Friday, February 6, 2015

Mailbox Marketing - Shotgun Targeting

Today's mail collection led to the discovery of one of those flyers affixed to the exterior of the mailbox.  We get them every so often.  What is remarkable to me is not so much the wide diversity of advertisers -- today's was a a martial arts studio.  I am amazed that the business is using such an inefficient method of promoting themselves.

We have talked about identifying and targeting the right customer.  It's rare in small business to be successful by "shotgunning" entire neighborhoods.  We do see that with the big marketers but for them the marginal cost of the extra mailer is so small that they can afford to broadcast widely.  Keep in mind also that for them a neighborhood can be a well-focused appeal (typically using "psychodemographic" and "geodemographic" cues.  However, for small business this every-door method is usually wasteful.  I can almost see it for a restaurant or a landscaper.  For most of the rest, not so much.

This is expensive:  Add to the printing costs the expense of driving all over everywhere and the opportunity cost of putting labor out on the street instead of something else.

When tempted by mailbox marketing, think about the return on investment and how that would compare with another method.  Turn to this methodology with care.

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