Join Trish Witkowski for an in-depth discussion in this video The marketing strategy, part of Direct Mail Strategy.
Now, before you even begin thinking about the creative for your next direct mail campaign, you really need to think hard about who you're marketing to, and the ultimate goals of your campaign. In this video, we're going to talk about the different marketing strategies you can use, and why you might choose to use one over the other. There are five mail marketing techniques to consider. Saturation, targeted saturation, mass, targeted, and micro-targeted. Don't worry, I'll explain them all to you. And we're going to start with saturation.
Saturation mail is location specific. And what that means, is you pick a geographic area and 75 to 100% of all the addresses within that defined area receive a mail piece. So, you definitely get some benefits on the postage side, you save about 20 to 30% on postage, because you're sending bulk mail. But you also have to remember that if every single mailbox is getting a mail piece within a certain geographic area, that really assumes that a large portion of your audience is not going to be interested. So, because of this you really want to choose low-budget formats.
Your postcard mailers, your flyer types of formats, anything that's cheap and efficient to produce. It's great however, for consumer-facing businesses that want to drive awareness and word of mouth within their surrounding area. That's your restaurants, and dry cleaners, and home services, things like that. Targeted saturation builds on the saturation mail approach by adding a filter. Let's say if your business is in motorized scooters for the elderly. With saturation mail, you can send a mail piece to every household within a certain radius, or, with targeted saturation, you can send a mail piece to every household within a certain radius, whose inhabitants, are 65 or older.
Makes a lot more sense. So it's definitely, less wasteful than saturation mail. It's easier to just send a piece to everybody. But remember that every mail piece that goes to someone who has no potential of buying your product or service, is really just wasted money. The next approach is Mass Mail. This is really where I think mail gets its bad image problem, a lot of people think mail is wasteful. And the mass marketing approach is old-school. It's the spray and pray approach, where everyone on a big mailing list regardless of their preferences is sent the exact same piece of mail.
So this is different, however, than saturation mail. Because it's not confined to a specific geographic area. It can be anywhere in the world. So it casts a wide net, in the hope that you'll get, hopefully, a 1 to 3% response rate, which is really wasteful. So, it's easy and it doesn't require the use of additional technology. All you really need is a list and a mail piece. However, if you consider that a large portion of the job cost is being spent on printing and mailing material that will not resonate with a recipient ever, you might want to consider using that money to leverage other, more effective forms of marketing.
And that really leads us to the next approach, targeted mail. Targeted mail is targeted to the interests and needs of the recipient. The concept here, is that you want to create relevance. Relevance leads to engagement, which equals response. So there are a couple of ways to use this approach. Something called batch targeting, and personalization. So, we're going to start with batch targeting, and the first thing you want to do here is identify a group. So let's say, for example, your targeted recipient is a male, existing customer between the ages of 25 and 45, who loves fly fishing.
So, you can send all the customers who fall into this category, a special offer. Ideally, that mail piece is going to use imagery that's generally appealing to that gender and age group, and the offer is going to be tailored to their buying preferences. Then, you can use that same technique, and send a different customized mail piece to another demographic profile. If we're sticking with the fly fishing theme, we can say, men or women within a certain age group, that are new to fly fishing, or experienced in fly fishing. So you can use this technique to break down your target market into more manageable segments.
Great stuff. Next, you can take that batch targeting and add personalization. This is pretty neat. So, you can insert their name into the message, you have a brick and mortar store, you can give directions to the nearest store. I mean, you can add a customized personal URL that takes them to their own microsite webpage, and that's really great because it's trackable. So, you can see exactly what they're interested in and what they're doing. You get a lot of data on your side. So, you know, there's a lot that can be done there, that really increases the relevance and the engagement.
And again, that equals response, and we're really all about response here. The final approach is called micro-targeted and it's really sophisticated. And, what it does is it combines geographic area with psychographic segmentation. Psychographic is psychology, so like your lifestyle preferences, and demographics which are measurable statistics. And so, let's use our fly fishing example. So we could say fly, fishermen within a certain geographic area. We know they like fly fishing, so that's the psychology side. The demographics could be an age rage or income range.
But then we can also add commercial data. So we could say, okay, you know, geographic area, love fly fishing, certain age group. But, they also just purchased some fishing equipment. And we know what that is. So we can send them a special one to one truly customized mail piece, specifically for them, selling them, let's say, accessories to the fishing equipment that they just bought. So, pretty fascinating how this can work. However, one thing you need to do, is to make sure that you use micro-targeting wisely.
These days people are really, really protective of their personal data. So, you have to be careful about, including so much personal information into the mail piece that you actually kind of spook them. Now that you understand the five different marketing strategies and when to use them, you should have a better idea of your campaign, and mailing list planning. If you want to try targeted marketing techniques, know that there are many printers and marketing service providers that can make the process easy for you. So don't let fear of the unknown, get in the way, of sales success.
- Defining the mailing list
- Keeping your mailing list up to date
- Creating the offer
- Formatting strategies
- Using special packaging like varnishes, stamps, and stickers
- Leveraging technology, such as variable data printing
- Adding an Intelligent Mail barcode
- Green mail strategies
- Tracking and measuring results from your direct mail campaign