Avoiding a direct mail disaster

I suspect almost every circulation marketer's career involves at least one direct-mail disaster. Using my own experience as an example, I can say without fear of contradiction that one direct-mail bomb is enough to last any circulator a lifetime. Many years ago, I responded to a combination of prospect price resistance, competitive pressure and ad sales woes by rolling out a short-term introductory offer without testing it. Do I need to tell you what happened? Unmitigated disaster!

Even as I did it, I was sure it was the wrongthing to do. Fortunately, I said so repeatedly - in writing - to everyone in the company. That's the only thing that saved me. Doing the wrong thing for all the right reasons cost us dearly. The campaign shortfall was 20,000 orders and about $200,000 in net revenue. We had a dismal year in circulation. And ad sales didn't break any records, either.

I learned a valuable lesson from that experience. The secret to avoiding a direct-mail disaster is this: Follow the rules. You know what they are - but here's a refresher course just in case you are tempted to relieve some pressure quickly.

Insurance for disaster avoidance

It is important to adhere faithfully to all guidelines for conducting statistically valid direct-mail tests. (See "Five unbreakable rules for tests.")

Use direct-mail techniques that have the best chance of success. Direct mail is a discipline founded on rules and formulas. Make sure you know the rules and practice the formulas in every subscription campaign.

If you're not sure that you've got all the rules down pat, you can find examples of the formulas in almost every book on direct marketing. Basically, they all say pretty much the same thing:

* Get the prospect's attention.

* Keep the prospect interested in your promotion.

* Make the prospect want your magazine.

* Get the prospect to act immediately.

The ways in which your promotions accomplish these objectives bring creativity to bear on the formulas - thus making direct mail both an art and a science.

Know your prospect. Learn as much about their wants, needs, aspirations and desires as you can from reader research. This knowledge tells you how to appeal most successfully to their emotions in your copy.

Learn the tried-and-true methods of getting your envelopes opened. Remember, there are different approaches to this job - and you should try them all as your test plans permit. (See "Getting your envelope opened.")

Keep copy "you"-oriented and appeal to your prospect's self-interest. Nothing will make a prospect order faster than a compelling benefit.

Make your magazine desirable with lots of details about the editorial content. Be sure you've left no unanswered questions for prospects to dither over.

Figure out how to create credibility for your magazine and its offer. Testimonials, endorsements and guarantees are important to prospects being asked to purchase anything through the mail.

Don't expect creative work to compensate for a noncompetitive offer. (See "An offer they can't refuse.")

Try to spell out exactly what your prospects will lose if your offer is not accepted.

Close the sale with a request that your prospect take action now, and make ordering easy.

Let your prospects have some fun with your promotion. Get them involved in it.

Mail your offer to the right prospects. Sounds easy, doesn't it? But some folks don't think much about anything but the cosmetic details.

Don't mail late or in a poor response period.

One final way to stay ahead of the game and avoid a campaign bomb is to keep up with the times. Mailbox clutter and constant bombardment of prospects by television and radio offers is forcing direct-mail marketers into some changes for the better. I'm seeing shorter, better written copy now in most subscription promotions. Very few four- or six-page rambling letters make it into the mail these days. No prospect has the time to read them.

Subscription packages are also much better designed now. There is acknowledgment that sometimes graphics can communicate even more powerfully than words. Consequently, direct-mail design has become the logical way to help improve communications with potential subscribers. Packages are more tastefully designed, which helps blast through clutter. The days of 10 typefaces on one page and no white space anywhere are over.

In addition to following the rules, instituting a test program that anticipates your magazine's future needs will help you avoid being pressured into a big mistake. You can show your management in black and white just what will happen if changes are made in your controls. That usually relieves a lot of pressure.

Five unbreakable rules for tests

Test only one variable at a time. If you test a new offer and price at the same time on the same package, you won't know which caused the fluctuation in response. Variables worth testing one at a time include list, offers, prices, packages and seasonality.

Test only the important things. Concentrate on big issues, not paper stock or different color Johnson Box copy (i.e., the boxed copy above the salutation used to bridge the gap between copy on the outer envelope and inside text).

Mail projectable samples. Usually, a 5,000-piece list test is adequate. This amount will give you a good feel for the responsiveness of the list. When you test other variables, mail enough pieces to ensure that you receive at least 50 to 100 orders from your test.

Base your roll-outs on net response. This means you have to wait long enough to know how credit orders are paying.

Don't overtest. Trying to test too many variables in the same campaign muddies the waters. It also jeopardizes overall response to the campaign. Don't use more than 10 percent to 20 percent of your outgoing volume for conducting tests. Send the balance of your volume the control package.

Getting your envelope opened

Promise the prospect something. Use a benefit to entice them inside your mailing.

Involve your prospects. Try using a device such as a lift-up flap or a short quiz.

Let prospects know who you are. If your magazine has instant name recognition, your name alone may make people open your mailing.

Make prospects curious. If you create some mystery about what's inside the envelope, they'll probably open it.

You can use these approaches alone or combine them. Odd sizes, extra die cuts, art, personalization and postage class also play a part in creating successful direct-mail packages.

An offer they can't refuse

Keep your subscription price as competitive as possible and test all price increases. Testing minor price variations - such as $9.97 versus $10 or $49.95 versus $ 50 - may be more important than you think.

Make payment terms painless. Extend credit to new subscribers - don't ask for payment with order. Test a "Send No Money Now" offer. A high subscription price is usually made more attractive by installment billing.

Use a strong guarantee as part of your offer.

Use response motivators and involvement techniques to enhance your offer. "Respond by" dates, devices that permit prospect participation, free issues and premiums can strengthen your offer.

Making a list; checking it twice

5,000 names are sufficient for a list test.

Try to mail to other active subscriber files for your magazine's subscription offers and other mail-order buyers, membership lists and donors lists.

Consider exchanging names with competitors.

Make maximum use of any house lists.

Use compiled lists carefully.

Never mail to untested lists even though similar lists tested well.

Don't test lists of less than 5,000 names - just mail them all.

Don't let a few undeliverable names prevent you from continuing to mail an otherwise good list.

Keep accurate, up-to-date list histories (gross and net response).

Elaine Tyson is president of Tyson Associates, Inc., a Ridgefield, Connecticut-based direct-response advertising agency, and consulting firm.

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