Direct Marketing Strategies...
Last year I presented a seminar for executives at Lucent Technologies. When the presentation was over, four different sales managers approached me and asked if could speak to their people about using direct marketing to build sales. This is happening more and more each time I speak. Sales people who have been slow to jump on the direct marketing bandwagon are suddenly anxious to know how it could work for them.
I learned about using direct marketing as a sales tool years ago when I was working on the IBM account at Wunderman. IBM had traditionally used their sales team to call on small businesses needing data processing and word processing supplies. They had determined that it cost them about $200 per sales call (which would be much higher today). They decided they could service those companies more efficiently through direct mail.
Our goal at the agency was, therefore, to build relationships with those small businesses. So we developed the first "magalog," a catalog in magazine format that not only sold products, but also included short articles with important information for small business owners. IBM could now let the magalog make "sales calls" for them, freeing up their people to call on larger accounts. The best news was that those smaller marginal businesses became highly profitable for them.
For years, different kinds of companies, from Lillian Vernon offering personalized products, to MCI selling telephone service, to American Express promoting credit cards, have used direct mail as their sales representatives. Yet real live salespeople have been slow to take advantage of the direct marketing phenomenon – especially those in the service sector. I belong to the Financial Women’s Association here in New York. So do a lot of financial planners, who always tell me they get most of their business by networking. They also tell me how difficult it is to find the time to network for new prospects and still have time to service their clients. If they would let direct mail do their prospecting for them, they would have more time to concentrate on service and follow-up.
The Great Cold Caller
Those financial planners (and most other salespeople I know) can’t build sales solely by networking (how many conferences can you attend?). They also rely on cold calling -- the one thing salespeople dread the most. Direct mail is a great cold caller. For one thing, it’s easier to deal with rejection. If someone reads your letter and throws it away, you don’t have to deal with it face-to-face. A second advantage is that direct mail can often bypass the problem of getting past the secretary or "gatekeeper." Done well, a direct mail piece can slip gracefully by the gatekeeper and land right into your prospects’ hands.
Another reason to use direct mail is the time factor. There’s no getting around it; everyone is just so busy these days. The dearest commodity we have, after our families, is our time. How long might it take you to personally call on 1,000 perspective customers to find those 10 or 15 who respond positively? In contrast, how long might it take you to drop 1,000 letters into the mail, then follow up with those 10 or 15 who have already "raised their hands" (said they were interested in your product or service) and qualified themselves?
The Great Maintainer
Direct mail is not only an effective tool for cold calling. It is also one of the best available methods for building and maintaining relationships with the customers you now have. Here are 15 ways to use direct mail to cultivate long-term sales relationships:
a.. Clean up (and utilize) your database. Put yourself in your customers’ shoes. Think about direct marketers who are now maintaining good relationships with you. What are they doing to keep you happy? Probably, they know who you are. Their mailings are addressed correctly and targeted to you and your interests. Spelling a name correctly might seem like a small thing, but it’s important to people. It is to me. I get angry every time I receive a mailing from Publisher’s Clearing House addressed to "Lois Geller." It may be that someone at Publisher’s Clearing House doesn’t like me, but that’s no reason to call me a "Lois."
b.. Thank your customers for their orders. Don’t take their business for granted. It’s very easy for customers to defect to your competitors if they think you don’t care about them. You may not think of thank-you’s as direct mail, but they are. If you sell a product, you can include a thank you note in your fulfillment package. If you sell a service, you could send a short handwritten note. You could even include a gift. One sales trainer I know takes a group photo of himself and his seminar participants after his session. When he gets home, he has the photo developed and sends a copy (along with a short thank you note) to each person in the group and to the person who hired him. Everyone involved appreciates the gesture – and guess whose name comes to mind when they need more training?
c.. Keep track of what your customers order. I buy pantyhose by mail from the same manufacturer several times a year. I consider myself a very good customer. Yet I’ve never heard anything from them, or gotten a special offer. Right now, my loyalty is up for grabs. Your best customers should know that you notice how much they’re spending. Give them something for free, or at a special discount. What would it cost the pantyhose company to write me a letter saying, "Since you’ve been such a good customer, we’re sending you 3 free pair of pantyhose," or "We appreciate your business. Take 25% off your next purchase"? It would cost them a small amount to do this, but it would be insignificant compared to the amount that I spend with them every year. And more important, I would keep me from defecting to the competition.
d.. Send a newsletter. A newsletter is another way of sending your "representative" through your customer’s door. It can keep you in touch with your both customers and prospects, let them know what you’ve been up to and what’s new with your company or product line. Always include a letter or personal greeting from someone in the company. You want your customers to feel that they are part of the family. Include a few informational articles for your customers. You could include query letters from customers (along with your answers) about your product or service. You might want to add a contest to increase reader response and involvement; you could include special sales or offers as well. And don’t forget to keep customers informed of upcoming events they might want to attend.
e.. Cross Sell and Upsell. I have an account at a bank in New York City. Recently my banker called to let me know that I was eligible for a new type of long-term CD. After she told me the details, I agreed with her. This was a win-win situation; there were benefits for both of us. Perhaps some of your present customers would benefit from an upgrade of your product or service, or from a new extension to your line. As long as it is in their best interest, customers will appreciate it when you make them feel as if they’re on the inside track to a good deal. So when you have a new offer or an exciting new service, send your customers a direct mail package. For business-to-business, include a fax-back form (we seem to be getting great response from them lately).
f.. Continue to "talk" to prospects even after they say no. Often a "no" is really a "not now." Prospects sometimes say "no" just because the timing is wrong. They may not be able to use your product or service at this moment, but things change. If you keep corresponding with them, your name is one they’ll think of when they need your product. And don’t forget to send a thank you note after every cold call, whether it had a positive or a negative outcome. You can always thank someone for taking time to see you. You want to keep the door open for future opportunities that might arise.
g.. Don’t let old customers "fade away." Once a customer stops buying from you, does that mean it’s the end of the relationship? Not necessarily. Let the customer know you want to win him back, and you’ll do whatever is necessary. I get offended when I receive mail that says, "If you don’t order from us now, you won’t hear from us again." If that’s the attitude, they won’t hear from me again, and they just lost potential business. How much better it would be to say, "We haven’t heard from you in such a long time. Please come back and we’ll give you 25% off your next order."
h.. Don’t forget their birthday! Everyone loves to get birthday cards. Half the time even your family forgets to send them; your close friends give you a last-minute call or send a card that arrives two weeks late. You’d be surprised at how many people get no cards at all. So a card from you, personally signed, can be an effective touch. On my last birthday, I got a card from a personal trainer I hadn’t seen in a year. When I got her card, it reminded me that I could use her services again. I called her the next day and made an appointment. Her card, which said nothing more than "Happy Birthday," turned out to be a potent sales tool for her (and I’m on track again!).
i.. Send postcards with a simple message. It only costs 20¢ to send a short message to prospects and/or current customers. Let them know about new products, when you'll be in their area, or that there's a trade show coming up they shouldn’t miss. Or send a simple "I’ve been thinking about you…" message just to keep your name top of mind.
j.. Clip articles of interest and send them to clients and prospects. Read industry publications, as well as local business sections of newspapers to find articles relevant to your clients and prospects. If you know enough about the prospects, you might even find articles relating to their hobbies or special interests.
k.. Use e-mail as a prospecting tool. This is especially effective when you’re trying to get business from different departments within a large corporation. Ask your current customer to refer you to other people in the company who may also be able to use your product or service. Also ask for their e-mail address. Then you can send those people e-mail letting them know who referred you to them, and that they will be receiving a packet of materials from you. After you send the information, follow up with another e-mail asking when a convenient time to call them might be. It seems that many people respect e-mail more than they do a cold call, probably because it’s less intrusive.
l.. Have an ongoing theme or direct mail "branding" strategy that customers will recognize. For instance, each Christmas, one company I know sends out a plastic holder for a calendar page. Then, each month, they send the appropriate calendar page. This is a smart tactic; if they sent the whole calendar at once, customers would get used to seeing it and wouldn’t even notice the company’s name anymore. And every time they send a new calendar page, they also send a short promotional letter. What makes this a really special mailing, however, is that each month features a personalized cartoon in which the customer’s name appears prominently. Because of these cartoons and the calendar "theme" customers actually look forward to hearing from this company all year long.
m.. Let your customers know what they need – before they know they need it. There’s nothing worse than being caught short in a crisis. Why wait until customers call you in a panic because they’ve run short of your product when they need it most. The dentist reminds you when it’s time for a cleaning – why not send your customers a postcard reminding them that it’s time to replenish supplies? Or, if you provide a service, that it’s time to call on you again? They’ll thank you for it, and it will definitely strengthen the bonds of your relationship.
n.. Ask your customers for feedback. Build your relationship by letting your customers tell you how they want to be sold. Send them a short survey with questions like, "Was our product delivered on time?" "The best benefit you receive from our product is ______?" "When would you like me to call on you next?" "How can I improve my service to you?" This shows the customer that you care about the service you provide, and makes them an active partner in making improvements.
o.. Use humor whenever possible. You don’t have to be a stand-up comedian, but most people appreciate a little humor slipped into their intensely busy days. Perhaps you could use an amusing caricature of yourself as the logo on your letterhead, or include an entertaining anecdote in your newsletter -- something light that will make a busy buyer smile.
Customer relationships are established one at a time and are built upon the solid foundation of service, loyalty, and repeat sales. Direct marketing can be a new ways of talking to your customers, and an important tool for getting new business, maintaining old relationships, and increasing your bottom line. Start now by putting together your own direct mail plan. You’ll see the results when prospects start calling you… and don’t forget to send me a thank you note when they do!
Copyright 2003 Mason & Geller Direct Marketing, LLC., All rights reserved.
