How Often Should I Mail?

Let’s confine this question to acquisition and customer development activity. Let’s also broaden it to include email and direct mail.

The answer is, “As often as the advertising continues to earn an appropriate return on the investment.”

For fundraisers, it is not uncommon to mail the core names up to 24 times a year. On the other hand, acquisition appeals may go out to control lists from 2 to 4 times a year before the response rate begins to drop to an unacceptable level.

With the advent of cheap email communication, however, it is no longer enough to evaluate contact frequency based on cost. If judged on this basis only, the outcome will hurt the brand. Over-communicating with existing customers has become a real temptation for many companies in the presence of a low cost medium like email.  

For direct mail, the financial barrier restrains excessive communications.

One of my BtoC clients has a small target market and needs to generate relatively large volumes of leads. At about the 8% penetration level, their response rates began eventually dropped from 1-2% to .1-.2%.

As penetration deepens, the cost per lead increases dramatically.

Unless this client finds a way to increase the size of its database or create new product offerings that create demand with existing names, his business will decline for lack of new prospects.

In your experience, when does high frequency begin to damage the brand or when does it no longer pay to mail?

Ted Grigg
What Ted does best is increase response by beating controls, applying multiple channels to target markets, profiling customer databases and generally improving sales results using deep direct marketing principles. Regard Ted as your personal “think-tank” for your direct marketing planning and strategy development. After analyzing several hundred million dollars of direct response testing in all channels, he brings with him the knowledge accumulated from seeing what tends to work and what does not. Having worked on both the agency and client side of direct marketing, Ted understands the unique challenges faced by agencies and their clients. Agencies need to sell themselves and deliver sales results. And clients not only require results, but need ideas they can implement while focusing on tracking response using a relational database. If Ted brings nothing else to the table, by profiling customer databases and creating response propensity models, he quickly becomes the clients’ expert on their own customers. His formal training includes a BA from Abilene Christian University and two years of graduate work at Texas Tech University. For a national direct-to-consumer insurance company, Ted developed a revolutionary direct mail format that beat most standing direct mail controls for this company. He also generated more profitable business for this firm by expanding compiled list circulation of less than 10% to more than 30% of total direct mail circulation within a year. (Insurance business generated by direct mail demonstrated higher persistency than customers coming from other media such as print and DRTV.) Ted’s plan and implementation of Medicare lead generation campaigns for over 60 regional and national HMO/PPO organizations combined multiple channels that surpassed some sales projections by as much as 60%. Additional industry experience over the last 30 years includes B2B or B2C for finance, securities, home security, healthcare, insurance, manufacturing, government, technology, nonprofit, retail, transportation, communications, and multiple categories in the services industry. As the founder of Wyse Direct (a division for Wyse Advertising in Cleveland, OH), he successfully launched and branded a new technology product for Seiko-Mead by supporting a nationwide sales team with a predictable flow of qualified sales leads. While a VP of new business development for the Grizzard Agency, Ted acted as the direct marketing strategist who refocused the agency’s culture to attract new commercial and fundraising accounts. At the time, Grizzard was essentially a direct mail fund raising production operation. His leadership and team building effectiveness prepared Grizzard for the eventual Omnicom acquisition and Grizzard’s successful integration into Omnicom’s large group of advertising agencies. An independent DM consultant, Ted continues to write numerous articles and conduct webinars on direct marketing techniques. He also wrote The HMO/PPO Marketing Plan — A Step-by-Step Guide publishing it through Executive Enterprises in New York City. During his youth, Ted was raised in Lille, France with his missionary family attending French schools becoming fluent in reading and writing French. Away from the job, Ted is a computer geek, blogger and science fiction buff!
http://www.dmcgresults.com
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