How can I use direct mail?

Q. How do I start an effective direct-mail marketing campaign?

A. Direct-mail marketing is most effective and economical if it’s focused on encouraging your best customers to visit your store more frequently.

Larry Bird, owner of gift store Gabriala’s in Plymouth, can attest to the power of direct mail. Since 1988, when he began a consistent direct-mail program, his business has grown from $150,000 in annual sales to $1.75 million last year. He mailed more than 1.5 million promotional postcards to store customers in 2001.

Here are Bird’s steps for a successful direct-mail program:

1. Develop a database of customer information. When customers make a purchase, ask: “Do we have you on our mailing list?” If not, ask: “May we add you?” Let them know that as preferred customers they’ll receive notification of store promotions and special offers. Most customers are happy to participate.

Obtain the customer’s name and address and record the amount, date and department of each purchase. Track the data through your point-of-sale system or separate mailing-list software.

2. Send periodic mailings to your best customers, based on how recently they’ve purchased and the total amount spent for the year. Bird sends postcards twice a month with special discounts, invitations to private sales and even birthday cards and year-end gift certificates.
Other types of mailings could include catalogs, newsletters or announcements of new merchandise and store events.

3. Track the response rate. Have customers turn in the card to receive the special offer. Record how much was spent, then calculate the percentage of cards returned and the dollar amount spent compared to the cost of the mailing.

4. Maintain your database. When customers make a purchase, make sure the mailing information is correct and add their most recent purchase.

5. Be persistent. Just like radio, TV or newspaper advertising, it may take several impressions before your advertising campaign begins producing results. Don’t give up too soon.

Bird will participate in a Michigan Retailers Academy panel discussion on retail advertising in Royal Oak on October 1. For more information or to register, call MRA’s Amy Jolley at 800.366.3699 or e-mail her at ajolley@retailers.com.

Do you have a retailing question? Ask Michigan Retailers in writing:
by mail: 603 South Washington
Avenue, Lansing, MI 48933;
by fax: 517.372.1303;
by e-mail: tscott2@retailers.com.