I’m sitting down with a client the other day and we are discussing the direct mail giveaway offer and the size of the mailing list. One of the people at the table says, “We’ll if we’re mailing 10,000 people we need to reduce the size of the offer, we cannot afford to give that much away”. This is a typical answer from a newbie.
Strategy #4) Don’t be stingy with your offer
The entire idea is to make sure you offer everything you can to each individual where you maximize profit and results. This is what personalization is all about. If one guest is worth offering $20 to get them in and another person is worth offering $100 to, you can do that easily with variable data printing. If you only offer $20 to both people you usually eliminate the response from the $100 guest and your company is full of $20 guests.
As far as “Everyone showing up” You have to ask yourself how many people are really even paying attention to your offers. Direct mail is a numbers game and the more you water down your offers the fewer the number of people that really even care.
Let’s say for example I was giving away a free car and I mailed 1000 people to give them away. I would only likely have to give away 50-60% of those at most. First off there are a huge percentage of people in your database that don’t read direct mail at all. The there would be skeptics, then people that forget to respond, etc. So you might get a 50-60% response with a free new car.
So when you take your $50 offer and decide to lower it to $15 you are likely taking your 3% and cutting it down to 1% or less. You are also drawing in a much cheaper crowd. If $15 is important to someone they are not likely wealthy enough to be a good customer buying all your goods and services, are they?
Make sure you use your customer historical sales to manage to offer everybody the most you can, based on what they average to spend. Then you get sales from all levels of your customers and not just the cheaper ones. Don’t guide your business smaller and smaller by catering to your cheapest of customers by getting cheap on your offers.
But then again don’t offer the best you have to your cheapest customers either. I hope you are tracking your customer sales and building offers based on their value. I truly hope you are!