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October 2009 Newsletter: Direct Mail News & Advice

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KMR Partners, Inc.
Direct Mail News & Advice
October 2009
Eight Rules For Testing Direct Mail

Savings 11-08 

The best way to improve your direct mail program is through constant testing. Save money and time by following these eight rules.

Rule #1: Test things that are significant

Don’t test a blue signature versus a red signature. Test a six-page letter versus a two-page letter. Test a full-color package versus a black and white package. These would be significant tests.

Rule #2: Test things you can control

You can control your printing, length of the letter and photography. Don’t test factors you have no control over-for example, mailing during a recession. You could have no control over that in the future.

Rule #3: Make your test large enough to be significant

Mail at least 5,000 pieces to get 50 responses at a one percent response rate. Fifty responses is considered the minimum number you must generate to achieve a trustworthy test.

Rule #4: Test one variable at a time

When testing, only to change one variable at a time.  If multiple variables change within one mailing, you will never be sure which variable truly drove the higher response rate. Try to test one variable at a time to best calculate results.

Rule #5: Don’t let large gifts skew your results

If your gifts are typically $25, $35 and $45 and you have one donation of $15,000, remove this amount from your average gift amount.  That number can skew your results and future projections. Your spreadsheet for this campaign may tell you that the average gift was $92, when the reduction of this $15,000 gift will significantly lower your average gift to $36.

Rule #6: Test acquisition mailings for people, not profit

Concentrate on acquiring loyal donors in the greatest numbers at the lowest cost.  The results will follow.

Rule #7: If you are starting out in direct mail, aim to acquire volume in donors

If you’re just starting a direct mail program, aim to acquire as many donors as possible versus collecting the highest profit. Success in the mail comes after the first gift.

Rule #8: Test every time you mail

If you’re mailing to a large number of people, always test something. Test two asks, test the ask string on your reply device, test the teaser copy, test the length of the letter, test the signatory, test something of significance every time you mail. You’ll learn a lot, and you’ll improve your packages and your approach over time.


To learn more, contact KMR Partners at 866-561-5568.

 

No Postal Increase for 2010!

USPS Logo 11-08The following was released from the Postmaster General last week. 

Great news for the direct mail community!

To Postal Service Customers:

Many of you have expressed concerns regarding mailing costs for 2010.  The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.

As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.

The Postal Service will not increase prices for market dominant products in calendar year 2010.

Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post.  There will be no exigent price increase for these products.

This is the right decision at the right time for the right reason.  Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.

While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system.  We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace.  Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration.  We expect to announce a decision in November.

We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing.  Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail.  Mail is a smart investment for the future.

John E. Potter

 

From the Desk of the President

Photo 11-08I hope you have a wonderful fall season. 


If you plan to send out direct mail or donor appeals, let us help you succeed!
 

Sincerely, Mike

 

KMR Partners
866-561-5568
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