How To Build an Effective Direct Marketing Strategy

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.