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	<title>Chewning Direct Marketing &#187; Strategy</title>
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	<description>Lessons learned and shared to make your direct mail more profitable.</description>
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		<title>Much of What I Know About Direct Mail, I Learned in High School</title>
		<link>http://www.cdmdirect.com/much-of-what-i-know-about-direct-mail-i-learned-in-high-school/</link>
		<comments>http://www.cdmdirect.com/much-of-what-i-know-about-direct-mail-i-learned-in-high-school/#comments</comments>
		<pubDate>Wed, 01 Sep 2010 23:54:41 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
		<category><![CDATA[Data]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Thought Provoking]]></category>
		<category><![CDATA[direct mail]]></category>
		<category><![CDATA[direct mail offer]]></category>
		<category><![CDATA[direct mail response]]></category>
		<category><![CDATA[direct mail strategy]]></category>
		<category><![CDATA[direct sales]]></category>
		<category><![CDATA[selling direct]]></category>

		<guid isPermaLink="false">http://www.cdmdirect.com/?p=1118</guid>
		<description><![CDATA[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.

I quickly learned that not every homeowner welcomed me. Some would not even come to the door, some would close the door in my face and others would listen but not buy.

Soon, I learned to how to better my odds. Each time I approached a house, I gathered all the available information on the homeowner and developed a plan before knocking on the door.

My marketing “data” came from what I could see in the homeowner’s front yard. Were there toys in the yard, indicating children lived there? Was a newspaper]]></description>
			<content:encoded><![CDATA[<p style="text-align: right;"><a href="http://www.cdmdirect.com/wp-content/uploads/2010/09/Blog_17_Everything-I-know-learned-in-high-school.pdf">Download Article as pdf</a></p>
<p>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.</p>
<p>I quickly learned that not every homeowner welcomed me. Some would not even come to the door, some would close the door in my face and others would listen but not buy.</p>
<p>Soon, I learned to how to better my odds. Each time I approached a house, I gathered all the available information on the homeowner and developed a plan before knocking on the door.</p>
<p>My marketing “data” came from what I could see in the homeowner’s front yard. Were there toys in the yard, indicating children lived there? Was a newspaper <span id="more-1118"></span>delivered to the home? Were there indications that someone in the house played sports? Was there a fancy car in the driveway or a well-cared-for garden?</p>
<p>By gathering and analyzing this information, I could define my offer—in this case, which magazines I would present to the homeowner. I had news magazines, magazines for sports fans, children, expectant mothers, car fanatics, and gardeners—literally pages and pages of magazines to choose from—and by using my data to select which ones to show to the homeowner, I found that I could greatly increase my sales.</p>
<p>In effect, I was targeting my market.</p>
<p>When homeowners did come to the door, their eyes would give me a quick scan before they decided whether to give me even a minute of their time.</p>
<p>But as the door inched open a little wider, I would quickly give them just enough information for them to listen to what I said next.</p>
<p>Typically, I would start by briefly describing “magazines their neighbors had just ordered.” Then, I would focus the discussion on the magazines I thought—based on my collected data—would be of most interest to the homeowner.</p>
<p>My sales skyrocketed.</p>
<p>Then I learned not to talk <em>about</em> the magazines, but instead, to describe what the homeowner could <em>get</em> from the magazines—inside information on their favorite sports team, timely tips on how to increase their garden’s harvest, or how the homeowner’s discussions with friends and coworkers could improve with easy-to-read information about the latest news and developments.</p>
<p>There were also words I learned to avoid, such as “reading” and “learning,” because the homeowner could consider these as work. I found it was much better to talk about “seeing,” “discovering” and “having ideas come to your home.”</p>
<p>And I would never walk away without asking for the order.</p>
<p>After explaining that there was no risk to trying a new magazine because they could cancel the order at any time, I would ask, “For how many months do you want to <em>try</em> the magazines?” rather than “Do you want to place an order?”</p>
<p>Once I made the sale, I didn’t linger. I said “Thank you,” and went to the next house.</p>
<p>More times than I care to remember, I got the door shut in my face. But when this happened, I tried to learn from my mistakes, improved my approach and moved on to the next home.</p>
<p>Today, as direct marketers, we certainly have more sophisticated approaches to gather information, but in reality, our sales approach—whether we’re working online or with direct mail—is much the same as it was when I was a teenager selling magazines.</p>
<p>Regardless of the medium, we all:</p>
<ul>
<li>Share the same objective—making the sale.</li>
</ul>
<ul>
<li> Must show prospects how they will benefit when accepting our offer. We don’t sell subscriptions; we offer information that makes the prospect’s life more interesting, enjoyable and profitable. We don’t sell insurance; we offer security, protection and peace of mind. We won’t even promote a cure for cancer, but we will give the prospect hope that their family can be free of its suffering.</li>
</ul>
<ul>
<li> Use easy-to-understand language to capture the reader’s attention, create interest, show how the offer benefits the prospect, and instruct the prospect to take a desired action.</li>
</ul>
<ul>
<li> Evaluate success by measuring our return on investment.</li>
</ul>
<ul>
<li> And when things don’t go our way, we listen to our customers and adjust our offer so that it better meets their needs.</li>
</ul>
<p>Selling via direct mail or online today doesn’t need to be any more complicated than when I sold magazines as a teenager. After all, the objective remains the same—cost-effectively persuading the prospect to take a desired action.</p>
<p>Walking door to door selling magazines proved to be great training for my direct-marketing career. I just didn’t know it at the time.</p>
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		<title>How a Guarantee Builds Direct Mail Profits</title>
		<link>http://www.cdmdirect.com/how-a-guarantee-builds-direct-mail-profits/</link>
		<comments>http://www.cdmdirect.com/how-a-guarantee-builds-direct-mail-profits/#comments</comments>
		<pubDate>Wed, 11 Aug 2010 17:00:38 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
		<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Testing]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[direct mail]]></category>
		<category><![CDATA[direct mail guarantee]]></category>
		<category><![CDATA[direct mail offer]]></category>
		<category><![CDATA[direct mail strategy]]></category>
		<category><![CDATA[direct mail testing]]></category>
		<category><![CDATA[direct response guarantee]]></category>
		<category><![CDATA[increase direct mail response]]></category>
		<category><![CDATA[testing a guarantee]]></category>

		<guid isPermaLink="false">http://www.cdmdirect.com/?p=1017</guid>
		<description><![CDATA[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.]]></description>
			<content:encoded><![CDATA[<p style="text-align: right;"><a href="http://www.cdmdirect.com/wp-content/uploads/2010/09/Blog_16_How-Guarantee-Increase-Profits1.pdf">Download Article as pdf</a><br />
<a href="http://www.cdmdirect.com/wp-content/uploads/2010/07/Satisfaction_Guarantee1.jpg"><img class="alignright size-thumbnail wp-image-1025" title="Satisfaction_Guarantee" src="http://www.cdmdirect.com/wp-content/uploads/2010/07/Satisfaction_Guarantee1-150x150.jpg" alt="Satisfaction_Guarantee" width="150" height="150" /></a><br />
When it comes to decision making, I have a simple approach. If I  believe the outcome might be something I wouldn’t want my mother to know about, I don’t do it. And when creating a direct mail offer a similar rule applies. If you can’t provide a meaningful guarantee, don’t promote it.</p>
<p>You have two reasons to offer a guarantee:</p>
<p>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.</p>
<p>Second, you’ll want to offer a guarantee because it can build profits.</p>
<p>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.<span id="more-1017"></span> And unless we can overcome the prospect’s uncertainty, we’re going to lose the sale.</p>
<p>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.</p>
<p style="text-align: center;"><span style="color: #000000;"><strong>How to write a guarantee</strong></span></p>
<p>Every organization or business—including nonprofits—can offer a guarantee. Explain in clear, easy-to-understand language:</p>
<ul>
<li>What product or service is being promised</li>
<li>How this product or service benefits the buyer</li>
<li>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.</li>
<li>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</li>
<li>And what the buyer can expect from you if they have a problem</li>
</ul>
<p>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—<span style="text-decoration: underline;">and absolutely no asterisks</span>. Asterisks reek of insecurity.</p>
<p style="text-align: center;"><span style="color: #000000;"><strong>Call attention to your guarantee</strong></span></p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p style="text-align: center;"><span style="color: #000000;"><strong>Make your guarantee stronger</strong></span></p>
<p>The stronger the guarantee, the fewer reasons the prospect has to hesitate or feel uncertain before responding.</p>
<p>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.”</p>
<p>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.</p>
<p style="text-align: center;"><span style="color: #000000;"><strong>Make it easy</strong></span></p>
<p>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.</p>
<p>If the customer must return a product, include free shipping—both ways. Maybe even throw in a small gift or handwritten note in apology.</p>
<p style="text-align: center;"><span style="color: #000000;"><strong>The true value of a better guarantee</strong></span></p>
<p>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.</p>
<p>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.</p>
<p>A strong guarantee is <span style="text-decoration: underline;">your promise</span> 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.</p>
<p>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.</p>
<p>Our customers are our most valued asset. And however much it <span style="text-decoration: underline;">costs</span> to<span style="text-decoration: underline;"> honor</span> your guarantee, it will be<span style="text-decoration: underline;"> much less</span> than the cost of replacing an unsatisfied customer.</p>
<p>I guarantee it.</p>
]]></content:encoded>
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		<title>17 Ways to Improve Your Direct Mail Offer</title>
		<link>http://www.cdmdirect.com/17-ways-to-improve-your-direct-mail-offer/</link>
		<comments>http://www.cdmdirect.com/17-ways-to-improve-your-direct-mail-offer/#comments</comments>
		<pubDate>Tue, 27 Jul 2010 17:25:41 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
		<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Testing]]></category>
		<category><![CDATA[direct mail]]></category>
		<category><![CDATA[direct mail copywriting]]></category>
		<category><![CDATA[direct mail offer]]></category>
		<category><![CDATA[direct mail response]]></category>
		<category><![CDATA[direct mail response rates]]></category>
		<category><![CDATA[direct mail strategy]]></category>
		<category><![CDATA[direct mail test]]></category>
		<category><![CDATA[direct mail testing]]></category>
		<category><![CDATA[increase direct mail response]]></category>

		<guid isPermaLink="false">http://www.cdmdirect.com/?p=1009</guid>
		<description><![CDATA[Simply put, your direct mail offer is the “deal” you promise the recipient. It’s what you promise the reader and what you ask in return.

 

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...]]></description>
			<content:encoded><![CDATA[<p style="text-align: right;"><a href="http://www.cdmdirect.com/wp-content/uploads/2010/09/Blog_15_17-Ways-to-Improve-Your-Offer.pdf">Download Article as pdf</a><br />
<a href="http://www.cdmdirect.com/wp-content/uploads/2010/07/Special_Offer-copy.jpg"><img class="alignright size-thumbnail wp-image-1013" title="Special_Offer copy" src="http://www.cdmdirect.com/wp-content/uploads/2010/07/Special_Offer-copy-150x150.jpg" alt="" width="175" height="175" /></a>Simply put, your direct mail offer is the “deal” you promise the  recipient. It’s what you promise the reader and what you ask in return.</p>
<p>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.</p>
<p>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:<span id="more-1009"></span></p>
<ol>
<li> Offer something free—a free gift for responding, a free trial period to test the product, free shipping, etc.</li>
<li>Offer something new. Along with “free,” “new” is still one of the most powerful words you can use.</li>
<li>“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.</li>
<li>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.</li>
<li>For political fundraisers, rather than ask for money to “help elect” a candidate, raise money to “defeat” the opponent.</li>
<li>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.</li>
<li>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.”</li>
<li>Test a premium. If you’re already offering a premium, test a new one. (See “<a href="../../../../../why-you-should-test-premiums-and-3-ways-to-make-them-work-for-you/">Why Test Premiums…</a>”)</li>
<li>Test new prices and/or asking amounts</li>
<li>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.</li>
<li>Include a trial offer. Like the guarantee, a trial offer limits the prospect’s risk and reduces their concerns about responding.</li>
<li>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.</li>
<li>Offer “Early Bird” savings or gifts. (“If you act within the next 10 days, you get&#8230;”)</li>
<li>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.</li>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ol>
<p>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.</p>
<p>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 “<a href="../../../../../the-what-when-and-how-of-direct-mail-testing/">The What, When and How of Direct Mail Testing</a>.”)</p>
<p>When you need breakthrough results, test your offer. Other than careful list selection, nothing will make a bigger difference in your success.</p>
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		<title>21 Basic Rules for Successful Direct Mail Testing</title>
		<link>http://www.cdmdirect.com/21-basic-rules-for-successful-direct-mail-testing/</link>
		<comments>http://www.cdmdirect.com/21-basic-rules-for-successful-direct-mail-testing/#comments</comments>
		<pubDate>Tue, 06 Jul 2010 08:42:55 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Miscellaneous]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Testing]]></category>
		<category><![CDATA[direct mail]]></category>
		<category><![CDATA[direct mail strategy]]></category>
		<category><![CDATA[direct mail test]]></category>
		<category><![CDATA[direct mail testing]]></category>
		<category><![CDATA[test direct mail]]></category>

		<guid isPermaLink="false">http://www.cdmdirect.com/?p=944</guid>
		<description><![CDATA[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, <span style="text-decoration: underline;"><em>do the math first</em></span>. 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.]]></description>
			<content:encoded><![CDATA[<p style="text-align: right;"><a href="http://www.cdmdirect.com/wp-content/uploads/2010/06/Blog_14_21-Basic-Rules-of-Testing.pdf">Download Article as pdf</a></p>
<p>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:</p>
<p>1. Before you start production on any test, <span style="text-decoration: underline;"><em>do the math first</em></span>. 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.</p>
<p>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.</p>
<p>3. Be sure you test a sufficient quantity to obtain reliable test results.</p>
<p>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.<span id="more-944"></span></p>
<p>5. When possible, mail the same number of pieces for each test.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>9. Test new offers. Second only to lists, you’ll get the biggest return from your test dollars by testing new offers.</p>
<p>10. Test new graphics for the outer envelope. These are among your most cost-efficient tests, and they can help keep a control “fresh.”</p>
<p>11. Mail your tests and the control at the same time and, as much as is feasible, from the same postal outlet.</p>
<p>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.</p>
<p>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.</p>
<p>14. Follow up quickly. And minimize your risks and improve the reliability of your results by using proven lists for your tests.</p>
<p>15. More often than not, you’ll increase profitability by increasing the package’s cost—not by taking away from it.</p>
<p>16. If you’re not using a premium, test one. If your control uses a premium, test a new one.</p>
<p>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.)</p>
<p>18. Make sure your tests receive full credit. Are replies to the 800 number and the website being counted?</p>
<p>19. When calculating how well your test will perform against the control, use rollout costs.</p>
<p>20. Measure your results by net dollars—not response rate or cost per order. If you can’t spend it, it doesn’t count.</p>
<p>21. And, as elementary as this may seem, be certain that you have a competent system in place to receive, count and report results.</p>
<p>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.</p>
<p>Let these 21 rules guide you and you’ll have a great start toward a more profitable direct mail campaign.</p>
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		<title>The What, When and How of Direct Mail Testing</title>
		<link>http://www.cdmdirect.com/the-what-when-and-how-of-direct-mail-testing/</link>
		<comments>http://www.cdmdirect.com/the-what-when-and-how-of-direct-mail-testing/#comments</comments>
		<pubDate>Tue, 22 Jun 2010 08:29:08 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
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		<description><![CDATA[In his book, <em>Secrets of Successful Direct Mail</em>, Dick Benson states, “Any idea you honestly believe can economically increase response is worth testing.”

The key words are “<em>economically increase response</em>.” 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]]></description>
			<content:encoded><![CDATA[<p style="text-align: right;"><a href="http://www.cdmdirect.com/wp-content/uploads/2010/06/Blog_13_What_When_How-to-Test.pdf">Download Article as pdf</a></p>
<p><span style="text-decoration: underline;"><span style="color: #000000;"><strong>What to test</strong></span></span></p>
<p>In his book, <em>Secrets of Successful Direct Mail</em>, Dick Benson states, “Any idea you honestly believe can economically increase response is worth testing.”</p>
<p>The key words are “<em>economically increase response</em>.” But what is economical? Typically, the more dramatic a change you make in a package, the more dramatic the difference in results.</p>
<p>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.</p>
<p>However, for clients mailing larger volumes, “tweaking” the control for incremental gains often makes sense.</p>
<p>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 <span id="more-935"></span>mailing volume of 1 million pieces. Client B mails 10 million pieces every year.</p>
<p>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.</p>
<p>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.”</p>
<p>But whatever you decide to test, <strong>do the math first</strong>. 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.</p>
<p><span style="text-decoration: underline;"><strong>When to test</strong></span></p>
<p>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.</p>
<p>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.</p>
<p><span style="text-decoration: underline;"><strong>How much to test</strong></span></p>
<p>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.</p>
<p>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.</p>
<p>You can use an <a href="http://rms.rrd.com/wwwRMS/WhatWeHave/MinSample.asp">online calculator</a> 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.</p>
<p>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.</p>
<p><span style="text-decoration: underline;"><strong>Smart testing</strong></span></p>
<p>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.</p>
<p>And remember Dick Benson’s advice and test only what you honestly believe can <em>economically </em>increase response.</p>
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		<title>Direct Mail Testing and7 Costly Mistakes to Avoid</title>
		<link>http://www.cdmdirect.com/direct-mail-testing-and7-costly-mistakes-to-avoid/</link>
		<comments>http://www.cdmdirect.com/direct-mail-testing-and7-costly-mistakes-to-avoid/#comments</comments>
		<pubDate>Wed, 02 Jun 2010 20:39:56 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Testing]]></category>
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		<guid isPermaLink="false">http://www.cdmdirect.com/?p=798</guid>
		<description><![CDATA[J. Paul Getty once said the three keys to wealth and success are, “Rise early. Work hard. And strike oil.”

That may be good advice. But for those of us who must depend upon something other than striking oil, I say the three keys to success for a direct marketer are to TEST, TEST, and TEST!

But before we test, we must recognize that not all tests are productive or cost-effective. My next post will be “What, How and When to Test” but in the meantime, here are 7 costly mistakes that you’ll want to avoid...]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.cdmdirect.com/wp-content/uploads/2010/06/Blog_12_Direct-Mail-Testing-and-7-Mistakes-to-Avoid.pdf">Download as pdf</a></p>
<p>J. Paul Getty once said the three keys to wealth and success are, “Rise early. Work hard. And strike oil.”<br />
<a href="http://www.cdmdirect.com/wp-content/uploads/2010/06/Direct_Mail_Package.jpg"><img class="alignright size-thumbnail wp-image-829" title="Direct_Mail_Package" src="http://www.cdmdirect.com/wp-content/uploads/2010/06/Direct_Mail_Package-150x150.jpg" alt="Direct_Mail_Package" width="150" height="150" /></a><br />
That may be good advice. But for those of us who must depend upon something other than striking oil, I say the three keys to success for a direct marketer are to TEST, TEST, and TEST!</p>
<p>But before we test, we must recognize that not all tests are productive or cost-effective. My next post will be “What, How and When to Test” but in the meantime, here are 7 costly mistakes that you’ll want to avoid when testing<span id="more-798"></span>:</p>
<ul>
<li>When you’re looking for breakthrough results, it makes no sense to test small things—the color of the return envelope, minor copy changes buried in the letter or a different paper stock, for example. When you need a breakthrough, test the big things—list, offer, format and copy—to get big results.</li>
<li>Do the math first. <em>Before</em> you make the test mailing, you need to know how much of a “lift” you need to break even. Make sure you have a <em>reasonable </em>chance of winning. On the other hand, don’t conclude that the test “costs too much” without doing the math. Increasing your package cost by 50% doesn’t necessarily mean you have to increase response by 50%. Much will depend upon the size of your average order, so do the math first.</li>
<li>Don’t ignore past test results. At times, we get valid test results, but they weren’t what we expected so we’re tempted to ignore them. Your test results are the voice of your customers, so listen to what they’re saying—even if it’s not what you expected to hear.</li>
<li>Don’t test more than one thing at a time—or test everything. You can’t test a new format to a new list and conclude that the format made the difference. However, you can test new copy and a new format—to the same list—as long as you recognize that you’re testing the <em>package</em>, not the format or the copy.</li>
<li>Don’t think that just because something worked for another mailer, it will work for you.</li>
<li>Rather than become stuck in a “make it cheaper” mode, test adding features and benefits to your package. More often than not, you’ll increase profits by adding to the package rather than by taking away features and benefits.</li>
<li>How many times have you heard, “I don’t need to test; my control is still working”? The best time to test is when your control <em>is</em> working. Don’t fall into the trap of complacency. Otherwise, you’re going to put a serious hurt on your cash flow.</li>
</ul>
<p>To succeed in direct mail, you don’t need to be a rocket scientist, but you do need to understand the fundamentals of testing and have the discipline to follow the results.</p>
<p>Test results are like a road map, and when you follow them, they’ll lead you to success.</p>
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		<title>When Less Direct Mail  Can Be More</title>
		<link>http://www.cdmdirect.com/when-less-direct-mail-can-be-more/</link>
		<comments>http://www.cdmdirect.com/when-less-direct-mail-can-be-more/#comments</comments>
		<pubDate>Tue, 11 May 2010 19:38:56 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Testing]]></category>

		<guid isPermaLink="false">http://www.cdmdirect.com/?p=738</guid>
		<description><![CDATA[Early in my direct marketing career, a mentor taught me, “The fewer people you mail, the more you can mail.”

It took me a while to grasp this simple concept, but in reality, it speaks to the core principle behind successful direct mail.

Being able to target your mailing to a narrowly defined audience—and highlighting how your offer solves specific needs—has always been one of the most powerful benefits of direct mail. Yet far too often]]></description>
			<content:encoded><![CDATA[<p><a href='http://www.cdmdirect.com/wp-content/uploads/2010/05/Blog_11_When-less-direct-mail-can-be-more.pdf'>Click to download as pdf</a></p>
<p>Early in my direct marketing career, a mentor taught me, “The fewer people you mail, the more you can mail.”</p>
<p>It took me a while to grasp this simple concept, but in reality, it speaks to the core principle behind successful direct mail.</p>
<p>Being able to target your mailing to a narrowly defined audience—and highlighting how your offer solves specific needs—has always been one of the most powerful benefits of direct mail. Yet far too often marketers fail to exploit this advantage.<span id="more-738"></span></p>
<p>You may have a product or offer that appeals to more than one market segment. But speaking to each of these groups individually—and showing how responding to your offer will benefit the prospect’s individual needs—is the key to achieving maximum response.</p>
<p>Consider these examples.</p>
<ul>
<li>As a small business, I have a need for financial software to monitor expenses, issue payments and track invoices. The software I use fulfills all these needs—and will work equally well for many larger businesses. But unlike some companies, I don’t have a need for inventory control, tools to handle large payrolls or credit card processing and trying to sell me the product based on these benefits would be a mistake.</ul>
</li>
<ul>
<li>For acquisition mailings, even your highest-performing mailing list will include names that are unlikely to respond to your offer. By ranking the demographic characteristics of your best customers/donors, you can see which demographic groups have the highest propensity to respond. Then, by overlaying this profile onto your prospect lists, you can eliminate those segments that don’t share the most-likely-to-respond characteristics.</ul>
<ul>
<li>When mailing your customer/donor file, there’s no need to mail every name every time. Some donors and customers are unlikely to respond more than once or twice each year. By identifying the customer’s tendencies—they only respond to annual renewal mailings, particular seasonal offers, or certain package formats or techniques—you can limit the frequency of your mailings yet continue to benefit when the customer is most likely to respond.</li>
</ul>
<p>Each of these three examples illustrates how mailing to a more highly defined audience can—despite any decrease in mail volume—increase net profit. And with today’s technology in list selection and personalized printing, it’s never been easier to customize your mailing to speak directly to the needs of individual recipients.</p>
<p>It’s a mistake to think we can save money by rolling all the product’s benefits into one mailing and sending it to a broad audience. Doing this may lower your cost per thousand but total expenditures will be unnecessarily high.</p>
<p>By sharpening the mailing’s focus, we can use different teasers on our outer envelopes…write more-targeted lead sentences for our letters…display the product’s benefits differently…offer a guarantee that addresses specific concerns of a narrow market group…and even offer unique premiums for various market segments. All of which permits a more personal conversation with the reader and lets us show how our benefits fulfill his or her needs.</p>
<p>Aligning our benefits more closely with the needs of the reader may reduce mail volume, but ultimately we’ll enjoy a more successful and profitable mailing.</p>
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		<title>How Leo Tolstoy Applies to Successful Direct Mail</title>
		<link>http://www.cdmdirect.com/how-leo-tolstoy-applies-to-successful-direct-mail/</link>
		<comments>http://www.cdmdirect.com/how-leo-tolstoy-applies-to-successful-direct-mail/#comments</comments>
		<pubDate>Tue, 20 Apr 2010 16:30:27 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
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		<guid isPermaLink="false">http://www.cdmdirect.com/?p=656</guid>
		<description><![CDATA[In his novel, <em>Anna Karenina</em>, 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 <span style="text-decoration: underline;">each</span> of these areas. But an unsuccessful marriage can break apart when there’s disagreement in <span style="text-decoration: underline;">any one</span> of these areas.

The reasons for happiness are same. The cause of unhappiness is unique.

Can’t we say the same about direct mail?]]></description>
			<content:encoded><![CDATA[<p><a href='http://www.cdmdirect.com/wp-content/uploads/2010/04/Blog_10_Leo_Tolstoy_Direct_Mail.pdf'>Click to download as pdf</a></p>
<p>In his novel, <em>Anna Karenina</em>, Leo Tolstoy wrote, “Happy families are all alike; every unhappy family is unhappy in its own way.”</p>
<p>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 <span style="text-decoration: underline;">each</span> of these areas. But an unsuccessful marriage can break apart when there’s disagreement in <span style="text-decoration: underline;">any one</span> of these areas.</p>
<p>The reasons for happiness are same. The cause of unhappiness is unique.</p>
<p>Can’t we say the same about direct mail?<span id="more-656"></span></p>
<p>Every successful direct mail package is alike while an unsuccessful package can fail in its own way.</p>
<p>All successful mailings are the result of thoughtful list selection, a powerful offer, persuasive copy, an effective format and good timing.</p>
<p>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.</p>
<p>Successful direct mail isn’t rocket science.</p>
<p>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.</p>
<p>Good list selection. An unbeatable offer. Persuasive copy. And an efficient format. All delivered to the right person at the right time.</p>
<p>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.</p>
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		<title>The Cost of Giving Direct Mail Readers  Too Many  Choices</title>
		<link>http://www.cdmdirect.com/the-cost-of-giving-direct-mail-readers-too-many-choices/</link>
		<comments>http://www.cdmdirect.com/the-cost-of-giving-direct-mail-readers-too-many-choices/#comments</comments>
		<pubDate>Tue, 30 Mar 2010 15:31:29 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
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		<description><![CDATA[One thing we can do to improve the profitability of our direct mail is to learn the lessons of a famous jam study.

That’s right. Jam. The stuff we spread over our toast.

In a gourmet market, Professor Sheena Iyengar of Columbia University and her research assistants set up a booth offering samples of Wilkin &#038; Sons jams. 

Every few hours, the researchers switched from offering customers a selection of 24 jams to offering a group of only six jams. 

Each participating customer – regardless of the number of selections offered – received a $1 savings coupon and tasted an average of two jams.

Here's the interesting part.]]></description>
			<content:encoded><![CDATA[<p><strong> </strong><a href="http://www.cdmdirect.com/wp-content/uploads/2010/03/Blog_9_The-cost-of-giving-direct-mail-readers-too-many-choices.pdf">Click to download as pdf</a></p>
<p>One thing we can do to improve the profitability of our direct mail is to learn the lessons of a famous jam study.<br />
<a href="http://www.cdmdirect.com/wp-content/uploads/2010/03/Choices.jpg"><img src="http://www.cdmdirect.com/wp-content/uploads/2010/03/Choices-300x190.jpg" alt="Choices" title="Choices" width="300" height="190" class="alignright size-medium wp-image-636" /></a><br />
That’s right. Jam. The stuff we spread over our toast.</p>
<p>In a gourmet market, Professor Sheena Iyengar of Columbia University and her research assistants set up a booth offering samples of Wilkin &amp; Sons jams.</p>
<p>Every few hours, the researchers switched from offering customers a selection of 24 jams to offering a group of only six jams.</p>
<p>Each participating customer – regardless of the number of selections offered – received a $1 savings coupon and tasted an average of two jams.</p>
<p>Here’s the interesting part.<span id="more-631"></span></p>
<p>Of those shoppers seeing the larger display, 60 percent stopped to sample the jams. Yet when researchers switched to the smaller display, only 40 percent of shoppers stopped for a taste.</p>
<p>But of those sampling from the smaller display, 30 percent decided to buy jam while only 3 percent of those confronted with larger display purchased a jar.</p>
<p>The display with more choices drew the largest crowd but customers presented with fewer choices bought more.</p>
<p>Researchers then repeated the study using a wide variety of products – everything from chocolate to speed dating. And each time, regardless of the product tested, offering fewer choices to the prospective customer resulted in more sales.</p>
<p>Professor Iyengar concluded, “In reality, people might find more and more choices to actually be debilitating.” And while it may be too simple to conclude that offering lots of choices is bad, we shouldn’t assume that providing more choice is always better.</p>
<p>What does this have to do with our direct mail?</p>
<p>Look through your mailing samples – particularly at the response device. We’ve all seen response devices from nonprofits that suggest five, six and even seven asking amounts. And the offers we get to bundle cable, phone and Internet service can be paralyzing.</p>
<p>Offering too many choices can immobilize the reader’s decision-making process and cost us a sale.</p>
<p>Taking the lessons from Professor Iyengar’s study, let’s make it simple for our reader to respond. For nonprofits, three suggested contribution amounts plus an “Other” option is more than enough. But whether asking for a contribution or a lead or a sale, keeping it simple makes it easier for the prospect to respond and feel good about it.</p>
<p>Littering surveys with too many questions is no different. Surveys are a great way to involve the reader with our mailing but we need to keep it simple.</p>
<p>You’ve probably have received a telephone call asking for your participation in a survey. You’re interested in the subject so you say “yes” and 20 minutes later, you can’t wait for the call to end.</p>
<p>Let’s not make the same mistake with our mail.</p>
<p>Remember, when we include a survey in a mailing, its purpose isn’t to gather information, it’s to encourage a response!</p>
<p>Limit yourself to five or seven questions and allow the reader to move quickly to the order form.</p>
<p>And finally, don’t accept the argument that the reader needs more choices to understand the offer’s full value. Instead, accept this as a challenge to do better list selection. Better segmentation of your mailing list will reduce the need to overwhelm the reader with too many choices.</p>
<p>We can all learn from the jam research. Keep it simple, make it easy for the reader to respond and the result will be better than your morning toast.</p>
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		<title>Defining a Direct Mail Copywriter&#8230;</title>
		<link>http://www.cdmdirect.com/who-we-are-what-we-do-and-how-it-makes-us-different/</link>
		<comments>http://www.cdmdirect.com/who-we-are-what-we-do-and-how-it-makes-us-different/#comments</comments>
		<pubDate>Fri, 19 Feb 2010 03:14:05 +0000</pubDate>
		<dc:creator>Hugh Chewning</dc:creator>
				<category><![CDATA[Copywriting]]></category>
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		<description><![CDATA[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]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.cdmdirect.com/wp-content/uploads/2010/02/Defining-a-direct-mail-copywriter.pdf">Click to download as pdf</a></p>
<p>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.</p>
<p>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.<br />
<a href="http://www.cdmdirect.com/wp-content/uploads/2010/02/Who-we-are.jpg"><img class="alignright size-medium wp-image-558" title="Who we are" src="http://www.cdmdirect.com/wp-content/uploads/2010/02/Who-we-are-300x155.jpg" alt="Who we are" width="300" height="155" /></a><br />
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.</p>
<p>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.</p>
<p>Each time I approached a house, I developed a plan before knocking on the door. Then, if I could entice the homeowner into<span id="more-540"></span> opening the door, I quickly gave them just enough information that they wanted to listen to what I said next.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>What we do as direct response copywriters isn’t that much different.</p>
<p>We’re not artists, authors and certainly not general advertisers. Pure and simple, we’re salespeople and we sell benefits.</p>
<p>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.</p>
<p>Awards, pretty packages and beautiful designs don’t measure our success. Net profit does.</p>
<p>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.</p>
<p>Yet, better than anyone else, we <em>motivate people to take a desired action</em>.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p>Is there a moral or lesson here?</p>
<p>You can decide. But I do hope there’s a reaffirmation of why we can be proud of what we do.</p>
<p>Let me know what you think. I welcome your thoughts.</p>
<p style="padding-left: 150px;">Hugh</p>
<p>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.</p>
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