Direct marketing eliminates channels like newspapers, radio and TV by using direct mail or email, telephones or face-to-face contacts. Mailings will include a trackable call to action while phones and personal contacts allow the business to get an immediate feedback. Such direct contact and availability of measurable feedback are also obtained at costs lower than channel-based campaigns.
Direct Mail Advertising and other DM Methods
Direct marketing uses the following methods to contact prospective customers.
Paper Mail: Letters are sent to persons in direct mailing lists, which might be built in-house in the course of business, or obtained through list brokers and sellers of mailing lists. The mailing will be a targeted campaign if addressed only to recipients likely to be interested in the specific product or service. Such targeted lists are often created through a database analysis.
E-mail: Instead of paper mail, electronic mail is used in e-mail campaigns. E-mail is quicker and inexpensive but the very ease of sending e-mails has led to intolerably high spam levels. This has made deliverability of e-mails a major issue because of spam filters and recipients' unwillingness to open even the mail that gets through to their inboxes.
Telemarketing: Phone calls replace letters in telemarketing campaigns. Trained callers call prospects using a prepared script that convey the marketing message effectively. Often, the campaign is entrusted to specialist call centers. Unsolicited phone calls can cause more irritation than mail and both the script and its delivery must be professional. Voicemail and SMS often replace traditional phone calls these days.
Door-to-door Leaflet Distribution: This is typically the least expensive DM campaign as it does not require any lists, envelopes or postage stamps. Instead, leaflets are delivered at all houses in a neighborhood either personally or as inserts in newspapers or magazines. This method is best for local offers such as a discount sale at the local store.
Couponing: Coupons offering discounts are published in print media and prospective customers cut these out and present them at that sales outlet to get the products at bargain prices. Coupons are not strictly direct marketing; rather they fall under the category of direct response marketing, i.e. the sales message reaches a group over which the business has no control but the respondents contact the business directly.
Direct Response TV (DRTV) Advertising: Short or long "infomercials" provide information about a product and viewers are asked to call a certain number or visit a certain webpage. DRTV campaigns can result in the creation of targeted phone lists as the phone numbers of respondents will become available to the business. This list can then be used for cross-selling and up-selling other products likely to interest the respondents.
Direct Selling: Network marketers like Amway have popularized the technique of 'Tupperware parties' to which prospects are invited. At the party, the product is demonstrated and participants' queries are answered. Direct selling can also take the form of salespersons calling on the prospects at their homes or offices.
Direct Marketing Effectiveness
In addition to attending to the specific issues mentioned above, effective DM campaigns involve:
- Selecting prospects likely to be interested in the product or service, known as targeting
- Clarifying the objective of the campaign; this might not always be an immediate sale
- Developing a message that is focused on this objective, and is also adapted to the medium of its delivery
- Showing how the prospect will benefit by using the product rather than elaborating on the features of the product
- Minimizing the risk of the purchase by providing customer testimonials, demonstrations, samples, guarantees etc
- Tailoring the message to the prospect and using a friendly and personalized approach where appropriate
In practical terms, the above guidelines mean such things as obtaining highly targeted direct mailing lists and seeking competent professional help in crafting letters and scripts for the marketing campaigns. There are many direct mail and marketing services companies who can help small businesses conduct effective campaigns.
Direct marketing campaigns adopt different methods such as direct mail and email marketing, telemarketing, door-to-door leaflet distribution and direct selling to reach prospective customers directly and to get their feedback. It is typically possible to measure the effectiveness of the campaigns by computing the percentage of successful responses to the number of mails or calls. This measurability distinguishes direct marketing from channel based campaigns where it is almost impossible to know how many people received the marketing message.
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