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"Flexibility" is probably the first word that comes to my mind. Unlike newspaper, yellow pages, co-op mail, magazine, television or radio, Single Piece Direct Mail lets the advertiser control exactly which households actually see your promotional message. It also lets the advertiser control who "doesn't see" your promotional message. This can be a tremendous competitive advantage, as well as cost savings, if there is an incentive offer attached to the promotional message.
Response rate is controlled by many variables and is never the same from industry to industry. First and foremost, however, always spend the majority percentage of your promotional dollars when the demand for your product or service is the highest. If you were in the Air Conditioning business, for example, you would probably spend 80-90% of you yearly budget from May 15th to September 15th.
In addition, response rate is also controlled by what is being offered to the consumer as an incentive to "perform today". The greater the performance incentive offer, the higher the performance. Sorry folks, that's just the way it works. And then there's mailing frequency. On your first mailing, you'll probably get a fairly low return. On the second mailing, the response will be a little higher than the first mailing. By the time that you do your third mailing, you'll have a fairly good level of credibility with consumers and you'll see a better response than the two previous mailings.
There are basically two ways to generate new customers for a business:
On average, each existing customer should generate approximately 2.3 new customers by referral each year. In order for you to force feed the growth of your business, you implement a solicition program that generates new customers that you didn't have before. Those solicited customers generate referral customers you didn't have before. The real profit is not in the aquisition of a new customer generatred from a solicitation campaign, but in what that new customer can generate in referral business. Referral type business is "new business" that doesn't actually cost you anything and can substantually diminish the cost per customer of your advertising and promotional programs on a long term basis.