Direct marketing is a highly effective

Direct marketing, in its more traditional form, refers to a marketing method that involves sending out letters of a promotional nature to a targeted and carefully selected audience group. In more recent years it has become known colloquially as junk mail. That is mainly because of an increase in untargeted direct mail, meaning that campaigns are often sent out to people who may have no interest in the promotion they receive. This leads to a low response rate and a high number of annoyed recipients of the mail shot.

When direct mail is tightly focused and targeted to a group who have expressed an interest in the subject of the promotion, or even better, are known recent buyers of closely similar products or services, then the response rate can be expected to increase considerably. A “normal” response rate to the average direct marketing campaign is usually around one percent, or even slightly lower. This may seem very low, but when a direct mail shot consists of many tens of thousands of mail pieces being sent out, then the actually response becomes worthwhile and profitable.

This becomes even more pronounced when you consider that each buyer or person who responds favourably to a direct marketing campaign can then be placed on a buyers list and can be marketed to again and again. Those who are known to have bought recently make the best prospects as they tend to be much more receptive to fresh offers. So while a single customer may be responsible for buying once in a particular campaign, he or she can usually be relied on to buy again at some point. This means that the lifetime value of a customer can be many times the initial value.

Direct marketing is essentially unsolicited contact by a business with a possible customer. This makes it quite different to the accepted way of using email, for example, where that type of marketing is considered spam, or an unacceptable form of promotion. Individuals can opt out of receiving so-called junk mail, but it involves a process that most people don’t know about, or can’t be bothered to do. However, when a direct marketing campaign is closely targeted and well thought out, the recipients of the mail usually don’t mind receiving it. They may not actually make a purchase, but as it is something they are actually interested in, they are much less bothered about getting it.

Direct marketing is a highly effective, tried and tested method of promotion. It can be quite expensive to send out a large mail shot, and there is never a guarantee of success either. However, the details of a direct marketing are well known to those who use it and much can be done to limit the possibility of a failure. This makes direct marketing a popular and much used promotional method.

On July 25th, 2011, posted in: Marketing by jason
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