For some reason a lot of business owners seem to be abandoning offline marketing and in particular direct mail postcards.
Not only is this a bad marketing decision, I believe the only reason this is taking place is due to “shiny thing syndrom.” Ill be the first to admit that I have it as well. You hear about the “latest and greatest” and you want to jump on it.The latest and greatest stuff tends to focus around the web. Yes the internet has totally changed the marketing landscape, but offline marketing still can produce profits like you’ve never imagined. Direct mail postcards are one of the fastest, most targeted ways to generate those profits
Here are four tips to generate profits from direct mail postcards:
Determine the value of each new customer to your business. There are various ways to determine the value of each new customer. Some business owners will look at the initial sale, what is that first sale worth? If you are selling business consulting, that first sale could be worth $10,000 or even more. I recommend you determine the lifetime value of your customer. If you own a restaurant for example, I’m sure the value is more than $50 from that one meal, it may be closer to $250, $500 even more. I would rather you be conservative in your numbers, but at the same time, understand that these customers are worth a lot more than just one sale.
Design your budget/investment based on potential outcome. So if you are locked and loaded with the value of each new customer, how many customers do you want? How much will the campaign cost to reach enough people to generate those customers? One mistake I see small business owners making each and every day is setting up the budget based on what they believe they can afford. Rather than base your budget on what you believe you can afford, back into the numbers based on some very conservative projections from the upcoming campaign.
Here’s an example for a dry cleaning business:
Let’s say you sell dry cleaning services within a 10 mile radius of your storefront. You determined the lifetime value of a new customer is $1000, and you can afford to invest $200 in this first campaign to acquire the customer. While you will not make money in the first month, you are confident you can also generate referral business quickly. If your objective was to bring in 20 new customers, the budget you would want to set is $4000 for this first campaign. Keep reading to learn if that budget will generate the results you are after.
Acquire a very specific list.
Nail down your call to action
Do a series of 3-4 mailings to the same audience
Look at using PURL
Spend the extra for oversize postcards