|
1. Segment your customer file
Not all customers are equal, and when you need sales fast, your best customers are the most likely to come through for you. So it's vital that you stratify your customers by a key metric. Usually, it's most effective to segment by sales or average order size. Rather than roughly categorize customers in one group or another, an analysis of your customers will better pinpoint a strategic breaking point between groups.
For a food marketer, for example, we looked at the average price point paid, and then fine-tuned our segments so we would know the sales values within each stratified segment. By doing this, we could identify offers for each segment to encourage them to buy, and stretch them to the next higher customer segment with an offer that could yield a higher purchase.
When you sort your customer's sales activity, from highest to lowest and cumulate sales and calculate percentage of total sales, your eyes will be opened. You may see, for example, that your top 10 percent or 20 percent of customers do indeed produce a disproportionately higher volume of sales. It's those top customers who will reliably respond to your offers, even outside your prime selling season.
2. Clear out unsold product
Chances are that you have unsold non-perishable products just waiting to be moved. You probably offer them on your website since it's easy to offer close-out items there. But sometimes a simple, yet well-crafted direct mail letter is all it takes to get the sales flowing.
For a business-to-business client, we created an inexpensive personalized direct mail package to clear out blemished inventory that couldn't be sold in the retail sales channel. It was mailed to about 500 of their best original equipment manufacturers, and produced $65,000 in sales in a few days.
3. Get future sales commitments early
Everyone knows the economy is rough, so rather than wait until the sales season has arrived, get out there now with a rock-bottom offer for future commitments and lock-in the sale now, before your competitors are in the mix. Depending upon your business, you might even be able to ask and receive a deposit for the future sale now in exchange for a not-to-be-repeated offer when the normal sales season cycle returns.
4. "We want you back" offers
Just because someone cancelled a few weeks or months ago, doesn't mean the sale is gone forever. Mail a "We want you back" offer. It will produce more sales than cold prospecting letters.
For an insurance client, we mail these letters every month and remind the lapsed policyholder why they bought the product in the first place. It produces a consistent flow of revitalized business.
5. Adjust Your USP
In these times, you need to have an edge over your competition. Step back and re-evaluate your direct mail creative. Your successes of 2008 and earlier may not work in 2010. Is your unique selling proposition buried? My mailbox suggests that most are. Your marketing staff and copywriter may need to breathe fresh new life into your creative and adjust your USP for today's financially bruised customer.
Gary Hennerberg is a creative strategist and analytic consultant for direct mail, web sites, email, and other direct marketing media. He is a sought-after copywriter and frequent writer for Target Marketing and Inside Direct Mail Weekly. You can contact Gary at 817-318-8100 or at www.hennerberg.com.
|
Secrets of Direct Marketing Testing
PURLs for Profit
