Sunday, February 5, 2012

I am a born and bred direct marketer. I learned about direct mail from the legends of the industry – Ed Mayer, John Yeck, Paul Sampson, and Rose Harper – at a seminar for college marketing students sponsored by the Direct Marketing Association in the 1970s. And though I often recommend social media and other marketing strategies to clients of my marketing agency, direct mail is still my first love.

Like all direct marketing practitioners, I’ve been dismayed to watch the U.S. Postal Service struggle for survival. As the organization tries to right its ship by cutting costs, it’s also trying to grow revenue by drumming up new business from mailers.

That’s the right thing to do, but perhaps not the way the USPS is doing it.

Case in point: The latest USPS direct mail campaign mailed to my marketing firm this week. Here’s where the USPS went wrong and how to avoid this mistake in your smart marketing strategy.

The marketing budget for a local, service-based business is a tiny fraction of what a global company spends on marketing. Yet small marketers with limited resources sometimes outshine the big guys when it comes to marketing effectiveness, especially in direct mail.

Here’s how a regional painting business in Cleveland, Ohio nailed a prospect direct mail campaign with a simple postcard, while Dell, a huge business-to-business marketer, committed several cardinal sins of direct marketing in a B2B direct mail promotion — plus four lessons for your smart marketing strategy.

Do you know which of your customers are most profitable to your business? Or even how to measure customer profitability?

One of the best ways to gauge the value of a customer is to perform a recency, frequency, and monetary value (RFM) analysis of your customer data. Here’s how RFM analysis works and seven ways you can use insights from RFM for a smart marketing strategy.

Direct mail is often used to reactivate lapsed customers, but few direct marketers do it well. Instead of a powerful, personalized appeal that rekindles the relationship, they turn the customer off with a generic message, irrelevant content, and a “so what?” offer.

But when a direct marketer gets it right, with a highly personalized, data-driven message, a compelling offer, and a warm invitation to re-engage, it’s a thing of marketing beauty. Here’s how a major women’s retailer – Chico’s – nailed it with their customer win-back direct mail campaign, and six lessons from their direct marketing success story that you can apply to your smart marketing strategy.

Verizon says they want me back. But based on the direct mail package they just sent me, I don’t think they mean it. Reactivating lapsed customers is an important marketing strategy for every business. It’s easier to reengage a former customer than create a new one. If you’re using direct marketing to win former customers back, however, you’d better do it right. Here’s how a major marketer blew a customer win-back opportunity with poor direct mail, and five lessons for more effective win-back direct marketing.

Loyal customers are a marketer’s best source of new sales and referrals. That’s why smart marketers treat their best customers like gold, and why earning customer loyalty is the goal of every smart marketing strategy. Except at Toyota. Their recent direct mail campaign to a loyal Toyota customer broke many of the rules of effective direct marketing and harmed a 25-year customer relationship. Here’s why this campaign failed and what Toyota should have done instead.

Savvy direct marketers are using data and digital printing technology to develop engagign creative approaches and compelling direct mail campaigns that are almost fully customized to the individual recipient. Here are five ways to use data to develop great direct mail creative.

When marketing to current or lapsed customers, it’s essential to use your knowledge of the customer — gleaned from database analysis — to deliver a direct mail package or email that acknowledges and capitalizes on the customer’s relationship with your organization.