Every business wants to get the most from their advertising dollars. Advertising can be expensive, especially if no one responds. So it’s natural to want to include as much information as possible on a postcard. Fill in all the “white space” and get your money’s worth. That strategy rarely works.

Let’s take a look at America’s most successful retailer: Wal-Mart. When Wal-Mart advertises, do they list every item that they sell? With literally hundreds of thousands of items that would be impossible. Well how about if they listed every department or even one department with all related products. You would still require a very big ad and few prospects would take the time to read it.

This week one Wal-Mart ad featured a 42” Toshiba LED 1080P TV for $649.98. You could say that ad was targeted at only one prospect: one that needs a new TV, has room for a 42” model, and has $650 in his wallet or available on his credit card. That’s pretty specific targeting and a whole lot of prospects will simply not be interested and ignore the ad. The good news for Wal-Mart is that there are a lot of prospects that fit the target profile, and as a result, they will probably sell a lot of those TV’s.

Do you think Wal-Mart was worried that if they advertised a specific TV model, that the rest of their inventory would not move? Hardly. In fact, they will be tickled pink if prospects just come to a store to look at the Toshiba TV on sale. Even if they don’t buy that model, perhaps they will buy a different TV or at least buy something before they leave the store. Most visitors will.

They succeeded. They generated a lead. Once they have a prospect in the store, chances are they are going to sell him something.

You can do the same thing. Think of the postcard as a way to generate a lead not a sale. Remember, leads turn into sales. Tantalize prospects with a single offer and be prepared to sell that offer or something else when they respond. Don’t be afraid to feature a low price. Most shoppers start off looking for the lowest price. Once they respond you can justify higher prices by demonstrating value.

So there you have it. Don’t try and speak to everyone when creating your postcard. Target one prospect and you will find there are many who fit the same profile. Even if you are speaking to only 5% of the prospects on your mailing list, make sure your ad is strong enough to get noticed by 95% of the 5%

What if you could increase that response rate by a couple of percentage points? That would mean more response, more business, more money… ahh, life would be good!

To be relevant to as many prospects as possible, your postcard message must be generic or broad. Unfortunately, generic messages generate the worst response rates. It may seem counter intuitive, but to increase response from a mass mailing, you must create a message aimed at fewer prospects.

In other words, if you are a Chiropractor, don’t send a postcard that looks like a Chinese Menu with a mind-numbing list of services and choices trying to appeal to everyone.

Remember, getting your money’s worth from a mass mailing is not measured by how may words you can fit on a 4 x 6 postcard.

Here is an example of how a Chiropractor can limit his message and get a better response

1- SEGMENT THE MARKET:
- Tried Chiropractic Treatment and currently have a Chiropractor
- Tried Chiropractic Treatment and were not satisfied
- Those who know nothing about Chiropractic Treatment
- Those with occasional pain
- Those with chronic pain all the time
- Those who are pain free and want to stay that way
- Those who deal with pain by using medication
- Those preferring treatment without medication

2- PICK ONE SEGMENT
Those who have chronic pain and want relief without medication

3- IDENTIFY A PROBLEM RELEVANT TO THAT SEGMENT AND OFFER A SOLUTION
Chronic Pain? I Offer Pain Relief Without Medication!
Free, No Risk Consultation – If I Can’t Help You, I Will Tell You The Truth

Perhaps only 20% of the Chiropractor’s mass mailing will have chronic pain and want to deal with it without medication. If he mails 5000 postcards, he will be speaking only to 1000 prospects. If only 2.5% of the 1000 respond, that’s 25 calls. Not bad.

This process can be used for any business.
1- Segment the market
2- Pick one segment
3- Identify a problem relevant to that segment and offer a solution

An auto insurance agent might target drivers with a good driving record who are not getting the discounts they deserve.

A home remodeling company may target those who want to save on energy this winter and offer storm window replacement.

In both cases, a specific offer directed to only a segment of the mass mailing will result in a higher response rate.

Homework assignment:
Apply the 3 point process to your business and send us the results. We’ll give you our opinion with no obligation.

EMAIL YOUR 3 POINT RESULTS: CLICK HERE

There are two main elements that affect the response rate of a postcard mailing campaign:

1-       The target audience or mailing list

2-       The postcard design

Both are important, but of the two, design is the most important. With a great postcard design you will always get some response, even if the mailing list is less than perfect. However, a perfectly targeted mailing list can yield zero response if the postcard is poorly designed.

So what are the secrets of designing a postcard that will generate a sensational response? We have developed a 4 Point Design Strategy that has been proven effective.

4 POINT DESIGN STRATEGY

Step 1 – THE GLANCE TEST
Everyone takes the mail out their mailbox, but not every piece of mail is read. There is an initial sorting process that determines, in a matter of seconds, what is perceived to be “Junk Mail” and discarded.

The bad news is, your postcard most likely falls into that category. So how do you avoid winding up unread, in the trash can? You must  pass the Glance Test, which takes place for a few brief seconds during the initial sorting process.

The goal is to let the prospect know what the postcard is about with just a passing glance. Seems obvious, but many postcards fail the Glance Test and are tossed out without getting the chance to deliver their message.

So, how do you design a postcard that will pass the “Glance Test”? Use a big headline, with few words, that shouts the main purpose and benefit of your offering.  A photo or graphic can also be very effective. A combination of both may be even better.

Step 2 – THE MAGNET
“Magnet” is the term we use to describe the lure, hook, special offer or incentive that will motivate the prospects you are targeting to respond to your advertising. Yes, it’s the bait that is most important when you are fishing for new customers. The stronger your magnet, the more business you will attract.

Which of the four magnets below do you think is the strongest?

Remember, you don’t have to give all the details. Just tantalize the prospect. The purpose of the postcard is to generate a lead, an opportunity to make a sale. The postcard normally will not make the sale, you have to do that.

Step 3 – YOUR CLAIM TO FAME
If you can avoid the trash can by passing the Glance Test and tantalize the prospect with a strong Magnet, your Claim To Fame is used to seal the deal. What is your level of expertise, why should you be trusted and what do others say about your product or service? Sometimes the claim to fame might be you. If so, don’t hesitate to include a photo and a brief professional biography. This is not the time to be modest.

Step 4 – THE CALL TO ACTION
How do you want people to respond? Call on the phone, visit your website or perhaps come to your physical location. If there is more than one option, make sure you emphasize the one you prefer with larger type on both sides of the postcard.

Design is the most important part of your campaign. Take your time. Show it to family, friends and even a few loyal customers. Remember, no one knows your business better than you do, so make sure you feel as confident as possible that your design is a winner before you launch.

Take advantage of our “No Risk Design Guarantee”. We’ll offer suggestions and make as many changes as needed (never an extra charge) until you are convinced the design is as good as it can be. Good Luck!

Repetition is one of the most important parts of any advertising.

Repetition is one of the most important parts of any advertising.

CAN YOU FILL IN THE BLANKS?

National firms, like companies that sell auto insurance rely on repetition to create a “top of mind awareness”. They recognize the fact that consumers may not be ready to purchase insurance the first time they see their ads. To prove the premise, fill in the blanks with the name of the auto insurance company below:

• You’re in Good Hands with ____________________
• Like a Good Neighbor ____________________ is there
• Call ____________________ , 15 Minutes Can Save You 15% On Car Insurance

Chances are you got all 3 right. It’s the result of repetitive advertising.

Studies have shown the importance of repetition. The more we see or hear something, the more likely we are to believe it and act on it. One report says that 59% of respondents will believe and remember the information they receive if they see or hear it 3 to 5 times.

HOW DOES THIS RELATE TO DIRECT MAIL ADVERTISING?

So how does this relate to Direct Mail Advertising? Think of it this way. If your goal is to “Grow Your Business”… for the same budget, it is better to mail to 1000 prospects 5 times, than to mail to 5000 prospects 1 time.

Here is an excerpt from an article by the National Federation of Independent Business:

“When designing and placing ads, many small business owners search for the magic bullet: an ad that is so compelling that customers will immediately pick up the phone and call to make an appointment. Remember, advertising is a process, not a one-time event. Advertising research has shown that a consumer usually needs to see an ad five to seven times before responding. This is what the ad industry calls the rule of seven.”

CREATE A TARGET MARKET, BUDGET AND MAILING SCHEDULE

We’ll help you identify your target market and create a consistent mailing schedule that will fit your budget.

Ask us about our payment options that make it possible to mail more for less money. You can save by placing a larger order and then pay as you mail.

It was tough to watch. I witnessed the chefs give their best efforts in a timed performance as the clock wound down,  until finally time was up. Ready or not, they were being judged by celebrity chefs and thousands of viewers across America.

Most of the competitors were trying to smile and put on a brave face while their food creations were ripped apart by the judges. One of the contestants had tried to create a towering dessert that consisted of several layers including cookies, cream, fruit and topped with a caramel sauce. It collapsed on the plate and although it probably tasted delicious, it looked a mess.

The chef with the dessert disaster listened to the judges criticism and then responded. “I don’t  feel bad. Only Mediocrity Escapes Criticism“.

She was so right. If you are trying to be the best. You should expect criticism. You should even welcome it! In fact, you should even ask for it.

In business, your customers are the “Celebrity Judges”.

We recently started sending out surveys to our customers after each completed sale. The survey includes 5 questions and the answers are multiple choice: A- Excellent    B- Above Average   C-Average and   D-Needs Improvement.  We have been delighted with the results. Just about every question has been answered “Excellent”.

However, we noticed that one of the five questions was often answered “Above Average”. Good enough, some businesses might say. Although we are getting a high mark, “Above Average” in this one area, for some reason, we are not being graded “Excellent”. We’re analyzing our process and won’t be satisfied until we achieve a top mark for all 5 questions.

The journey to becoming the best can be a long and exhausting one.  Criticism along the way can help keep you on the right path toward your destination. Remember, Only Mediocrity Escapes Criticism

When we evaluate the response of a Direct Mail Campaign, we use this 4 point check list:

1. THE TARGET or MAILING LIST
   [    ] STRONG
   [    ] AVERAGE
   [    ] WEAK
2. THE MAGNET or SPECIAL OFFER
   [    ] STRONG
   [    ] AVERAGE
   [    ] WEAK
3. THE POSTCARD DESIGN
   [    ] STRONG
   [    ] AVERAGE
   [    ] WEAK
4. MAILING PLAN (Repetitive Mailing Strategy i.e. Mail 5000 prospects 1 time or 1000 prospects 5 times?)
   [    ] STRONG
   [    ] AVERAGE
   [    ] WEAK

If possible, when fine tuning the postcard, try not to change everything at once or you  will be starting from scratch each time. The mailing list and the design should be pretty solid before launching the first mailing. Usually it’s the magnet or special offer that affects the response rate the most.

When setting up a mailing strategy, remember, higher priced products and services may take a series of mailings unlike lower priced items that are bought on impulse.

The good news is that after a few mailings, response rates should be very predictable. At that point, every mailing is an opportunity to increase sales.

If you would like us to help you evaluate the results of your last mailing – just give us a call 866-594-3069.

What is the Bad News?
You probably don’t have a big enough advertising budget to reach them all.

What determines a Geographic Market?
Geographic markets for small businesses fall into three categories:

1. Physical Location – Customers Come To You
   Like a restaurant or dentist. Unless the business is located in a very rural area, the geographic market will usually be about a 3-mile radius. This market can have 20,000 or more prospects.
2. Local Business – You Go To The Customers
   Like a lawn service or home remodeling company. In this case the geographic market is larger and is usually defined by neighborhoods. This market can have 50,000 or more prospects.
3. Business Without Boundaries – Customers Can Be Anywhere
   Like phone, mail or an Internet order businesses. The geographic market can be huge, statewide, nationwide or even worldwide. This market can have hundreds of thousands or even millions of prospects.

Whatever type of Geographic Market your business has, chances are you won’t have a large enough budget to reach all of your prospects on a regular basis. That’s good news. It means you have a lot of room to grow your business.

When using Direct Mail – How many and how often?
If direct mail is part of your advertising plan, how many prospects should you target and how often? There are lots of theories about this problem. The reality for most small businesses is that this question will be most influenced by their advertising budget.

My recommendation is to segment a portion of your potential market (based on your budget) and then mail that segment as often as you can (again, based on your budget).

In other words, for the same budget, I would rather mail 1000 prospects 5 times than mail 5000 prospects 1 time.

There are advantages to this approach.
The targeted market segment becomes your “control group” for experimentation. By mailing to the same prospects, carefully monitoring response and fine-tuning your message, you have an opportunity to develop an acceptable and predictable response rate.

When that happens, hopefully you will see an increase in sales. More sales = a larger advertising budget and you are ready to expand your mailing area. Expand but don’t abandon the original mailing segment. Perhaps you can reduce your frequency in that area due to the increased visibility you have created, but remember, “out of sight, is out of mind” and you don’t want to risk losing the business from that segment.

Direct Mail Works.
Direct mail is one of the most effective media methods you can choose to grow your business, however, like most everything else worth doing, it takes time and money. You have to spend time planning, monitoring and improving your campaigns. Furthermore if you are starting with a modest budget, results will also be modest and more time will be needed for success. So before you start, make a commitment to stick with it and don’t quit until you reach your goal.

Unless of course, you have a great reputation, consistent product or service delivery, fantastic location and affordable pricing. Right? That is why you never see McDonald’s advertising. Wait a minute, that’s wrong. They do advertise. Ask yourself, what if McDonald’s stopped advertising. Would they still be number 1 five years from now? I think we all know the answer to that one.

So how does a small business determine how much to spend on advertising?
There are many ways to go about establishing an advertising budget, some more complicated than others. Here is a list of the most common:

• • • • Percentage of Sales
      • Objectives
      • Industry Comparison
      • Market Share
      • Unit Sales
      • Available Funds

Available Funds Budget
I’ve been working with small business owners for years and from my experience, the most popular method is “Available Funds”.  Is that a good idea?

Here is a great quote from SCORE: “Often, small businesses estimate their sales revenue, cost-of-goods, overhead and salaries, and then gross profit. Anything left is considered available funds for marketing support. That’s not such a good idea. … If you are the new competitor in the marketplace, you will have to spend more aggressively to establish your market share objective.”(To read the complete article from SCORE – CLICK HERE).

Percentage of Sales Budget
I think the easiest method for determining an advertising budget is the “Percentage of Sales Budget”. Most experts recommend anywhere from 4% to 10% of sales. The percentage should probably be lower if you are renting premium space for your business versus a home based business or one located in a warehouse district. There are other factors and plenty of formulas out there, I recommend starting somewhere in the middle, say 6% and then adjusting higher or lower as needed.

If your advertising is successful, and sales increase, this method offers the ability to grow your business. More sales results in a bigger budget, which results in more sales, which results in a bigger budget, etc.

Here’s one method that is not on the list above. I call it “The Comfort Level Budget”.
For small businesses currently without a specified advertising budget, finding the fiscal discipline to allocate funds for advertising every month will be difficult. Remember the old saying, “…every journey begins with the first step”. The important thing is to take the first step and establish a small budget, even a very modest one, and then be consistent.

The danger with this approach is that small budgets usually yield small results. Owners or mangers can get discouraged. One must be committed and gradually increase the budget until results are measurable.

A final thought. There is more homework to do.
It’s great to become an advertising budget expert and allocate funds to grow your business. However, at the same time, you have got to become an advertising expert too. A budget is important, but if you are spending funds on advertising that isn’t working, you’ve got a problem. Results must be measurable. Learn as much as you can and rely on expert advise from media representatives.

In the end, no one knows your business better than you do. You know your cash flow and profit margins. You are in the best position to measure the results of your advertising. Start growing your business today. How much is your budget?

IS YOUR PROSPECT A MAN, A WOMAN OR EITHER ONE?
If you have decided to use Direct Mail to promote your business, the first step is to create a message that will attract the attention of your prospect. Is your prospect a man, a woman or perhaps either one? The other day someone on our team raised the question. When creating a message, should we consider who is bring in the mail? Is it the man or lady of the house? Perhaps it’s the kids. It could even be on a  first come, first served basis, who ever gets home first that day.

WHO BRINGS IN THE MAIL? LET’S FIND OUT!
Interesting, I thought, let’s take a poll and gather some answers.
So we invite you to CLICK  TO VOTE in our poll. Before you vote and look at the results, who do you think brings in the mail in most homes?

DOES IT REALLY MATTER?
We took a quick survey around the office and found out that the answer to, who brings in the mail, was pretty evenly divided among the four choices offered.  I suspect that will be the result of our poll too. So, is this information helpful. Not very. The results are interesting, in a trivia kind of way, but they really should not affect the messaging on your direct mail piece.

SPEAK DIRECTLY TO THE PROSPECT YOU ARE TRYING TO REACH
We stand by our tried and true method of speaking directly to the target profile. It works, we do it every day. If you want to know how and why, read our Feb 6, 2011 Blog Posting “Why Speak To One Instead Of Many?”
CLICK HERE to read it.

“A good plan violently executed today, is better than a perfect plan executed next week.” – that quote from General George S. Patton inspires me nearly every day.

In the current economy, procrastination can be a recipe for disaster. You have got to work harder than ever just to maintain market share let alone grow your business. However, smart business owners know that there are opportunities during strong or weak economic times. Advertising can help you exploit those opportunities.

What’s that old saying, “…if you keeping doing the same things over and over again, you are going to keep getting the same results!”.

Do something different this week. Advertise.