The answer is simple: Testing in short, economical runs.
Here is a quick snapshot of how a heating company that specializes in home weatherization pursued testing. Said heating company never had much experience in direct mail, so they were quite open to suggestions we gave them. They knew that they had to include some sort of incentive in their marketing piece, so they offered a complimentary consultation to their prospects. After creating a targeted mailing list and a very simplified, digitally printed mailing piece with their offer, the company began testing.
The company sent out just 100 postcards, costing around $400. They knew they were taking a risk, but within a few weeks of implementing their test, they saw results. With just 100 postcards, they had a 14% response rate and closed 1 sale, giving them instant return on their investment. This small test showed them that their pitch for a free consultation had major draw to it. All it took was a simple targeted and economical approach to direct mail.
Digital Nirvana, a leading source of print industry trends, advises to “test your lead-in pitch, test your appointment-setting pitch, test your sales close strategies…stop thinking big expensive mail drops.” The more testing you do, the more you can adapt your message to what your potential customers want. Digital printing allows for on-demand printing and is perfect for quick and effective direct mail campaigns.
Here are more resources for you:
http://www.dmnews.com/how-to-do-direct-marketing-testing/article/98111/
www.thedigitalnirvana.com/2010/01/4-proven-ways-to-improve-your-marketing-roi
Here’s the proof: A study by RIT looked at the average response rates from the following sources: the Direct Marketing Association, U.S. Department of Commerce, FTC, DPC/GAMA studies and RIT research. The following data was assembled:
Average response rates (%):
Bulk e-mail (spam): 0.0002
Bulk telemarketing: 0.0110
Bulk fax: 0.0190
Mass printed mail: 1.2600
Targeted (variable) print mail: 13.7000
