Direct mail advertising allows for cost-effective ads to reach a target market, keeping the ROI, return on investment, high. But, how can companies increase the response rate for direct mail advertising?
Know Your Customers—And How to Reach Them
The first step to increasing direct mail response rates is to segment your existing customer database. Market segmentation narrows your mailing list to a more specific group of individuals that have enough in common to warrant a like-response to your ad. Companies report their highest response rates usually when a personalized direct mail piece is sent to a highly segmented mailing list. By putting your customers into groups based on interests, hobbies, gender, geography, and lifestyles you can customize offers based on their unique needs and increase sales.
Market segmentation has several benefits:
A. You identify your core customer. The person who is most likely to buy your
product or service.
B. You can spot new trends, and opportunities, within the market.
C. You can see gaps in the database and focus on which mailing lists to rent.
D. You can increase sales, and the lifetime value of customers, by creating
custom offers for specific segments.
Other segmentation criteria can include trends, employment status, payment method, industry, family status, and buying frequency among others.
Stay tuned...more tips for increasing direct mail response rates to come.
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