Why Investing in Existing Customers Pays Off

Let’s face it: Most marketing budgets are tight. Where should you prioritize your direct mail or email marketing dollars when funds are limited? On engaging your existing customers! While attracting new clients is essential for growth and to counteract attrition, your current customers offer the highest return on investment. Here are five key reasons why this is so.

1. Higher Spending Potential
When a retailer attracts a new customer, it may be for a specific item, like a bathing suit. However, when retained, customers will likely purchase additional items such as shirts, shorts, and accessories. According to RJMetrics, existing customers typically spend 67% more than new ones.

2. Greater Profitability
It’s well known that acquiring new customers can be five times more expensive than keeping existing ones. Suppose it takes three marketing interactions to gain a new customer, costing $5 each. If that new customer makes a $50 purchase, it results in a net gain of $35. In contrast, marketing to an existing customer may require just one interaction to achieve the same $50 sale, which could lead to a net gain of $45.

3. Easier Sales Process
Your current customers already know and trust your brand, which keeps them engaged. This familiarity increases the likelihood of a successful sale. You have a 65% chance of closing a deal with an existing customer compared to just 13% with a potential new client. Concentrating on your existing customers is an intelligent strategy if you need to meet a sales target quickly.

4. Referral Potential
When you provide excellent service to your current customers, they will likely refer 50% more new clients to your business than new customers. This means your satisfied customers can effectively market your business for you.

5. Foundation of Your Profits
You may be familiar with the 80-20 rule, which also applies to customers. 80% of your profits typically come from just 20% of your customer base. Retaining these key customers is vital. Research from Bain shows that a 5% increase in customer retention can lead to a 75% boost in profitability.

Every business can benefit from a profit increase. If it has been a while since you tailored a direct mail or email campaign specifically for your most valuable asset (your existing customers), now is an ideal time to take action.

Incorporating Direct Mail into the Buyer’s Journey

How do you shift potential buyers who have never heard of your product to customers eager to make a purchase? After all, nobody wakes up one day and decides, “I think I’ll go out and buy a brand-new product I’ve never heard of.” The journey involves a series of steps, from awareness to final sale. Providing relevant content at the right time can guide shoppers along.

Let’s say you are introducing a new product, the VR Master Virtual Reality Headset. Let’s explore how direct mail, in particular, can be integrated into your content strategy at each stage.

Stage 1: Awareness
Before potential buyers can even consider purchasing your new VR headset, they need to know its existence. Direct mail can be crucial in introducing the headset to the target audience at this stage. You could design eye-catching mailers showcasing the product’s features and benefits and a call to action directing recipients to learn more online.

Stage 2: Consideration
Once consumers are aware of the VR Master headset, the focus shifts to getting them to consider it a viable option. You can use direct mail to send personalized postcards or brochures highlighting customer testimonials and use cases. Include a QR code that leads to a product demo or video to engage recipients further and encourage consideration.

Stage 3: Evaluation
When potential buyers compare virtual reality headsets during the evaluation stage, direct mail can provide valuable information to sway their decisions. Send detailed product comparisons or customer reviews via mail in a visually appealing format. Include a limited-time offer or discount exclusive to direct mail recipients to incentivize a purchase.

Stage 4: Purchase Decision
As consumers reach the final stage of purchasing, direct mail can be a powerful tool to drive conversions. Sending out personalized purchase incentives, such as discount codes or free accessories with purchase, can create a sense of urgency and prompt immediate action. By integrating direct mail into the content marketing strategy at each stage of the buying journey, marketers can effectively engage with potential customers and move them closer to purchasing. Remember, delivering the right content through the proper channels at the right time is critical to maximizing the impact of your marketing efforts.

The 5 Rights of Marketing

Whenever you build a direct mail, email, or multichannel campaign, it’s crucial to consider what one marketing consultant calls “The 5 Rights” of marketing. This list is a great way to condense a lot of marketing wisdom, so let’s look at those five rights. Use all five with every campaign, every time, and you’ll get outstanding results.

1. The right message.
Before you send anything, understand your customer base and what is relevant to them. For example, if you’re a car dealership, don’t send promotions on new or used cars to people who have purchased a vehicle within the last 12 months, even if you’re offering a great deal. Send them a discount on their next service visit instead.

2. The right person.
A diet and fitness company was targeting women in a specific demographic. The mailer had a great product and offer and a strong call to action. Unfortunately, the company mailed to the heads of households, which were primarily male in its target area. The campaign bombed. Get your target audience right!

3. The right time.
The date your mailing hits is often as important as what it contains. Think about donations. Charities usually solicit in the spring, but unless people are regular contributors to an organization, they typically make the bulk of their donations in December—right before tax season ends. Timing can make a huge difference in your success.

4. The right channel.
Some people block phone calls but read emails. Others block email but accept phone calls. Direct mail always gets through. Know your customers and what channels they prefer. Use those channels, and you’ll maximize your opportunity for success.

5. The right reason. 
It’s not just what people buy, but why. What are the emotional triggers that motivate your audience? New parents want to ensure that their children are happy and safe. New homeowners want to protect their investments. To be successful, understand the “why” as much as the “what.”

Put the five rights together, and you will have a paradigm for success!

Note: “The 5 Rights” is a term used by Steven Schnoll, a marketing consultant to the printing industry.

Ready to Drip to Success?

In a world where competition is fierce and consumer attention is fleeting, drip marketing has emerged as a powerful tool for businesses to connect with their audiences meaningfully and sustainably.

At its core, drip marketing involves sending strategically designed messages to prospects and customers over time. This method enables you to nurture leads, cultivate relationships, and drive conversions through a gradual and consistent outreach strategy. By blending the tangible appeal of print materials with the reach and immediacy of digital channels, you can create a holistic and engaging experience for your target audience.

How Is Drip Marketing Different?

Drip marketing differs from conventional marketing, emphasizing long-term relationship building, education, and lead nurturing. Unlike short-term tactics, drip marketing focuses on cultivating trust, providing value through education, and guiding prospects along the buyer’s journey. This approach is well-suited for complex sales and higher-value products, where building credibility and rapport is essential for success.

One market where we see drip marketing used with great effectiveness is real estate, with agents often leveraging tools such as seasonal postcards to engage with clients and prospects over time. For example,

  • In the spring, realtors may offer landscaping tips for better curb appeal.
  • In the summer, they may offer homeowners tips for caring for their pool or reducing their air conditioning bill.
  • In the fall, they might offer ideas for “envy of the neighborhood” holiday decorations.
  • In the winter, they might offer winterizing tips to save on the heating bill.
  • When realtors sell a home in the neighborhood, a postcard gets kicked out to the other residents.

Drip, drip, drip. The key is to keep a continual stream of helpful information that keeps the realtor’s name in front of homeowners so that when it comes time to sell, the realtor is at the top of the mind.

It Works Everywhere

The same concept applies whether you are a clothing retailer (fashion updates), a plumber (maintenance tips for your home), or a tax professional (how to keep your financial life organized). Keep that information dripping, so when recipients need your services, you’re already established as the trusted expert!

Have a marketing opportunity that’s perfect for dripping? Let our experts help design the ideal campaign to get your outstanding results.

Want Buyers to Remember You? Choose Print

When you create marketing communications, whether print or digital, you want your audience to read and remember them, right? That’s why it matters what channel you use. After decades of research, studies continue to point to the same conclusion: Print is simply better when processing and retaining complex information is required.

Most print versus digital studies come from the education world. In these studies, researchers ask students to read passages in print and digital formats and then follow up with tests to measure their comprehension and recall. Decade after decade, these studies reveal that print outperforms digital in several key areas:

  • Handling of longer texts: Print is more effective for longer texts, typically those exceeding 500 words. This suggests that the physical nature of print aids in processing and retaining information over extended periods.
  • Abstract and inferential thinking: Tasks that require abstract or inferential thinking are better performed with print materials. The tactile experience of reading in print enhances the brain’s ability to engage with and interpret complex ideas.
  • Detail-oriented responses: When study respondents were asked to provide more detailed responses, print was again the preferred medium. This indicates that the physicality of print facilitates a deeper level of engagement with the content.
  • Interpreting material from multiple sources: Tasks that involve interpreting material from various documents are also better accomplished with print. Studies consistently find that the tangible nature of print materials allows for easier cross-referencing and comparison of information.

So, what makes reading in print so different? The physical engagement with print materials seems to play a significant role. With print, individuals engage multiple senses, including touch, which enhances information encoding in the brain. Additionally, physically turning pages and visually scanning each page creates unique cognitive markers that aid recall.

These findings have profound implications for marketing communications. Print is the way to go if the product you sell requires potential buyers to handle longer texts and facilitate abstract thinking.

What Goes into Creating a Great Print Ad?

Print advertising remains a powerful tool for reaching and engaging with audiences. A strategic approach is helpful for creating effective print advertisements that resonate with your audience.

Here are seven tips for getting great results:

1. Define clear, measurable objectives. Whether you aim to increase brand awareness, drive sales, or promote a new product, your goal will guide your messaging and creative decisions. Be specific: “I want to increase sales by 10% over last month’s ad.” Or, “I want to increase per-order revenues by 5%.” Otherwise, how will you know you’ve reached your goals? Be specific, but be realistic, too!

2. Understand your target audience. Knowing your audience includes knowing their demographics, interests, and pain points. This information will help you tailor your message to resonate with them effectively.

3. Use the insights you’ve gathered to create a compelling message. Focus more on benefits than features. Position your product or service as solving a specific problem or enhancing recipients’ lives in a clearly defined way.

4. Capitalize on your competition’s vulnerabilities. Identify areas where competitors may fall short and position your product or service as a superior alternative. Highlight your unique selling points that set you apart.

5. Pick the right images. Images capture attention and convey your message. Different photos will appeal to various audiences, so choose high-quality, relevant images that complement your ad’s message and appeal to your unique target audience.

6. Include a call to action (CTA). Every print ad should include a clear and compelling call to action. Whether it’s encouraging readers to visit your website, call a phone number, or visit a store, make it easy for them to take the next step. You’d be surprised how often marketers forget!

7. Measure your results and refine them for next time. Build in tracking so you know how your campaign performed. This way, you can keep doing what works and stop doing what doesn’t.  Designing a successful print ad doesn’t have to be complicated. Planning and following these tips will ensure great results every time.

Fun, Memorable Ways to Promote Trade Show Events

After the dip in in-person trade show attendance following the pandemic, trade shows are experiencing a resurgence. In fact, according to event management company CVENT, spring in-person attendance at its events was 34% higher in 2023 than the previous year. Here are three “out of the box” ideas for promoting attendance at your next trade show booth or live event.

1. Three-dimensional “pop-up” mailers.

No piece of mail will captivate your audience’s attention like one that pops from a flat into a 3D shape in their hand. Surprise! Remove the band or pull the tab, and the flat mailer explodes into a three-dimensional shape that recipients can’t help but explore. Every surface can have a different picture, message, or graphic. As recipients turn the 3D pop-up over and over, they become engaged with the content in a unique and highly memorable way.

2. Virtual tours using augmented reality.

One of the hottest ways to promote trade shows is through virtual tours using augmented reality. Recipients scan the QR code on postcards, posters, or social media posts with their mobile phones, follow the prompts, and after a few moments, they appear to “step through” a virtual doorway into the event venue itself. Use augmented reality to give them a 360-tour of your booth, allow them to “walk around” and explore your product as if they were right in front of it, or offer another exciting experience. You provide the video, and the software does the rest.

3. Branded promotional items.

Match the right promotional item to your audience and marketing goal, and you will have a powerful and long-lasting marketing tool. Unlike brochures that can get thrown away, branded calendars and mugs will sit on your recipient’s desk for weeks or months. Mail a 90-day countdown calendar with all the reasons to visit your booth at Coffee World 2024, or send them a funny trade-show-meme-themed coffee mug: “Don’t Be a Land-Lubber! Make Waves with Us at National Boating World!”

There are so many creative options for promoting trade show events that there is no excuse not to do something truly eye-catching and memorable. If you need ideas, let’s brainstorm.

Marketing Differently Based on Customer Acquisition or Retention

Do you treat your customer acquisition and customer retention mailings the same? If so, you should reconsider. The two groups are quite different and should be marketed differently. Let’s take a closer look.

Customer Acquisition Mailings

Customer acquisition mailings focus on reaching potential customers who have not engaged with your brand. The goal is to make a memorable first impression, spark interest, and prompt them to take action.

Example: “Welcome to the Neighborhood” Campaign

Imagine you’re a real estate agency targeting new homeowners. Your acquisition mailing could include a personalized welcome package featuring information about local services, exclusive discounts, and a warm invitation to explore “the perfect” property listing. This introduces your brand to a new audience and establishes a positive association with their recent life event.

Here are some critical elements of customer acquisition mailings:

  • Incentives that make it irresistible for recipients to explore your products or services.
  • Visually appealing designs, concise messaging, and a clear call to action.
  • Use personalization to tailor your message to the unique needs and preferences of the target audience.

Customer Retention Mailings

Customer retention mailings aim to reinforce the connection between your brand and existing customers. This strategy fosters loyalty, encourages repeat business, and creates brand advocates. Your messaging and images may be different, and your call to action will be different, too.

Example: “Exclusive Loyalty Rewards” Campaign

You run a boutique coffee shop. Your retention mailing might include a personalized loyalty card thanking customers for their support. The card could unlock exclusive discounts, access to “customer only” events, or free samples of new products. These types of communications encourage continued engagement and repeat visits.

What are some of the key elements of customer retention mailings?

  • Acknowledgment and expression of gratitude for the customer’s loyalty using personalized messages.
  • Rewards or incentives exclusive to existing customers to create a sense of belonging.
  • Regularly updates on new offerings, events, or promotions to keep your brand top-of-mind.

While customer acquisition mailings aim to broaden your customer base, retention mailings focus on fortifying existing relationships. These groups think differently and are motivated by different things, so don’t treat them the same! Develop a marketing plan that addresses both groups as the unique marketing segments they are.

5 Tips for Better Direct Mail Pieces

Want to create awesome direct mail? You must always carefully consider the list, the message, and the call to action, but other factors make a highly effective mail piece, too. These include things like the trim size, shape, and texture of the piece. Let’s look at five considerations for creating standout mail pieces.

1. Trim size. For the lowest possible postage cost, go with a standard 4″ x 6″ postcard. However, a nonstandard-sized card will stand out, and while it will cost more in postage, it is guaranteed to get noticed. It might even be the first piece they pick up. What’s that worth?

2. Weight of the stock. Consumers tend to associate the weight of the stock used in the mailing with the brand’s quality and, by extension, the marketed product. Heavier stocks command respect and attention.

3. Texture and “feel” of the paper. In a sea of smooth envelopes, mailers with textured finishes get noticed. Many options exist, from high gloss and spot varnish to specialty processes.

4. Personalized messaging. Even using someone’s name on the front of a card will engage the recipient more than a static card. This extra level of engagement might only last for a split second, but sometimes, that is all you need.

5. Colored stock. Most mailers are printed on traditional white paper. When you print on a colored stock, it grabs attention. Use knock-out type, graphics, and images on dynamic backgrounds to get your mailer to jump out of the box. If your mailbox contains a sea of white envelopes and one bright red one with a white knock-out type, which would you pick up first?

There are many ways to get your direct mailer to stand out from all of the others. Why not try something you have not tried before? You might love the results!