Direct Marketing Strategy: Direct Mail Testing

Posted on by Camille Lehmann

Author: Maggie Stack, Account Director

At least once a week, while doing homework, one of my kids will say “when will I ever use this in real life?” I like to point out to them how often I use my Algebra skills, but I never thought I would use science in my marketing career. As my colleague, Alan Sherman, mentioned in a previous blog, we use direct mail testing to determine the best direct marketing strategy. This is where science comes in. By following the steps of the scientific method with a continuous improvement mindset, we aim to exceed our clients’ marketing goals.

Purpose

When thinking about our clients’ direct marketing strategy, our question is always how can we improve results. The exact Key Performance Indicator (KPI) we are trying to improve varies by client, but it always means a better Return on Marketing Investment (ROMI).

Research

We start by reviewing current marketing efforts. Who is the target audience? What motivates them to respond? What tactics are currently being used? How do those tactics work together?

Hypothesis

Once our research is complete, we make recommendations for the elements or options we believe will improve results. Sometimes this is the choice to reduce the cost of a campaign while maintaining response and sometimes it is a higher cost option that will improve response. This could be a new data source, a new offer positioning, a new direct mail format, or addition of a complimentary digital tactic. In direct marketing, the options are truly endless. Once we decide on what will be tested, we can begin the experiment!

Experiment

The two most commonly used experiments in direct mail testing are a split test and a multivariate test. Split tests, or A/B tests, involve testing the same package except for the specific element to be tested. Multivariate testing involves testing multiple elements at the same time. The right one to use is based on several factors: budget, available quantity, quantity needed for the result to be statistically significant, and the number of items we want to test. Once the experiment is in the hands of the prospects, we wait for results.

Analyze Data

Depending on what we are measuring, results could take months to gather. There must be enough responders to be confident in the results. Analysis comes in the form of charts and graphs. Our goal is to always improve results, but sometimes we learn what does not work. As my high school science teacher would say after a failed experiment, “if you learned something, the experiment wasn’t wasted.” In direct marketing, the win in a losing test is that it leads to better, more refined hypotheses.

Conclusion

While there is a conclusion to every individual experiment, direct mail testing should never end.  We believe marketers should always be striving to improve their data, improve their messaging, and improve the tactics they use. And we love partnering with those that feel that same. Looking to apply a little bit of the scientific method to your direct marketing strategy? We are here to help.

Bio: Maggie Stack is an Account Director with over 20 years of experience in marketing services and direct mail production. When she isn’t discussing data and creative with her clients, you can find her and her husband cheering on their children in hockey, baseball, and dance.

5 Advantages of Working with Nahan as a Direct Marketing Agency

Posted on by Camille Lehmann

Author: Melissa Fransen

We have many exciting things happening at Nahan!

In January, we announced an expansion of our services to include a full omnichannel suite of direct marketing services, including strategy, creative, data, analytics, and more! These new services are being offered as needed a la cart style or in a fully integrated approach. Where you need help, our team can plug in and bring our expertise to take your direct marketing initiatives to new performance levels.

For many of our customers, our business relationship will remain unchanged and we are proud to continue our relationship as a trusted print partner. For others, these new resources bring forth a whole new world of opportunity.

Our team has been thrilled with the buzz we’ve been getting in the marketplace regarding our new services and the excitement we’re hearing from our customers. We want to say thank you for all of the questions we have received thus far. Keep the inquiries coming!

Here are 5 advantages of working with Nahan as a Direct Marketing Agency.

1. We Are Direct Marketing Strategy Experts

For over 50 years, Nahan has been known as a world-class printer. We know direct marketing production inside and out. We know best practices, what works, postal efficiencies, and much more. With our strategy offering, we can work with your team to optimize your entire direct marketing strategy and/or plug in where needed. Here are some examples of topics you could expect us to cover and ultimately address:

  • Discussion of your current direct marketing go-to-market strategy
  • Understanding your top-line goals and provide recommendations for helping you achieve and exceed them
  • What do successful KPIs look like for you?
  • Introduction of omnichannel and integrated tools to provide incremental response and lowered cost per acquisition
  • What is your data strategy?
  • How we leverage a test and learn approach with data and creative to continually improve results

2. We Bring Design/Creative Expertise

When it comes to the design of your next direct marketing program, our design experts are at your service. Whether it’s building an entire campaign from scratch to helping with new, efficient format ideas, we bring an unsurpassed level of creative expertise to your direct marketing projects. We can help with design, copywriting, personalization, versioning, best practices, and more! Here are some examples of things we’d likely cover in a design/creative review:

  • Understanding your audience
  • Understanding what’s worked and hasn’t in the past
  • What is the action you want the recipient to take?
  • Reviewing the developed creative brief
  • Offer and supporting benefits development
  • Optimal design and content placement
  • Copy that engages, makes an emotional connection, and prompts action
  • Accommodating differences in how readers consume content
  • Communicating your unique selling proposition

3. We Can Help with Your Data, Targeting, and Analytics

Whether you are a seasoned direct marketer or are just getting started, our team can help with your data and targeting strategies. From list research in identifying your best target audience to predictive modeling tools, we love to help our customers with their data/targeting strategies. Topics surrounding data and targeting would include items such as:

  • Understanding your target market
  • Reviewing current and introducing potential new sources of data
  • Leveraging sophisticated analytics to boost response, cut costs, and lower cost of acquisition
  • Understanding your current CRM strategy and how we can enhance it
  • Leveraging your customer and prospect data to further enhance personalization

4. We Bring Analysis Experience

Once the mailing gets to the recipient, our team is equipped to step in to help you analyze results of your direct marketing campaigns. Examples of items we’d analyze include:

  • KPIs and what they tell us
  • What can be learn from what worked and what didn’t
  • Go-forward testing recommendations

5. We Take What’s Working (or Not!) and Build Upon It

The best part of working together is that you will realize . . .

Request a Quote

Are you interested in learning more about our direct marketing service offerings? Reach out and contact us today!

Bio: Melissa Fransen is our Marketing Manager. She started with Nahan in May of 2017. Melissa is responsible for Nahan’s marketing initiatives, which includes everything from conference planning to social media initiatives. In her spare time, Melissa enjoys spending time with her husband and enjoying time in the outdoors with family and friends.

How To Build an Effective Direct Marketing Strategy

Posted on by Camille Lehmann

Author: Alan Sherman, VP of Marketing Strategy

How many times have we in business or marketing heard the word “strategy?” or “strategic?” or “strategic direction?”  It’s one of those common business buzzwords that we hear all the time, but when it comes to direct marketing, what does “strategy” really mean? Merriam-Webster offers up several definitions of “strategy,” but the one I think is most relevant to direct marketing is “The art of devising or employing plans towards a goal.” After all, successful direct marketing strategy requires effective planning – putting the components of a winning program together.

From Our Perspective, What is Strategy?  

Nahan provides Strategic Planning, which is most simply about enabling clients to achieve their direct marketing goals.  This means improving direct mail gross response, while lowering cost without corresponding drops in response. This can be a challenge, as adding package components, increasing package size or paper quality will often lift response, but add cost. Ultimately, improving upon both response and cost leads to an improved cost per acquisition and superior return on marketing investment. So how do we do this?

A Step by Step, Rigorous Approach Gets Results

We recommend initially approaching this from a macro level. Who will we target and why? If we are focusing on direct mail, what kind of package format is needed? What does our creative and messaging need to look like? What are our target metrics?

The answers to these questions can be found in a step-by-step approach to direct marketing performance improvement. We suggest beginning with a marketing assessment to best understand everything that has been done in the past, from creative, targeting, cadence and offers to the competitive landscape.

Based on our knowledge of data and analytics and an analysis of the marketer’s data, we will likely propose specific types of data and the right predictive analytic tools for data testing. On the creative side, although budget is usually a factor, when we can test more than one creative, we create more opportunities for success.

Finally, based on what we see in the data and from our knowledge of direct mail creative best practices, we design the creative, with the target audience in mind. The data analysis tells us quite a bit about our prospects. We develop messaging, the package design, articulate the offer, supporting benefits and Call to Action.

How Strategy is Rolled Out Against Data, Analytics, and Creative

The available universe is determined. Because we take a “test and learn” approach, a test plan that minimizes risk while testing creative, data, and analytics is developed. When results come back, we measure them and make recommendations for further improvements in targeting and creative. Feeling more comfortable in what works, we can invest more dollars in reaching more people, often expanding to an omnichannel campaign, particularly where we can simultaneously target the same direct mail recipients with online campaigns, can substantially lift results further.

A subsequent results analysis leads to additional improvement – ideally, a never-ending improvement process. Which is necessary, given that costs like paper and postage are always rising!

The Results

We can almost always improve response through our knowledge of what creative and data works, creative and data testing, and predictive analytics. We can also test less expensive materials to bring down package costs. When we work these “levers” in the right way, cost per acquisition drops.

Questions To Ask Yourself and Your Team

What are your acquisition goals for the year? Where do you think your program is working and where might improvement be needed? Are you testing creative and data on a regular basis? Do you rotate your creative to keep it fresh and performance up? If you would like to achieve better results or simply discuss your challenges and receive suggestions, give us a call.

Bio: Alan Sherman is our Vice President of Marketing Strategy. Alan enhances Nahan’s current value proposition with strategy solutions that support new/existing client relationships. For clients, he leverages market, customer, and competitive intelligence to build achievable strategies for omnichannel marketing success. His marketing plan strategies include targeted data, predictive analytics, testing and creative that drive ongoing client performance improvement. In his spare time, Alan enjoys spending time with his family, traveling, going to concerts, watching sports (he’s a fan of the NY Giants, Boston Red Sox and Celtics) and walking the dog, even though it was just out.