Direct Mail Campaign Development: Tips for Success

Posted on by Camille Lehmann

When executed properly, direct mail is a highly effective way to reach target audiences and generate leads. What’s the secret sauce? Careful planning and execution. A successful direct mail campaign is not completed by flying blind, but instead by taking a deep dive into your objectives, data, and creative. 

An effective direct mail plan incorporates thoughtful strategy, data tests, creative tests, and more. To help break down what you need to know, we’ve enlisted the help of some industry experts and have compiled the insights below.  

  1. Build a sustainable campaign platform with measurable results

    Alan Sherman, VP of Marketing Strategy at Nahan, once said “Direct mail is changing. If you still think of direct mail campaigns as a “throw spaghetti at the wall” mass-mailing approach, you’re greatly mistaken.” Today, successful direct mail plans are built on a sustainable campaign platform that allows for measurable results.  

    Marketers must also define their goals and objectives. Determine what you want to achieve with your campaign, whether it’s generating leads, boosting sales, or increasing brand awareness. Then, develop a plan that includes projected metrics for success and a process for measuring and analyzing your results. 

  2. Test your creative and align it with your audience 

A creative audit can help you identify areas where you can improve your mail package format, messaging, offer, personalized copy and images, and integrated digital/direct mail campaign. This audit can provide valuable insights that will help you optimize your mail plan and improve its performance. Use this information to inform your creative tests, such as testing different formats, messaging, and offers. 

“Creative tests allow you to refine your messaging and design and make sure it is resonating with your target audience. Your data and your creative really need to align with each other to make sure the correct message is being spoken to the corresponding audience.”

-Mike Dietz, Executive Creative Director

3. Build predictive targeting models and profiles based on your current customer list, and target those most likely to respond

One of the most effective ways to target your direct mail campaign is by building models and profiles based on your current customer list. 

“Analyzing your customer data allows you to identify the most likely prospects to respond to your mail campaign,” Sherman says. “This can help you build a more targeted and efficient campaign that delivers better results.” 

To do this, data analysts must analyze your customer data to identify common traits and behaviors indicative of response, such as age, income, and purchase history. Depending on the industry, this could include analysis of credit data. Use this information to create targeted models and profiles that can guide your mailing list selection and messaging. 

4. Continual improvement through testing 

“Continual improvement is key to a successful direct mail program,” Krista Black, VP of Marketing and Account Services says. “By continuing to test your data sources and creative, you can refine your campaign over time to ensure it doesn’t fall flat.” Regular testing is an investment that puts the long-term odds in your favor. Every test is an opportunity to learn and improve. 

“We really cannot stress enough how vital direct mail testing is to the health of a direct mail campaign. It really is the lifeblood of it. While some marketers have a fear of testing for a “if it ain’t broke, don’t fix it” mentality, failing to test is more risky. Every package will eventually face a decline. Testing must be a regular ongoing process. Ideally, that means part of every campaign or at least testing quarterly.”

-Alan Sherman, VP Marketing Strategy

Let’s do a quick recap of the above: 

  1. Define your goals and develop a mail plan with clear metrics for success. 
  2. Incorporate best practices, data and creative tests into your mail plan. 
  3. Build models and profiles based on your current customer list to target most likely to respond. 
  4. Continuously test and refine your campaign to improve results. 

 

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

Direct Mail Testing is Like the Stock Market: Here’s Your Investors Guide

Posted on by Camille Lehmann

When we talk direct marketing to marketers, the subject of direct mail testing inevitably comes up. For some, it’s all about creative testing, where testing might be tweaking existing creative once a year. For others, it’s a regular creative testing program, with new creative being tested with every campaign. For still others, testing may include offer, copy, contact cadence, list, and predictive model testing as part of the necessary mix. But why this range of approaches and is there a right way?

We find that the frequency and scope of testing depends on budget, your product or service, one’s risk tolerance, and prior experience with testing. This last item is a big one – many people are simply unfamiliar with what a regular testing program looks like and its value.

I like to think of testing as similar to long-term investing in the stock market. With all of the recent attention paid to artificial intelligence, I decided to informally check my theory by asking AI provider ChatGPT about the value of long-term investing. Here are the key value points to long-term investing that came back, with my comments:

  • The Earning of Compound Interest – With enough time, the compounding of interest leads to major growth. When we test, we accumulate a long-term knowledge base of what works and what doesn’t.
  • Reduced risk – Given time, short-term risk fluctuations are reduced. Same thing in direct mail testing. Each time we test, we learn a little (or a lot) more, which reduces risk.
  • Potential for Higher Returns – Long-term investing is associated with higher returns. Same as with testing. When we are in testing for the long-term with a regular, consistent program, we are “in it to win it.”
  • Diversification – When we diversify our investments, we reduce our risk. So when we test a variety of items we learn more, which leads to less risk and greater performance in the long-term
  • Ability to Meet Long–Term Goals – Long-term investing can help us reach long-term financial goals, like education funding and retirement. Testing enables us to reach our long-term marketing performance goals.
  • Peace of Mind – Long-term investment can lead to greater piece of mind. When we run a comprehensive testing program, we have the peace of mind that we’ve left nothing to chance.

The challenge for many marketers is that they are unfamiliar with how to structure a best practice testing program.

That’s why we created Nahan’s Guide to Direct Mail Testing!

In this white paper, we provide an insiders guide to effective direct mail testing for programs of all sizes and across industries. It doesn’t matter if you’re just getting started with testing or a seasoned pro, our guide will provide you with actionable insights you can implement today.

Learn how the four phases of the testing process work together to drive optimization.

  • Research
  • Pre-Testing
  • Testing
  • Post-Campaign Assessment

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

The Risk in Not Testing Your Direct Mail

Posted on by Camille Lehmann

 

Author: Alan Sherman, VP Marketing Strategy

If you’ve been in the direct marketing space for any amount of time, you’ve certainly heard about the importance of testing. But “testing” means different things to different people, and we see people approach it in a variety of ways. My colleague, Maggie Stack, recently published a blog on Direct Mail Testing. Consider this a prequel – insights into the risks of not testing.

Testing “Approaches” Run the Gamut

Some marketers don’t test on a consistent basis or simply don’t test at all. After mailing the same creative package, list or offer, for months or even years on end, they experience the inevitable performance decline, and think it may be time to test a new creative. Their creative team or agency offers a new creative that hopefully out-performs the old one and then the process repeats itself. Still other marketers occasionally test but are so risk averse that they test small creative attributes, such as a headline in a letter or on an envelope, which rarely moves the performance needle. And data testing happens less frequently than creative testing, even though data has a more significant impact on results.

A Fear of Testing

Why the reluctance to test? Some marketers simply don’t know how. Others may not want to risk the company’s budget on a test that may not out-perform the control. Sometimes it’s a combination of the two – “I don’t know how – so why take the chance?”

What About Data Testing? I hear less about this than creative testing.

Why is there so little data testing? Data can be tougher to test – nowadays it would be less likely for us to test an entire list. With the cost of postage, we must be as precise as possible. Segments or model groups within an audience are not always easily explained or understood. Many lists should not be mailed without the use of effective predictive models to rank prospects. It feels riskier than changing a creative headline, or maybe data is managed by another group in the organization.  Maybe the data testing setup and measurement can feel daunting. We can hold and touch creative – it feels more “real” than data and many of us like to think we intuitively know what works in creative when it’s sometimes best left to the direct mail creative experts. 😊 And yet data has a larger impact on response than creative.

The Risk in Not Testing Your Direct Mail

Some might apply the old saying “If it ain’t broke, don’t fix it” to direct mail testing. I would argue if it ain’t broke yet, it will be some day.  I would say that there is greater risk in NOT testing. Every creative package’s performance declines over time, and if you wait until that happens you could find yourself many months away from a new, high-performing package. The same applies to data. Doing nothing is short-term thinking that, over time, delivers inferior results. Regular testing is an investment that puts the long-term odds in your favor. Every test is an opportunity to learn and improve.

How frequent should testing be done?

Testing must be a regular ongoing process. Ideally, that means part of every campaign or at least testing quarterly. The aim is to develop a stable of high-performing creative packages and a precisely optimized audience by testing new data sources and predictive models to continually improve results.

We can make testing work for you. Testing is both art and science – Nahan offers both. We will continue to cover various aspects of testing in upcoming blogs.

Are you currently testing your direct mail programs?

Testing is a key component of any successful direct marketing program. The most impactful direct mail marketers are constantly testing creative, lists, and offers, which enables them to make marketing decisions armed with more insight.

We have found that testing means different things to different people. Clients approach it in a variety of ways.

In this white paper, we provide an insiders guide to effective direct mail testing for programs of all sizes and across industries. It doesn’t matter if you’re just getting started with testing or a seasoned pro, our guide will provide you with actionable insights you can implement today.

Learn how the four phases of the testing process work together to drive optimization.

  • Research
  • Pre-Testing
  • Testing
  • Post-Campaign Assessment

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today!