The Best Direct Mail Strategy...Is to have one!

When I first started in this business almost exactly six years ago I was handed a somewhat up to date list of most of the dealerships in the state of Ohio and a phone. Sure, we had a little training - but a few hours in a conference room surrounded by glossy pieces of paper and some pricing sheets can't prepare anyone for what we do...but little can.


Those first few dealers I worked with probably signed up for different reasons...I caught them on the day they were planning to seek out a direct mail vendor, or they thought I sounded young, dumb & blonde on the phone (I was only 2 of the 3), whatever the reason they didn't agree to do a mailer with me because of my experience or knowledge. I like to think a lot has changed since then. But I know there are still those dealers out there that hop from one mail company to the next based on one piece, a short skirt or a low price. If it works for them - great, if not how about creating a strategy behind direct mail dance!?

Here in Divaland just this morning we were talking about how it feels like it takes working with a client for an entire year before they see the value in putting together a strategy for their mailers. They get their feet wet, realize we aren't idiots, eventually come around to taking suggestions and finally one of us says 'I think it's time we plan this thing out.' This post is really for anyone doing mail, but especially for those of you that know Marketvision and don't yet use a strategy.

So here it is - don't get too excited because it's simple. It's taking the time to do it that is hard.

1. Determine what zip codes respond to your mail and which don't. This typically takes 2-3 sales of just real data collection (which is easy using Marketvision, but can also be done by hand).

2. Take "good zips" and look for others that look like those demographically and add them to your master list.


3. Figure out how many homes there are and how often you want to do sales. Then divide the list evenly across all zips by the number of campaigns you are looking to do in the quarter. This makes certain you aren't blowing up your market and it keeps response consistent.


4. Find a good piece and stick with it. Look, I'm going to be blunt, if I'm telling you something is working then why change it? You can then use the same piece all quarter because no one is seeing it twice, easy right?


5. Put the plan in motion and continue tracking. The beauty of this is especially nice for dealers that do mail campaigns monthly or even weekly. You set it up at the beginning of the quarter once and then all you have to do is update dates throughout the quarter. Your piece & zips are already selected!


6. The result - mail with a strategy. You know who is getting your mail and when, and you know you're message is out there consistently. Every month a different group of people are in the market and are getting ready to be in the market - with a strategy you know they are seeing your message in that timeframe.

Obviously this is a simple list of things that actually require a lot of upfront work. The hard work pays off when you can just sit back and let your strategy plan out your mail. For Diva clients Katy does most of it anyway - give us a call today if you want to hear more.

Bulk Mail vs. First Class

Future clients often ask me "do you use bulk mail?" My answer is..."sort of..." Here's the low down on bulk mail and how it can mean very different things to different industries and companies. The best way to describe is - yes we take advantage of bulk postage pricing, however we do what we can to control the delivery window. If you ask the post office they will tell you it takes 12-15 days for bulk mail to be delivered from the day you send it. If you ask me it takes 2-3 days on average from the day we deliver it. We go to great lengths to ensure this time frame and on average 90% of our mail hits within it. Check out some of the things we do and a few you can control to help your mail delivery here in my MailPlus post from this summer. So, to the real match up today-First Class vs. Bulk Mail. Which is it? It does depend on what and who you are mailing. As long as you are doing at least 3,000 pieces in a realistic area around your dealership I'm going to say Bulk Mail all the way. Why?

1. It's CHEAPER-much cheaper
2. It's trackable-after we drop First Class mail there is no finding it-it floats around in post office la la land until it reaches its destination.
3. I trust Bulk Mail through our MailPlus system to be more reliable than First Class.

Reputable Mail Companies-How to Find Them

Many of the dealers I work with have told me lately that they've received more sales calls regarding direct mail lately than ever before. Automotive Direct Marketing providers are directly linked to the Automotive Industry, so we, like you have seen the impact on our businesses.

As much as I would love it if everyone who read this blog contacted me for their mail needs, I also realize some of you are just trying to figure out who is legit in this game and who isn't. Here are just a few red flags and questions to ask to separate the quality from the...not.

How long have they been in business? and How long have they been in business under their current name?

There are a lot of businesses that have "closed" under AG scrutiny & lawsuits and have reopened under new names. The names have changed but the people haven't.

What's the level of professionalism with this company?

If they don't have a website, or any marketing material, or even a solid address--any or all of these could be a red flag. Professional companies have marketing collateral, samples, desks and a website. That's not to say that some professional companies aren't smaller and may have fewer resources than some of the big boys--but taking the time to do a little research in this area is time well spent.

How do they feel about providing you with postal verification?

Some companies try to get around sending postal documentation to their customers. These are your basic documents from the post office that says how much mail was sent and how much money was paid in postage. If they are strange about providing these up front-that's probably not good.

Where do they fall on the price line?

I know you don't want to hear this but cheaper isn't always better. If they are considerably less expensive than anyone else you've spoken to, ask more questions. With the economy like it is some companies are truly just trying to stay in business--for some that could mean selling their product at cost to keep people & machines working, for others that could mean telling you 30,000 pieces of mail are being sent out and sending out 10,000.

Have they challenged any of your ideas?

You know cars. I know mail, and so do some other mail professionals. Those of us that do this to help dealers are not afraid to tell you when we feel something is a bad idea or to suggest something different to help increase your results. We don't do this to be know it alls-we do it to assist you. It's your choice if you want to listen to us :) Beware the mail company that doesn't have any insights to share. They may only be in it for one sale and one pay day.

What does your gut tell you? Intuition is our best friend when it comes to things like this. If you don't trust the person on the other end of the phone (or on the other side of your desk), why would you hand them a check? If something doesn't feel quite right it probably isn't.

There are many, reputable, quality mail providers out there. Go with someone that has a proven track record, industry knowledge and plenty of references for you to contact.

This post is intended to educate. By no means am I implying a company that falls into one or more of these categories is practicing illegal or immoral business. This isn't directed at any particular company-please don't send me hate mail :) Thank you!

Did you know you can target a saturation list?

I'm still surprised about how many people don't know about the new possibilities with your good old fashioned saturation/current res list. Early this year several new functions were made available and they are really increasing the response on these mailers, and can also affect the quality of traffic coming in if they are used correctly. The first new addition is a "names where available" feature. This does cost a fraction of a penny more to use, but I just throw it in on all mailers-it's worth it for the increased results. Basically an average of 80% of the list will have the person's name instead of just "current resident" or "future satisfied customer," etc. We can pull a list count ahead of time so you'll know the exact amount of names available in your market. It's typically pretty close to 80% though. So what does that mean for you!? For one thing it's more personal to the person getting the mailer, which gains their attention and makes them more likely to respond. Secondly, if you like to do the flashy mailers with the person's name all over it (aka Variable Data) this makes that such a more affordable option! You no longer have to pay the postage hike and additional charge for a names list. Brilliant! Finally the other fantastic new option on the saturation lists are...average demographics! We all know there are certain areas in every market that aren't worth your marketing dollar when it comes to different media. This list now allows you to target parts of zip codes and decide whether or not to use them. Each zip is broken into carrier routes (for example your mail carrier delivers to your neighborhood, the one across the street and the one down the road), we can then look at the average age, income and home value for each route. It's a great way to really target your market without paying for the pricey lists and postage. To my knowledge this should be available to all list providers. If you haven't heard about it from your direct mail consultant, it's definitely worth a quick conversation. If you're look for a new consultant feel free to contact me. Happy Friday, have a fantastic weekend!

So excited about MarketVision!

I'm so excited today that I just had to share! I'm not sure how many have you have heard about MarketVision, either from me or your friends in the industry. BUT, it's doing much more than I ever expected. The quick story on MarketVision is...it's a technology Tri-Auto Enterprises has developed over the past two years. A kiosk is shipped to the dealership a few days before the sale starts. It's a touch screen computer terminal. Instead of the ups checking a prize banner to see what they've won they scan a bar code on their mailer at the kiosk. It captures their name, address, phone number and email address along with trade in information. Then a receipt is printed for them telling them not only what prize they won, but also offering them an extra amount on their trade in. MarketVision then compiles the data for you! There are real time reports that show how many ups have come in, plot them on a map, tell you what salesperson worked with them and also shows you the percentage of return from each zip code. Finally we know what zips are worth hitting, and what aren't! This "real time" feature just went live last week. It was especially exciting for me as one of my event teams had a sale going in Lancaster, Ohio that was really kicking butt. It became addicting as I logged on every 30 seconds to see how many ups they had that day. By the end of the week they had 909 people in off of 30,000 mailers! It was so exciting to be able to see the success as it happened. In addition to that, all 909 of those people will receive an additional, First Class, follow up letter the week after the sale inviting them back in. They're free to the dealer as a part of the MarketVision program. Finally, there is something new in the direct mail marketplace! Tri-Auto offers this program along with many of the mail houses and event teams that partner with us. Ask your direct mail consultant if it's something they offer--if you like being able to track your ROI, the success of your sales people, and what areas are truly your market--I have a feeling you'll geek out like I have been too! If you're curious, here's a quick video showing how it works: http://triauto.com/marketvision.php And, here's the daily up totals from that sale I mentioned: Daily Analysis Date # of Ups 9-13-2008 246 9-12-2008 197 9-11-2008 248 9-10-2008 168 9-9-2008 41 9-8-2008 9 Total Ups: 909

Elections Slow Mail Delivery--ATTN Swing States!

I don't have long today just wanted to get this information out. We've identified three states where election mail seems to be having an impact on automotive mail being delivered. The states are: Ohio, Florida & Pennsylvania. They have been designated as "swing states" by the candidates so political mail is, and has been increasing. Please discuss this with your Direct Mail Consultant if you're considering doing a campaign.

Credit Amnesty Events

The past few weeks the elusive "Credit Amnesty Events" have been popping up again. In a lot of states these are not considered illegal, and quite effective, however there has been some nasty backlash recently. An Illinois dealer is facing the possibility of hundreds of thousands of dollars in fines over this theme, click on the title of this post for the whole story. All dealers need to be aware of the laws in their state. Reading through the guidelines that are spewed from the AG's offices can be mind numbing and confusing...and on top of that contradictory and vague. Direct mail seems to be the area targeted the hardest when it comes to these books of laws and "suggestions." Be sure your printer, mail house or marketing firm is also up to date on the legalities in your state. They should be able to red flag certain hooks and offers for you, and at the very least be sure you are covered in your disclaimers. Back to the "Credit Amnesty Events" if you conduct business in any of the states below...run...quickly away from this title or offer. If you aren't on the list it doesn't deem you "safe" it just means there haven't been any recent fines handed down in your area for using it. And while we're talking about disclaimers, here's mine: I'm not a lawyer, and am not able to give "legal advice" I'm just well informed so that dealers I consult avoid fines as much as possible. Happy Friday! Alaska Arizona Connecticut Delaware Florida Georgia Idaho Illinois Iowa Kansas Louisiana Maine Montana New Jersey New York North Dakota Ohio Oklahoma Oregon Pennsylvania Vermont Washington Wisconsin