These seven principles of direct marketing (DM) are the result of expansive and careful research. Use them to get the most out of your DM efforts.
Principle 1: Plan your strategy
This is the thinking before you get started. Your direct marketing strategy is driven by broader business and marketing strategies. As well, your strategy has to take into account your direct marketing history, the performance drivers of the business, an innate instinct for how people will behave and an understanding of the role of technology.
Principle 2: Crunch the numbers
Accountability and analysis lie at the heart of direct marketing. You have to know how much the activity is going to cost and how much you are likely to gain from it.
Principle 3: Work through the key components of your campaigns
There are numerous components, but the most critical ones to focus on are the audience, the offer and the creative idea.
Principle 4: Test, test and test again!
Continuous testing minimises risk, refines and optimises results, strengthens customer relationships and maximises profit. If you are not testing, you are not doing true direct marketing.
Principle 5: Focus on "share of customer" over "share of market"
Both these strategies have their place, but share of customer normally provides a higher return on investment.
Principle 6: Don't forget it's all about the customer
The only sustainable competitive advantage is superior knowledge. To do direct marketing effectively, you need to continually listen, learn and respond to customer feedback and behaviour throughout the customer lifecycle.
Principle 7: Never overlook privacy, choice and security concerns
Customers today understand that their data is as valuable as their dollars to a business. They demand the right to know the contractual terms of the relationship.