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American Express Direct Mail Secrets Revealed
This year I started taking note that my husband and I have been bombarded with direct mail from American Express. It seemed like once a week the pieces were coming in and there was typically a slightly different twist on the offer.
So I started saving each piece to compare the approaches. While some of what I saw was direct marketing 101, it was helpful to be on the receiving end and determine what we can learn from a company that clearly has direct mail down to a science.
Envelope: American Express started selling on the front and back of the envelop. Each envelope was used to highlight the offer, and even provided a call to action.
Different offers: Each direct mail piece offered a different incentive to become a customer from cash back, to gift cards and travel bonus points. Since American Express doesn’t know what offer we might respond to, they change the incentive each time with the hopes they will eventually hit our sweet spot.
Consistency: Within a 3-month time frame, we have received at least five mailings. American Express has consistently stayed in front of us and their approach is working. In fact, I just asked my husband the other day if he thinks we should get an American Express card.
Multiple pieces: Each mailing included at least 2 pieces of mail, the majority of them actually had 3. It is certainly harder to ignore more components. Plus it demands a little more of the recipient’s time to sift through the pieces.
Scanable headlines: No matter the offer, each piece had scanable headlines, bullets, sidebars, bolded copy and all capital letters drawing attention to the benefits and offer. In less than 5 seconds the recipient can get a quick overview.
Clear call to action with a deadline: All the pieces have various calls to action. “Apply now at …”, “Apply today and bring on the rewards,” “Get a decision in as little as 60 seconds, visit…” Also, each direct mail piece had a different deadline associated with it so the recipient was encouraged to act sooner than later.
P.S.: Every letter had a “P.S.” at the bottom.
Trackable results: Each letter contained a different toll-free number so American Express can track what offer the recipient is responding to. Also, a unique RSVP code was provided on each letter.
Next time you need some ideas for your direct mail campaign, look no further than your own mail box.
Comparing Email to Direct Mail
We have a very small target audience – maybe 50 organizations with 1-3 contacts in each company – that we want to establish lines of communications with and build relationships leading to sales. Is direct mail or e-mail a better bet?
Founder & President of Midwest Mechanical Contracting Firm
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By Jim Sweeney
As you might imagine, there are pros and cons to both tactics.
A physical mailer, particularly if it is dimensional, colorful or incorporates sound, has a much better chance of engaging the recipient. The receiver is more likely to see it, open it and review it. On the other hand, an email with the right subject line can and will get opened, and if it incorporates good messages, offers and functions, it will also get reviewed.
The life of both mailers is limited (by the recipient’s choice) once opened. However, a direct mailer may survive longer depending upon format and contents (e.g., a pen with imprinted logo may stick around for months). But the value after the initial mailing is questionable.
A physical mailer can be expensive to produce – copy, design, printing, premium and mailing. But so too can an HTML email – copy, design, programming and distribution. However, because the database is so small, printing only 50 direct mailers will be a potential problem, since you will be required to either use digital printing techniques (lower quality, higher cost) or overprint jobs based upon printers’ minimum requirements (which could be anywhere from 250 units to 1,000 units).
Response mechanisms for a direct mailer can include a business reply card, a phone number, a fax number, a web site and/or an email address. An email can offer all of these as well, plus a direct link to a landing page and/or web site. In addition, assuming you employ an email distribution services like iContact, you can get immediate feedback (open rates and click through rates); you can also use web analytics to measure traffic and purchasing patterns related to the email.
A direct mailer can take longer to print (days) and distribute (more days), while an email, once produced, can be distributed almost at will.
But perhaps the most important consideration is the preference/behavior of your target audience. In the case of a mechanical contracting business – particularly in the Midwest –most relationship building and business is still done in person or over the phone. While maintenance personnel are not shunning the Internet, they are not using it routinely to communicate via e-mail. However, if your target audience consists of deskbound executives or traveling businesspeople who are hotwired into their e-mail service, they are more likely to read your email within moments of receiving it.
In conclusion, I wholeheartedly encourage you to test both direct mail and e-mail campaigns – either simultaneously or within a few weeks of each other (being cognizant of holidays and business cycles) – and document results. Then apply whatever analytics you have available to determine the true cost and value of each campaign.
You may discover that one, the other, both or neither is the right answer. But that’s fine; through testing you will find the right answer for your situation.
To discover if you are using the correct strategies to reach your target audience and produce the best ROI, contact me at 440.333.0001 ext. 101 or jim at sweeneypr.com.
