Lately, we’ve been hearing a lot of talk about relationship marketing: how opt-in e-mail and other tactics can help companies talk directly to their best customers with a tailored message that those customers want to hear and an offer that they just can’t wait to embrace.
Even with all the hype, though, relationship marketing hasn’t exactly eclipsed mass marketing. Why? Most companies don’t have the money to generate individually geared sales materials, such as handouts and brochures.
Fortunately, new digital color-printing presses and digital variable-print processes are ushering in a revolution in direct marketing. Using special software, these systems make it possible to change the text, graphics and photographs for printed pieces on the fly. When companies couple this with database-mining technology, they can drill down into customer preferences and buying patterns and create mailings that are highly individualized.
For example, if an adult female has recently purchased $50 of children’s clothes, you can send her a direct mail promotion for 10 percent off her next purchase of kids’ clothes. You establish the different variables, and the data for each recipient determines which variant will come out the other end of the process.
Sure, this one-to-one approach is a little more expensive than traditional DM, but there are factors that balance the cost. Companies that use variable-print could produce fewer pieces because they can target individualized messages to a concentrated customer base. Traditional direct mail normally pulls a 1- to 2-percent response rate, but variable print could draw response rates of between 10 percent to 15 percent.
To ensure success, there are some points to consider:
Focus on existing customers. This kind of campaign delivers the most bang for the buck because they’re most likely to welcome an offer. Remember: 20 percent of your customers account for 80 percent of your sales.
Walk before you run. Don’t jump headfirst into a complex personalized mailing. Start small, then build on your message. But bear in mind that at a certain level, it becomes more difficult to program the print run with too many variables.
Know when to call it a day. Personalized direct mail can help during times when sales are sluggish. But during peak periods, it probably doesn’t pay to get too personalized because you’re likely to get those sales anyway.
Ultimately, it’s all about having a message that resonates with your audience.
Robert La Banca (rlabanca@impressionpt.com) is CEO of Impression Point Inc., a direct marketing and print communications company based in Stamford, Conn.
CRM/Customization, Large Business, Medium Business, Opinion, Printing
