The Advantages of Direct Marketing
Consumers are inundated with information from the moment they wake up until they go to bed at night. Radio ads, television commercials, ads in newspapers and magazines and attached to all social media networks and mediums. With the overwhelming amount of information, companies have to find new ways to stand out to be seen in the crowd, to engage their customers and attract new customers. A tried and true method for many companies is Direct Marketing.
About Direct Marketing
Direct marketing is a sales technique involving unsolicited contact with potential customers from companies trying to sell products. A direct marketing campaign typically includes certain components, such as addressing potential customers and asking those potential customers to take immediate action, including calling or visiting a website. Common forms of direct marketing include e-mail, online advertisements, promotional letters, catalog distribution and mobile messaging.
Benefits of Direct Marketing: Quantifiable
From the perspective of the company, one of the key benefits or advantages to direct marketing for their business is the ability to track results or to have direct measurements. Direct marketing is often easier to track than less formal styles of promotion. For example, if you send out 500 pamphlets, and receive 100 responses, you can conclude that the campaign had a 20 per cent response rate. The same would apply in an e-mail campaign. One could determine the percentage of response rate based on how many received the e-mail and how many responded directly to the e-mail. Additionally, you can calculate a break-even point, which is the number of sales required to cover the direct marketing costs. This helps a company redirect their marketing plan to ensure it is more responsive.
Consumer Testing and targeted advertising
Direct marketing campaigns are also beneficial to test consumer responses with a small campaign before scaling up and launching a full, expensive campaign. This method of marketing also builds brand loyalty as some customers enjoy receiving information on deals and discounts, and easily become repeat customers. Most small businesses have a very finite amount of resources for marketing and choose direct marketing for the potential to get the highest results with the least amount of resources. Direct marketing allows a business to generate a response from targeted customers, allow for ongoing communication with existing and potential customers to promote specific products and services. As you are directly sending information to individuals, you can specifically target the demographic you wish to reach. This can enhance response rates as the information is relevant to them. This also gives you the opportunity to personalize each interaction, such as addressing emails with the name of the customer or individual.
Direct marketing can be cost effective and extremely powerful at generating sales, so it is ideal for small businesses. For example, an email campaign has very little cost and can be delivered instantaneously. It also is an easy form of direct marketing that can be duplicated for many other campaigns.
For every business or organization, it takes a specialized direct marketing approach unique to the audience being targeted. A business will know the character, personality, and interests of its customers and can focus a direct marketing campaign specific to their needs and desires. This targeted approach is one of the key elements that make direct marketing successful.