doodlehause2.jpg

Market smarter! A direct attack on direct mail prospecting

saveDirect mail marketers are rewarded for incompetence.  With a bulk mail permit in hand, they can indiscriminately pack mailboxes — saving 50 percent off US Postal rates for each annoyed recipient.  That needs to change.

It’s time for direct mail marketers to join their e-marketing brethren in the realm of permission marketing (obtaining explicit permission prior to sending). Popularized by Seth Godin in his book of the same name, Permission Marketing, requires marketers to earn the right to interrupt recipients. According to the principles of  permission-based marketing, marketers need to purchase the right to every recipient’s time.  Marketers must earn, or solicit, an invitation before sending materials.

It’s hard for direct marketers to argue that mailboxes have less perceived value than in-boxes, solely because it costs them more to fill them with clutter.  If anything, the stakes (and wastes) are higher for unsolicited snail mail. Forest Ethics, which drives ‘Do Not Mail’ ( DoNotMail.org) provides these facts, among others:

- junk mail accounts for 30 percent of mail delivered in the world;
- approximately 44% of junk mail goes to landfills unopened;
- the average American will spend 8 months of their lives dealing with junk mail;
- households average 1 personal correspondence each week, compared to almost 18 pieces of junk mail; and
- 89% of Americans support a Do Not Mail Registry.

Most marketers opposed Do Not Mail Registry initiatives because they limit the ability to reach willing prospects.  Perhaps a better alternative is to re-examine US postal rates. Current rates reward ineffective marketings.  For example, a response rate of less than 0.25 percent is considered acceptable for the 500 million US credit card solicitations that are mailed monthly. If we raise bulk postage rates 4x its current rate (2x first class postage rate) for unsolicited commercial advertisements, the same credit card solicitations would have to trigger response rates of one percent to remain acceptable.

That’s a pretty good start. The lowest US Postage rates should only be reserved for marketers that build opt-in lists of satisfied customers and opt-in prospects. UNSOLICITED bulk mail needs to be charged the highest postal rates.  Since this mail accounts for up to 30 percent of all mail delivered, it should cover the “bulk” (pun intended) of all mail delivery costs.

In the meantime, there are some things that can be done to reduce the volume of junk mail we receive: sign the Forest Ethic’s petition to create a national Do Not Mail Registry (more than 97,000 signtatures) or use their junk mail prevention tool. The Direct Marketing Association promotes use of their own site (dmachoice.com) to manage direct mail preferences.  On this site, you need to opt out from offers from individual companies — proof why industries with access to our mailboxes shouldn’t be allowed to self-regulate.

Credits: illustration courtesy Forest Ethics.

Fact or Fiction?

SNL took direct mail marketers to task with this fake ad, which aired on 4/11/09.  The parody wasn’t available via Hulu or YouTube, so be prepared for a popup. Worth it, though, if you haven’t seen it!

snl

Further Reading:

About Troy Janisch

Troy Janisch, Publisher of Social Meteor, is a digital marketing professional and social media beatnik. He is a contributor to SmartBrief on Social Media. Troy leads the marketing team at Sentry Insurance, but don’t let that scare you. He rarely talks about insurance in mixed company [grin]. Like a good social media program, SocialMeteor.com is all about content. It’s not a consulting company or marketing agency.

  • http://www.linkedin.com/in/troyjanisch Troy Janisch

    …OR CURRENT RESIDENT

    This needs to be banned. If someone doesn’t know my name, I probably don’t want to get mail from them. Worst, is when they reach me by mistake, trying to send something to someone else at my home address. In these instances, I’m only receiving mail FOR THE SENDER’S CONVENIENCE. I’m basically throwing it away so they don’t have to pay return postage on their own mistake. Bah!

  • http://www.linkedin.com/in/troyjanisch Troy Janisch

    Paperless coupons? New applications for the iPhone pushes us further away from junk mail: http://bit.ly/15eClV

  • Mark Anderson

    I’m trying hard to remember the last piece of direct mail that made me say, “hey! I’m interested in that!” and unable to think of anything.

    To be fair, I’m not the one who retrieves the mail from the mailbox. There could be a chance that there is a bounty of eloquent direct mail that is being discarded before I get to see it. But I doubt that.

  • http://www.google.com/profiles/merubin Michael E. Rubin

    Before engaging any marketing strategy, it’s always vital to ask yourself, “Who are we trying to reach?” and “What are they talking about?” before we start considering what tool works works best. This goes for direct mail, social media, outdoor, broadcast … whatever. The problem is that all too often, the decisions are made with the equation flipped (tool first, talkers later).

    So when it comes to direct mail, the question I ask is: “Is the marketer really trying to go where the customers are?” No, they’re not. In this day and age, customers are massively bombarded by media practically every moment of their lives. As a consequence, they have adapted by becoming very sharp editors and make active choices about what media to consume. A marketing piece in the mail is the easiest choice in the world because it’s a disposable piece of media. At best, it’s a nuisance and at worst, it’s invisible and irrelevant. Either way, customers have moved on to media that lets them remain in control. They want to have a say and want it to be opt-in, so if you throw something unsolicited at them, you’re just wasting their time.

    All that said, I’m not 100% anti-direct mail. My belief is that it can still be an effective technique under two specific circumstances:

    1> It’s solicited, or part of a prior relationship you already have established.

    2> It’s used to complement other tactics. For instance, it could work well if you use the offline direct mail piece to prompt an online action or behavior.

    Some other thoughts about your modest proposal:

    * I love your idea of charging more for unsolicited direct mail because it raises the bar and demands more effective marketing. Right now, the bar on direct is so low because it’s so cheap. There is no incentive for a direct marketer to work especially hard to establish a relationship with the consumer they’re targeting. It’s an outmoded “throw everything at the wall and hope it sticks” model instead of doing the harder (but much more rewarding) work of establishing a true two-way relationship.

    * I also like the idea because it’s self-regulating. Instead of calling in the FTC or calling for a ban (which isn’t going to happen anytime soon), this is a sensible suggestion that puts the onus of responsibility on the marketer.

    By the way, I was delighted to see you name-checked Seth and “Permission Marketing”. It’s one of my all-time favorite marketing primers, and in my mind will have far more long-lasting impact than some of his other well-recognized titles (“Unleashing the Ideavirus”, “Meatball Sundae”, “Purple Cow”).

  • http://www.linkedin.com/in/wendysoucie wendy soucie

    For what its worth, even opt in email is abusing us with the same type of DM mentality. Just sign up for an info marketers news feed and be prepared to be hit everyday mulitiple times with ever variation of the same offer and even if you try and unsubscribe they find an insidious way to move you to a list for people who try and unsubscribe. This trys to woo you back with every variation it can come up with. Infusionsoft may be doing well with this type of business but I am beginning to hate it.

    please make it stop.

    W

  • http://www.homeloansearch.org Home Loans Search

    I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

  • http://www.linkedin.com/in/troyjanisch Troy Janisch

    PUT YOUR CELL PHONE ON THE NATIONAL DO NOT CALL REGISTRY. OTHERWISE, BEGINNING 6/1/09 IT WILL BE AVAILABLE TO TELEMARKETERS.

    To prevent this, call the following number from your cell phone: 888-382-1222. It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

    Do this for each cell phone in your household. For more info or to register a complaint after you’ve been added, visit: http://www.ftc.gov/opa/2004/12/dnc.shtm