StrateScapes - Better Direct Mail

Excerpted from
StrateScapes - Volume 7, Number 2

Better Direct Mail

Part 1 Testing the Elements

List, offer, creative ... the key elements to every mailing. But which is mostly responsible for boosting — or suppressing — response rates? And what about fine-tuning the winning elements? Using a small-quantity test and given a relatively short period of time, you can determine the winning elements, then develop a plan for making them perform even better. Thus, testing can save you from making a costly mistake: When a small test mailing does well, you feel confident about rolling out the campaign in greater quantities, knowing roughly what to expect. Testing also lets you essentially develop a predictive model that makes your mailing as cost-effective as possible. Below are the basic tenets of testing to help you start your own efforts.

Under the Microscope

The best candidates for testing are elements that will deliver the greatest impact on response. Elements such as format, copy, list and timing can impart valuable insight. It’s especially important to test offers since they can have the most significant effect on your ROI. Worthwhile tests may include:

Letter package vs. self-mailer

#10 envelope vs. 6'' x 9'' envelope

Stamp vs. printed indicia

Window vs. closed-face envelope

Method of response: phone/mail/fax/e-mail

Personalized vs. nonpersonalized copy

Segmented copy vs. generic copy

Buy one, get one vs. percentage off

Follow-up mailing vs. single mailing

Adding an interactive element, such as a worksheet

Envelope teaser copy vs. blind envelope

So how do you decide what to test first? Start by setting a learning objective for the test. For instance, if you think your offer may be confusing, test a simplified version of it. If you feel asking customers to mail an application (vs. calling) suppresses urgency and therefore response, try eliminating the application. Be sure to test only one variable at a time, otherwise you have no way of knowing which one had an effect.

Making It Scientific

There are certain simple, time-honored rules to follow when testing direct mail. These include:

Use sufficient test quantities. The larger your test sample, the more reliable the results.

Mail your test at the same time as control or you risk making timing another variable.

Keep your testing and tracking methods as simple as possible.

In the final rollout, mail only to individuals who have not received your test.

Look for clear “ cause and effect” in the results. If it’s not clear what effected response, don’t make assumptions.

Follow up quickly. Timing may effect response, so roll out your revised mailing soon after the test results are analyzed.

Finding Your Opportunities

What if your control package is doing well — should you really test? While conventional wisdom says to leave well enough alone, variables beyond your control change often enough that it’s wise to test at least annually to ensure you’re still getting the response you need. But there are other reasons to test regularly besides just wanting to keep pace with the changing economy and consumer sentiment. For instance, you may consider testing when:

New competition is entering your market.

You’re interested in expanding your market with a wider list.

Something in your marketing mix has changed, such as price or offer.

You’re introducing a new product.

You’d like to lower your cost-per-account or other metrics.

Continue to test and improve your results. Testing gives you valuable insight that will help you create even better and more successful direct mail campaigns — the ones that will deliver the ROI you’re looking for.

STRATESCAPES and STRATESCAPES SUPPLEMENTS are published by Customer Communications Group, Inc., a full-service agency specializing in relationship marketing and customer communications. Our comprehensive, turnkey services include data analysis, customer segmentation, strategic consulting, account management, creative execution, print production and multimedia solutions.