Many SMEs are put off direct mail because they think that they are too small to make it pay and are often surprised to find that’s not the case, particularly in business-to-business marketing. Here’s how to be successful:
You don’t have to buy thousands and thousands of names and should never be tempted to do so, no matter how cheap they seem. Even if you can find a way to manage the mailing and licking stamps and stuffing envelopes soon gets dull you have to question whether you are really set up to handle a high number of responses if the campaign is a success. And the minimum order quantities probably aren’t nearly as high as you might imagine. We take orders for as little as £200 which buys 600 records for 12 months of multiple mailing and telemarketing or 1500 records for single use.
Many companies think of direct marketing as a one-off or sporadic activity. If you are prepared to take a longer-term contract with a data supplier you should be able to negotiate better rates and can also arrange to have the data in periodic manageable chunks rather than all in one go. And that way, the data you use is always up to date.
This goes with keeping the volumes low. There are lots of niche lists out there that can generate exceptionally high response rates, but SME clients are often surprised as to just how specific they can be with who they want to target. For example, with a good data source, you should be able to specify not just type of industry but also job titles. One list we’ve recently sold to a client was of security managers in retail companies (there are 180 of them, if you’re interested) and the response and conversion rates so far have exceeded all their expectations.
Poor targeting also irritates people in business-to-business as much as in consumer marketing and could damage your carefully nurtured reputation another good reason to steer clear of the confetti approach.
It never ceases to amaze me how many companies still evaluate campaigns simply on total cost rather than on return on investment. Cost per response is much more useful a measure than cost per mailing and can often persuade you that seemingly expensive data is better value in the long run.
If data is cheap it’s usually because it is either very out of date or has not been cleaned properly. That means that you could be wasting money sending multiple packs to the same person because they appear on the file several times or to people who are no longer at that company.
We offer clients a 50p refund for every record that is out of date. That way we keep our data fresh and clients don’t lose out if a mailing is wasted. Ask your supplier to do the same. Also ask them about their policy for maintaining data accuracy. What proportion of the database is verified every year? And how many of their sales are repeat business? Satisfied customers keep coming back; dissatisfied ones don’t. Can they tell you the level of returns and non-deliverables that other customers have experienced with the data?
Successful direct marketing is about much more than just good data and a good offer. Often the feedback you get from your analysis of the results is just as valuable because it helps you hone your plans for subsequent campaigns. Yet many SMEs find that their database lacks the sophistication to manage data manipulation and analysis. But before you rush off to buy a new database, think about whether you have the manpower to run it effectively. A constant feedback loop is ideal but if it’s not achievable don’t waste money chasing it.
If you are buying telephone numbers then you need to make sure that they haven’t been registered with the Corporate Telephone Preference Service (CTPS) which protects those registering from unsolicited marketing. A good data supplier will already have screened the data they sell you, but you must double check before you start calling because the law requires you to screen against CTPS every 28 days. So you can’t simply buy data and hold onto it until you want to use it. The situation is a little more ambiguous if you already hold the numbers on your database, but the Direct Marketing Association (DMA) can help. There are also preference services for mail (although this currently only applies to private households) and fax numbers.
Similarly, the Data Protection Act scares many companies and is regularly misinterpreted but, here again, the DMA or a good data supplier can advise you.
Direct marketing can be a great way for SMEs to find new customers and may well be easier than you think.
