Direct Marketing and How it Works

Direct Marketing and How it Works

Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman.
It is a type of advertising campaign that seeks to achieve a specific action in a selected group of consumers (such as an order, store or website visit, or a request for information) in response to a communication action done by the marketer. This communication can take many different formats, such as postal mail, telemarketing, point of sale, etc.

How Direct Marketing is Used

The overarching goal of a direct marketing campaign is to persuade consumers to take actions that result in tangible, measurable results, such as purchases, signups, or requests for more information. 
While direct marketing involves an organisation attempting to locate, contact, offer, and make incentive-based information available to consumers, it also needs to get a return on investment. If handing out flyers to drum up business at your newly launched pizza parlour doesn’t result in more customers, then it’s not worth the employees’ time.
The good thing about direct marketing is that there are so many alternatives that if one approach doesn’t work, you can easily switch to another. Instead of flyers, for example, you could try an online promotion for a free beverage for first-time customers.

Benefits of Direct Marketing

There are a list of benefits why you should add direct marketing into your marketing strategy and budget:
  • High segmentation and targeting: One of the great advantages of this type of marketing is that you can reach your specific audience segments with personalised messages. If you want to succeed, you should invest time to research and identify the consumers most likely to convert and thus direct your efforts to actions that really work. 
  • Optimise your marketing budget: Addressing online direct marketing to a specific audience allows you to set realistic goals and improve your sales on a tight budget. If you properly optimise your direct campaign, you will achieve results with only a small percentage of the cost of traditional advertising.
  • Increase your sales with current and former clients: Digital direct marketing lets you communicate with your current customers to keep the relationship alive while continuing to bring value. It also allows you to get back in touch with old customers and generate new sales opportunities.
  • Create new business opportunities: Direct marketing allows you to adapt to market demands at all times and respond more effectively.
  • It’s cost effective: When you break it down by ROI, direct marketing is a cost effective marketing solution. You know exactly how much you are spending to reach each customer.

Forms of Direct Marketing

Common forms of direct marketing include:
  • Brochures
  • Catalogs
  • Fliers
  • Newsletters
  • Postcards
  • Coupons
  • Emails
  • Targeted online display ads
  • Phone calls
  • Text messages

The Future of Direct Marketing

While some marketing techniques aim to increase awareness or to educate markets about a company’s products or services, direct marketing’s sole goal is to persuade the recipient to take action. The future of direct mail will involve even better targeting, more personalisation and amazingly right-timing. Nowadays marketers are often predicting the future, the ever changing needs of the consumer and how they can appeal to these. 
Drayton Bird once said, direct mail will continue to do well, especially as more people get increasingly obsessed with digital. It works for clients here and around the world and there is no reason why it won’t continue to do so.

Final Thoughts

Unlike mass advertising, which is presented to everyone, direct marketing is presented only to people who are suspected to have an interest or need in your company’s product, based on information gathered about them. You can make the message personal, making the recipient feel it is meant just for them. It is more cost-effective to market to buyers who have been identified as likely to buy, and for that reason it also has a higher return on investment, since the likelihood of making a sale to a targeted customer list is higher to begin with.

 

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