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had been conducted in the previous year. At that time, the mailing had produced a 46 percent increase over the control. The second objective was also achieved, as 6 percent of the mail universe made purchases at one farm merchant that they had not used during the previous spring. However, while the objective was achieved, the average number of farm merchants used was the same for the mail and control groups. So, what can we conclude from this You can successfully use direct mail to get people to do more of what they are already doing. It is much harder to get them to do something different.
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The advent of email has changed the equation. Email communications work well. Their costs are much lower than for direct mail, but so are the response rates. Email customer communications have become more and more acceptable. American Airlines sends weekly noti cations of low-cost fares. Amazon sends emails promoting new books. Lands End promotes new clothing. The economics are powerful. Direct mail is expensive. If it costs you $30.50 to get a response, as shown in Table 6-1, you had better have something pro table to sell to the responders. On the other hand, with emails, the response rates are much lower, but the costs are dramatically lower. Because email is so inexpensive, it can be abused. The cost of direct mail, on the other hand, is high, and that is good because the expense weeds out frivolous mailers. You know that the junk mail you receive must be pro table, or the company would not be sending it. Even if you are not interested in what is being offered, there must be thousands of Table 6-1 Cost per Response: Email vs. Direct Mail
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Sent Cost each Promotion cost Response rate Responses Cost per response Direct mail 400,000 $0.61 $244,000 2.00% 8,000 $30.50 Email 400,000 $0.04 $16,000 1.00% 4,000 $4.00
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other recipients who are interested. The cost of direct mail makes it imperative that marketers design something that will be appealing to at least 2 percent of those to whom it is addressed. On the other hand, since email is so inexpensive, thousands of marketers who could not afford direct mail are cluttering the Internet with billions of unsolicited commercial communications. This poses a dif culty for legitimate marketers. Their message gets lost in the clutter of worthless marketing messages. Direct mail has a lot of problems that are easily solved with email. It takes a long time, sometimes weeks, to know if your message is working with regular direct mail. Another dif culty with direct mail is that there is no practical method for people who do not want to receive the information to remove their names. The mailer who sent a particular piece rented the names from someone else. He probably does not have a database. Telling the mailer to remove your name is like spitting into the wind. The mailer might keep a database of removals and run it against the next list that he rents, but why should he He will make no money by doing it, and in direct marketing, pro ts are everything. People don t do things that are unpro table. You can contact the Direct Marketing Association and get your name entered on its do not mail list, but many mailers do not use this list. A good emailer, on the other hand, makes it very easy for people to remove their names from the list. Most of the good ones have oneclick removal. If you click one spot at the bottom of the email, your name is automatically removed from the list. Anyone who does this, however, nds it an endless job. Despite constant grooming, my email is clogged each day with at least 20 emails that I have to delete before I get down to the good stuff. This takes me only a couple of minutes a day, however certainly less time than it takes me to throw out my junk direct mail. Despite its problems, many companies are now using email very effectively to communicate with their customers and fans.
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