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Buying Guide for Direct Mail Services
Introduction
These days, many businesses use direct mail as a financially sound means for marketing to potential and existing customers. Direct mail can be tracked, and it is a proven strategy for gaining results and leads.
Of course, manually setting up your own direct mail service would require lots of preparation, effort, and funding on your part. However, many businesses are using direct mail sellers to take care of the grunt work. With years of experience, direct mail service companies can take your business to its next level.
In this guide, you will learn about:
- Various costs associated with direct mail services
- Types of mail you can use to convert customers
- Types of services offered by direct mail companies
- Choosing a seller
BENEFITS
One of the many reasons businesses choose a seller over conducting in-house operations is because of how time-consuming and costly direct mail can be. For perspective, imagine mailing out 10,000 individually enveloped advertisements yourself. It would take days, or even weeks with your own resources.
Postage Costs
Direct mail sellers typically receive significant discounts on their postage costs. They are awarded discounts because they have the resources and tools to handle parts of the mailing process that are usually left to USPS(US Postal Service) . For example, the direct mail seller will presort, stamp, and deliver the batch of mail straight to the USPS location.
Access to Quality Mailing Lists
Your mailing list will be your most valuable tool when you engage the world of direct mail. Without an updated, good list, the odds of your campaign failing will be rather high. Direct sellers have access to lists that contain the names and addresses of thousands of potential leads.
There are countless mailing lists based on various factors. For example, some mailing lists are based on certain demographics while others are based on people who have explicitly expressed interest in your industry's products. You can choose a wide range of filters to use with your direct mail strategy. A seller can help you choose the right mailing list(s).
If you already have a database of potential leads, you will most certainly want to use this with your direct mail campaign. All you will need to do is supply this data to the direct mail seller, and the company will take care of the rest. If you need to supplement more information for the list to meet the minimum recipient mailing requirements, the seller will provide you with other leads that fit the target audience as well. There is no denying that direct mail sellers have an incredible amount of resources.
Design and Print
Almost all of direct mail seller's work will be done in-house. However, the seller will use a separate printing company to actually produce the materials that will be mailed.
If you can handle any part of the direct mail process from your business location, you will receive discounts on your overall pricing. For example, if a staff member of yours creates compelling designs for your mail advertisements, these can be sent to the direct mail seller. The cost for this work will be alleviated since you supplied your own design.
Once the materials are designed and printed, samples will be sent to you for proofreading.
Preparing the Mail
The essence of direct mail services is assembling, labeling, presorting, and delivering mail to USPS. Sellers have the technology and machinery to sort and assemble mailing pieces at lightning fast speeds. This would be incredibly time-consuming and costly for you to do by yourself.
NARROWING DOWN SELLERS
Each seller in the direct mail sector has certain strengths and weaknesses. In general, you should never opt to work with multiple companies for your direct mail marketing. Always stick to a single company. If you are already doing a fraction of the work involved with direct mail, find a company that can take care of the parts that you do not already handle.
When narrowing down sellers, pay close attention to customer service. If a seller takes days or weeks to respond to your initial communications about possibly forming a business agreement, take it as a warning sign. The company must be attentive and available.
You will also want a seller that has experience with creating successful direct mail campaigns. They will know how to help you save money, and they will be able to prove their excellence with a track record.
Always reach out to multiple companies before making a decision. It is incredibly important to make comparisons before committing to a single seller. Basing your decision on price will likely get you into quite a bit of trouble down the line. Visit the company's facility before signing on to do work with them. References provided by the seller can also help you make a decision.
COMPARING PRICES
As a rule of thumb, expect price slashes whenever you can handle any part of the direct mail process. For example, if you can write or design the mail piece yourself, which is one less expense from the seller that you have to worry about. On average, it costs at least roughly $3,000-$5,000 to power a campaign.
Common, approximate costs associated with direct mail services are as follows:
- Inclusion of newsletters, brochures, self-mailers, or 4 color flyers: $1-$2
- Postage: $0.22-$0.42
- Price per name on mailing lists: $0.12-$0.25 (double this price for business leads)
- Price per hour for writing/design work: $75-$100
- Cost per printed unit: $0.05 to $0.10 (large units will cost more)
- Cost per piece for mail processing: $0.03 to $0.15 (complicated pieces will cost more)
- Inclusion of reply envelopes: $200-$1,000+ (return postage will raise this price even more)
TIPS for BUYING
Pair direct mail with other marketing techniques to increase the effectiveness of the campaign. For example, consider following up on each mailed piece with a phone call or email.
If you can, hand-write each addresses. It takes longer, but it leaves a better impression on the recipient.
Always use recycled products if they are offered by the seller. Not only will you be doing the environment a huge favor, but you will save a bit of money by using raw materials.
Always save design work (if you are personally take care of this aspect) in a common, versatile file format. Request a list of file formats that the sellers use.
If you plan on mailing pieces with unusual dimensions, find out if the seller can handle this. If they can, how much will they charge to make accommodations?
Consider including freebies. People can quickly get over a piece of junk mail if they are also being given something useful along with it. This is why pairing other marketing techniques with direct mail is important.