Business

Direct Marketing: How to Create a Direct Marketing Campaign

Written by MasterClass

Last updated: Mar 18, 2022 • 5 min read

Direct marketing is a popular marketing strategy that involves direct mail, telemarketing, and other immediate ways of efficiently sharing messages and promotions with potential customers.

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What Is Direct Marketing?

Direct marketing is a form of marketing that bypasses mass media to reach potential and existing customers directly. Popular mass marketing techniques include sending out emails, text messages, and mailers. A direct marketing message typically includes a call to action and elicits a direct response from customers, who are invited to reply, buy, or use the marketing material in some way.

5 Types of Direct Marketing Formats

There are various kinds of direct marketing channels, all of which allow companies to directly communicate with consumers in the hopes of an effective return on investment.

  1. 1. Email marketing: This is one of the most commonly used forms of direct marketing. Fast, easy, and cost-effective, email marketing allows you to send a message and have it land in your audience’s inbox in a matter of seconds.
  2. 2. Direct mail: While many companies have shifted their focus to direct digital marketing, direct mail marketing still proves effective. Though catchy flyers, catalogs, or brochures may stand out, it is important to factor in the cost of materials, printing and postage into your budget.
  3. 3. Telemarketing: Phone calls remain an enduring part of direct marketing. In this form of direct marketing, trained telemarketers call with offers or deals in the hopes that a quick call will translate into a sale. Telemarketing can gauge customer interest quickly, and the advertising and sale can take place at the same time.
  4. 4. Text message marketing: Companies often use text messages to send out news, promotions, and sales updates. SMS is an effective way to reach out to existing customers whose phone numbers have been collected from previous transactions.
  5. 5. Couponing: This slightly antiquated but still popular form of direct marketing involves paying for space in a magazine or newspaper to place a coupon that readers may see, cut out, and then use to call in a sale.

How to Create a Direct Marketing Campaign

Though companies send out direct marketing materials to a large number of potential customers, they must be thoughtful when tailoring campaigns to their target market. Follow these steps to execute a successful marketing campaign for your business:

  1. 1. Choose a product or promotion. You can use direct marketing promotions to highlight new products or services, announce revamps and improvements, or promote sales. Select a product or service that is likely to have mass appeal. It is also important to consider price at this stage to determine whether it is likely to resonate with your intended customers.
  2. 2. Find your target audience. Direct response marketing works best when the target audience is clearly defined, limiting the number of variables at play. Marketers look at zip code, household income, previous transaction history, gender, and a host of other variables to determine who is most likely to buy a product. Depending on your budget, you may choose to go broad or narrow, but it is important to clearly identify who to reach out to. Assemble lists of target customers, making sure to prioritize those demographics from whom you are most likely to elicit a response.
  3. 3. Organize the right channels. Direct marketing takes many forms, and you can use a variety of channelse to spread the message and adapt it according to sales responses. Email marketing, direct mail, and telemarketing are popular forms of this type of advertising. Opt for methods that are likely to be appreciated by the target customer and not considered an annoyance.
  4. 4. Create an impactful message. A good marketing message needs to be both captivating and clear. Direct messaging allows you to speak to the customer directly, and it may be possible to include their name in the message or to personalize it in some way. Keep a close eye on both the copy and the design so that they speak to your target customer. Create a clear call to action, highlighting what you want the customer to do—send a reply, buy a product, use a coupon, etc.
  5. 5. Set a schedule. Make sure messages are sent out when they are likely to be most impactful: around holidays, change in seasons, or based around a launch. It is also beneficial to deploy campaigns over time so consumers are reminded of the product or sale.
  6. 6. Analyze results. Having metrics in place at the outset of a direct marketing campaign allows you to analyze whether or not it has been successful and tweak it to improve results. Use these metrics (response rate, sales made, coupons used, etc., categorized by type of customer) to further improve your campaigns going forward.

5 Advantages of Using Direct Marketing

Here are some advantages to using direct marketing campaigns:

  1. 1. Increased sales: The success of a marketing strategy depends on how many customers hear about a product and then purchase it; a clear call to action targeted at the right customer base is an effective way of boosting sales.
  2. 2. New relationships: If you target new audiences and the direct marketing they receive translates into a sale, you will build your list of potential future customers as well; these customers are valuable as they have already purchased from the business before.
  3. 3. Direct communication: As the name would suggest, no other marketing tactic so clearly speaks to individual customers, and it is possible to target your message based on the demographic you are reaching out to.
  4. 4. Measurable results: If you employ different discount codes to different channels (mail, phone, email) it is easy to track which sales came from where, allowing you to more easily analyze results and strategize for similar efforts in the future.
  5. 5. Cost-effective techniques: Many aspects of direct marketing are fairly affordable, such as text messaging and emails.

4 Disadvantages of Using Direct Marketing

There are some obstacles that companies can face when relying on direct marketing strategies.

  1. 1. Advertising fatigue: If customers see ads from the same company in multiple places, they may feel that they are being spammed with too many mailers or notifications, which can lead to subscribers unsubscribing from lists and severing ties with the brand.
  2. 2. Expense: Some forms of direct marketing can be expensive: training and paying telemarketers takes time and money, and direct mail can be capital-intensive when you factor in mailing and printer costs.
  3. 3. High competition: Direct mail campaigns must often compete with each other; when it comes to brand awareness, sticking out is key, so gaining new customers can be tricky in this form of direct selling.
  4. 4. Complicated laws: There are specific ways a company must go about obtaining private information (email and home addresses), and not acting in accordance with those set methods and laws can have severe legal ramifications.

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