top of mind awareness" and using Lifesaver as a POS we can track very effectivelywhich advertising works and which doesn't Do you put much weight in what Lifesaver tells you? I did track that for a while and abandoned it because I don’t think there’s any accuracy in it all.

I envision them driving my store a few times a week. Their sister has a photo framed and loves it. They see my ad in the paper. They heard 3 of the 20 radio spots I ran. Then when asked how they heard about us they say "Ohh a friend told me about you." Word of mouth gets a check and you start pulling back on other things thinking they are pointless.

The only people that tell me when-where they see/hear my advertisement is friends. If they hear you on the radio, they always tell you. I think that testimony is the most accurate. In encourage it too. If they say “Hey I heard your ad on the radio” I ask what they thought about it (they may lie) and then I tell them that I judge the effectiveness of my advertising from people telling me they heard it. Then I ask them to ALWAYS tell me when they see or hear an ad. They are usually very glad to do that. People usually like to help and if they think they are doing you a service by remember your ads and telling you about it, they will.

Your post is a prime example of this. My favorite advertisement is direct mail. I have noticed that with out a doubt I do get a spike in sales when I mail one out. Yet very few of them mention it or bring it in even though it always says to "return this card".

I’ve never found a way to combat that but as long as I get that spike, I don’t worry about the other stuff.

Carry on.

[Jay H]

Originally posted by MnSue:
Variety is also the name of the game. Mix it up a bit so your marketing pieces don't become routine and all look the same. Not to argue but that is a direct contradiction with the majority of the advertising type books I read.

The Wizard of Ads (I forget his real name) says that when you are sick and tired of your advertisment, your customers are just developing the slightest clue who you are.

The gurella marketing guy (again with the name?) says that bad advertising done often is more effective than good advertising done occationally.

I try hard to have all my advertising, reguradless of the media, be similar and consistant.

[MnSue]

Originally posted by Jay H:
I try hard to have all my advertising, reguradless of the media, be similar and consistant. Absolutely agree. Logo, style, and layout can and should all be similar; but changes in size, color, as well as content, help keep it fresh.

The joy of marketing - it's like framing - many different ideas to get the results. But the key ingredient is CONSISTENCY. It takes 4-6 mailing, at times, before you may ever get noticed. REPETITION is the name in mailings.

By the way, ever think why you get so many notices re: a subscription that is soon to expire? It takes at least 3 notices to generate an ACTION (according to some study I read long ago.)

[trapper]

Well I haven't a clue about all this other stuff some of you refer to..I can only tell you what works for us..
Word of Mouth has always been the best source.
Big fancy signs, large ads, radio spots what have you, are not as good as word of mouth. Maybe its only in this town.
People have yet to bring in a 35% off coupon from the paper. I am one who honestly believes " people never read them things anyhow ". They look at the pictures, but to actually sit and read the story is far and few between.So we ran an ad with a picture. Figured that ought to work..35% off and with a picture...Still no go.
Trtied a humourous radio spot and then a serious one and then a classy one...still no go. OK people in this town just don't give a hoot about Art. Think I will go back to fixing computers. About then someone will walk in and say my friend
" Jerry " told me about such and such...you know him don't you..he bought that picture last week. etc...!Works like a charm. But it can also work against you..Do one thing wrong and the whole state knows about it..Do a 1000 things right and not a soul knows...ha!
As for mailings what we have done ( finaly wised up..I hope ) we sent out a 3 x 5 that would be hard to throw away..It has a print of one of dianes originals on the front of it and is suitable for framing. I am sure some of them get tossed into a drawer ( Better than a waste basket I guess ).
Some are actually framed ( so we paid and gave away a free piece of art ) But then there are those who come back in and say I want the original.
I don't think there is any set rule for the Art business. Each store is different and each Artist is different as well as the managers and what the town will bare. It would be nice if we all had a formula we could work. Do "A" + "B" to get "C". But I don't know that one exists.

[Bob Carter]

Say, you spend $1000/mon on Direct Mail (5% of $20,000/mon Sales)

Now, say you spent that same $1000/month on a better location

Which might create an everyday, "Top of Mind" awareness.

If I'm guessing John Q Customer drives by my store 15-20 times a month, will that have a greater "impact" than a postcard once every two months

I recently had to get my Pool Sweep repaired

I'll bet every month, we get several "MailPaks" that just have to have a Pool Service coupon in every one and we may even get targeted Mailers as well

Yet, I took it to a place not far from my home in a nice Strip Center. I'm guessing that it just registered higher in my "Awareness" because I see it often. I may drive past several other Pool Service places, but maybe they are obscured or tucked in a corner. Hadn't thought about it much before this

Anyone have a similar "Where do I go for..." experience and what created the stimuli to choose them?

[Mike LeCompte CPF]

Bob keeps harping on "location, location. location:" And I agree.

BUUUT: within a five mile area of our "fantastic location" are ten competitors, including Michael's, JoAnne's, Hobby Lobby, AC Moore and six smaller stores similar to us.

So everyone must seem to love our location, 'cause that's where all the competition is.

Point is: for us anyway, location isn't everything and we've gotta advertise like crazy to gt the "top of mind" that everyone loves to talk about And we've got to do it as economically as possible and effectifvely as possible.

Jay: really don't know what you're talking about, but there's a little dropdownin Lifesaverthat has your "promotions" listed--newspaper, direct mail, etc etc. (and you create whatver these are) If you forget to check one of these, the program actually PROMPTS you to do it.

So, effetively, it tracks your promotions and "how did you hear about us" kinda thing. And it is 100% trustworthy and has been for a couple years now.

[Bob Carter]

Hey Mike-If you have these folks within a two mile radius the you pretty much hit "ground zero"

But, try this on for size

How about spend $1000/mon for a "better" location AND spend $1000/mon on your mail program

How about hitting for extra bases instead of a single?

But, anybody have a real world experience from the last thing that you had to get, buy, need and how you found them?

[Cliff Wilson]

Bob, maybe I'm odd (no "maybe" about it he hears in the background), but, except for "commodities" I ask a number of people until I get a referral that "feels" credible.

If I needed a "pool service" I would ask three people I knew with pools. When I needed a new french door to my deck, I asked until I had three installers names ALL with a friend or relatives referral.

graemlins/shrug.gif

I would NEVER respond to a direct mail ad! Unless it was coincidentally a place I already frequented.

[Jay H]

Mike what I’m saying is that I’m not sure that a customer will or even can accurately tell you what definitely created the sell. I think when they say, “a friend told me” they are forgetting about how they liked your storefront, they heard your ad on the radio, and met you at fundraiser. You click “word of mouth” on Lifesaver and assume you have some meaningful data? It just didn’t feel right to me when I did it.

Bob I LOVE my location. This isn’t BS and you know as well as anybody that if there was a more reasonable location, here, I would have tried it. There for a while I was considering keeping my store on wheels incase I had to move again.

But after lots of trials and searching, I believe I have simply found the best location for me in the entire city. If you cut me a check for $50,000 I wouldn’t put it in a new location! So now what?

Direct mail is a proven winner. If you aren’t contacting your customers, or at least the better ones, 4 times a year then I will suggest you should (ohh ####, did I make a business suggestion to Bob?). Why not tack on an extra $1.20 on a frame order for the stamp?

I’m not buried with work although it’s been reasonably steady. The problem with your idea that we should leverage our business up to the hilt is that you can’t “throttle” rent. When I’m busy I can get my cards printed up and buy the postage. When sales slow, like the end of second quarter, I plop the cards in the mail. Here’s the beauty…..OR NOT. If money is tight and the site isn’t a “ringer” what do you do?

Before this move I thought “ideal” location wasn’t possible. It was a dream – unattainable. It’s not. But even still I need more business and have some money to spend. Even with great visibility, it just seems like there is something more I can do that just sit and wait.

[Jerry Ervin]

Originally posted by Jay H:
Mike what I’m saying is that I’m not sure that a customer will or even can accurately tell you what definitely created the sell. I guess that was what I was saying also. You got them in. They don't know and you don't know how, but you got them.

[Bob Carter]

Hi Jay-And that is exactly the point, young grasshopper. Location is only one part of the equation.

For my money, you need to be able to "make contact" with your customer base.

That might be with a visible location, a visible mail program, a visible networking-whatever it is.

For each "shortcoming" that deficiency must be made up elsewhere

So,knowing how much you really like your location, all I am asking is given the same dollar investment, would you even consider a location at $1000 less than present and attempt to make it up with an additional $1000 of direct mail?

We need to be sure and not look at these options as either/or, but as a workable combination.

Our experience is that a dollar invested in a premium location yields superior results than any other dollar, but what works well for anyone else is what they should do

Now, if we assume the efficacy of direct mail (and moving is out of the question-true for most) has anyone shown directed results of doubling (or tripling) their mailings?

[Mike LeCompte CPF]

I feel like Jay: we're in a prime spot in Knoxville--where the money is, where the upper income people are--and to move would only increase my rent, put me in another location in the same income environment and not "win" anything. A more upscale location only puts me in a more highly competitive area for consumers' discretionary dollars; i.e., lifestyle centers, megamalls, etc etc.

So I devote my energiies and advertising dollars to a VERY demographically targetted customer to get maximum dollars out of everyone coming into the door.

But back to the original point of the post. Since doing it a few days ago, we're calling about 500 or so of our bestcustomers telling them in a friendly reminder-type tone about our recent mailing and don't forget to bring in your vacation mimentos and photographs blahblahblah

we'll see. Summers young yet and the heat increases.

[Bob Carter]

I've spoken to Jay and Mike on many occassions and they both are advocates of getting a great location

And, I guess my point is getting lost in the defense of current location

Perhaps, I need to amend my suggestion to speak to those that either can move or are attempting to balance out a site location decision between "saving" rent on a lesser location or "spending" more on getting the word out (direct mail, media, whatever)

My contention is a simple one being that when measured, dollar for dollar, there is no better investment in creating traffic, business, type of clientele than a location

Too often, framers attempt to "save" money on getting a less expensive location and then hope to cure that natural deficiency through efforts like direct mail. My supposition is that the returns are never as great

Now, I have no argument with using any resource available to attempt to create more business

But, would the same carefully crafted direct program have any better chance of success if generated from a lesser location than a premium location or would the converse be more likely

I mean if 50,000 people drive past your store (where they can actually see you) and they get a mailer, do you think that has any greater awareness than the same flyer from a less visible location?

I think location and marketing are complimentary

[Mike LeCompte CPF]

Finally found wht I was looking for.

The April 1999 issue of Decor had an article written by Michelle Carter entitled "Reaching Your Best Customers" In it, she wrote that direct mail with no follow up netted a 2-5% response ratio.

But, she continues, "the response rate increases to 17% with one set of follow-up phone calls and 35% with two or more calls"

Sounds simple to me: call the customer when the mailer is mailed, then halfway thru the expiration period, then the final week of the expiration period.

three times for 35% response targeting 500 of my best customers? Think I can handle that

[MnSue]

Great advice from Michelle. Let's break it down.

Let's say you can dial & REACH 6 customers per hour. That includes dial time, answer or voice mail time, person not home - no answering machine, or person not home - leave a message, and/or you actually reach them talk to them, give them a reason for your call and chat for a few minutes. Then you get to look up the number of the next person, and repeat the process.

83.3333333 hours later you should have reached your 500 best customers! Not sure what your time is worth, but you may want to do some calculations.

Fact: During a recent calling project, for the last framer I was with, I managed to reach & speak with 37 people in 6 hours (300 customers on the list). The calling period we started with from 10am-5pm. (15 years ago I spent 3 years dialing for $$$ and I know how to keep the phone busy.)

We determined at the rate per hour I was being paid - she wanted me to skip reaching the other 263.

Consider as a goal determining how many of your customers you'd like to reach a week. Then throughout the year you can reach them at least 1x year. Most will be so pleased that you took enough time to call/remember them - it would be remembered for long time. Great good will and loyality building. (This call might be a birthday, or special event call each year.)

Just something to think about.
Happy dialing!

[Jay H]

This might be one of the things that I should just get over but I have no intention on ever calling my customers for a sales call.

Actually phone calls is one of the very reason I canceled Bellsouth. They already had my business and yet they still called often trying to sell me more.

Kentucky, like so many other states, adopted "No Call" Laws recently. The explosion of people signing up to avoid sales calls is proof enough to me that people do not want these types of calls.

I have always called customers to notify them when orders were ready but have never even liked that. I feel just awful when I catch them in the middle of soccer games or at the pool or when you just can't tell what they are doing but they certainly don't want to have a discussion about framing right then.

The "hey your orders ready thanks bye" is innocent enough but I would feel like #### if it were a sales call.

[Bob Carter]

Hey Mije-Sounds like a perfect "test". You know how to track these things, so why don't you do it for 60 days and Sept 1, tell us how you did?

Count me as one person that will do whatever works

I hope you come back with a great success story

[Mike LeCompte CPF]

I'm only reporting a story written several years ago. In all honesty with the frequence we mail to our existing customers (which is every three months) I'd be calling them once a month if we follwed the "three call" route as suggested and as Jay said, that's close to harrassment.

But one brief phone call to your top customes telling them a mailer is coming??? See nothing wrong with that. And MnSue, depends on your average ticket price. Yeah' I wouldn't do it if I were selling $100 poster packages. I'm not, so it's definitely worth the hours. And the call is designed to last about 10 seconds.

Bob: got an idea: let's get five to tenpeople do their next mailing and then make one short phone call to their top 250 customers and then PM you back with the results. Mailing could be in Sept or Oct when people have returned from vacation and the summer doldrums are over. then you could tally results and report back. I'll do it, but in eastern TN results may be different than, say, a more metropolitan area and a more rural area. But a table of results from different geographies might be interesing and we wouldn't be divulging results for all our local competitors to see.

[ 06-25-2006, 10:04 PM: Message edited by: Mike LeCompte CPF ]

[MnSue]

[ 06-25-2006, 11:16 PM: Message edited by: MnSue ]

[MnSue]

Originally posted by Mike LeCompte CPF:
And MnSue, depends on your average ticket price. Yeah' I wouldn't do it if I were selling $100 poster packages. I'm not, so it's definitely worth the hours. And the call is designed to last about 10 seconds.
Just for the record: our avg. ticket was over $275. for a 600k shop. We avg. over 60K/month Jan thru Apr. to start off 2006. May was on track for over 40K.

The month I was calling, we had also sent out a mailer to about 3000; have 28 responses; over 15K in sales on those 28 orders. (The calls I was making had to do with getting the addresses to add existing customers to the data base where addresses weren't collected and these folks didn't get the mailing.)

Your actual call/message may be 10 sec - but just like the "design time" you have to factor in all the other dial time tasks as was pointed out. It is more than just a "10 sec." call. Be sure you have a script ready - as most people will get off message quickly and then 10 sec. turns into a 15 min conversation. Test out what you would say in 10 sec.,practice it,be prepared and have all your duck in a row (who and #'s ready), and dial.

Test it and share your results!