I’ve written about see-through envelopes and a general deterioration in the level of effort many companies are putting into their direct mail efforts. But not all companies are letting their direct mail languish - and they are still generating very strong results despite today’s poor economic conditions.
How are they doing it? Sharp targeting and (increasingly) variable digital printing.
Regarding the latter, I received a mail piece a few weeks ago that illustrates the level of customization some direct marketers are now achieving in their direct mail. The piece offered an extended warranty for my vehicle. I’ve been receiving a number of these lately but this one was different.
Beyond the usual “Dear Mr. Goff” the piece included a list of the top 5 repairs I could expect over the next 36 months with their corresponding costs (for my vehicle) and a map showing the location of three nearby garages that not only accepted the warranty company’s coverage, but also waived the deductable. Impressive.
The information was important because it gave me specific information that I could weigh in my decision making process. In fact, I even visited one of the listed garages to get a reference on the warranty company.
Out of curiosity I tracked down the direct marketing manager for the warranty company and she was quite open about their approach. The company had been sending out increasingly less expensive pieces with generic offers and (yes!) see-through envelops. After some internal debate and experimentation with prospect email, the company decided to double-down on direct mail and address the fundamental issues that had been limiting their response - the lack of “monetization,” that is the lack of data that enabled a consumer to weigh the cost of the warranty against the cost of repairs and the lack of specifics around garages that accepted the coverage.
After building the databases powering the cost and garage data and fully taking advantage of variable digital printing (and upgrading their paper stock), response rates had almost doubled and direct mail became the companies second most effective channel…(can anyone guess what was always and still is their most effective direct response channel?).
The truth is, this example doesn’t come close to illustrating the amazing things possible with variable digital printing, but it does illustrate how a company with a common product can use data very surgically to drive very impressive direct mail results and economics - and it was not all that hard to do.