Can Direct Mail Help You?
Direct Mail is just one of a number of different marketing tools you can use, so how do you decide what is going to work for you or not? We found this rather interesting way of looking at things at www.marketingdonut.co.uk and thought we’d share it with you.
As you all know, Direct Mail is personally addressed mail delivering your marketing messages by post. It isn’t unaddressed junk mail dropped through someone’s letter box along with a gazillion other fliers. It enables you to develop specific messages for your target audience and you can measure the response you get from it, which will tell you whether you are getting a good return on your investment or not.
Marketing Donut came up with 3 different scenarios to demonstrate who it might work for. They posed the question “Who does it work for?” and considered 3 different businesses, each of which might spend £250 sending mailshot to 1000 people. So….for example:
- A travel company that sells holidays at £1000 each, £250 of which is profit. In this scenario, if one customer buys a holiday as a result of the mailshot, the mailshot has paid for itself.
- A sandwich shop makes £1 profit on each sandwich it sells for £2. Regular customers spend an average of £5 a week, generating £125 of profit each per year. In this scenario, if the mailshot brings in 2 new regular customers, it will have paid for itself
- A pottery makes £5 profit on each set of mugs it sells, but customers don’t tend to buy more than one set. In this scenario the mailshot would need to return 50 new customers to pay for itself. Not such an attractive proposition
If you’re thinking of pulling together a Direct Mail campaign, it’s definitely worth thinking of the economics and the above shows you how you can do this. For more information on preparing your next campaign, why not check out some of our other useful blogs like: