The Importance of Targeting the Right Direct Marketing Consumer Group

A direct marketing consumer group consists of a group of individuals whose contact information is listed in a mailing list. Such mailing lists are often commercially available and can be purchased freely by companies keen to expand their existing sales leads and market share. These mailing lists have become increasingly popular recently as business owners begin to acknowledge the importance of having a large pool of potential sales leads to work with. Yet, it is often the case that relevance is often neglected in the frenzied pursuit for quantity. This means lower quality sales leads for the business owners who have purchased these lists in the first place. This article serves to highlight the importance of targeting the right direct marketing consumer group.

For one, the ability to target the right direct marketing consumer group allows business owners to achieve greater efficiency and a comparatively lower wastage of resources. The fact is low quality sales leads result in a lower probability of you generating any sale in the first place. For instance, a list of 10,000 people with only 100 buying from you, would not add as much value to your business, as compared to say having a more streamlined list of 1000 people with 500 buying from you. Clearly, the mathematics involved is pretty much clear as seen from the above example. In the case of the former, you get lesser sales, but yet, have to fork out a relatively large sum of money and amount of effort just to get your marketing efforts going. Comparatively, you pay less but achieve more in the case of the latter. This highlights the importance of targeting the right direct marketing consumer group. You achieve higher returns from your effort.

Moreover, opportunities are abundant should you be able to target the right direct marketing consumer group. In most cases, this group of individuals often has a greater sense of interest towards the product which you are offering as compared to lower quality sales leads. In this case, you might even wish to expand the options available to them. For instance, you might want to request them to join your affiliate program given the fact that they had purchased and used your product. To this, consumers that belong to the right direct marketing consumer group would be more likely to respond to your call for affiliates. With an already keen interest in your products, coupled with the fact that they had actually used your products, you would now have a higher chance of getting them over to your side as an affiliate. As such, targeting the right direct marketing consumer group can provide you with many options that you might want to explore in the future.

Clearly, there are many advantages associated with targeting the right direct marketing consumer group. The most important of which, is a higher return on your investment. Above all, it provides you with many opportunities which you can explore in the long run to grow your business over time.

Mortgage Direct Mail

Direct Mail has long been a proven and reliable marketing strategy for many of the most successful mortgage companies in the industry. If you’re considering a Direct Mail campaign, here are the top five things you should know before you make that important investment:

1) Target the Most Qualified Prospects

Successful Direct Mail all starts with the list. Sounds simple, but it’s true. About half of your investment goes to postage, so why spend it on unqualified prospects? Credit Bureau data assures that the borrowers you attract are already qualified based on a tight set of guidelines including: verified FICO scores, mortgage types, balances, payment history, and personal credit. Loan officers shouldn’t have to worry about wasting their valuable time chasing unqualified prospects.

2) Create a Compelling Mail Piece

No need to re-invent the Direct Mail wheel here. Qualified borrowers just want to know the bottom line, specifically “what’s in it for me?” A no-nonsense comparison of monthly payment savings works to get the message across clearly and concisely. It involves a simple formula of calculating monthly savings – based on their mortgage data, prompting a call for a free quote. As for format, a personal and confidential snap-pack style mailer will help improve your open rate – as opposed to an envelope that screams “advertisement” and gets quickly tossed to the junk mail pile.

3) Control Your Own Timing

Every Direct Mail marketer wants to know “when will my phone start ringing?” Truth is, no one can say exactly. Timing is everything, and the best way to control that timing is to spread out the drops to arrive daily and consistently. A weekly mail drop of at least 5K is recommended, so a significant sample can arrive on that magic day. Is it when the two spouses finally sit down to discuss their finances? Maybe it’s the day that big credit card bill shows up. Or maybe it’s when the neighbors boast about the new mortgage that saved them hundreds per month.

4) Maximize Your Budget

Let’s face it, Direct Mail isn’t cheap. It is, however, one of the most proven ways to generate a steady stream of revenue. Think about it, even at the most conservative response rates, you’re talking to pre-screened, qualified prospects calling you directly to apply for a mortgage – imagine how great that conversion rate can be. Another way to spread your mail budget is to ask for volume discounts by pre-paying for the list and printing cost upfront. Also, postage is a pass-through cost, and in most cases can be paid up to the time of each drop date – meaning up to 1/2 of your budget can be deferred over time.

5) Choose the Right Partner

It’s amazing how many marketers have been burned by unscrupulous business partners. Don’t let that happen to you (again?). Mortgage Direct Mail can and will succeed when managed properly. Let’s recap how to accomplish that: target the right prospects, develop a compelling mail piece, control your timing, maximize your budget, and choose the right partner.

Master Marketing Plan

If your business/strategic/marketing plan isn’t written down, your staff isn’t going to know what to do. People don’t pick things up through “Osmosis”.

I’ve been in situations, where the business owner was not reachable. Staff members had decisions that had to be made, but because there wasn’t a written plan, the work actually came at a standstill until the owner could be contacted to make those decisions.

That’s a very ineffective and inefficient way to run and manage your business.

If you have staff, whether it’s large or small, if everybody’s pulling in the same direction you’ll get there faster, better and with less effort.

It would be similar to the Budweiser horses all tied up to the wagon but pulling in different directions. You see, if the path is mapped out and plotted in advance, everyone knows which way to go. If they hit a road block, an educated choice can be made to get to the destination. Simple, right?

A simple wall calendar, outlining activities and deadlines and can be a great start and a huge help to your staff. If everyone knows the tasks and the sub-tasks, then the major tasks will be completed. And remember, they have to be measurable and checked up on. What gets measured gets done!

Let me simplify all this and give you an example. Every major task, or activity, has multiple mini-tasks that have to be accomplished to finish the major task.

So let’s start with a large blank wall calendar for the current year. Put it on the wall somewhere everyone can see it.

This is what to do next on the calendar:

1. Identify the proposed dates for all major company events. Think about workshops, teleseminars, product launches, speaking engagements, and whatever else you have going on. Color code the major events so they’re easily identified on the calendar.

2. Using backward planning concepts, identify the marketing plan for each event such as:

a. Direct Mail Projects

b. Email Marketing

c. Voice Blasts

d. Teleseminars

3. Color code your major marketing steps for each of the above events accordingly.

4. Once your road map is visual, you’ll easily see all the steps it will take to get the jobs done, and then you can determine if you can get more accomplished, or if you’ve been too aggressive with your plan.

5. Adjust your plan as you see fit. Remember, aggressiveness is OK – but craziness is just crazy! Can you implement and execute your plan within the personnel and budget requirements you have?

This is the basis of your executable marketing plan for this year and beyond.

Think about it, you’ll know how many emails to write, how many voice blasts to do, what your direct mail program is going to look like, how many times you can mail in the time frames provided, can you add additional teleseminars or webinars to your plan, and list goes on and on. Just by thinking this out, you’ll be able to estimate your income for that year and beyond. And, your staff will have direction, whether you’re in the office or not.

Start with the overall strategic plan and take it to the next level – your marketing plan. Keep in mind that you’re not bound to stick to the plan if something isn’t working or not profitable. Just adjust your plan and market on!

You don’t have to be an expert in planning. You can be the idea person. The key is being able to convey the ideas. Your staff can participate in this process. It can be fun and a learning experience for all. So, if planning is your weakness, make sure you surround yourself with the right people who can do that with you, not for you, with your goals and objectives in mind.