Source: REPLACEMENT CONTRACTOR Magazine
Publication date: January 1, 2006
By Dave Yoho
Direct mail campaigns tied to jobs in progress, special events, programs in a showroom, or energy conservation or seasonal issues usually have an improved return.
Strong ControlsBe aware that leads developed by direct mail require a strong control in their disposition, from confirmation to closing.
Let's go back to our original example. Say 15,000 direct mail pieces are sent at $1 each. These produce 100 raw leads, which works out to 90 net leads. A strong confirmation process would result in 90% of the net leads — 82 of them — being issued as appointments. Let's then say that 80% of the appointments — 65 — turn into presentations. (This figure is probably higher than that at the average company.) Let's say the close rate on those presentations is 25%, resulting in 16 gross sales, for total sales of $128,000.
But … 2 of those sales are cancelled, and 2 more are credit rejects. That gives us 12 net sales and $96,000 worth of business. That would make for a 16% marketing investment. Clearly, the efficiency of the salespeople handling the leads is a major factor in making direct mail work for your company.
Multi-task MarketingBeyond getting the reader's attention, a direct mail program tied into another marketing format increases return.
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