Don't end up in the trash but generate the response the credit union needs?
According to the U.S. Postal Service, Americans receive more than 65 billion pieces of direct mail each year. Despite the high volume, direct-mail marketing continues to be a highly effective sales method. In fact, one recent study by a nationally recognized direct-marketing company found direct-mail response rates have increased 12% since 2000, with 46% of respondents indicating they responded to a direct-mail solicitation either by mail, telephone, via the Web, or in person.
Four key considerations will help ensure each direct-mail campaign is successful: Consider the target audience, create a compelling message, communicate offers effectively, and use simple response methods.
Target the audience
Haphazardly sending out direct-mail pieces wastes money and time. The offer must be relevant and compelling to make the greatest impact. Research demographics and historical data to identify potential users of a particular product or service.
Once you identify the target audience, refine the target list to make certain the recipients not only fit the criteria, but that the timing is right. For example, members who recently took cash advances on their credit union credit cards aren't the best target for a promotion focusing on money market account dividends. But they'd likely be interested in a consolidation loan program.
Researching the target audience is an initial step in planning a direct-mail campaign. Tailoring the message to meet the needs of a specific group is another key factor in gaining a successful response rate. The success formula: Make the right offer at the right time to the right audience.
Create a compelling message
Now you'll want to articulate the intended message in a way that will generate a positive response. In concept, it sounds simple to create a compelling message to which the target audience will relate. But this may be one of the more difficult tasks in the process.
To keep the direct-mail piece from joining hundreds of other discarded mailers, members must be engaged enough by the piece to take the time to read the contents.