We all receive direct mail at home or work and most of it goes fairly quickly from our desk or letterbox into the rubbish bin. Some we’ll skim read and the occasional one will grab our attention and we’ll either respond immediately or put it aside for future action.

Applying how we behave individually to a larger scale, you won’t be surprised to learn that direct mail often has a response rate of less than 1 percent. Too low to be worth the effort? No, but given the low rate of response, it pays to get it right – and that means planning well before you start.

Traditionally, the term direct mail refers to the direct marketing material, such as brochures, leaflets, postcards and letters we receive through the mail or in our letterboxes. Today, companies are also sending direct mail via email. This article does not include email direct mail.

Letter box drops
The size of your direct mail will vary depending on your target market, the nature of your business and the size of your budget. One method of direct mail is the residential letterbox drop. This is best suited for businesses catering for the domestic market, such as local takeaway restaurants, gardening businesses and cleaning services. A variation of this approach is a letterbox drop to business mailboxes.

Most businesses who do letterbox drops use leaflets, brochures or postcards and only a few include a cover letter. The quality of these direct mails varies enormously, from scrappy bits of paper to large glossy brochures.

The advantages of both residential and business letter box drops is that it’s relatively inexpensive compared with advertising. The disadvantage is that your communication is impersonal and not directed to any specific person. You’re relying largely on people having a need for your service or your direct mail being so different it stands out from the clutter.

Targeted direct mail
Targeted direct mail is probably the most effective method of direct mail for business-to-business marketing. With targeted direct mail, you send your direct mail to a list of companies that fit your target market.

Targeted direct mail often includes a reply-paid card, but it is more effective to follow up your direct mail with a phone call a few days later. A follow up phone call makes it easier for people to respond and if they haven’t seen the direct mail in the first place, you have a second chance of marketing to them. As with all telemarketing, you have to develop a thick skin and accept the ‘not interested’ response without taking it personally.

If you follow up your direct mail with a phone call, consider staggering your mail out so you’re not swamped with follow-up calls. Sending your direct mail in batches will also give you an opportunity to test and refine your messages.

Timing
Whether you’re doing a large letterbox drop or a targeted mailing, timing is crucial. The same direct mail sent out at different times can get completely different responses. Even a poorly worded direct mail can get a better response at the right time than a well-worded direct mail at a good time. For example, a direct mail campaign just before Christmas isn’t the best time for professional services, but is a good time for retail products.

The list
If you’re doing a targeted mail out, the quality of your list is as important as the timing.

Under the Privacy Act, you can still use lists to post direct mail to people, but you must respect that people have the right to opt out. The most powerful lists are your own client list and lists made up of past prospects and referrals. You can also make your own list of prospective clients that fit your target market from various sources, such as the Yellow pages, newspapers and trade magazines. Alternatively, you can purchase personalised lists of companies who match your target market.

Whatever method you use to compile your list, it’s a good idea to computerise your database. You can use Word or Excel, but a database system (Access or a commercial product) will give you greater flexibility. With a client relationship management package you can also record all steps of the sales process.

The letter
Letters form the basis of targeted direct mail. Even if you’re sending your prospects information, such as a reprint of an article or a brochure, it still pays to include a covering letter. The letter is the most effective form of direct mail as it creates an illusion of personal communication. People tend to see a letter as providing information, whereas they regard a brochure as advertising.

Writing a letter also gives you an opportunity to personalise your direct mail. Addressing someone by name is much more powerful than ‘Dear Sir/Madam’ or ‘Dear Business Owner’. It shows that you’ve done your homework and know who they are.

Start collecting some direct mail samples and analyse them to see what works and what doesn’t in terms of both layout and content. Layout matters as many people will make their decision about whether to read your letter based on the way it looks.

Guidelines writing your direct mail letter

Heading
Use a short, informative heading before or after “Dear x” to gain attention.

Opening line
Your opening sentence is your chance to establish rapport, focus your message and entice your reader to read on. Keep your tone friendly and informal and get straight to the point. If you’re having difficulty with the first sentence, move on and come back to it at the end.

The offer
Most direct mail includes an offer to tempt people to buy your product or service. Introduce your offer near the beginning of the letter and explain simply how easy it is to take advantage of your invitation. The emphasis is on your offer rather every aspect of your product or service. It is the hook to get your prospective client or customer talking to you.

Although clichéd, we are still enticed by offers that include the word ‘free’. For example, ‘free gift’, ‘free report’, ‘free consultation’, ‘free trial’ or ‘buy X and get Y free’. ‘New’ also attracts people.

Often the offer is time limited, e.g.‘reply by x date’, and sometimes it’s limited to the first x number of people who respond.

What’s in it for your reader?
Tell your prospects what’s in it for them instead of talking about you and your company. Marketing people often suggest that you write about benefits rather than features, but use your common sense. For some products and services, your clients or customers will want information about the specifications. The trick is to put yourself in your prospective customer’s shoes and think about what they want to know.

Talking directly to your reader with ‘you’ rather than ‘I’ and ‘we’ language will help focus on your readers.

Call to action
A call to action is an encouragement for readers to take the next step to contact you to buy your product or service. Most direct mail put their call to action at the end of their letters. Some place it near the beginning and repeat it at the end.

Even if you intend following up with a phone call, make sure your phone number is prominently displayed in your letter and consider including a reply-paid card. Attach your business card as well.

Tight copy
Every word needs to count in your direct mail. Keep your language simple and direct and be as specific as possible.

Write your first draft and then go through and delete all unnecessary words, like ‘perhaps’ or ‘maybe’. Don’t be surprised if you manage to reduce as much as 25 percent of your copy. The tighter the better.

Most direct mail letters are one page long although longer letters are fine if the content is informative and interesting. If you can’t fit all the information comfortably on one page, it’s better to go over the page.

Appearance
Little details make a difference. Window envelopes look like bills and labels on envelopes look impersonal. A hand-addressed envelope with a stamp looks more personal than a franked envelope.

Break up your text into digestible bite-sized chunks by using:
• short paragraphs
• lists
• headings and subheadings

Finish with a PS
Read your collection of direct mail and you may be surprised to find how many direct mail letters finish with a PS. Apparently it works. Maybe because it appears a personal touch or possibly because when people skim read, they read the beginning and the end.

Use PS to highlight a point, reiterate your offer or make a bonus offer.

Testing and evaluation
With consistently accurate record keeping and by testing alternative lists, offers and timing you can make improvements each time you use direct mail.

This article first appeared in My Business magazine.

Further reading
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