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!

Does it Pay to Advertise in a Down Economy?

This was just released today from Ad-Ology: Does it really pay to advertise during a recession? Historical data says yes, but times and perceptions change, so what do TODAY'S consumers think?

"More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling."

Ad-ology Research surveyed consumers in late April 2009 about their perceptions of advertising in this economy. The report, Advertising's Impact in a Soft Economy, shows just how crucial advertising is right now for success today and in the future. Regardless of how you spend your ad budget, I hope you are still keeping your name out in your community and letting your past and future customers know that you are still here and plan to be for a long time to come. If you have stopped advertising because you don't know what is working (if anything). Call me. Let's talk-no pressure on direct mail-no pressure on anything, let's just set up some tools on all your marketing to see where your money is being spent wisely, and where it could be reinvested for a bigger impact.

The Direct Mail Diva has launched!

Hello everyone- Today Tri-Auto sent out an email promoting the blog. This is the first time it's really been out there for the world to see. I'd love to hear your comments and responses on the past entries and also what challenges you are having with your direct mail programs. Here's your chance for some free consulting and ideas! I really appreciate you stopping by. I update 3-4 times a week so please come back often as the topics are typically very timely to what's going on in the market. Have a great day!

Just what are you doing at the end of the month?

When I first started in this business I hated the week(s) that contained the last two days of the month and the first two days of the next month. All I heard was "I'm too busy closing out the month." It seems like some dealers spend an entire week doing nothing but closing out the month before. If you devote this much time to working on getting the past lined up, how much time do you spend working on the future each month? In all forms of advertising there is a lead time that must be taken into consideration. With direct mail it's typically 1.5-2 weeks before the sale takes place. Which means, if you'd like to have a sale during the first half of the month it needs to be planned the month prior. I know you'll all be shocked to hear our busiest week is typically the first week of the month. It really comes on strong during the last half of it. It's as if everyone just realizes on the 5th they haven't planned anything for the month yet. These jobs are then rushed through to get out by the third week of the month. These quick turn arounds cause anxiety and hurried decisions just to make sale dates before we're back in "close out" time. Today is Thursday the 25th, why not take some time today or tomorrow to really think about what you need for next month. Get a couple of calls into your consultants with your different media and get them working now (instead of this time next week) on some new campaigns for October. You'll be happier with the quality of the ideas, and the amount of time you have to get it wrapped up.

September Quick Stats

We just released our stats for September and I just wanted to share what's working...and what's not. Based on over 300 sales...here we go! Do's

• Add a key to anything! It increases your response to an average of 1.07%
• Check out the new "over sized" products that are out and about. The Jumbo 9x14 inch postcards are averaging 1.64% response! With one sale topping 2.56%.
• Give some thought to some new premiums. Many of these sales used our new "audio player" this FM scanner radio looks like it's momma was an Apple I-Pod and it comes in three fabulous colors--Black, white, and (my personal favorite) pink! Lots of dealers are also giving scratch off lotto tickets a shot, either from your state lotto, or from us-we have some scratchers with million dollar winners!

Don'ts

• 11x17 tri fold self mailer. For the time being this old favorite has slowly made its way to the bottom of the heap. With .46% being the average response, even the best sale was only a .67% response. It had a great run, this product is the cheapest piece of direct mail to ever hit the market, which is probably why it's been completely over saturated the past 2 years.
• Stick with the status quo. Our #1 seller is a theme by the name of "Emergency Sell Off" you may have seen this red, white and black wonder from about 185 other companies. It's been ripped off and duplicated so many times that no one even tries to claim the rights to it. It's still our top selling piece, dealers love it....however, it doesn't even make the Top 5 on our list of most successful themes. Don't be afraid to try something different...what is it mom always said "the definition of insanity is..." you know the rest.

Those are the highlights. Basically the key is BACK, and overzised mailers is where it's at. You may be thinking where do I get these numbers? Well no, they aren't from your dealer friends' accounts of the sales, they are actually documented through our new MarketVision technology. See my post from last week on this little gem we've developed over at Tri-Auto.

Good luck gearing up for your October promotions!

To give or not to give?? Part I

Welcome to a new week and a fresh start! Don't worry I'm not going to get on you today about your charitable contributions, no today we're going to talk about premiums! To some the idea of giving out gifts just for coming in turns their stomach. They imagine a showroom full of people just showing up to pick up their trinket with no thought of ever buying a car. Others, though, love the idea of a full showroom, regardless of their intent for coming in, they are still THERE in your dealership--not the one down the street. So how do you view these people? Are they opportunities just waiting to be taken, or a waste of your time? A few years ago when mail was the new media and was driving in droves of people it wasn't necessary to have a gift on a piece to get a good amount of traffic. Times have changed though, automotive mail is now a very common piece of "John Doe's" stack of envelopes in the mailbox. It's been seen and done before and the results are starting to diminish, or in some cases disappear! That and, as much as I hate to bring it up, the market isn't what it was a couple of years ago either. It used to be an option whether or not to add a scratch off, peek-a-boo, or matching number to a piece. You know the deal-one large grand prize, a couple of other smaller prizes, and the prize that everyone wins (with the exception of the three winners sent out). If you aren't offering prizes on your mailers, look around and see who is. If you had two pieces of mail in your box and were actually in the market are you more likely to go to the dealership that is offering a chance at $10,000 and you've definitely won something, or the one that isn't? But let's not forget this isn't about you or me, or 90% of Americans, this is about the 1-3% of the population that responds to direct mail. The demographics are there, the direct mail responder WOULD choose the dealership offering a gift for coming in, if you want stats email me, I'll fill your inbox. So why wouldn't you give gifts on a mailer? -Your dealership's image doesn't support that type of marketing -It costs more -The sales team has to deal with "gift getters" -It doesn't work for your brand or line -Your sales team is not effective at turning gift getters into buyers -The possible legal issues are frightening! Am I missing anything? For some dealerships premiums are truly, not a good option. For many they are a fantastic opportunity to increase traffic and business, we'll figure out who is who tomorrow.

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!

Advertising in a Slow Economy

There seem to be only two schools of thought when it comes to the debate on what to do in a down market with your advertising dollars. To spend or not to spend. These aren't the only options, and smart dealers know it. So what do you do in times with the economy isn't the "high tide rising all boats?" Do you create a tide of your own to boost your own business or sit and wait until...the election is over, or gas prices drop, or the stock market rebounds or the first of the year....you get where I'm going with this. In times like these you have to keep your name out in front of your market, and you have to start thinking creatively. Here are three simple steps to getting started: 1. Take stock of your market. What are other dealers doing? What aren't they doing? Don't be afraid to look at other industries. Search out the other highly successful businesses in your area and talk to the other owners, managers and advertising execs. What can you incorporate into your business model that works for them? 2. Spend. Spend smart. It's essential to keep your name in front of your market. Taking a month or two off completely could lull someone into false security. There is such a thing as residual advertising...but it will run out. If what you are doing isn't working try something new, just be sure to research the new product, the new company and the new professional that should be consulting you every step of the way. 3. Track your results and ROI. This seems like a no brainer right? Do you do it though? Do you know how much money you actually made off the last TV campaign you ran? Do you know how many sales on your last super sale actually came from the direct mail and newspaper ads? How many were just walk ins? Find a company that is sophisticated enough to offer tracking tools, and use them! How else are you going to know when to stay and when to walk away? This is a time for everyone to take a really good look at where the money is going. As business owners, and personally, we all have areas we can reasonably cut back just as we can all find areas for growth.