You have two reasons to offer a guarantee:

First, it’s the right thing to do. A meaningful guarantee shows that you believe in your product. And, when you’re asking for someone else’s money, you should believe in what you’re selling—if not, don’t do it.

Second, you’ll want to offer a guarantee because it can build profits.

Buyers, whether online or traditional direct mail, have plenty of reasons—real or perceived—not to respond to your offer. After all, whether we’re fundraising or selling a product, we’re asking the prospect to trust us to do what we promised. And unless we can overcome the prospect’s uncertainty, we’re going to lose the sale.

A strong guarantee shows that you believe in your offer. It’s your written assurance that you accept responsibility for the quality of your product or service. It’s the promise of a good customer experience; it helps remove the hesitation that might otherwise jeopardize the sale.

How to write a guarantee

Every organization or business—including nonprofits—can offer a guarantee. Explain in clear, easy-to-understand language:

• What product or service is being promised
• How this product or service benefits the buyer
• Any terms, conditions or limitations—whether the product must be registered, if it is a 90- or 120-day guarantee, whether you will repair the product or replace it, if you are offering a full refund or a prorated amount, etc.
• What the customer needs to do to activate the guarantee—call a toll-free number, go to a Web site or return to the store
• And what the buyer can expect from you if they have a problem

Tell the customer everything they need to know but keep the guarantee short and to the point. Run it past the legal department before it goes to print, but do not include legalese in the guarantee. If there’s legal language that you must include, work it into the letter copy on page two or three—and absolutely no asterisks. Asterisks reek of insecurity.

Call attention to your guarantee

Position the guarantee where it will be seen. Put it in the letter near the closing—close to the call to action—and mention it in the postscript. Also, add the guarantee to the response form and any brochure or freestanding insert. Even consider a separate “Guarantee Certificate” enclosure.

Put a certificate-style border around the guarantee to make it stand out. In the letter copy, introduce the guarantee with a sub-headline and double indent the text to catch the reader’s eye.

Put the guarantee on your Web site, the product’s landing page, the checkout page, and on any collateral material. Show people that you’re proud of your product and proud of how you take care of your customers.

Make your guarantee stronger

The stronger the guarantee, the fewer reasons the prospect has to hesitate or feel uncertain before responding.

If you’re offering a “Money-Back Guarantee,” there’s no extra cost to offer  a “100% Money-Back, No-Risk Guarantee.” Also, consider a “Double Your Money Back Guarantee.” And if you offer a “1-Year Guarantee,” consider a “3-Year Guarantee.”

A good guarantee makes it easier for the prospect to buy your product. And, as long as it’s believable, the stronger the guarantee the better.

Make it easy

Make it easy for the customer to use the guarantee. Let the customer know that if they are unhappy with the product, they should just return it and you’ll promptly refund its full cost. No questions asked.

If the customer must return a product, include free shipping—both ways. Maybe even throw in a small gift or handwritten note in apology.

The true value of a better guarantee

Without doubt, some people will take advantage of your guarantee and try to rip you off for a few extra dollars. But the vast majority of people are honest, and offering a stronger guarantee can not only reduce buyer reluctance and increase sales, it can also help build customer loyalty.

People want to believe they’re getting the best product for their money. And they want to know they’re dealing with a company that values their business.

A strong guarantee is your promise to give the customer a positive experience. It tells the customer that there’s no need to try another company—even if the price is a few dollars lower—because you’re going to take care of them.

Even if they never need to take advantage of it, your guarantee gives the customer the confidence to make the buying decision and want to continue doing business with you.

Our customers are our most valued asset. And however much it costs to honor your guarantee, it will be much less than the cost of replacing an unsatisfied customer.

I guarantee it.

Your offer needs to be specific and to clearly state how it benefits the prospect. It includes the product—or for a fundraiser, the organization’s mission or project—the price or asking amount, terms, incentives, guarantee, etc.

And, of all the components of your mailing—other than the list—the offer is the most important element of your success. If you’re looking for breakthrough results, here are 17 quick ideas to consider:

1. Offer something free—a free gift for responding, a free trial period to test the product, free shipping, etc.
2. Offer something new. Along with “free,” “new” is still one of the most powerful words you can use.
3. “Flip-flop” your offer. Rather than emphasizing “You’re paying $400 too much for auto insurance,” test “You can save $400 on your auto insurance.” You can sell a product at “50% off” or offer the reader “Buy one and get one free.” You can offer a product for $24.99, or test selling it for “$29.99 with free shipping.” In each of these examples, the cost to the mailer is the same, but repositioning the offer can lead to a big difference in results.
4. Use specifics. Rather than offering to save the reader $400, offer to save him or her $398.43. Although it’s less of a savings, the specific dollar amount can attract more attention and give the offer added credibility.
5. For political fundraisers, rather than ask for money to “help elect” a candidate, raise money to “defeat” the opponent.
6. Use goals that people can relate to. For example, rather than raising money to feed millions of hungry people, ask for help to feed one hungry child. Rather than cutting taxes by billions of dollars, offer to save each taxpayer $1,023.
7. Where possible, don’t use percentages. What does it really mean to save 25%? Instead, offer to “Save $19.” Rather than “Sixty percent of all consumers agree,” use “Three of every five consumers agree.”
8. Test a premium. If you’re already offering a premium, test a new one. (See “Why Test Premiums…”)
9. Test new prices and/or asking amounts
10. Provide a guarantee. Everyone can offer a guarantee; if you don’t think you can, you shouldn’t be selling the product. Even a nonprofit can offer a guarantee to use the donor’s money wisely or promise to refund the donor’s initial contribution if they ever become dissatisfied with the organization.
11. Include a trial offer. Like the guarantee, a trial offer limits the prospect’s risk and reduces their concerns about responding.
12. Make the offer “For a Limited Time Only.” By including a specific deadline in your offer, you can force the prospect into making a decision.
13. Offer “Early Bird” savings or gifts. (“If you act within the next 10 days, you get…”)
14. Test “Yes,” “No,” or “Maybe” options with peel-off stickers that the recipient transfers to the response form, or include the options with simple check-off boxes. Giving the prospect Yes or No options typically increases response. And adding a Maybe option often boosts response even more.
15. Offering a “Charter Membership” gives the prospect added recognition and is a simple way to boost response for a new organization. Also, consider offering an “Introductory Price” as a cost-effective way to acquire new customers.
16. Offer a “Bill Me Later” option or installment payments. The “Bill Me Later” option is common for subscriptions, and offering installment payments can make large-ticket items seem more affordable.
17. Regardless of your offer, sell only one thing at a time. This is one of the oldest rules of sales—ignoring it can prove costly.

You often get the best results by combining two or more unique offers, so don’t be afraid to mix and match from the above list. If you find a premium that works, perhaps adding free shipping or a discount will increase the mailing’s net revenue even more.

And this brings up an important point. The measurement of success is net dollars. If you need to increase your mailing’s cost to sweeten the offer, don’t let the higher cost be the one thing that stops you. If you believe the new offer has a reasonable chance of increasing the mailing’s net return, it’s worth testing. Focus on net dollars. (See “The What, When and How of Direct Mail Testing.”)

When you need breakthrough results, test your offer. Other than careful list selection, nothing will make a bigger difference in your success.

We all know the importance of direct mail testing, but too often money is wasted on unproductive and unwise tests. Here are 21 basic rules worth reviewing to get the most from your marketing dollars:

1. Before you start production on any test, do the math first. How long will it take to recover your test costs, and what increase in results will you need to beat the control? Proceed with the test only after showing that there’s a reasonable chance that it can economically increase response.

2. Don’t test just because you’re curious to know “what if.” Have a solid plan of how you’ll turn the test results into a profit before you invest in the test.

3. Be sure you test a sufficient quantity to obtain reliable test results.

4. “Replicate” each test when possible—rather than mail one test cell of 10,000 names, split the names into two equal groups and mail the same test to two groups of 5,000.

5. When possible, mail the same number of pieces for each test.

6. Create two test-size cells from the names that will receive your control mailing and use them as the baseline for measuring your tests’ success. These “control cells” will eliminate any bias that mailing to a larger body of names might cause, and, if there’s a production glitch, they can protect your cash flow. Now, rather than hold the entire mailing until the production problem is corrected, you can mail most of your control and hold these test-size cells until your tests are ready to mail.

7. Constantly test for new lists. Nothing will make a greater difference in results. And when you get a new package breakthrough, review the lists you tested earlier and see if your new, better-performing control makes them worth retesting.

8. Rely on the experts for list selections and data work, but make certain you understand what they’re doing. You don’t necessarily need to understand the math behind modeling, but you do need to be certain that the experts understand your objectives.

9. Test new offers. Second only to lists, you’ll get the biggest return from your test dollars by testing new offers.

10. Test new graphics for the outer envelope. These are among your most cost-efficient tests, and they can help keep a control “fresh.”

11. Mail your tests and the control at the same time and, as much as is feasible, from the same postal outlet.

12. You can’t argue with the test results, but don’t follow them blindly. Pyramid—roll out with ten times the number of pieces tested—and reevaluate and/or back test.

13. Don’t get test-happy. Test only those things that can make a meaningful difference to your mailing’s success. It may make sense to tweak the control for incremental gains if you’re mailing in large volume, but if not, limit your tests to the big things—lists, offer, format and copy.

14. Follow up quickly. And minimize your risks and improve the reliability of your results by using proven lists for your tests.

15. More often than not, you’ll increase profitability by increasing the package’s cost—not by taking away from it.

16. If you’re not using a premium, test one. If your control uses a premium, test a new one.

17. If your control includes a brochure, test without one. A brochure often distracts readers and delays their move to the response form. (This is one exception to rule 15.)

18. Make sure your tests receive full credit. Are replies to the 800 number and the website being counted?

19. When calculating how well your test will perform against the control, use rollout costs.

20. Measure your results by net dollars—not response rate or cost per order. If you can’t spend it, it doesn’t count.

21. And, as elementary as this may seem, be certain that you have a competent system in place to receive, count and report results.

You don’t need to be a rocket scientist to succeed in direct mail. But you do need to know what, when and how to test. And you must have the discipline to follow the results.

Let these 21 rules guide you and you’ll have a great start toward a more profitable direct mail campaign.

What to test

In his book, Secrets of Successful Direct Mail, Dick Benson states, “Any idea you honestly believe can economically increase response is worth testing.”

The key words are “economically increase response.” But what is economical? Typically, the more dramatic a change you make in a package, the more dramatic the difference in results.

For example, when you need a breakthrough, test the components that have the greatest influence on the mailing’s success—lists, offer, format and copy. Forget about testing minor changes on page three or the color of the return envelope. Test big things for big results.

However, for clients mailing larger volumes, “tweaking” the control for incremental gains often makes sense.

For example, Client A and Client B both have an average response rate of 1%, with a $25 average transaction. Both test a new package that lifts results by 10%. The only difference is that Client A has an annual mailing volume of 1 million pieces. Client B mails 10 million pieces every year.

For Client A, with its smaller mailing volume, this 10% lift means an annual difference of $25,000 in income. But for client B, the same 10% lift means $250,000 in additional income.

While the smaller client might appreciate an extra $25,000 to spend, it is probably not going to have a major impact on the organization—especially after accounting for test costs. On the other hand, a quarter of a million dollars is “adult money.”

But whatever you decide to test, do the math first. Even if the test beats your control, it won’t make sense if it takes too long to recover your test costs or requires an unobtainable rate of response.

When to test

The best time to test is when you have a successful control. A too-common mistake is to delay testing new concepts because “our control is still working.” By this reasoning, you wouldn’t test new concepts until the control takes a dive, and this is a disaster for cash flow. You may even find that it’s time to update your résumé, because there’s not going to be enough cash flow to make payroll.

Instead, test from strength, not weakness. Virtually every mailing is an opportunity to test. However successful your control is, and however long it’s been the control, it can be improved.

How much to test

When deciding how many pieces to test, the important thing isn’t how many pieces you mail with your test package. What’s important is how many responses you get back.

Your test volume should be no fewer than the number you need in order to produce statistically reliable results. Mathematicians using formulas I won’t even pretend to understand tell me that as few as 39 responses can be statistically valid with a 90%–95% probability of accuracy. Personally, I’m more comfortable with closer to 100 responses.

You can use an online calculator to tell you how much to mail, but the concept is easy. Just take the control’s response rate and see how much you need to mail in order to produce 100 responses. For example, with a 1% response rate, you would need to mail 10,000 pieces to produce 100 responses.

As a rule of thumb, you’ll want to limit your total test volume to no more than 20%–25% of the total mailing. This way, if the test fails, the returns from your control will help absorb the loss and preserve the operating budget.

Smart testing

Testing is essential to profitable direct mail, but we need to test smart. Evaluate the success of the test based on its rollout cost, but always do the math first and make sure you can pay back your full test costs in a reasonable time.

And remember Dick Benson’s advice and test only what you honestly believe can economically increase response.

In his novel, Anna Karenina, Leo Tolstoy wrote, “Happy families are all alike; every unhappy family is unhappy in its own way.”

What Tolstoy was saying is that to be happy, a marriage must succeed on a number of levels including: financial, sexual, how to raise children, in-laws and religion. Every successful couple finds agreement in each of these areas. But an unsuccessful marriage can break apart when there’s disagreement in any one of these areas.

The reasons for happiness are same. The cause of unhappiness is unique.

Can’t we say the same about direct mail?

Every successful direct mail package is alike while an unsuccessful package can fail in its own way.

All successful mailings are the result of thoughtful list selection, a powerful offer, persuasive copy, an effective format and good timing.

Yet a mailing can fail when it lacks any one of these characteristics. We can have the most powerful offer and persuasive copy, for example, but when delivered to the wrong audience, it fails.

Successful direct mail isn’t rocket science.

We don’t need a new book with a clever title, a new buzzword or a 3-hour seminar to tell us what makes direct mail work. It’s the same today as it was 25  years ago. And it’s what will make direct mail successful 25 years from now.

Good list selection. An unbeatable offer. Persuasive copy. And an efficient format. All delivered to the right person at the right time.

Miss any one of these ingredients for success and your mailing fails. But each of them right and your mailing, like Tolstoy’s thoughts on a happy family, will enjoy far more success.

As professional direct mail copywriters, we often take a lot of grief about our work. We’re told our English isn’t proper – maybe even deplorable. We’re too emotional, we keep repeating ourselves and the copy is way too long.

It’s easy to forget what good direct mail copywriting is all about so let me sum it up. Good direct mail copy is copy that works. It achieves its objective.

At its best, good direct mail copywriting is one letter written by one person to one other person. Whether you’re mailing a few hundred letters or millions, direct mail is a personal communication.

Some of the best training I’ve had for becoming a direct mail copywriter came when I sold magazines door-to-door as a teenager.

Each time I approached a house, I developed a plan before knocking on the door. Then, if I could entice the homeowner into opening the door, I quickly gave them just enough information that they wanted to listen to what I said next.

Not every homeowner was a prospect. You took your clues from what you would observe about the homeowner. Was there evidence of children at home . . . indications that someone in the house played sports . . . a newspaper or fancy car in the driveway. You took advantage of all the information you had on the prospect and with this “data,” developed your offer – or which magazines you would talk about.

Then, after showing the homeowner how they would benefit from having these magazines – I never mentioned “reading” the magazines because that might be considered work – it was time to ask for the order.

Never, never, ever did I walk away without asking for the order. And once I got it, I didn’t linger. I said “thank you” and went to the next house.

What we do as direct response copywriters isn’t that much different.

We’re not artists, authors and certainly not general advertisers. Pure and simple, we’re salespeople and we sell benefits.

We don’t sell insurance. But we do sell security, protection and peace of mind. And a good direct response writer doesn’t sell subscriptions. Instead, we offer information that makes the prospect’s life more interesting, enjoyable and profitable. We won’t even sell you a cure for cancer. But we will give you the hope that you and your family can be free of its suffering.

Awards, pretty packages and beautiful designs don’t measure our success. Net profit does.

We don’t always write in complete sentences but we do communicate in language that the reader understands. And for some of our fundraising packages, our graphics can be so “elementary” that our artist wants to hide our direct response work when his advertising clients visit the studio.

Yet, better than anyone else, we motivate people to take a desired action.

We can prove it too because we measure our results. When we segment our mailing lists differently, revise the offer, rewrite the letter, change the graphics or test a new format, we know exactly how it affects the mailing’s profitability.

A pretty package with moving parts or a creative award won’t save us. Because we document, analyze and record the results of every mailing, our successes and failures are on display for everyone to see.

And when our ideas don’t work, we learn from them. And when they do, we capitalize on them. This is what makes us professional direct response marketers.

Is there a moral or lesson here?

You can decide. But I do hope there’s a reaffirmation of why we can be proud of what we do.

Let me know what you think. I welcome your thoughts.

Hugh

P.S.  If you have a question or comment about this post or direct mail in general, please e-mail me. I’m happy to help anyway I can. Thanks.

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The topic is “Six Sense Technology.” I don’t know how long the URL will be active so check it out today and let me know what you think.