500 logo
The 4 Components of a Winning Direct Mail Campaign

2016.09.29

Guest Author

Guest Author

Article image
image

Direct mail is part science, part art—there is no single best solution. Innovative technologies allow us to customize mail in new ways, and the USPS continually changes rates (usually raising them) and rules. However, a couple of things stay constant: Any direct mail campaign will include the four key components of list, offer, creative, and delivery. And at every stage, consistently A/B testing what you send and who you send it to will improve recipient response and lower your costs.

Let’s take a closer look at the four main components of direct mail:

  • The list: You need to mail the right audience, who are interested in your product.
  • The offer: You need to provide the right offer to motivate them to action.
  • The creative: You need to have engaging creative that gets seen, not tossed.
  • The delivery: You need to get that creative into mailboxes.
  • 1. The List

    image

    There are two types of lists, house lists and rental lists. House lists are ones that you own, which generally include existing customers and potential leads (e.g., people who signed up for a white paper online). Rental lists are compiled addresses from third-party vendors. They are typically one-time buys or subscriptions, and allow you to select certain audience segments. The average cost for a rental list ranges from $50–250 per thousand records, depending on the quantity purchased and criteria selected.

    A well-targeted list is important. If you’re selling infant products to retired folks, no matter how good the offer is, none of them will buy (unless of course they’re shopping for their grandchildren). A clean list with deliverable addresses is also key. If the list is old, then you will send undeliverable mail—never seen by a potential customer—which is a waste of your time and money.

    If you happen to run a real estate company, check out our post on direct mail list building for real estate.

    2. The Offer

    image

    An offer is the incentive that the recipient will receive, and what they have to do to receive it. It’s the call to action that motivates the prospect. A great offer is valuable, tangible, unique, and clearly related to the company offering it. It should also be straightforward and easy to understand. Avoid lots of fine print. No one likes to read that.

    For example, your direct mail might include an offer for:

    • Free trial
    • Free gift
    • Free shipping
    • Dollar discount
    • Percentage-off discount
    • Buy one, get one free
    • White papers
    • Case studies

    Be sure to test your offers to learn what best motivates your audience. And remember, the offer isn’t merely enticement for the consumer—it’s also a great way to include a custom code or URL in your creative to help track your campaign’s results.

    3. The Creative

    image

    Test multiple designs and layouts, as there is no one approach that works for every campaign. A fancy letter may perform well for a high-end business product, while a simple postcard in a “handwritten” font may work best for a casual neighborhood service. Regardless of the creative, be sure that your call to action is clear and direct.

    On the format side, there are endless options to choose from. However, sticking with the standard ones will typically save you time and money in production and mailing. The two most common formats are letters and postcards. Contact your mailing vendor or print house for their standard sizes.

    4. The Delivery

    image

    Most companies spend more than they need to on postage, but there are multiple ways to lower your costs: For example, cleaning your list and adding USPS address bar codes will get you lower rates, as will sending more pieces to smaller areas (“saturation mail”). You can also earn discounts by shipping your mail closer to its final destination (e.g., dropping mail designated for San Francisco at a nearby Oakland postal center). Finding the optimal mailing strategy can save you 20–50% on postage costs.

    However, because all of this can be difficult to coordinate, many companies use a mail consultant or service for a seamless mailing solution. After all, the biggest way to lower the cost of a direct mail campaign is to save your and your employees’ time. Lob, for example, takes care of printing, mailing, and postage for a single straightforward price—so you can send print mail on demand, as easily as you’d send an email. Lob even tracks mail at every step, so you know when your campaign lands in mailboxes.

     

    Thank you to Adelyn Zhou, Head of Growth and Marketing for TOPBOTS  for contributing to the 500 blog Original article found HERE. Get 20% off tickets with code: ADELYNZHOU. Adelyn Zhou will be a speaker at this year’s Weapons of Mass Distribution 2016 conference on Nov. 4 in San Francisco. Buy your ticket HERE

    1. AS OF 30 JUNE 2023. ASSETS UNDER MANAGEMENT (“AUM”) STATED HEREIN ARE ROUNDED TO THE NEAREST $100M AND ARE CALCULATED IN ACCORDANCE WITH SEC FORM ADV PART 1A INSTRUCTION 5.B. TO INCLUDE THE CURRENT MARKET VALUE (OR FAIR VALUE) OF ALL PRIVATE FUND ASSETS AND THE CONTRACTUAL AMOUNT OF ANY UNCALLED COMMITMENTS TO SUCH PRIVATE FUNDS, TOGETHER WITH THE CURRENT MARKET VALUE OF ALL OTHER SECURITIES PORTFOLIOS FOR WHICH 500 STARTUPS MANAGEMENT COMPANY, L.L.C. OR ITS AFFILIATES PROVIDES ONGOING DISCRETIONARY INVESTMENT MANAGEMENT SERVICES, WITH MARKET VALUE DETERMINED USING THE SAME METHOD USED TO REPORT ACCOUNT VALUES TO CLIENTS OR TO CALCULATE FEES FOR INVESTMENT ADVISORY SERVICES. ASSETS UNDER MANAGEMENT MAY INCREASE OR DECREASE SIGNIFICANTLY OVER TIME.

    2. AS OF 30 JUNE 2023 AND INCLUDES PRIVATE, PUBLIC AND EXITED COMPANIES. FOR EXITED POSITIONS, VALUATION DATE IS DATE OF EXIT. THESE FIGURES ARE ESTIMATES, AGGREGATED ACROSS ALL PORTFOLIO COMPANIES HELD ACROSS ALL FUNDS ADVISED BY 500 STARTUPS MANAGEMENT COMPANY, LLC AND ITS AFFILIATES, AND ARE BASED ON INTERNAL DATA THAT HAS NOT BEEN EXTERNALLY VERIFIED AND RELIES ON PORTFOLIO INFORMATION SUPPLIED BY EXTERNAL SOURCES WHICH HAS NOT BEEN VERIFIED, MAY NOT BE ACCURATE OR UPDATED. THESE VALUATIONS ARE ESTIMATED IN ACCORDANCE WITH 500 GLOBAL’S VALUATION POLICY. SEE 500.CO/COMPANIES FOR A FULL LIST OF PORTFOLIO COMPANIES. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS. PORTFOLIO COMPANIES DISPLAYED ON THIS PAGE ARE NOT NECESSARILY REPRESENTATIVE OF ALL INVESTMENTS IN VEHICLES MANAGED BY 500 STARTUPS MANAGEMENT COMPANY, L.L.C. (TOGETHER WITH ITS AFFILIATES, “500 GLOBAL”) AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENTS WILL BE PROFITABLE OR THAT OTHER INVESTMENTS MADE IN THE FUTURE WILL HAVE SIMILAR CHARACTERISTICS OR RESULTS. THIS LIST INCLUDES CURRENT AND FORMER 500 GLOBAL PORTFOLIO COMPANIES WHICH HAVE BEEN ACQUIRED AS WELL AS COMPANIES WHICH HAVE UNDERGONE AN INITIAL PUBLIC OFFERING. THIS LIST IS UPDATED PERIODICALLY AND AS SUCH MAY NOT REFLECT RECENT 500 GLOBAL INVESTMENTS. PAST RESULTS OF 500 GLOBAL INVESTMENTS, POOLED INVESTMENT VEHICLES, OR INVESTMENT STRATEGIES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. NO CONTENT ON THIS PAGE SHOULD BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES, CONSTRUCTED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL FUND, OR USED AS THE BASIS FOR ANY INVESTMENT DECISIONS. ALL LOGOS, NAMES, AND TRADEMARKS OF THIRD PARTIES REFERENCED HEREIN ARE THE TRADEMARKS AND LOGOS OF THEIR RESPECTIVE OWNERS. ANY INCLUSION OF SUCH TRADEMARKS OR LOGOS DOES NOT IMPLY OR CONSTITUTE ANY APPROVAL, ENDORSEMENT OR SPONSORSHIP OF 500 GLOBAL BY SUCH OWNERS.

    3. AS OF 30 JUNE 2023. INCLUDES LOCATION OF EMPLOYEES, CONTRACTORS AND CONSULTANTS.
    Copyright © 2024. 500 Global  All rights reserved.
    xfacebookinstagramlinkedin