Direct Mail: Why you must use it and use it smarter!
3.08.06
by Tony Toepfer

Our industry is becoming increasingly more competitive with each passing year. Every year it seems like one salon closes yet two more open. I am always bombarded by salon owners with the same question, “how can I make more money?” Most salon owners simply lack the skills needed to effectively market their business. I am amazed at how often I hear salon owners tell me they tried direct mail but felt it was either too expensive or that it didn’t work. Many salon owners have either never used direct mail or used it incorrectly. Direct mail was not only my #1 medium for advertising my salons but it was by far the most productive. I have tutored countless operators on the art of cost-effective direct mail campaigns and can tell you that all of them exceeded their expectations and some even exceeded mine!

My expectations are very high because I have repeatedly seen first-hand the gigantic financial gains that can be made from an effective direct mail strategy. Once I perfected the art of direct mail advertising I always expected a $1 to $3 ROI (return on investment) on every post card mailed. That means I had anywhere from a 300% to a 900% ROI every time I used direct mail. There is no other way to generate such enormous returns except by direct mail.

Direct mail continues to grow throughout the U.S. in terms of pieces mailed, number of respondents and total dollars spent by the respondents. This is an amazing statistic considering all the digital technology (i.e email and internet) available today. Some other interesting facts you need to know about direct mail are listed below:

• 98% of consumers retrieve the mail the day it arrives.
• 67% of all mail is sorted by women.
• 72% of consumers bring it in the house as soon as possible.
• 77% of consumers sort their mail immediately.
• 67% of consumers feel mail is more personal then the internet.
• 56% of consumers say receiving mail is a “real pleasure”
• 55% of consumers “look forward” to discovering the mail they received
• Consumers spend an average of 30 minutes reading their mail on any given day
• More then $161 billion was spent on direct mail in 2005
• Direct mail is expected to grow annually by 6%
• Direct mail expenditures will easily top $200 billion by 2009

This information is very exciting but we haven’t even got into the “meat and potatoes” of why direct mail works so well. No wonder most of the Marketing Managers for the fortune 1000 companies in America say they will spend more this year than last on direct mail. Did you increase or decrease your expenditures on direct mail last year? Sadly, I bet many of you spent less or worse don’t even know!

Direct mail can virtually always deliver a positive ROI and it works even better when used in tandem with TV and radio. It is not the only advertising medium to use but it is a critically important medium to use to ensure that profit goals are met.

Each month we will be devoting an entire section (or entire newsletter) to the three most important principles of achieving a successful direct mail strategy. I call them the “who, what and when” principles. You need to send to the right people, with the right offer, at the right time. I am confident you will realize tremendous success with your direct mail if you follow these three simple principles!

We will cover in great detail exactly how to be successful with direct mail and why. We will provide you with actual examples of highly effective direct mail campaigns along with testimonials from salon owners who used them. I know many of you are reluctant or discouraged; therefore we want you to take the initiative to read and react to our newsletters so that we can equip you with the confidence and ability to succeed!