In the last issue, we talked about a major blunder direct marketers commit when they don’t consider the three primary postage options: metered mail, printed indicia or a precancelled stamp.

    We explained that a precancelled stamp would increase your response by a full 12% to 15%.

    But another major blunder is using standard class delivery for your in-house prospects (or clients). In-house prospects are qualified, potential buyers and will likely produce a higher response than a rented mailing list. So this is one situation where you don’t want the post office dumping or destroying your mail.

    The unfortunate truth is that 5% to 15% of all standard mail vanishes during the delivery process. The major benefit of precancelled stamps is that postal employees think it’s first class mail...leading to greater care and respect.

    However, in almost every case where we have tested first class vs. standard class for prospects and clients, we’ve found first class gives greater response. Because of this, seriously consider sending your mailings first class. And remember to use a live stamp, not a meter!

    Not sure? Then do a split test and let the marketplace vote.

    Another tip: When marketers use first class postage, often time they do not get a discount. The way you can get a discount on postage and not pay the full rate is by presorting your data. This means doing some of the work of the post office by sorting your mail by zip codes.

    You can presort it yourself or for large mailings, you can hire a lettershop. For more information on this process, you can read the USPS tutorial by clicking here.

    For help with your web or direct mail marketing, call me at (310) 212-5727 or email me at craig@cdmginc.com.

    In the last issue we talked about the danger of using a corporate website for marketing purposes. The last thing you want to do is have your prospect or customer see your corporate website, since most corporate websites are antimarketing.

    Another common website misstep happens in paid searches. Paid search is when your company purchases search keywords through Google or Yahoo! that relate to your product or service.

    The advantage of paid search over organic search is that your company is placed on page one of the search results, usually to the right hand side of the organic search.

    So what’s the common blunder? Failing to match your search copy to your website copy. In paid search it’s critical that the copy on your landing page or microsite match your paid search ad copy.

    For example, if your paid search ad copy is “Click for Your FREE Guide to Cheap Travel,” your microsite headline should say “Read the FREE cheap travel guide that could save you hundreds!”

    That headline should be the first thing your prospect sees. Don’t forget, the prospect clicking your search ad wants more information on the topic that sparked interest.

    Often if I create multiple landing pages for a promotion, I’ll change just the top of the page so it matches the search ad copy.

    Remember: If a prospect clicks and doesn’t immediately see that your website matches up to the search ad, you will see a decrease in response...and you’ll be clicked into oblivion.

    Want to create a direct marketing website that brings response? Email me at craig@cdmginc.com or call me at
(310) 212-5727. We have webpage solutions that bring top-notch results.

    As you may have heard, the U.S. government recently passed landmark postal reform legislation...the first such reform in over thirty years.

    The legislation promises to update the USPS rate system and stop a tremendous amount of waste. For example, many people don’t know that more than $2 million dollars has been spent on rate hike legal cases. This was a pure waste for everyone (except the lawyers).

    The new legislation is called the Postage Accountability and Enhancement Act, and it aims to make significant changes. One reform transfers responsibility of military service benefits for postal retirees to the Department of the Treasury.

    The act also eliminates the $3 billion the USPS had to deposit annually into an escrow account... one of the key causes of the new rate hikes.

    These reforms will free up about $78 billion in the next 60 years. The bill also caps postal rates by tying any increases to hikes in the consumer price index. Rate hikes will now be more predictable for mailers and less expensive.

    Of course, the best outcome is greater accountability in an agency that has largely operated in secrecy.

    These changes will help the post office system tremendously. However, the most needed reform is also the most radical: abandonment of postal monopoly laws.

    Only by allowing other companies to compete with the USPS in letter mail will competition develop, leading to innovation, lower prices and greater efficiency.

    A few months ago, Frito-Lay announced a contest that gave people the opportunity to make a 30-second commercial for the Doritos product line. The winner of the contest would have his or her commercial aired on national television during the Super Bowl.

    The rules were that the video had to be exactly 30-seconds long, and the content had to be appropriate for network TV. Participants were given until December 4, 2006, to turn in their videos. Then, Internet users were asked to vote on their favorites.

    Last month, five commercials were picked from an astounding 1,060 submissions. The five finalists each received a cash prize of $10,000 and flown to Florida for an exclusive Super Bowl party.

    The grand prizewinner had his video aired as a commercial during the Super Bowl. Click here to view the finalists and the winning commercial.

    It’s no secret Super Bowl ads are the most expensive spots on television. This year, a 30-second spot cost as much as $2.6 million. Add in the cost of the ads themselves (probably another million or two) and you have a very expensive 30 seconds! Not the best time for a “dancing chicken” ad.

    What’s a “dancing chicken” ad, you may ask?

    Dancing chicken ads are commercials that may engage you for a moment, but any impact is gone seconds later. We’ve all heard phrases like, “I forget what commercial it was, but it had the funny dancing chicken.” A dancing animal may be funny, but will it sell your product?

    This year, a majority of ads fell into this category. Only a few smart companies used direct response to motivate viewers. Can you guess which ones?

    You can check out the ads at ifilm.com by clicking here, then email me at craig@cdmginc.com and tell me which ads you think were the best direct marketing ads.

    Next week I’ll tell you which ads were my favorite direct marketing ads (and why). I’ll also tell you how some of the ads could have been improved with direct marketing strategies.

    Always remember compelling, powerful, motivational copy will anticipate the questions of a prospect and answer the question before the prospect even has time to worry about it.

    Before you write a word of online or offline copy, start by tapping into your prospects' concerns: What do they need? What is keeping them up at night? How can your product or service make their life easier?

    And most importantly...why should they choose your product or service over your competition?

    If you can’t answer all these questions, your campaign is bound to suffer. In direct marketing, you must anticipate your prospects' apprehensions and answer their questions. Once you have the answers, you’re armed to craft great copy.

Here are 3 examples of sentences in which the prospects' questions are being answered:

1. This fail-safe timing system is the most valuable investing tool you could own. Here's why it's so safe...



2. Discover how you can stop throwing your money down the drain and start planning for a more secure future. You see, the way most people waste their retirement potential is...



3. This researched nutrition plan is proven to give you more energy, help you lose unwanted fat and have you feeling better than you have in years. How does our plan do it?...

    Answering questions is a strategy that sells everything from a warm winter coat to a Canadian stock to a high tech business-to-business IT solution.

    The key is to know your audience and to speak directly to their worries.

    Read through your current copy and put yourself in the mind of your prospect. Try to poke holes in your campaign. Don’t be afraid to ask the tough questions.

    If you need help crafting great copy that speaks to your prospects, give me a call at (310) 212-5727 or email me at craig@cdmginc.com.

    Testing the variables of your offer is a crucial step in maximizing the profitability of your campaign...and avoiding huge losses.

    It doesn't matter if the campaign involves email, direct mail, website, radio or TV. It's a good idea to test one or two variables to see which creates the greatest response.

    One of the best variables to test is the offer. There have been situations where I’ve suggested that the marketer test the price: for example $29.95 instead of $39.95 And just by making this change, the offer had a dramatic increase in response.

Test: Recently a test was conducted to compare an offer for e-book sales. The webpage posted an offer of $47 for a particular report and another offer, which included two reports, for $99.

Results: By offering the combo, they doubled the number of buyers. 43% of the buyers took the combo offer, which translated to 47% more in sales and a net cash increase of 249%.

    Have you tested your offer? Let me know. If you need help in picking a price point for your product or service email me at craig@cdmginc.com and we can discuss optimal price points.

ACTION ITEMS

1. Check out this year's Super Bowl ads by clicking here and let me know which commericals you think were the best direct response ads.

2. Click the Forward to a Friend button in the upper-right corner to pass this Direct Marketing Update on to interested friends and business associates.

3. Call me today at (310) 212-5727 so I can help you improve your copy and sales.

4. Check your direct mail and web campaigns. Are you violating any direct marketing rules? Are you experiencing loss of leads or sales? Contact me at craig@cdmginc.com.

5. Visit the Creative Direct Marketing Group website and check out the new video. Go to www.cdmginc.com. See if this technology would be right for your direct marketing website.

    That's it for this week's edition of Direct Marketing Update. I hope that you'll keep an eye open for my next issue, as I have so much more exciting direct marketing information to share with you.



Craig A. Huey
President
Creative Direct Marketing Group
email: craig@cdmginc.com
phone: (310) 212-5727
www.cdmginc.com