Direct Marketing: How You Can Use It Effectively
Growing your customer base can be challenging. There are so many possible methods that it’s difficult to know where to start. Direct marketing is a practical approach that eliminates the middleman and transforms the way you relate to clients.
If you’d like to understand what’s involved in this approach, we can help. Read on to discover a wealth of practical marketing tips that can put your business on the road to success.
Table of Contents
- Table of Contents
- Definition and Principles of Direct Marketing
- Direct Marketing Strategies
- Why Direct Marketing Works
- Three Essential Elements of Direct Marketing
- How to Maximise Results
- The Bottom Line
Definition and Principles of Direct Marketing
Direct marketing helps businesses communicate more effectively with a target group. It can improve your return on investment by ensuring you’re reaching the right consumers.
Direct marketing is a specialised approach to presenting information about your company, products or services. You must clearly define your target audience to achieve optimal results.
This advertising strategy depends on the identification of a specific consumer segment. You can define whether they’re existing or potential customers.
Deciding who to target is the first step in direct marketing. You choose specific clients based on characteristics like age, location, gender or occupation.
Call to Action
Next, your marketing campaign needs a goal. You must define what you want the target audience to do after exposure to the material you send. For example, you may hope that new customers try your products and existing clients return.
Direct marketing involves focused communication. You speak to a specific persona instead of throwing information to the masses and hoping someone pays attention.
This marketing method requires tracking. You need to have a way to measure the success of your efforts. Keeping clear records will enable you to craft better campaigns in the future.
Direct Marketing Strategies
You may be familiar with direct mail marketing, in which a business sends content via post to selected customers likely to make a purchase. Social media advertising tools also enable you to choose a target audience to receive your campaigns.
Many other types of direct marketing exist. Companies can deliver content to the chosen audience through:
- Text messages
- Direct mail
- Online display ads
- Print media
- Phone calls
- Experiential marketing
- Social media presence
Direct response marketing is a strategy that elicits an immediate answer from the client. It eliminates the waiting period between the proposal and the customer’s reaction.
For example, an infomercial can present an offer and issue a call to action. The advertiser then provides a response method, such as a website, toll-free phone number or email address.
Why Direct Marketing Works
Direct marketing campaigns allow companies to gauge the success of their efforts. They give businesses the data necessary to inform future decisions. You can calculate a response rate because you know how many people you contacted and the number of resulting conversions.
Experienced marketers know that diversity is essential to successful advertising. Consequently, adding new promotional strategies or media channels can result in improved client relationships.
Direct marketing communications reach the audience with the highest likelihood of responding positively to your call to action. You obtain a more lucrative response from targeted consumers.
Direct marketing has many benefits. Here are several your company can enjoy:
To embrace any form of direct marketing, you must conduct an in-depth study of your target audience. After meticulous research, you’ll be more aware of the group’s characteristics, allowing you to choose advertising strategies more accurately in the future.
Improved Customer Loyalty
Through repeated direct marketing campaigns, you’ll gain experience in communication with your clients. As you learn more, you can better tailor offers to meet their needs and reward repeat customers.
Effective direct marketing can result in a much higher return on investment than mass advertising, thus saving money. By using a narrowly defined target audience, you increase the chance of positive reactions from customers. Personalised messages help retain clients and decrease the likelihood that the recipient will see your communications as junk mail.
When you measure and track campaigns, you gather valuable information about your clients. These data can lead to better decisions regarding future targeting.
Cross-Selling and Upselling Opportunities
Online strategies like social media and email campaigns enable you to maintain consistent communication with your most loyal clients. Sales, discounts and targeted marketing can also turn one-off buyers into repeat customers.
A Practical Example
Direct marketing targets only people who appear to have an interest in the company’s product or service. This approach stands in sharp contrast to mass advertising, which presents a campaign to everyone.
Let’s look at an example of how this marketing strategy works. We’ll imagine that Oxford University wants to sell a new line of clothing with the school logo.
The campaign will be more cost-effective if it targets the people who are most likely to be interested. To accomplish this, they can send an email to alumni, students and their parents.
Three Essential Elements of Direct Marketing
Companies that wish to improve their direct marketing methods need to understand the elements that comprise this approach. The following three aspects are essential to any campaign.
Before designing a direct marketing campaign, you must choose what media to use. For instance, you need to determine:
- Which newspapers to advertise in
- The time slots you’ll use for commercials
- Which list brokers to contact
- What social media channels might bring the best results
- Which mailing lists to rent
- Whether the target group will likely respond the best to direct mail, email marketing or a message service
These choices are critical because they can significantly affect how many responses you receive and the number of sales you make. When you begin your first direct marketing campaign, the best choice of media may not be obvious. However, after several rounds of testing, you’ll find what works best to reach your target market.
Next, you’ll need to determine what your client will receive, plus the applicable prices and terms. The right offer can make response rates skyrocket. On the other hand, a poor choice will limit the success of your campaign.
Deciding on an offer may be challenging at the beginning. You may not have enough evidence to know what will work. Fortunately, direct marketing allows you to collect valuable data that you can use to adjust future campaigns. It may be necessary to exercise patience during the learning process.
After you’ve decided on the communication channel and the offer, you can focus on how to convey your message. You’ll choose the video, images and copy that will sell your product or service.
Once you learn which media best reach your customers and know the offers they prefer, these two aspects may be able to remain static throughout several campaigns. However, the creative always stops working after a time. You’ll need to design new art and copy to keep consumers interested.
While you’re working on a new creative, you can continue to search for novel direct marketing channels. You may also choose to adjust your offer to see if response rates change.
How to Maximise Results
The objective of an advertising campaign is to convince your potential customers to take action. In direct marketing, you want them to do something measurable that will bring value to your business.
Perhaps you hope they visit your landing page, subscribe, request information, or make a credit card purchase in your store. To accomplish this, you need to send the correct message to the right people using a captivating format.
You can select a direct marketing channel based on your business goals and your target group’s preferences. The following tips can help guide your discovery process.
Know Your Target Audience
As a marketer, you must carefully study the identity of the group you wish to target. In this way, you can communicate with them as clearly as possible, explaining how you can solve their problems. The best direct marketing examples make the most of advertising expenditures through careful planning.
Ask yourself these questions, then use them to collect data:
- What features do the target group members have in common?
- What do they desire most?
- What type of language do they typically use?
The answers to these questions help you build a customer persona and enable you to develop materials geared to their needs and interest. Knowing how they communicate allows you to write copy using a tone of voice that they identify with. Connecting in the right way enables you to make the sale and build loyalty.
Today’s consumers are savvier and more selective than prior generations. A bland mail campaign or cold telemarketing call won’t get through to them. If you want to boost awareness of your brand’s name and identity, you’ll need to think outside the box.
Creative approaches that catch the audience off guard and delight them can multiply your influence quickly. To help determine your strategy, consider the following:
- Customer needs and expectations
- How your product will solve a problem for potential clients
- What sets your brand apart and makes it recognisable
- How you can connect with consumers’ emotions
- How to communicate in a way that’s relevant to their culture or stage of life
Build Brand Loyalty
Direct marketing is about more than just making sales. Its primary focus is on building long-term relationships with specific audiences.
Thorough research and planning are essential to this marketing strategy. Not all your ideas will meet with success on the first try. As you gain experience and refine your campaigns, you’ll start to understand how customers become faithful followers of your brand.
Segmenting your customer list is an excellent way to tailor communication to specific audiences. Existing clients might receive direct mail that includes a discount for their loyalty. Meanwhile, you could send new prospects a coupon with special signup prices.
Once you find a strategy that works, it can be tempting to stop evaluating and innovating. However, only consistent efforts can prevent stagnation. The market changes continually, and you need to keep up with it.
To ensure you’re making the most of the resources invested in your direct marketing campaign, you need to test continuously. Switch up your offer or try a new media channel. Sometimes changes in the market make an approach work when it didn’t a few months earlier.
As you test each offer, ask yourself these questions:
- Is it irresistible to my target audience?
- Is it unique and specific?
- Is the offer easy to understand?
- How important would it be to my prospective client?
- Are all its elements necessary?
- Would my target group pay to receive this offer?
The Bottom Line
Direct marketing offers a unique and cost-effective strategy for building relationships with a target group. It requires much research, planning and testing.
If you need guidance in setting up a direct marketing strategy, Sortlist can help. We’ll match you to a list of agencies that can work with you to achieve your goals.