Does your company spends tens or hundred of thousands or even millions of dollars on direct marketing campaigns? Several of my clients do, and many large businesses (and medium and small ones) devote a portion of their marketing budgets to direct mail. How effective is it?
Common wisdom is that response rates of one to two percent are reasonable. And direct marketing has evolved into almost a hard science, with tests and controls, tracking, multiple offers, headline variations, teaser versions and copy variations. All this, of course, is to squeeze out a fraction of a percentage point higher response, which can be significantly enhance the bottom line.
But how many firms incorporate market research into their direct mail cycles?
Today I received a mail piece from a major insurer—a powerful brand in the insurance worls. The teaser on the outer envelope asked if I am paying too much for health insurance. You bet, I thought, as I’m guessing many of us business owners might react. So I opened the envelope to check out the contents: a letter, three-color black, blue and white, nicely laid out, a four-color brochure, and an insert.
The call to action was to either to visit a website or to call a toll-free number. Since the last thing I wanted at the moment was to talk with a sales rep (I just wanted information to compare their offer to my current provider), I typed in the web address.
What I was expecting in going to the web was a portal to information on this company’s plans for business owners. After all, they had addressed the letter to me as a business owner at the business address.
What I received was a landing page with a headline of “products for individuals.” Ut-oh, I wanted small business plans and I’m seeing “individuals”. Not good. Moreover, the page had NO information on healthcare plans. Instead, it asked me to complete an online form to receive a free gift. Clicking “online form” (the hotlink), I was now asked for a code to enter from the “communication or advertisement”.
So I grabbed the mail piece and searched for the code. Where was it? It was not in the brochure; it was not on the insert; and worse, it did not appear to be on the letter.
Parts 2 & 3 to follow.
Comments welcome–Dr. Bob
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