A common cause for consternation among the companies that direct marketing is the high cost of mailing stacks of books in full color and e-mail, collect only a small percentage of the response. Remember, one wonders, “Is there a better way to reach my customers?”

However, savvy marketing people understand the kind of person who their best customers, and refine its efforts in the companies and people to achieve a similar demographic profile, the best results.

To be able to do something similar, is the most important step is to evaluate and classify existing customers into different categories:
How much profit each company bring to your business?

What is the total amount of revenue they collect for your business?

Is there a good match between what you sell and what the company needs?

My clients have learned that by answering the questions above, they are better on their way to change their marketing strategies. You begin to wonder: “What is a good customer of the companies that are listed on the tops of all three lists of your best customers – in addition we want to others who are going to present the same profile.

To do this we need to identify the properties of these “best customers” and to understand the similarities. What is the size of these companies? Where they are on a map? Who makes the buying decision, and what are their titles? (more…)

The mathematics of direct marketing is essentially on three pillars:

Distribution
The cost of marketing
Contribution costs (overhead, etc.)

Now there is no clear balance of these elements as direct marketing activities should be adapted and customized fine according to each company. Therefore, I will never rule out an impromptu response rate of direct marketing for any business or industry, as key factors as the product itself, the preference for market demand are involved, and the type of offer.

Another point to note is that the mathematics used by the conviction that the future as the past will be supported. Therefore, if no variable is significant in the equation changes (such as magazine circulation significantly decreases), then we can expect a different response rates.

So as directly dive in, I’ve listed below some basic calculations that use any small business should:
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Use these tips, leads to a direct response messaging and increasing revenues:

First Ask your prospects, which form of communication they prefer to receive information and future updates. Fax, e-mail or mail? Send through a willingness to provide information by fax or e-mail, you can reduce the delivery time and sometimes save considerable costs on the cost of postage and printing.

Second If you send a newsletter subscription or a catalog, are an automatic response to coupons or discounts that can be sent to other players in the use of perspective.

Third Include “Where to buy” info in your e-mail outs, especially when you sell through local dealer, agent or dealer. By including a map, list, or that the right information in the letter, you must contact the company name, title, company, phone, fax, e-mail address, simplifying the process.

4th If sending product brochures that contain more than one product, say the prospect of where to find relevant information for the item or service for which they have expressed interest in.
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