Why Some Direct Mail Practices Are Far From Ideal…Direct mail options have evolved and become more personalized in design, graphic presentation and effectiveness. Along with other marketing vehicles, direct mail requires a well-researched and comprehensive strategy, along with a detailed analysis of the final results. The campaign should be supported by a realistic budget in order to measure the desired ROI.
The campaign objectives are brand building, customer engagement/reward, increased sales, loyalty and value-added customer benefits. The easiest way to accomplish this is with advanced targeting technology and resources to match the ideal customer with the right promotion that reflects enhanced value.
If your direct mail campaign doesn’t follow this strategy, you could very well be setting yourself up for a costly and failed direct marketing program.
The Health Industry and Reward Cards
Let’s look at a variety of proven direct mail campaigns that deliver. This includes prepaid cards and promotional gift cards. Even the health insurance industry has discovered the value of reward cards that encourage members to take a health risk assessment exam, or an annual physical that far too many people sometimes skip.
Additionally, other types of promotional gift cards will pay for all or part of the cost of introductory health club or gym memberships. Keeping fit at any age is important for health and longevity, but many people need an incentive.
With the health benefits card, other family members, or friends may have the same insurance, so there’s the added plus of a potential exercise buddy for companionship and encourage. This can be positive, fun, and upbeat, and it can also make a person feel important and special.
Everyone Loves A Gift Card
Organizations from SMBs to Fortune 500 firms are also using prepaid employee gift cards as recognition and reward. It can be something as simple as a Friday weekly phone meeting that involves districts in three states for a review of promotional activities designed to increase new business in specific demographic groups.
Each individual staff member must provide input covering successful and unsuccessful efforts. District managers are authorized to issue prepaid reward cards to employees in their area and/or other districts who went above and beyond expectations. If the DMs design to issue cards to specific employees, the cards simply show up with a thank you note and praise as a surprise for the outstanding employees at the appropriate offices.
Let’s Get Personal
Compare these examples to impersonal coupons used for a single purchase or two. The designs are usually mundane and an effective tracking program is a problem since information is handled by a clearinghouse, or a point-of-sale system after the fact. Regardless, this process can fail to capture significant amounts of information.
We also find that gift card redemption rates are 10% to 30% higher than coupons with an identical offer. Coupons usually are issued for a limited time period before they expire. Expired coupons are useless.
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