Direct Mail Gone Wrong

I do a lot with offline advertising. Most of my clients get customers through direct mail, fliers or space ads.

I have noticed that most of my clients are a little over confident in their direct mail. Some figure that if they send out massive amounts that even a small return would be profitable.

Then there was Mike in Minneapolis

Mike runs a service business and he has done pretty well. He has a good relationship with his customers and his service is top notch.

Mike decided to upgrade his usual mailers (postcards mailed bulk) to a sales letter mailed to specific demographics. Mike decided to create the letter himself. Mikes only experience with writing ads has been his postcards (which averaged .5% return).

Mike went big. He put all of his chips on the table and looked the dealer in the eye and said; "hit me".

He mailed 10,000 letters at a cost of $30,000 (notice I said cost). Two weeks after sending out the letters he got 1 phone call. That was the last call.

I have in my years rolled the dice and got burned. I have never been scorched like Mike but I had second degree burns.

Mike thought that because his postcards got around .5% that if he did close to that he should make $60,000 after costs. He made zero. The one call he got had to cancel for some reason.

Mike should have done what almost no small business does- TEST! If Mike mails out a 100 letters and gets no calls something is wrong. So now he finds out for $300 rather than $30,000.

I believe that before sending out any mass ads, you should test it first. Even postcards or fliers. It is not only the cost of the piece you need to keep in mind, it is the money you are losing that you could have had if the ad was better.

Your service or product may sound great, but your offer may be crap. Maybe your offer is great but you poorly described the benefits of your service. Maybe you mailed a great piece to the wrong people. I promise you that you do not know without testing.

Direct mail is a wonderful form of advertising (my favorite), but it can eat you alive if not handled with care.

Go get some

Paul