Is Using A Direct Marketing Agency Effective? The Big Question!

Table of contents

• Introduction
• Direct marketing agency explained
• What are the objectives of direct marketing?
• What are the 3 elements of direct marketing?
• The types of direct marketing?
• What are benefits of direct marketing?
• The pros and cons of direct marketing?
• Is direct marketing effective?
• What next?

Introduction

Is Using A Direct Marketing Agency Effective? The Big Question!

Well, the marketing world is evolving, there is no doubt about it. This has ushered the world into a new era of communication, that’s driven by constantly emerging technologies. Making data an energizing relationship and building connector between businesses and its customers.

With a forward thinking direct marketing agency that can deliver relevant relationship building, revenue generating marketing solutions for its clients. However, this agency must be able to define one-to-one marketing successes. Utilizing stellar strategy and modeled data compelling creative. Together with a state of the art production, actionable analytics and measurable ROI (Return On Investment).

Interactive integration is the name of the game when it comes to direct marketing. By implementing integration rather than independent strategies. This is done by creating impactful communication and delivering greater results.

A good direct marketing agency should be able to use creative content, that is strategically designed and delivered through select communication channels. These channels include direct mail, email, personalized URL and digital media.

Direct marketing agency explained

A direct marketing agency is a full-service, data-driven creative agency that focuses on helping business grow through client retention. And expanded utilization of the business products and services.

It equally help businesses to acquire, retain and grow proper relationships with their clients. Also, it is meant to be a driver driven data agency that’s designed to move the niddle.

ws-na.amazon-adsystem.com/widgets/q?ServiceVersion=20070822&OneJS=1&Operation=GetAdHtml&MarketPlace=US&source=ac&ref=tf_til&ad_type=product_link&tracking_id=onyx7790e-20&marketplace=amazon&region=US&placement=B08NDVJWR1&asins=B08NDVJWR1&linkId=f1d48d23dac4784084c43d43eddb6d66&show_border=false&link_opens_in_new_window=false&price_color=333333&title_color=0066C0&bg_color=FFFFFF

Their actions are driven by data. Meaning, the more data, the better it targets their clients’ customers.

A direct marketing agency measures everything. Measurability is one of the key components, this helps enforce what their client believes and takes fear out of the equation. Focusing the agency’s attention on the reason they were founded and that’s to get “results”.

What are the objectives of direct marketing?

Raised Brand Awareness

The primary objective of direct marketing is to raise awareness in the target market. Sometimes a campaign doesn’t lead to a sale, but raised awareness is still a positive outcome. With this well increased awareness, there’s a lead to a future sale. When a prospect or existing customer is in need of buying the goods or services. Let’s consider some of the areas in which a direct marketing campaign will raise brand awareness:

Its direct nature – This type of marketing will raise awareness and build customer loyalty. Where a preferred direct marketing channel is known, the company is expected to target marketing to this preference. With the marketing method being direct, obviously it will be noticed by the recipient.

Multi-channel approach – When a multi-channel direct marketing approach is adopted, the marketing becomes effective. The sum is totally more than the parts, so investing in several channels, will likely leverage higher returns than investing in a single channel.

Integration with indirect marketing – Indirect marketing approaches can successfully be integrated with direct marketing campaigns. (e.g. TV, radio, etc.). These are also good to raise brand awareness.

Improved Customer Relationship Management

The outcome for a direct marketing campaign has to be a winning solution both for the business and the customer. Some of the ways in which direct marketing improves CRM (customer relationship management):

Improved customer satisfaction and retention – Successful direct marketing campaigns improves the customer experience and will likely to lead to customer retention.

This will help to treat each customer as an individual rather than part of a mass market (indirect marketing) – Direct marketing by its nature is direct and targets at an individual level. By doing so it treats each customer as an individual rather than mass marketing (e.g. TV, radio, every door drop mail, etc).

Sales/ Lead Generation

The main target of a direct marketing  campaign is to generate sales and leads. It’s important for all parties to win, so this means campaigns need to be fair to everybody. Here are some of the ways that direct marketing campaigns generate sales and leads:

New lead generation – A database proportion marketed to will naturally respond to a campaign. And by doing this leads for new customers are generated.

Generating trial orders – The proportion of the database marketed to is expected to generate trial orders of products and services. This is the aim of many campaigns as it could lead to regular repeat ongoing business.

Reacquiring lost customers – Some direct marketing campaigns are targeted to past customers. Who are considered to be “lost” and a good outcome would be to acquire these customers as active ones again.

Upselling, cross-selling, and repeat selling – Many direct marketing campaigns are aimed at:
– Upsell: Means to sell to an existing customer and to make the overall relationship more profitable
– Cross-sell: This aims for a related product or service is bought by an existing customer, who has bought another product or service from the organisation previously
– Repeat sale: A campaign may aim at repeating a previous sale.

Provide ROI that is Measurable

However, with the result of all the increased sales discussed. Any company would want to attain a better ROI and one that is measurable:

Increased profitability – With the campaign, sales and profits are expected to grow. The good track record of direct marketing, the marketer should be able to provide increased profitability targeted.

Verifiable results – Tracking and monitoring techniques will be put in place to be able to measure the outcome of projects.

What are the 3 elements of direct marketing?

Success in direct marketing boils down to three essential elements: list, offer, and creative.

The List

The list is the most critical element of direct marketing. Obviously, using a list that is up-to-date and accurate, it’s vital to be used for the right demographics and better still, the right psychographics as well.

However, the best list possible is a house list, or a database of your customers who’ve purchased products and services from you in the past. And likely they buy from you again, because of the problems solved by your products and services.

You must know that house lists alone are unlikely to produce the sales growth you’re longing for. That’s where the service of a broker is needed, for you to rents lists for them. When you’re assessing list brokerages, always work with leading companies like InfoGroup, I-Behavior, and Acxiom.

Even when working with the more reputable companies, it’s important you know what to order. Insist on renting records that have been updated within the past 12 months and to get the highest level of targeting possible without making your audience too small.

The Offer

It is what entices your audience to respond accordingly. Like to buy, to donate, or to sign up. This has to do with the product or service you provide, the price, and the benefits of ownership.

Apart from matching the offer to the list, always make sure that it is unique, practical, states the nature of your brand, and the good value it carries. However, if your offer doesn’t stand out, always add value beyond its cost.

Few simple tried and tasted ways to spice up your offer for direct marketing:

By now you must have gotten a good list and a great offer. This feature brings your offer to life and makes it resonate with the people on your marketing list.

• Offer a premium as an incentive to buy; people love “FREE” bonuses.
• Include a freemium inside the envelope, and mention the freemium on the outside. This gets people to open your envelope (half the battle) and feel good about your brand right away.
• Offer a money-back guarantee and free shipping for returns. This dramatically reduces the perceived risk of taking your offer.

The Creative

You need the services of a great copywriter, a strong designer, and a reliable printer. Then communicate with your creative staff or the freelancers you hired the offer with a creative brief. This brief should always address the brief in a clear and concise form so that whoever is assigned with this task would gets it:

What is the goal for this direct marketing campaign? Who are your audiences? What message do you want to communicate? What exactly is being sold, and what are the benefits of buying it?

Develop and fine-tune all three features for your direct marketing campaigns. By doing this, you’ll put your business best foot forward and get your offer in the hands of the right people, at the right time.

Is direct marketing the right strategy for your business? Let’s talk!

The types of direct marketing?

Direct mail

Direct mail is all about sending out information to customers and potential customers by post. This type of direct marketing work better with a high quality and targeted mailing list. This actually means that sending mail to a less targeted will be likely to be received by someone who is not interested and regard it to be junk mail.

Leaflet drops and handouts

These methods are less aimed than direct mail, but it is cheaper and easier to carry out. Leaflet drops involve the posting unaddressed leaflets to all residents in a particular area to create awareness of your business. A leaflet handout campaign means to give out printed information directly to people on the street. Some people may still consider your leaflets to be junk mail. See leaflet drops and handouts.

Telemarketing

This allows you to discuss with the customer by phoning them and speaking to them directly. This lets you know their interest and then employ direct sales techniques. However, many customers may find this type of marketing intrusive and be rude to you.

Email marketing

Email marketing is one of the cheapest and most effective types of direct marketing. It is very easy to measure the effectiveness of your campaigns. And give you avenues to test new ideas to improve. The disadvantage is that customers often receive high volumes of emails and yours may be ignored.

SMS/text message marketing

It’s more likely to be read than emails, but many customers find it intrusive. SMS/test message marketing may work better for your existing customers as unsolicited messages could be seen as spam. See m-commerce and mobile marketing.   

What are benefits of direct marketing?

Direct marketing is a type of marketing that allows you to promote your product or service directly to your target audience. It measure results quickly, but the benefit doesn’t stop there. Here are some of the benefits that direct marketing can bring to your brand:

High segmentation and targeting: One of the great benefits of this type of marketing is that you can reach your audience segments with personalized messages. Probably you want to succeed, then invest your time to research and identify the customers most likely to convert and thus directing your energy to actions that really work.

Optimize your marketing budget: To address direct marketing to a specific audience gives you the opportunity to set realistic goals and improve your sales on a tight budget. When you properly optimize your direct initiative, you will be able to achieve results with only a little percentage of the cost of traditional advertising.

Increase your sales with current and former clients: Direct marketing allows you communicate with your current customers to keep the relationship going while you continue to bring value. It equally allows you to get back in touch with old customers and thus generating new sales opportunities.

Upgrade your loyalty strategies: Direct contact with your customers creates the avenue for you to customize your promotions, emails, and offers to create an instant bond. To get more results, you may combine your direct marketing methods with your loyalty program.

Create new business opportunities: It allows you to adapt to market demands and be able to respond more effectively.

Tests and analyzes the results: With direct response campaigns, the opportunity to directly measure your results is possible. So, take the opportunity to analyze most of your tests and make good decisions in real time.

The pros and cons of direct marketing?

When you clearly interrupt what someone is doing to show them a clear, precise message. It impacts them in a positive way if they are only interested in what is being presented. However, there is the negative side of the interruption which can be bothersome to both parties. But the positive influence from a solid value proposition removes those negative feelings.

What Are the Pros of Direct Marketing?

Direct marketing gives you options

There is no specific format of doing things when you decide to use direct marketing. You can decide to reach people through direct mail, by telephone, through direct advertising, or even online. You can equally do door-to-door or you can write emails to people to communicate your value propositions. When there are options, there are opportunities.

It provides people with specific product information

You’re able to present an aimed sales opportunity in a way that gives people the opportunity to think about the offered value proposition. You’re just giving them the proved facts they need to make a meaningful decision in an environment that is comfortable to them.

Direct marketing offers the opportunity to answer questions

90% research has it that a prospect needs to do to feel comfortable with a product will be done on an individual basis. So, they’ll look you up online, compare you to your competitors, and check your reputation. While the 10% will be taken care of when they contact you using the same direct marketing information you’ve sent them. This allows you with a much more productive method of creating a sale.

Allows you to take a personal approach

Nothing builds relationships better than a one-on-one discussion. That’s why a smile and a handshake are so powerful in the business world over the years. Know that writing a personalized letter to someone may not be the same as shaking a person’s hand. But the end result may be the same if you do it right. Or just make a personal phone call. Or better still schedule an appointment with a prospect to discuss how your products and services can solve their problems.

It is still affordable

How much will it cost you to pick up the phone and call someone? Or how much cost will it be for you to print up a few brochures on your own printer and distribute in a neighborhood? Probably you’re a small business seeking to grow market share. There are few opportunities to show how you can meet needs and match desires with a small investment.

What Are the Cons of Direct Marketing?

Direct marketing can target many people who have no interest

Here many companies end up sending direct marketing opportunities to individuals who have no interest in what is being offered. When it comes to your budget, it’s known as a waste of resources. People will end up deleting items, throw them away, or hang up on you.

It is often uninvited

This type of marketing always interrupts potential customers. Many times the customer feels like you’re trying to force them into buying something that they do not want. You may get the attention of a prospect, but if you don’t have a strong value proposition. The chances are good that you ended up creating a negative experience from it

Direct marketing takes up a lot of time

Probably you’re creating a personalized message for everyone you about to contact on a marketing list. Then it’s going to be a big time investment. Though it is an effective strategy to implement, you may find yourself writing hundreds of messages or making thousands of phone calls. Just calculate the time it takes to build trust through these types. You will know there is even more time that you’ve got to invest.

Direct marketing can make negativity spread quickly

Do you know people tend to share negative experiences more often just because they are unexpected. You may do everything absolutely right and not receive any positive review. Because a customer who is expecting you to meet their needs and which you did. But the moment you fail to meet that obligation, then the negative experience is shared. This spreads pretty fast because others will start talking about their negative experiences too.

Is direct marketing effective?

With research, it has been ascertained that customers are happy to receive direct marketing. As long as it is relevant and there is already an existing relationship with the company or the brand they trust. And if they has control over whether or not to receive the marketing. If these elements are not met, then the positive responses will be halved.

To ensure your direct marketing campaign is effective, it’s relevant to meet all the elements. If not, your direct marketing campaign is sure to have disappointing outcome. This is the reason why it’s vital to start your campaign with solid market research. To ensure you’re targeting the right audience and you been able to know their interests and purchasing behaviour. Otherwise, you may end up spending time and resources targeting the wrong people. Who simply aren’t interested in your products and services.

What next?

Use some of the best practices for direct marketing:

• Segment and personalize your marketing content
• Consider lead nurturing programs
• Write effective CTAs, relevant both for prospects and loyal clients
• Always update your data
• Integrate various marketing techniques for better performance

Launch your direct marketing campaign with Urbizboost to promote your business products and services to the right customers effectively.