How the Seasons Affect Your Direct Mail Campaigns

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For the best results from your direct mail campaigns, learn how responses vary according to the time of year.

Some direct mail marketers focus so much on what they mail to whom, that they lose sight of another variable that’s just as important: when they mail. In my experience, most industries have a good time of year to mail (when they get stellar results), and a bad one (when you wonder if anyone out there is listening).

Do you know which season is best for you?

While you may have a general idea of good times to mail, you may not know those weeks or months to avoid – when your response rate falls like a stone. As an example, one of my clients mails sales letters about commodities. You know, corn, wheat, sugar, etc. They teach people how to trade commodities based on technical principles.

As you can imagine, one of our target prospects for this offer is farmers. The idea is that they can learn how to “hedge” their crops by buying and selling commodities. This makes them less vulnerable to changing market conditions. When I first started mailing this commodity offer to farmers, I had tremendous success. But…it didn’t last! After a few months, the response rate dropped off the table, to almost zero. Why?

After testing exhaustively, month after month, I figured out the problem. It was very simple. Farmers were NOT responsive during their harvest season.

Why? They are working 20 hours a day, 7 days a week. They don’t have time to read the mail. Or think about learning something new. But…they are HIGHLY responsive in the off-season, after the harvest. Knowing about this seasonality allowed me to aggressively mail farmers in the off-season, and avoid mailing them during harvest season.

Here’s another example. If you are a financial planner, do you know the best and worst times of year to mail?

Financial planners get the worst response rates during holidays – Memorial Day, Labor Day, 4th of July, etc. Their response is especially poor in November and December when most families are super busy planning and spending their money on gifts, travel, and food. What’s the BEST time for financial planners to mail? The first quarter of every year. January is best since families are evaluating their finances, and trying to find better ways to save and manage their money.

I send out over 250 mailings per year. I ALWAYS have something in the mail – every day, every week. I’ve identified money-making seasons for dozens of industries. And by mailing at just the right times, we are able to make the most out of our mailing. Experiment with small mailings and compare responses over time.

Armed with information on the best times to mail, you can make the best use of your advertising budget.

Your Competition Wants Your Customers

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Competition is a part of business life. Some would argue that competition forces businesses to strive to get better at what they do for the fear of losing customers to rivals. Losing a few customers periodically is inevitable. However, losing too many (especially your best customers) must be avoided at all costs.

For most businesses, the top 20% of their customers account for 80% (or more) of their profits. While much thought and strategy typically go into bringing in new customers, not enough is spent on retaining existing customers. That’s where the real gold lies.

It may be a little uncomfortable to think that some of your best customers might be looking at making a change, but it’s something you must consider if you want to avoid having it become a reality. Everyone talks about taking care of their customers, but in many instances that’s a phrase not truly backed up with action. To build a fence around your customers and keep them far away from the prying arms of your competitors, you mus truly care, protect, and guide them.

Gather customer feedback on an ongoing basis.

Most businesses put a lot of hard work into getting a new customer. But after they become a customer, little effort is put into nurturing that relationship. A customer should never be taken for granted.

It’s easy to get wrapped up in the day-to-day operation of your business and lose touch with what’s happening outside your doors in the marketplace. Phone calls and emails to customers can be a great way to communicate and stay connected. But to do it on a large scale can be unrealistic. Informative company newsletters and surveys can help keep your customers up-to-date and give them a way to express their needs and concerns. These efforts can provide an early warning system to catch a customer jumping ship before it happens.

Tell them what you do.

Your competitors will do anything to steal your customers, including promising the moon. You know that some of these are false claims or teasers to get their foot in the door. Some of your customers may not know that. Your job is not only to provide a great product and service but also to continually remind customers about the value you provide that your competitors can’t match. If you don’t tell them, no one else will either.

Informing your customers through educational marketing content is a powerful way to keep them engaged while differentiating your company as one that truly cares about their success (not just your own).

Where are the weaknesses?

To help plug the holes in your business, start thinking about things from your competitors’ point of view. After all, they’re always looking for any weaknesses they can exploit, so you should, too. That way, you can shore up your weak spots before they get out of hand and, in the process, strengthen your position in the marketplace.

To discover your weaknesses, talk with your customers. Ask them about the areas you could improve. Stay up-to-date with industry trends that could create a possible gap in your defenses, too. You can’t buy every bit of technology as soon as it hits the market, but you can stay informed so you can address concerns with your customers when they arise. Sometimes the best defense is a good offense. Be proactive in your customer communication.

“There is only one boss: the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else.” ~ Sam Walton, Wal-Mart

Customer retention starts with providing great service and value. Getting to the top is hard work, but staying there requires just as much effort. Being aware of the competition while shoring up the weak areas in your business can go a long way in helping keep your customers coming back.

Monopolies and the lack of competition aren’t in anyone’s best interest. Keeping your best customers satisfied is. Use competition as a motivating factor to continually improve your services. Communicating with and showing appreciation for your customers will give you an invisible force field to keep the competition out of your backyard.

Please Don’t Ignore Me

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The bulk of marketing budgets is often reserved for acquiring new customers. Much energy, time, and money is spent pursuing prospects that have a marginally small chance of ever becoming a customer. There’s a flaw with this strategy.

The simplest and most effective way to boost your bottom line profits is to remember who brought you where you are today: your existing customers. If you aren’t consistently advertising and staying in touch with current and past clients, you’re missing out on the best way to continually grow your business.

For every month that goes by without making contact with your past and existing customer base, you’ll lose up to ten percent of the clients you’ve worked so hard to acquire. Retaining clients is therefore an extremely important business growth strategy.

Selling your services to new customers means earning their trust. It takes hard work to build this trust. When a prospect becomes a customer, you have only begun to earn their trust. You cannot expect to maintain that trust without consistent, frequent contact that adds some value for the customer.

One of the best ways to maintain and build that trust is to communicate regularly via a newsletter. An effective newsletter has a mix of about 80% infotainment (fun and informative content that may not have anything to do with your particular industry) and 20% information about your business or industry.

The recent trend of companies switching to all digital email newsletters is now reversing with the realization that actually getting the emails opened and read is far more difficult than many were led to believe. Also many survey respondents favor a printed newsletter that they can hold versus one more email that clutters their already overfilled inbox.

Sure, email newsletters are inexpensive and require no postage, but there is a cost involved when the recipients never see or open the messages. By contrast, a printed newsletter is still one of the most powerful and cost-effective ways to stay in front of your customers without overtly selling them.

The Lifetime Value of a Client

Perhaps one of the reasons past clients are ignored is because some business owners don’t really know the lifetime value of a client. An existing client who is treated right, is not ignored, and is communicated with on a regular basis will not only return to do more business themselves but will also refer your company to those around them. Therefore the actual lifetime value is often five, ten, twenty (or even more) times the value of an initial sale.

That’s the power of relationship marketing and the reason why your existing customers should get the bulk of your marketing budget. If you treat your existing customers well and communicate with them on a regular basis, you may not need to chase as many prospects as you have in the past.

To learn more about defining and understanding your lifetime customer value, please visit: http://hbsp.harvard.edu/multimedia/flashtools/cltv/ (requires Flash).

Please Don’t Buy!

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One of the most important steps you have to take in order to attract ideal customers and grow your business is to actually know who those ideal customers are. That’s the first step that many understand. But there’s another, less understood and talked about step you should also consider, and it begins with a question:

What kind of customer should you repel?

That’s right. You need to figure out what types of customers you don’t want to attract and do business with. As counterintuitive as that sounds, it can be just as important as knowing who you want to attract.

The 80/20 rule tells us that in most businesses, 20% of the customers provide 80% of the profits. Knowing who you want to attract can help you greatly improve the odds of increasing the ratio.

At the same time, most businesses also have to deal with a percentage of customers who create the most headaches while providing little profit for the business. Knowing who you want to repel should help reduce the impact this group will have on you.

Knowing the types of customers you want to repel will have many side benefits besides simply increasing the bottom line. It will improve employee morale since coworkers will not have to deal with as many problem-causing customers each day. It will also allow you to spend more energy and resources on the customers who actually provide the most value and profits for your company.

Go through your existing customer list. Pick out the customers that provide the most headaches and the least profit for your company. Figuring out how to repel this type of customer could be as simple as raising prices enough to either make them not want to do business with you or, at the very least, make the pain of dealing with them more profitable and bearable.

The benefits of knowing what types of customers you don’t want can prove to be nearly as important as knowing who you would like as a client.

An Unconventional Way to Add Value for Your Customers

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While no business wants to lose its customers to the competition, you may be surprised how the opposite can occur when you focus less on keeping your customers away from your competition and focus more instead on adding value and truly helping your customers find what they want.

Strange as it sounds, there may be times when referring a customer to your competition might be warranted. Here are four examples:

  • If you’re out of stock on an item that your customer wants immediately, suggest alternative places where they can find it. You may consider enticing customers to wait for your business by offering an exclusive discount when the item is back in stock, but allow them to make their own choices.
  • Refer customers to another business if you believe that company is better suited to serve the customer’s specific needs. It’s important to ask questions to ensure you understand customer expectations and decide if your business is the best fit for your customer.
  • For comparison shoppers, offer a chart that highlights the differences between your products and competing products. Be sure to include your strengths, as well as your competitor’s strengths. This is a great opportunity to promote higher-quality components or value-added services, such as a longer warranty, locally owned roots, lifetime tech support, or even bundled services at a discounted price. Informed customers make faster choices and are happier with their decisions.
  • Lastly, if you have a very difficult customer that proves to be more of a burden to your business than an asset, it may be time to let your competitor swoop them up.

By referring a customer in need to a competing business, you not only show confidence in your product and your business, but you also show honesty, integrity, and a willingness to put the customer’s needs ahead of your own. Customers will appreciate your effort and seek out your valued opinion on other issues as well.

Sell with Sincerity

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In a sea filled with competitive businesses, sincerity is a must if you want to get (and keep) customers. Here are a few tips to help you sell with sincerity:

  • Sincerity is more than just a smile or a firm handshake. It can be heard in your voice, your words, and your actions.
  • Don’t read from a script. No one wants to listen to a sales pitch that sounds like a recording. Mix in your personality, passion, and even personal experiences with the product.
  • Ask questions and listen with interest. Show that you really care about what the person is saying (in contrast to simply listening because it is the polite thing to do).
  • Be yourself. Remember that people buy from other people. If they like working with you, they are more likely to remember you and return again.
  • Back off the business mode when using social media sites. Rather, use them for their intended purpose: to be social and build relationships.
  • Remember that sincerity has to last. It doesn’t end after the sale. If customers have a problem with a product or service, sincerity is a must to resolve their issue.

George Henry Lewes once said, “Insincerity is always weakness; sincerity even in error is strength.” Sincerity in sales can not only help you build a stronger relationship with your customers, but will also help your business receive honest feedback and suggestions for improvement.

Loyalty Marketing… or We HEART You!

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Customer loyalty programs are an easy and effective way to keep customers coming back to your business. Here are a few tips to help you create a loyalty program with a simple yet important goal: rewarding repeat customers.

  • Offer custom-printed punch cards or stamp cards for customers who frequent your business. A simple reward (such as “buy five car washes, get the sixth free”) may be enough to keep customers from visiting your competition down the street.
  • Utilize the back side of your loyalty-marketing promotions to advertise upcoming events, highlight exclusive offers, share helpful tips, and more.
  • Celebrate! Be sure to recognize customer birthdays, holidays, and even the date your customer joined your loyalty club.
  • Provide loyalty club members with special coupons for free upgrades, such as “upgrade to a premium deluxe XYZ for the same price as our standard XYZ.”
  • Reward customers who buy ahead. For example, if you own a repair shop, you might offer a year-long package of oil changes for a discounted rate. Not only will the customer be happy to save money, but you can ensure the customer will return to your business all year long.
  • Invite loyal customers to join a review panel group, and offer free products or services in exchange for their valuable feedback and input on how to improve your business.
  • Develop creative ways to show your company’s reciprocal loyalty to customers. Send “thank you” campaigns, for example, with exclusive discounts or promotions.

Give us a call if we can help you create loyalty program marketing materials your customers will love!