- Dr.Direct
Dr. Direct is a new service to readers of Direct Marketing magazine. In this column, a combination of Dear Abby, Dr. Laura and the Playboy Advisor, Alan Rosenspan will answer any question on direct marketing to the best of his abilities.
The following questions are those which have been asked of the good doctor in client meetings, conferences, and idle conversation in the past few months.
Dear Dr. Direct,
Help! My client and I have tried everything -- new creative, new photography, unusual formats, but the response isn't improving at all. In fact, we've lost ground. What do you suggest?
Baffled in Boston
Dear Baffled,
We're seeing a lot of that these days, but fortunately there is a cure.
The answer is that you're spending too much time on the words and pictures -- the superficial stuff -- instead of the things that really have an impact on response.
I suggest you take a good hard look at the lists you're using and your offers and ask yourself the hard questions. Who are you mailing to? Why? Why do we think they'll need our product? What do people get when they respond? Why should they act now? If you answer these questions honestly and creatively, I'm sure you'll be able to increase response.
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Dear Dr. Direct,
What's a good response? I've tried asking my agency that question but they won't give me a straight answer.
Confused in Calgary
Dear Confused,
I understand your frustration. Most agencies are reluctant to commit to a number, particularly with a new client.
I recently did a project for a software company that got a 9.8% response. This was my first project with them, and they were disappointed. I pointed out that this was, by industry standards, a huge success. They probably won't believe me until they do another project with someone else.
Your specific answer depends on your list, your offer, and even your business objectives. However, for the purposes of planning, I'd assume responses of 1%, 2% and 3%. Anything above that is pure gravy.
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Dear Dr. Direct,
We can't decide whether to use direct mail, telemarketing or advertising to launch our new product. What do you suggest?
Curious in Kalamazoo
Dear Curious,
How about a combination of all three?
Direct marketing specialists, including Ernan Roman, have been preaching the benefits of integrated direct marketing for years. He claims consistent double-digit response.
The idea is to run an advertisement in a publication, send out a mailing to it's list of subscribers, and then do outbound telemarketing to the same list. The combination of media, plus the repetition, is sure to increase awareness and boost response.
This is particularly important for a new and untested product.
And, by the way, make sure you include a strong moneyback guarantee!
The doctor also recommends that if your company has existing customers, you let them know about your new product first.
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Dear Dr. Direct,
But wait a minute -- shouldn't we be looking to find the most cost-effective media?
Still Curious
Dear Curious,
No, not at this point -- and who said you could have two questions?
First, you should be trying to determine whether or not there's a market for your product.
Once you establish that you can win customers, you can then begin to adjust your media schedule to determine the most cost-effective ways of getting them.
By the way, don't skimp. I worked with one company who urged me to keep my mailing costs at under $1.00 apiece. They changed their mind when I pointed out that every incremental customer would be worth another $15-25,000 in revenue.
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Dear Dr. Direct,
The freelance copywriter I work with wants to charge us $2000 to write a letter to our customers. I can do that myself -- why should I have to pay him? It's just a letter.
Frustrated Client
Dear Frustrated Client,
It's just a letter? The doctor is outraged. That's like saying "it's just a major surgical procedure."
The letter is by far the most important part of a direct mail package. It may look simple, but the best ones are carefully crafted to keep you reading and to get you to respond. Stick to writing checks and leave the letter-writing to a professional!
A letter I wrote six years ago generated over $250 million in customers "won back" to AT&T. And the famous letter for the Wall Street Journal has been responsible for $1 billion worth of subscription sales.
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Dear Dr. Direct,
I sometimes see a Question and Answer section in the mailings I receive. Should we do include one for our company?
Musing in Miami
Dear Musing,
I prescribe Q & A's when you are selling a complicated product that requires a lot of information.
Since you didn't tell me what kind of company you represent (I'm a doctor, not a psychic!) I'm not sure whether or not it's necessary -- but I find it usually helps.
The idea is to anticipate every question and every possible objection in the reader's mind, and answer it to their satisfaction.
The doctor has his own special way to end the Q&A. My last question is always something like:
Q. You've convinced me. What do I do now?
A. Simply call 1-800-000-0000 to receive your, etc.
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We want to test a new list before we roll out the entire mailing? What quantities would you suggest?
Testing in Toledo
Dear Testing,
I can't tell you how much it warms the doctor's heart to find out that someone is still testing out there.
As I've said before, testing is the one sure way to get better at your business; to learn more about your market; and find out what works for you. It also gives you opportunities to dramatically improve your direct marketing.
To answer your question, I recommend you test to get 100 responses. That means if you've been getting a 2% response rate to your direct mail, test 5000 names. If you're getting a lower response rate, test a higher quantity.
If you're testing a direct mail package with an unknown response rate, I'd use the same quantity.
Just be careful when you do roll out. The rule that I follow is you cannot multiply your quantity more than five times over and be sure of the same response. So you may want to do a phased testing program of 5,000, then 25,000, and then 125,000. Good luck!
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Dear Dr. Direct,
I'm the Direct Marketing manager for a small association. We have an agency that presents us with several ideas for every project. They want me to choose between them. What's the best way to evaluate creative work?
Troubled in Tulsa
Dear Troubled,
Excellent question, but I do think your agency should be recommending a solution. After all, they're the experts, or at least they should be.
However, when you have to judge creative work on your own, there are four important questions to ask:
Is it on strategy? It can be the most creative execution in the world, but if it's not saying the right things, and it's not on strategy, it probably won't work for you.
Is it clear? Sometimes headlines are misleading, or they're not direct enough. Make sure your execution is easy-to-understand and clear about what you want prospects to do.
Is it based on a big idea? Does it capture the imagination, stir your soul, or make you think of something you never thought of before? Remember that it costs just as much to send out something extraordinary as it does to send out something ordinary. (Actually, it cost less because the cost-per-response should drop)
It is the right big idea? For a full discussion of this strategic issue, I urge you to read "Six Blind Men and the Elephant" in the March issue of Direct Marketing magazine.
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Dear Dr. Direct,
I have a client who's crazy for radio. Does it work for direct response?
Doubtful in Detroit
Dear Doubtful,
Absolutely. There have been several outstanding success stories for many different kinds of products. Look at David Oreck and his wildly successful Oreck challenge. And how about the famous "Hooked on Phonics" program, advertised almost exclusively on radio.
The doctor is not a media maven, however radio gives you the advantage of being able to select specific day parts such as drive time, shows such as "Money Talk", host presenters such as Dr. Laura, and geographical areas.
Plus it's usually fast and inexpensive to produce. The proliferation of car phones have also increased the power of radio. Just remember to have a word-800 number, such as 1-800 DR-DIRECT. (Not in service at the present time)
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Dear Dr. Direct,
What makes you such an expert on direct marketing, anyway?
Puzzled in Preoria
Dear Puzzled,
Fair question. Anyone can claim to be an expert in direct marketing. Unfortunately, there's no certificate you can hang on your wall.
My wall is decorated with over 100 advertising and direct marketing awards, including 18 DMA Echoes. Or at least, it will be when I get my new office.
However, as they say in the mutual fund business, past performance is no guarantee of future results.
The doctor once proposed that all direct marketing practitioners have to pass a test and be licensed. That way, when you work with a licensed professional, you'll know you're getting a competent person. So far, no one has taken him up on this idea. Please note: If you disagree with any of my answers -- or if your experience is different -- please let me know. I will be happy to print your point-of-view.
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