How To Cut Your Business Expense by Using Direct Mail Successfully

Now that Pay Per Click marketing is becoming so expensive for most business owners, it is apparent that if we want to generate more qualified customers/leads, we need to find other alternative tools to help market our business.

P.P.C or Ad Words is Google’s platform for advertising on the internet. P.P.C is great and can be complicated for the masses. Most people have discounted the appeal of direct mail. Direct mail has been around for a long time and still is the most cost efficient way to advertise.

When direct mail is used properly, it can save you time and money and it is easy to track its results on your business. In addition, most gurus are using more direct mail than P.P.C advertisement because it cost less and you can target a larger portion of your market just as efficiently as P.P.C.

Just last week, I got a post card from Google offering me a discount coupon to advertise on P.P.C. I suspect many of you reading this article also have received a similar post card from Google.

Furthermore, if you compare a 45-cent stamp for a targeted customer verses $5.00 or more average acquisition cost per person on Google, it is very apparent that we, as business owners, need to implement more direct mail advertising.

Simple put, depending on your level of expertise on P.P.C, the average cost to acquire a qualified lead is about $5.00. In addition, some media platforms where there is higher quality of leads will cast you twice as much. For example, the fox distribution channels or entrepreneur magazine. If you tried to advertise on anyone of them, the cost would be considerable higher.

The examples above are sites where you would find entrepreneurs that “hang out” there. As a business owner of any industry if you wanted target highly qualified leads you want to advertise on media platforms where your market resides.

Direct mail is still the most cost efficient and easiest to use. In the article, I will give you some simple solutions to get your message across using direct mail.

To stay in business we need to offer our services/products to the customer who has express and interest in our product/service. There are over 300 million people in the United States but not all 300 million are interested in your product/service.

The question remains where are these customers. The first solution is to stop thinking like a business owner and start thinking like a marketer who owns a business. A marketer looks for ways to increase his/her sales in their business. Therefore, when searching for those highly qualified customers you need to know where they are and market to them.

One solution to finding these qualified leads is to use a direct mail or e-mail list broker. A list broker is an easy way to get a list of names, address and e-mails of customers in your industry.

As a marketer who owns a business, your job is to contact the list broker and give them your ideal customer (avatar) and the list broker can give a very specific list of name, addresses and e-mails of individuals who match your criteria.

For example, you are selling vacation homes in California on the coast of Santa Barbara. Santa Barbara is a very expensive place to live especially near the ocean. As a marketer that happens to own a business, you would ask the list brokers of a list of names, addresses from the top 25 metro areas whose income is at least $300.000 and who has inquired about vacation homes in California in the last 6 months.

The example I have just given you is considered a much-targeted list. A real-estate broker in California, who has acquired this list, could perform infinitely better than his/her peers in the same market.

The typical price for a list of 5,000 names and address is estimate to be $500.00. If you do the math that about a.10 cent, acquisition cost of highly targeted leads.

Moreover, if you write a compelling AD and put it in the mail with a 45-cent stamp the cost is much cheaper compared to what it would have cost you online. Moreover, a marketer who owns a business could also put a solo AD in a trade journal of that particular industry to generate leads by simply putting a link directing the customer to your website.

The take away is this direct mail is not going away in-spite of what you may think. Direct mail is easy to test one campaign against another it is cheaper to acquire leads. You can be as creative as you want in your mailing piece. Most of the credit card and insurance companies have increased their direct mailing budgets.

Finally, the longer a piece of well crafted advertisement stays around the longer your name stays out in print and the higher the probability it will be shared with someone else.

Sincerely,
Tim Mason