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The
growth of the Internet, specifically, the Web, has been a great
catalyst for the development of new businesses, while also expanding
the reach of existing organizations. While email marketing and banner
advertising are two intrinsic forms of direct response marketing
for the newer, 'web-centric' organizations, I've noticed something
else.
The "web companies" are
deploying traditional direct mail to further their web-based marketing
activities.
The irony of direct mail
being used by these "new age" companies is remarkable -- that a
traditional channel is one of the mainstays for firms such as AOL
and many others. Overall, it's good news for our industry, where
many of us have wondered where we fit in.
For example, Monster.Com
has been using direct mail to promote its recruiting services,targeting
HR-type individuals in the corporate arena. The direct mail component
is helping Monster.Com further develop its service-oriented business
model, built on the foundation of an extensive resume database that
was built from its web presence.
While recently visiting
the Monster.Com site, it was interesting to see a banner advertisement
from long-time direct marketer, G.Neil, for their human resource
related products. It is truly a classic example of direct response
marketing going completely cross-platform.
E*Trade is another web-based
organization using direct mail for its customer acquisition activities.
In a relatively short time, E*Trade has become a major player in
the discount stock brokerage market, with coverage in the US as
well as 119 countries. The large base of financial lists, specifically
the financial newsletters and magazines, offer a company such as
E*Trade a highly qualified group of prospects for its financial
services. With computer ownership now being a horizontal market
component, it is more than likely that the active investors who
are reading financial newsletters have web access. This allows them
to respond to a direct mail offer that is designed to drive traffic
to a site.
Peapod has also been active
in the rental of outside consumer lists to promote its Internet
grocery shopping and delivery services. Network Solutions, the premier
organization which facilitates the registration of web sites, deploys
direct mail to encourage businesses to establish their web presence.
America Online regularly mails to acquire new online subscribers,
while First Union and Charles Schwab have been performing installed-base
marketing activities to promote their online financial services.
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For those electronic marketers
who are thinking of or planning to integrate direct mail into your
direct marketing mix, consider these following points:
. One of direct mail's most
distinctive features is its ability to precisely target a defined
group of individuals. There are tens of thousands of lists that
facilitate vertical penetration into the consumer and business-to-business
market segments. Product buyer lists, magazine and newsletter subscriber
lists, catalog buyer lists, as well as membership lists (to name
a few) all define unique attributes of an individual as a purchaser,
at home and/or at business. In addition, there are a variety of
powerful database properties which yield enhanced targeting metrics,
such as age, income, presence of children, business type (SIC code),
number of employees, and even sales volume. Seek out a professional
List Broker and have them guide you in the selection and development
of a precisely targeted list media plan.
. Direct mail has always
been a highly measurable medium. If you are deploying direct mail
to drive traffic to your site, consider the development of specific
URL's which will carry a keycode to determine which list attracted
the visitor. Since you know how many pieces were mailed, the cost
of each to send, as well as the number of respondents, you can easily
calculate cost-per-order or cost-per-inquiry.
. Accountability is an important
factor, especially when you are working with a tightly allocated
marketing budget. Since direct mail programs, when properly tracked,
can yield interpretable and irrefutable performance data, results
can be readily demonstrated so that budgets can be justified.
. Another attribute of Direct
Mail is the overall flexiblity of the medium. One phase of your
campaign could consist of a simple postcard, while another test
program may include extensive information such as a detailed letter
or color brochure. A flexible campaign can be designed that factors
in the essential elements: budget, target audience, and program
goals.
. Last, but not least, Direct
Mail is a proven medium. There are tried and true practices that
can be integrated during the list selection, creative, and copy
design phases that will help you reach a profitable ROI from your
program.
As a final note, if you
are making the added effort to drive visitors to your site, keep
in mind to encourage the collection of email and U.S. name and address
information. Make it easy for a visitor to enter their information,
and always give them the capability to 'opt-out' of any future list
rental activities. Remember that you're not just collecting data
-- you're building relationships.
Direct mail, email, as well
as banner advertising represent an integral set of direct response
tools for your quiver. Whether the origins of your company were
on the web, as a mail order cataloger, or even a retail outlet,
they represent today's cutting-edge tools for building customer
loyalty and generating sales.
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