Direct marketers today make sure direct mailing is still a big part the marketing mix, because of the measurability of this form of marketing. The way to get the best results from a direct mailing campaign is to test the market – an essential activity which sometimes gets left out of marketing plans. But, as any mailing house worth its salt will tell you – testing is the only way of becoming informed in order to plan large scale successful direct marketing campaigns.
What is ‘Testing’?
Only one variable of a direct mailing campaign should be tested at any given time. If you try to test two or more, you will never be sure which element has increased or decreased your response rates. The element you test must be measured against a control pack, which will usually be your standard direct mailing pack – the one which you have been using for some time, and which has always performed well. By testing the market will different elements your aim is to improve on current ROIs – things can always be improved.
Test Sufficient Numbers of Mailings
Test the control and the test mail at the same time, and make sure to test in sufficiently large numbers to enable you to get accurate results. The data should be statistically significant and in general a list of 5000 names is generally accepted as adequate. However you can get an inclination of potential response rates from mailing as few as 500 pieces. If in doubt ask the advice of your mailing house – their years of experience in the industry will be invaluable.
When testing against the control test no more than 20-25% of the total mailings – that way, if the test fails to produce a good result the control element will absorb the loss and keep marketing spend on track.
Ensure your systems track all aspects of a campaign – from purchases, to conversions and renewals. It can’t be stressed enough to remember to code every version separately, and it’s worth remembering that testing does not have to be an expensive procedure – lots of aspects of a mailing campaign can be tested relatively cheaply. With the help of your mailing services company you can keep tabs on responses – they will also be able to help you analyse the campaign’s performance.
What Can I Test?
There are an endless number of elements which can be tested when it comes to your direct mailing pack – and the more complex it is the higher the number. It will not be cost-effective to test all of them, because some elements, even if they do result in a slightly higher response rate – will still not reap back the money spent on the test. When deciding which parts of the pack to test ask your direct mailing company for advice – they can give you the benefit of their years’ experience. Some things definitely worth testing are
The Direct Mailing List
If you don’t test anything else, make sure to test the list, since it is by far the most important aspect of your mailshot when it comes to results. In-house lists can be tested over external lists, compiled ones over researched or swapped ones. Your mailing house will be an expert when it comes to lists and can often act as a list broker for you.
Break down lists into component parts – for example you could test parts of list in a small geographical area to see whether that works, or base criteria by selecting prospects within a certain age group or income bracket. Testing will allow you to see which lists are worth ‘rolling out’ to.
Direct Mail Offers
Another important part of the direct mailing which should be tested is the offer and how it is presented to your target audience. The price of the product or service could be varied, or the offer e.g. 30% discount versus half price.
The Response Mechanism
Try testing reply paid mechanisms, if you don’t already use them. Although there is an extra cost involved for you it may still work out cost-effectively if you get a far higher response rate. There are many other variations on this theme, including tear off coupons, Free phone numbers to call and email – work with your direct mailing company to find out which ones might work better for you.
The Outside of the Pack is Important Too
It’s been estimated that an average recipient of a direct marketing pack spends just seconds deciding whether to open it or not, so an important thing to test is the outside of the pack – whether you put a branded message on the envelope could make a difference to response rates, for instance. You could also try varying the size and type of mailing packages e.g. postcards, A5 packs, A4 packs etc.
Once open, the next barrier is getting a prospect to act – the letter is an important part of the pack so this should be tested, and you can test fonts, style, colour and degree of personalisation at little cost.
When is the best time to Mail?
Testing the timings of direct mail shots is an essential activity since it can have such a major impact on your response rates. This is especially true if the product of service you are promoting is either being launched at a fixed time in the future, or if it is an event which has a firm date. It really pays to test either side of your usual scheduled mailings – the results may surprise you. If you have several mailings to go out make sure to book with your mailing house well in advance, and ensure all are correctly coded.
The Benefits of Testing
Testing should not be an afterthought – but included in marketing plans from the start. This is the only way you will be able to make an informed decision regarding future large scale direct marketing campaigns, and it will prevent you from wasting money on campaigns which fail to deliver good ROIs. As ever it pays to enlist the help of a good mailing house – they are the industry experts when it comes to all aspects of direct marketing.
Learn more about mailing services for you next direct mailing from the First Move Direct Marketing website. If you should have any questions about a mailing services we would be delighted to assist.
