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Direct Marketing Myths

By Melissa Fisher
01/14/2008

Direct marketing is an effective channel to win more customers and increase revenue, yet several myths surround this powerful tool. What isn’t fabricated is that direct marketing is targeted, trackable, measurable, cost effective and has incredible staying power. As a marketing technique, it is considered an indispensable part of successful media campaigns and a commanding standalone strategy.

Of course, the objective is to generate immediate sales, increase customer retention and build relationships. Selecting the right direct marketing channel is key. However, comparing advertising media isn’t always easy. Every method has its advantages and disadvantages. Please see the accompanying table to examine a snapshot of the top direct marketing channels.

Myths vs. Facts

Common misperceptions about direct mail are often based on personal feelings. It’s safe to assume pretty much all of us grumble from time to time about “too much advertising.” But, in reality, we also pay attention to it.

If consumers are interested in purchasing a new car or having a car serviced or washed, they will look for opportunities to gain information and insight to help with their buying decisions.

Myth 1: Consumers don’t want direct mail.

Fact: Actually, most people consider mail to be an important part of their lives, according to studies done by the US Postal Service. When direct marketing provides an answer to a problem or offers a solution to a need, consumers are inclined to find it useful.

Myth 2: Consumers don’t read their mail.

Fact: A study conducted in 2006 by the Envelope Manufacturers Association Foundation (EMAF) revealed that 66 percent of Americans “always or usually” will open a mailed envelope containing marketing, advertising or promotional material if they think the contents might be interesting.

In addition, 61 percent indicated they will open the envelope if they think the contents will be of personal interest to them, and 59 percent will access the contents if they can clearly identify the purpose/sender from the envelope.

Myth 3: People don’t pay attention to their mail.

Fact: When it comes to direct marketing, the EMAF study also showed that 75 percent of Americans say they are most likely to pay attention to “direct mail sent to my home.”

Reach and Frequency

Reach and frequency play an incredibly important role in capturing consumers’ attention. Marketing messages must be in the right place at the right time. Why?

If you’re in the market for a new vehicle and you just happen to receive a generous discount offer from a nearby dealer in the mail, wouldn’t you look at it? After all, it’s in your mailbox and you didn’t have to do anything special to get it. You can read it at your convenience, then stick it on your fridge, put it in your wallet or purse, or pass it on to your spouse.

The same principle applies to using direct mail to market your business. Keeping your business top of mind by being in front of consumers when they are ready to make purchasing decisions gives you an edge over your competitors.

Target the Right Audience

No matter how good your offer or your media, it’s all for nothing if the right people don’t see it. That’s why the old “hit and miss” approach to advertising doesn’t work and is a money waster. You have to get your message in front of those consumers most likely to respond to your offer.

Use data-based market segmentation to reach consumers who best meet your criteria. Targeting by geography, demographics, consumer behavior, and consumer expenditures will ensure that you reach your exact audience.

Melissa Fisher is senior vice president, marketing and communications, for Valpak Direct Marketing Systems. For more information, please visit www.coxtarget.com

Channel Advantages Disadvantages
Direct Mail Targeted, trackable results, space to add benefits details, many options for visual appeal, consumers can spend time with ads, shared mail is affordable. Consumer acceptance can be spotty; but when they read direct mail, they tend to read from mailers they know and trust, solo mail costs are increasing due to rising postal rates.
Yellow Pages Widespread consumer awareness, used as a reference tool, consumers can spend time with ads. No flexibility for seasonal variations or “specials,” ad clutter, out-of-date publication, too many books confuse consumers, costly.
Cable TV Visual appeal, wide reach, targeted, affluent audience. Small audience for individual channels, high TV commercial production costs (low cost, low-quality commercials are not effective), difficult for consumers to respond, subject to DVR time-shifting and ad skipping.
Radio Targeted, affordable production, large and portable medium, short lead time, impactful. Low reach due to fragmented audience, difficult for consumers to respond, subject to station surfing to skip ads.
Newspapers Visual appeal, space for benefit details, trackable, short lead time, consumers can spend time with ads. Steadily decreasing penetration, ad clutter, no separation, people browse more than they read, can be costly.

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