You know I like to share whenever I come up with something that I think really makes sense. I was shown this 8 cent postcard a couple of months ago and initially I wasn’t sold on it. It kind of mentally felt like one of those cheap coupon packs that come in the mail every so often. But… as I reseached it and learned more about it, I realized it had some potential.
First of all studies have shown us that there are 3 primary things that need to be part of any kind of direct mail campaign.
1. The List: This by far is the most critical. If you sell home improvement services but your mailer goes to renters, then you’ve wasted your time and money on the wrong target.
The list used on this Amazing 8 cent postcard has already been predetermined. Yes it has already been picked. Hold on for a minute. You’ll see why that’s OK. I know that concept initially threw me off but when I figured it out, a lightbulb went off in my head and a great Ah-Ha moment happened.
The list is determined by two primary factors. #1. Affluence #2 Homeownership.
This postcard is delivered to the most affluent homeowners in any given area. For example in Orange County there are three regions this card is delivered to. In the area referred to as simply the Orange County Coastal region, the card goes to 30,000 of the most affluent homeowners with an average Household Income of $312,031 annually and an average home value of $1,570,822. Also the average age of the home is about 32 years and the homeowner on average is about 49 years old.
So for most businesses, these are a highly qualified group of people to target and are more likely to have the money to spend on your product or service. And it gets even better. The list is selected based on these demographics and not on geography. Many list providers generate blanket geographical lists which means everyone in the area gets your mailer whether or not they fit the right demographic. On this program, only those who fit the demographics gets your card so it is common that not everyone on the street will get it. Only those that count.
2. The Message: If you don’t provide a compelling reason to call you instead of your competitor then for the consumer it’s just a shot in the dark when it comes to picking a service.
We’ve all seen those postcards from real estate agents that say things like, “We’re Number 1″ and “Over 40 Bajillion Sold” and commonly the response is, “Who cares?” In fact I’ve heard people say that they didn’t call those agents because if they’re that successful, then they must charge a lot and are too busy. Who would’ve thought?
On the other hand my favorite postcard is one I saw that said, “We’ll sell your home in 30 days or we’ll buy it for cash.” WOW! How compelling is that. If I’m going to choose between the guy who’s “Number 1″ and someone who is going to buy my house from me in 30 days, I’ll pick the latter. Maybe it’s just a gimmick, maybe they’ll never buy my house but that agent at least was able to get in the door where perhaps he never would have otherwise. It was because of the message.
Now I know that if you rebuild transmissions you’re not likely to say if you’re not happy with how well your car shifts gears then we’ll buy your house. But you could say something like 100% satisfaction moneyback guarantee. Or maybe, Free Oil Change with every Transmission Service. Maybe you’re a restaurant looking to drive more dinner traffic. 2-for-1 incentives are always great. Kids eat free is another one.
The point is that you have to have the right message to get people to call or come in, you can’t just say “We’re Here”.
3. The Design: We are bombarded with advertisements every day and your design has to be interesting yet simple and crystal clear in it’s message. You can have a great list, an amazing offer and blow it with a bad design. Sometimes what you think would never work actually does. Learn more about the buying cycle by checking out my article on Directional vs. Creative advertising.
Those three things are critical if you want to take full advantage of this program but that’s not where the big Ah-Ha came in or at least for me.
Traditionally when I would send out postcards I would do it for a couple of reasons. The first reason was of course to get new business. As a small to medium sized business, if your marketing is not geared toward getting new business constantly then you are missing the boat. But the second reason was to brand myself in the area. I wanted everyone to recognize my name. My mailings were sent to past clients, existing clients, prospective clients as well as my list of new never been contacted people. I was trying for many years to send the same message to four different groups of people in different stages of buying. It wasn’t until I realized this that my business was just getting by.
So where does the Amazing 8 Cent Postcard play in all this? Well when I realized that for me the Amazing 8 Cent Postcard was about generating New Business and New Business only I couldn’t help but jump up and down and smell the green. Yes branding is a part of it and always should be but not like my other mailers. The branding message would be subdued and the incentive and call to action was made prominent. After all the main purpose is simply to get them to call or come in. Once you get them on the phone or in the door, you collect their information and add them to your prospective client list and follow up with them with a different type of campaign that I’ll discuss in my Super Simple Direct Mail article.
If you can understand that this program is designed specifically for getting new business you’ll be just as thrilled as I was.
So why do I call this the Amazing 8 Cent Postcard?
For 8 cents per card the card will be professionally designed for you (included), printed on high quality cardstock with a glossy finish on one side in full color on both sides (included) and delivered to those 30,000 of the most affluent homeowners (included).
- Designed
- Printed
- Delivered
- For only 8 cents – That’s Amazing
They get delivered in this clear cellophane package. I know that was another issue for me. I wanted to be alone and stand out by myself but let’s do a quick comparison.
I have here a quote from a local mail house. If they were to design, print and deliver 1000 similar postcards they would charge.
Services Total: 1,000…$616.83 This includes Design & Print only
Est Postage: 1,000…$223.00 This is the estimated postage.
Total: 1,000…$839.83 Equivalent to about 84 cents each card sent
Multiply that by 30 because the Amazing 8 cent postcard program delivers 30,000 at a time and that comes to a whopping $25,194.90. That’s more than ten times the cost of the Amazing 8 cent postcard and it doesn’t even include the cost of the list. If you have to buy a list, it’s even more. That’s crazy. If you do want to do exclusive direct mail, be sure to see my article Super Simple Direct Mail.
OK as we wrap it up here comes the fun part. We know that direct mail traditionally has about a 1% response rate. The right message will get you a higher response but lets use 1% for now. For one drop of 30,000 Amazing 8 Cent Postcards it costs $200 per month or $2400 in one lump. We’ll also assume your average sale is $50. You can adjust as you need to. Let’s assume your close ratio is 25%. In other words for every 4 people that call or visit you, you’re able to sell one of them something.
Traditional Mail House – Cost $25,194.90 not including the list if you need to purchase one
One percent of 30,000 is 300 x 25% (close ratio) = 75 x $50 (average ticket) = $3750. A loss of $21,444.90 on $50 sales.
The Amazing 8 Cent Postcard Cost $2400 including the list.
One percent of 30,000 is 300 x 25% (close ratio) = 75 x $50 (average ticket) = $3750. A profit of $1350 on $50 sales.
I don’t know about you but that sounds pretty good to me. Adjust for your numbers and see how it works out for you. Some of you only need to make one sale in order to make a big profit.
Are you getting it?
Additionally, if you choose to do more than one drop the price gets even lower. If you’re a restaurant, it gets even lower. You can’t lose.
A couple of other things you need to know about this program is that unlike almost all mail houses, you can make payments over 12 months with no interest or additional charges and they will even guarantee your service up to $500 which is unheard of. Of course certain restrictions apply and terms are subject to change without notice. Depending on when you find this little gold nugget terms may have changed so you must know the terms, be sure to ask.
I could just go on and on about this program but I have to stop now.
If you want to take advantage of this program or learn more, call me directly. I’m sorry because of the contract I have with this company I cannot disclose the name here but we can talk about it when we speak.
One last favor to ask. Wherever you’re getting this message, please be sure to comment or rank it so I can make my posts better in the future.
Thanks I’m Anthony Nitz
(714)423-3158
