3 Ways to Get Better Results from Your Direct Mail Campaigns, NOW
Direct Mail Marketers are under increasing pressure to ramp up sales, increase consumer engagement, drive traffic and increase revenue NOW. Here are 3 key take-aways you can use right away to get better results from your direct mail campaigns:
1. Leverage Browse Intent Data
Without access to the right (and most recent) data, marketers often stumble in their direct mail efforts. Real-time data is key to successful direct mail performance. (In fact, the RFM metric measurement of Recency, Frequency, Monetary are in that order for a reason.) Several cases are showing and proving how powerful intent data really is to drive success and build a foundation for long-term engagement and revenue generation.
For example, one client case shows there has been a 20% lift on “like” segments leveraging browse data in customer segmentation in one case after utilizing these strategies. Another case saw a 30% lift in performance within the 12 month file when looking at those who browsed at the site prior to purchase versus those that did not. These increases in percentage could mean a lot of extra revenue potential.
Built by industry experts out of necessity and out-of-the-box thinking, intent data driven modeling solutions, qualified by actual purchases are designed to predict buying behavior and provide lists with new universes and better performance. Fledgling direct mail and email results, combined with drained customer acquisition efforts means that there needs to be a new solution, laser-focused on the information direct mail marketers need to thrive.
Understanding consumers’ online behavior is key to creating a complete customer RFM analysis by pinpointing their current in-market segment. Intent data solutions leverage 2nd and 3rd party browsing data, coupled with recent actual buying behavior to provide a holistic picture of how consumers are browsing and purchasing. This enables marketers to create new niches and improve overall performance in direct mail campaigns. With that, direct mail universes become more reliable and yield far better results. And that is where intent data finds its niche.
2. Revise Your Segmentation Strategy
Thinking about cutting your circulation? It’s natural to think that if a campaign isn’t meeting your criteria, the first step is to cut back on circulation and trim down on list selections. But before you put your direct mail lists on the chopping block, know that universes don’t always have to shrink in order to get indexes up. The key is to actually mail MORE names at your criterion to get better performance.
Remember that your ultimate goal is to generate more revenue, and acquire more customers. Review your list selections and segmentation holistically in order to get the best results at your criterion, and focus on the bottom line revenue that you’d miss out on if you cut too many lists.
Optimize segmentation for a consistent list with higher balance of names and then do the math!
In this example, you can see that by taking more names, you actually generate more customers and thus, more revenue. By taking all 3 segments you’re making more money, because average order size is the same.
It might seem counterintuitive, but results will speak for themselves if you optimize segmentation for a clean, consistent list that has a higher balance of names. Once that is achieved, you can do the math, and ask again if your strategy is yielding the right results? Is the new segmentation strategy leading to more revenue or customer acquisition?
3. Combine #1 and #2, and Change Your Testing Strategy!
It is easy to get reticent, and neglect improving processes that are in place. However, segmentation will only yield consistent results if effort is to put in to reassess and re-tool as necessary. Rather than sticking to the same testing strategies, there should be efforts to change testing strategy for larger control segments, as well as to test better segments overall.
What this entails is employing Nth testing strategy that has new algorithms and statistical modeling for various levels of both customer intent and purchase data. And using more recent data is the “icing on the cake.” Intent data is incredibly useful in understanding current and future purchase and overall customer behavior, but only if it is used correctly. Combining it with transaction data and better segmentation transforms it into a formidable force for increased customer acquisition and revenue generation.
Using these data points together to construct a strategy will yield successful long-term results in a tried and tested way to boost revenue and customer acquisition.
TO LEARN MORE ABOUT HOW PATH2RESPONSE CAN HELP YOU LEVERAGE INTENT DATA AND REVISE YOUR SEGMENTATION STRATEGY FOR IMPROVED DIRECT MAIL CAMPAIGN RESULTS TODAY, CONTACT US.
A 30-year veteran and original cooperative pioneer, Brian has spent his entire career building creative solutions to help marketers improve their efforts. By recognizing the challenge that marketers face and understanding which media drives behavior and response by consumers, Brian has been focused on developing solutions to integrate both online and offline media into the cooperative environment. Brian was previously the president of Epsilon Targeting (formerly Abacus), held senior marketing roles at The Sharper Image and Sara Lee Direct.