Direction July-August 2012 - 42

From there, planning your marketing budget becomes all about managing the investment you make in direct mail versus the dollars you spend on other marketing efforts. Any direct mail effort can return a positive ROI, as long as it is targeted and timed to prospects and events that have a high likelihood of acting on the message and offer you communicate. The question is, how big can or should the program be? For example, you can confine your direct mail efforts to your very best prospects and ensure a very high ROI. But which would you rather have: $5 million in profitable business that cost you $5,000 to generate or $10 million in revenue that cost you $15,000 to generate? The ROI on the first scenario is 1,000 percent. Conversely, the second scenario’s ROI is “only” 667 percent, but a much bigger contributor as far as absolute revenue impact.

Just because consumers use digital media to research, explore and compare moving options doesn’t mean they are only (or even most) inﬂuenced by digital communications.

So, maybe you haven’t thought about direct mail for a while. Chances are, you should.  Scott Bailey is executive vice president, strategy and analytics, of Target Data

Corp., a company that specializes in direct mail for the moving industry. He also is a widely published expert in the areas of marketing strategy, targeting and segmentation. Email him at scott.bailey@ targetdatacorp.com.

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Direction July-August 2012

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