Get Responses to your Direct Mail in a Down Economy

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This is part 1 of a 5 part series featuring information from Dean Rieck’s Whitepaper, “Getting Response in a Down Economy –  4 Key Principles to Boost Your Direct Mail Profits in Today’s Difficult Market.” Mr. Riek kindly gave his permission for us to feature his timely information.

There’s no doubt about it – business is tough right now. However, tough doesn’t mean impossible.  If you think about it, our marketplace is fundamentally the same as its always been. Resources, infrastructure, and a robust consumer population still exist.

• Fear and uncertainty underlie many decisions now
• People are postponing many buying decisions
• More decisions are being made on price
  

So it’s not that people aren’t buying. They ARE buying, it’s just that they’re slower and more cautious, so it’s harder to sell to them. Harder, not impossible. That’s an important distinction, because if you assume people don’t want to buy now, you will make less effort to sell to them than you should, and may end up suppressing your own profits.

Your customers are uncertain and afraid, but they are essentially the same customers you’ve always had.  The basic psychological buying principals still apply, it’s just that some weigh in more heavily than others in this economy.  To know how to adapt to this market, we need to look at some basic psychological principals:

People love to buy.  They love to discover new products and experiences.  People see commerce as a natural and appealing activity.

People make buying decisions emotionally.  They decide based on a feeling, need, or emotion.  That’s why intangible benefits are generally the key to persuasion. For any given promotion, you should ask yourself, “What is the emotional hot button here?”

People need to justify decisions logically. While people make emotional decisions, they justify those decisions with logic and facts. You should always give people the appropriate justification for making a purchase.

People want to avoid risk. People pursue gain, but the urge to avoid loss is more powerful because it works on a more basic level. In direct marketing, people usually can’t see you or the thing you’re promoting before they part with their money. So there is always a level of distrust and suspicion you must overcome.

People seek value. Value is not a fixed number. It is a subjective relationship between the thing you are selling and what people perceive its worth to be. The greater the value relative to the price, the more likely people will be to respond to your offer.

People buy direct because of convenience and exclusivity. Don’t fool yourself. If your customers could easily find the things you offer at a nearby store, that’s probably where most would buy them because the perceived risk is lower.

Has the economy changed any of this?  No. People are still people. However, while a well-written headline and eye-catching photo can still make someone want what you’re offering, your customer’s fear and logic circuits are now operating on overdrive. They need stronger justification and greater value than ever before. They also need more assurance that their financial risk is minimal or even that the purchase will save them money.  Today’s market simply requires more attention to these basic principals than when the marketplace was flush with cash.

So, fear and uncertainty are affecting buying decisions, people are putting off purchases, and more decisions are being made on price. That’s the situation.  What can you do about it?  To improve responses to your direct mail in today’s tough economy, you need to adapt by applying some basic, tested, direct marketing methods:

Economy – You need to make an extra effort to maximize the earning potential of every element of your direct mail. This means knowing what makes a difference and what doesn’t so you can trim the fat.

Clarity – Marketing messages must be persuasive and crystal clear. Always important, this concept is now imperative. Confusion kills sales. Top-notch copy is more important than ever.

Credibility – You must eliminate fear and reduce perceived risk. A trusted brand is a valuable asset now. Money follows certainty and flees from doubt. Who you are and your reputation is everything. Are you dealing with customers in an ethical and fair way? Are you emphasizing and honoring your guarantee? Do you provide customer service that lives up to your promise? Are you using your testimonials to ease doubts? There are plenty of ways to establish and maintain credibility. You simply have to go the extra mile now.

Value – Sales are more about value now than ever before. The value must go beyond just fair. It must appear to be so good that it’s unfair to your organization. It’s not a matter of giving away the store or hurting your brand with fire sales. It’s just a matter of presenting your offer in a way that makes the purchase seem like a smart thing to do and overcomes buying inertia.

If you act on these ideas while your competition hibernates, you can improve business now and set yourself up to capture a larger piece of market share later when the economy inevitably rebounds.

Stay tuned for part two of this series, where we share some of Dean Rieck’s details of how to economize your direct mail piece to maximize your marketing dollar.

For more of Dean Rieck’s marketing tips, visit his website www.directcreative.com.