Coupon Mailers May Not Be the Best Bet

As a resident of an upscale metropolitan area I am a very regular recipient of various coupon "mailers".  These mailers either take the form of a booklet or an envelope containing any number of coupons or special offer cards.  The mailers here are almost all printed with very high quality paper and typically look professional.  Are they a good deal for small business?

On the plus side, people love deals, the coupons usually look attractive, and price points for the mailers are not typically prohibitive.

But there are concerns.  Mailers cater to an upscale audience but it is not subdivided any farther, and the distribution is over a wide area.  Hence it is difficult to align to a carefully defined target customer base.  I am very skeptical of "broad brush" advertising: a lot of money is expended to reach what is a small part of the mailer base, if one is that lucky.

Mailers are also necessarily of use only to business-to-consumer providers.  This is simply not an option for a business selling services to other businesses.

And, it is impossible to truly stand out in the pack.  One's message is lost among all of the other deals, all of which have the same format or card size.

Finally, there's ample data that mailers are one of the least-used advertising channels by the consumer.  Very few consumers distinguish mailers from "junk mail" and discard them.  In my zip code it seems that the mailers all arrive in the same day's mail, and that "junk mail" effect is likely amplified for the unengaged consumer.

Bottom Line: As with any advertising channel, mailers must be considered with care.  Ask the salesperson questions about entry cost, actual readership data,  and return on investment.  Be sure to determine how closely the mailer's base corresponds to your own target customers.  And compare to alternatives.  In the right cases, mailers work very well.

Direct Mail as a TOMA Tool

In my last post I pointed out how direct mail is increasingly a fine option for a small business getting noticed in special situations, such as the roll out of new products and services, or as a thank you to your best customers.

Small business owners should also look at direct mail as one of the techniques that can really help drive TOMA (Top of Mind Awareness).  Here's how.  Realistically direct mail will not be a fantastic sales tool.  Long experience shows us that direct mail has a LOW <1% return on a particular asking.  That's wonderful if you have a big list and a decent postage budget.  But if you look at direct mail in a slightly different way, you can beef up your longer-term ROI.  Direct mail's tangible nature (i.e. unlike email you can physically hold the document) gives it a fighting chance to be held, displayed or filed by a customer.  And that suggests adding some useful aspect to the direct mail piece that keeps it visible to your prospect or customer, or to someone they can refer.  Can you add a useful fact? a calendar? an announcement?  there are many possibilities. Always seek to add something that the person can use in their own lives.  And your logo will not be far away...

Regular direct mail can serve as that repeat reminder you are out there to help them.  One mailing roughly every quarter could greatly enhance your TOMA.

Direct Mail is Coming Back

Is direct mail dead as a marketing tool?  We like to think that direct mail was consigned to the rubbish heap in the Tsunami of "junk mail", but as many major marketers shifted attention to email, social media and other techniques, there's less mail to compete with.  It is possible to grab attention with old-fashioned methods.

Statistics I've seen suggest that direct mail is most noticed by the youngest consumers and that most people prefer mail to other advertising techniques.  And calculations show impressive return on investment for this media these days.  We can't not afford to consider direct mail as part of our mix.  But in so doing, keep your mind on some important details.

* Personalization is critical.  Find ways to personalize where possible.  Perhaps use handwritten notes to your very best customers.  Jot a quick note on each letter.  And send only certain people specific appeals customized to their needs.

* Use direct mail sparingly.  Direct mail is great for newsletters and for special promotions.  You just don't want to mail heavily and regularly if you want your material noticed.

* Brand the envelopes!  Use your logo and color if possible.  Even a specially produced return address label can make a big difference.

Think about a direct mail application this year.  Are you planning to roll out a new product or service?  Can you use mail to thank your best customers?  How about a newsletter that gives customers some value added?  Direct mail can be your new best friend!