We all make mistakes, but years ago a teacher told me, “If you’re not making mistakes, you’re not doing enough.”

Mistakes can be learning experiences, but as valuable as it is to learn from our own mistakes, it can be more profitable to learn from the mistakes of others.

Throughout my 30-plus years of direct marketing, here are five of the most common mistakes I see mailers make. And regardless of our own experience, we can always profit from the lessons others had to learn the hard way.

1. Refusing to make a long-term commitment to direct mail

Successful direct mail is methodical. It requires a plan and the discipline to follow the plan. It is not a get-rich-quick scheme.

Not everything will go right on every mailing. Whether you are a startup or a mature mailer, some tests will lose money, and your organization needs to have a long-term commitment to its direct mail program in order to get through these situations. You can’t repeatedly start and stop a direct mail program and hope to be successful.

You can test direct mail and if in six months it doesn’t prove profitable, you can get out. But, with very few exceptions, you can’t make direct mail profitable in six months. Successful direct mail is a process of building upon test results from one mailing to another. It takes discipline and commitment. There are no shortcuts.

2. Not doing the math first

Before investing money in a mailing, determine the results you need to justify its costs. Without this information, you can’t make an informed decision on whether the mailing makes sense.

It’s one thing to read test results and acknowledge that a mailing failed, yet it’s far better to avoid any test that has little chance of succeeding.

Too often mailers test offers, formats and premiums that because of their cost require an unrealistic response to beat the control. And just as often I’ve seen mailers reject a promising test because they thought it cost too much.

Performing a few easy calculations–using rollout costs–before you commit to the test will help you determine whether a test makes sense. (See How to Use a Pre-Event Routine for More Profitable Direct Mail Testing.)

3. Ignoring list selection

Nothing plays a greater role in your mailing’s success than list selection. No matter how good the copy or offer, you’re not going to sell lawnmowers to Eskimos. Work closely with a list professional who has experience in your market and who will take the time to learn about your organization, its competitors, the mailing’s offer and your past mailing results.

Yet as invaluable as a good list broker is, don’t make the mistake of forfeiting responsibility for list selection.

Take list selection personally. Marketing directors should understand the list selection process, what the selected lists have in common with existing customers or donors, and where the names originated. (Are these survey names, previous buyers, subscribers, etc.?) Copywriters can’t talk effectively to the recipients without knowing what lists are being mailed. And only by understanding who will receive the mailing can a graphic designer select the proper colors, fonts and graphics.

Stay involved with your mailing’s list selection. There’s nothing more important to your direct mail’s success.

4. Failing to invest in a regular testing program

I’d be a rich man if I had a dime for every time someone said, “I don’t need to test. My control is still working.” Or “I can’t afford to test.”

In truth, you can’t afford not to test. And you certainly don’t want to wait until your control stops working before launching a testing program. That would be like waiting until you crash your car before buying auto insurance.

There are a limited number of people who will respond to your mailing, and that number shrinks each time you mail.

Even the best mailing packages get fatigued. To remain competitive, you must continue to test new lists, offers, formats and copy. Even the few direct mail letters that remain the control year after year need to be “tweaked” to maintain response. A successful direct marketer is always pushing for better results, and you can achieve this only with a disciplined testing program.

5. Don’t ask for the order

Direct response is sales pure and simple. If you’re too embarrassed to ask for the order or contribution, or if you believe that asking doesn’t reflect your organization’s image, then you’re in the wrong business.

As direct marketers, our job is to convince recipients to take a specific action. Whether it’s to buy a product, make a contribution or provide contact information, you need to tell the recipients exactly what you want them to do. Then remind them and, finally, tell them again.

You must ask for the order. Otherwise you’re engaged in a public information or brand-building effort. And while these are both noble exercises, they are not direct-response marketing.

This list of five common direct mail mistakes isn’t intended to be a complete list of “learning experiences.” You probably have an experience or two you want to add to the list, and I would appreciate seeing your comments below.

But let’s all agree that it’s better to learn from the mistakes of others than to pay to make the same mistakes ourselves.

Download as pdf

Getting the basics right goes a long way toward achieving direct mail success. In my last post, we discussed 11 strategies that you’ll want to include when planning your next campaign.

You can see these here.

To complete 21 Steps to Direct Mail Success, here are ten more often overlooked strategies that you’ll want to include in your next campaign.

12. Test, test and test are the three most important rules of direct mail; yet mailers regularly claim they can’t afford to test. In truth, you can’t afford not to test. Even the best mailing packages fatigue. There are a finite number of prospects who will respond to any mailing, and each time you mail your control, fewer and fewer people remain in this pool of names. To remain competitive, you must continue to test new lists, offers, formats and copy. Even the few direct mail letters that remain the control year after year are “tweaked” with subtle changes to maintain response. A successful direct marketer is always pushing for better results, and this can be achieved only with a disciplined testing program.
13. Test the big things. When you’re looking for breakthrough results, test the lists, offer, format and copy. Testing minor copy revisions on page 3 or changing the paper stock of the reply form or the color of the return envelope will make a difference only to large-volume mailers. To everyone else, it’s a waste of money.
14. Maintain control of the package design. Don’t surrender control of the package’s design to the graphic designer. Direct response isn’t about looking good or winning awards. It’s about getting results. Understand how people read direct mail and design your layouts accordingly. It may not look “award winning” and the designer may not agree with your choice of type, but readability is more important than pretty. (See How to Use Graphic Devices to Boost Direct Mail Response Rates.)
15. Focus on the letter. Brochures explain while letters sell. There are exceptions, but more often than not, including a brochure will depress results. And, if you don’t make the outer envelope interesting, no one will see your great letter copy. Focus on the letter, the response form and the outer envelope.
16. Ask for the sale. In direct response, your purpose is to convince the recipients to take a specific action. Whether it’s to buy a product, make a contribution or generate a lead, you need to tell the recipients exactly what you want them to do. Then remind them. And tell them once again. To make the sale, you have to ask for the order.
17. Test before you adapt. We can learn from the mistakes of others and we can learn from their success, but every organization is unique, so don’t assume that what works for your competitor will work for you. Test it first.
18. Put the needs of your donors or customers first. You’re not the only one writing to your customers, and more often than not, even your multiple buyers/donors won’t remember your name. In every communication, remind even your most frequent donors/buyers what your organization is, why it’s important to them and how they benefit.
19. Give the copywriter all the information he or she needs. Several clients have told me that they don’t want to prejudice my thinking by sharing package samples or past results. But are you paying the copywriter to be creative or to beat your control? We live in an “age of skepticism,” and the more information the copywriter has, the better the job he or she will do. Besides, an experienced copywriter can often discover new concepts buried in old package samples and research material.
20. Respect your test results. In direct response, we don’t need to decide what lists, offer or copy works best. With proper testing, the customer will tell us what works. Before adopting any major change to your mailing package, double-check the list work for the test, review package samples and confirm your postal receipts. But once everything checks out, don’t second-guess the test results.
21. Deal with the back end before you mail. When accepting orders via phone, everything comes down to one telephone call. And if the person answering the phone isn’t trained, professional and polite, you’ll not only lose the order, you’ll lose the customer. And if you’re directing respondents to a landing page, make certain that its contents and look match that of the mailing piece. Confirm your inventory and work through the entire ordering process to ensure that it gives the customer a good experience. And be certain that procedures are in place to credit telephone and online respondents to the mailing’s results.

Including these essential steps in your direct mail campaign doesn’t guarantee success, but these steps will greatly increase your probability of achieving a successful mailing.

You can download the complete list of “21 Steps to Direct Mail Success” as one document in my Direct Mail Resource Center.

Download as a pdf

The key to success is to avoid making mistakes. And with direct mail, getting the basics right accounts for 95% of all successes.

21 Steps to Direct Mail Success

You can find many articles about effective direct mail testing, copy and design in my other posts, but here I focus on key–but often overlooked–elements of a successful direct mail campaign.

Below are 11 essential elements of a successful direct response campaign. In my next post, I’ll follow up with an additional ten steps that you’ll want to incorporate in every direct mail campaign.

1. State the campaign’s objective clearly. Get everyone focused on the same goal before launching the campaign. Generating a lead is quite different from closing a sale with a prospect or cross-selling to a customer. Each effort has its own expectations and everyone needs to understand how to measure success.
2. Start with a budget. Every direct response campaign is measured by its results. Know how much you can spend to meet these expectations, and before you mail, establish how much money you’ll have to follow up on your initial tests. It doesn’t do you any good to achieve breakthrough results unless you have the resources–time, money and personnel–to exploit your success.
3. Establish a mailing schedule. Knowing that even the best plans will change, I schedule mailings twelve months out. Holidays, annual events, anniversaries, etc., often inspire donor and customer mailings, and these dates can become the core of your schedule with other “To Be Announced” mailings planned around them. For acquisition mailings, schedule follow-up mailings 45-60 days after the test is in the mail–or the number of days it will take to receive, process and analyze the returns plus the time required to produce the follow-up mailing. Without a schedule, project dates quickly begin to slide and things just don’t get done. A schedule is one of your strongest planning tools.
4. Do the math first. There is no reason to spend money on a direct mail campaign if the results needed to turn a profit are unrealistic. We all enjoy a challenge, but, for example, a 20 percent break-even response on an acquisition mailing isn’t realistic. Do the math first and avoid any mailing that has little chance of success. (See How to Use a Pre-Event Routine for More Profitable Direct Mail Testing.)
5. Focus on the mailing lists. The creative portion of the mailing may be the most fun, but it’s not the most important. Turn your attention to selection of the mailing lists. Nothing will play a greater role in your success or failure than list selection. No matter how good the copy or offer, you’re not going to sell lawn mowers to Eskimos. Work with a list professional who has experience in your market and will take the time to learn about your company, its competitors, the mailing’s offer and your past mailing results.
6. Show the benefits. No one really cares what your gadget does or how worthy your organization is. What they care about is how they will benefit from responding. The benefit can be tangible or intangible, but fulfilling the prospect’s needs is far more important than anything you’re selling. Show how your offer meets the prospect’s needs and you’ll make the sale.
7. Don’t reject a promising test based on price alone. Just because a test cost 50 percent more than the control doesn’t necessarily mean you need to increase response by 50 percent or more. Rather than ask how much the test costs, ask, “What response does this test need to beat my control?” (See link provided above in #3.)
8. Test new offers. The offer is what you promise the recipient and what you ask in return. And your offer is second only to the mailing list in terms of its effect on the campaign’s success. If you’re looking for breakthrough results, test the offer. (For ideas on offer tests, see 17 Ways to Improve Your Direct Mail Offer.
9. Test enhancing your mailing package. You’re more likely to increase net profit by adding to the package than you are by eliminating a component. Test new package components that promote the premium, display testimonials, emphasize the guarantee, and add credibility to the organization or letter signer. “Bells and whistles” like address labels and peel-off stickers for the prospect to move to the response form still work and often give you a big bang for the buck. (The one component you probably don’t want to add is a brochure. If you use a brochure now, see what happens when you drop it. It’s likely a drag on results.)
10. Hire a professional direct response copywriter. You may have someone within the organization who, because of his or her intimate involvement with the group and the sincerity of his or her beliefs, can produce a letter that outperforms copy written by a professional direct mail copywriter. But these people are few and far between. Hire a professional direct response writer. It will be money well spent. And recognize that copywriting for general advertising and direct response copywriting are two different skill sets.
11. Now is the time to test. Don’t wait until your control stops working before testing new lists, offers, formats and copy. If you do, cash flow will come to a halt and you’ll feel like you’re standing in a hole trying to dig yourself out. It’s not a career-enhancing move.

In my next post, I’ll publish ten more easy steps to take to achieve direct mail success. (Subscribe to my blog–see sign-up in the navigation column to the left–and you’ll receive this next post automatically.) In the meantime, best wishes for your continued success.

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 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?

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.

In effect, I was targeting my market.

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.

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.

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.

My sales skyrocketed.

Then I learned not to talk about the magazines, but instead, to describe what the homeowner could get 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.

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.”

And I would never walk away without asking for the order.

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 try the magazines?” rather than “Do you want to place an order?”

Once I made the sale, I didn’t linger. I said “Thank you,” and went to the next house.

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.

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.

Regardless of the medium, we all:

• Share the same objective—making the sale.

• 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.

• 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.

• Evaluate success by measuring our return on investment.

• And when things don’t go our way, we listen to our customers and adjust our offer so that it better meets their needs.

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.

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.

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.

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.

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:

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.

In my last post, I talked about when to test direct mail premiums. Now, let’s discuss 3 different types of premiums, why you’ll want to test each one and how to make them work for you.

First, let’s acknowledge that when we test a premium, we’re testing a change to our offer and nothing, other than list selection, will have as great an affect on our results.

We use premiums to motivate the reader into taking a specific and desired action. It isn’t to reward, inform or thank the reader but to promote response and increase the mailing’s net income.

If this sounds crass, recognize that whether you represent a commercial or nonprofit client, the most important measurement of your mailing’s success is net dollars.

Net dollars will not only please the shareholders, it provides the food, shelter or medicine so desperately needed by those your organization serves.

Make no mistake about it. Premium will increase your costs. But our objective – whether working for a nonprofit or commercial mailer – is to increase net dollars to fulfill the organization’s mission.

Here’s a true story…

Years ago, I went to a county fair with a friend. As we were walking down the fairway, a “barker” came out and offered us a silver dollar for 50¢. Immediately, I accepted the offer yet my friend refused. Why? She said, “I don’t want to spend the money.”

Unfortunately, that’s how too many people look at their direct mail. Even investing more can generate additional net dollars, the don’t want to spend the money.

If you’re satisfied with a .01% or .02% improvement in results, then save the cost of premiums and test the color of ink on your envelope or copy changes on pages two and three of your letter. But if you want major improvements to your mailing’s profitability, try offering a premium.

Here’s 3 ways premiums can work for you…

Front-End Premiums

When testing a “front end” premium, you’re giving it away in the mailing. For example, a fundraiser might include free name labels or a software company may include a free CD in the mailing.

Other front-end premiums I’ve used successfully include pamphlets, Certificates of Appreciation, membership cards, name stickers, decals, pens, greeting cards, note cards, flower seeds, key chains, plastic luggage tags, bumper stickers, iron-on patches and membership cards.

Front-end premiums often generate a higher response rate but are more expensive since you’re paying to send the free gift to all recipients – respondents and non-respondents alike. (And yes, “Free Gift” is worth the repetition of words.)

It’s also true that front-end premiums can reduce the average order/contribution and long-term value of the respondent since some responses will be guilt-motivated.

Front-end premiums may even “lock” you into premium mailings when it comes time to renew these donors/buyers. But, because they generate a higher response, they’re great if you want to build your donor/customer file.

And the bottom line is still net dollars. If you increase net dollars, a higher cost or smaller average order shouldn’t matter. You’re still returning more money on the organization’s investment and generating more dollars to fulfill the group’s mission.

Back-end Premiums

With a “back-end” premium, the recipient must respond to receive the gift. For example, a magazine publisher might offer a free book to people who respond before a certain date. Or, a nonprofit might offer to send you a free coffee mug once they receive your contribution.

I’ve successfully used calculators, American flags, emergency road kits, coffee mugs, calendars, ball caps, plaques, lapel pins, membership cards, free trips, software, travel bags, tool kits, digital cameras and books as back-end premiums.

Their advantage is that you’re only fulfilling the premium to those people who buy/contribute so your overall costs are lower. Additionally, those who respond to back-end premiums typically have a higher average order and their lifetime value tends to be higher than those who only respond to front-end premiums. But back-end premiums may not generate as many responses as a front-end premium and they do require added fulfillment costs.

Fast 50 Premiums

A “Fast 50” limits the premiums to the first fifty people who respond. (You can also have Fast 100s, Fast 75s, etc. There is nothing sacred about “fifty” but it’s what I’ve used and it works.)

Lately, I haven’t seen Fast 50s used but they can give you the best value of any premium offer.

You’re limiting your premium to the first 50 people who respond so your costs are lower than either front-end or back-end premiums. And, because you’re only fulfilling 50 gifts, you can offer a higher-value premium.

Yet because everyone receiving the mailing is eligible, your copy can have the same “hype” as any other back-end premium.

Typically, I gained a 25-30% lift when adding a Fast 50 premium offer to the mailing. (For nonprofits, I’ve also tested offering gifts to the first 50 people who responded from each state but found little difference in results from a straight Fast 50 offer.)

Conclusion

When testing premiums, you’re changing the package’s offer so the return on investment can be immense. And when used intelligently, there should be no stigma associated with premium offers.

What premium should your organization test first?

It’s nice to test a gift that relates to the organization’s mission – the environmental group’s backpack offer for example. But don’t overlook the greed factor. For years, it was hard to beat a hand-held calculator but you have to test and see what offer is best for your group. It’s simply a search for balance – perceived value vs. cost.

Do you test front-end, back-end or a Fast 50 premium?

Ideally, you will test all three and see what works best for you. If you can’t do that, ask yourself, “what is your objective?” Are you trying to build your file quickly? If so, you may want to test front-end premiums or a Fast 50.  If you’re looking to increase the average contribution or order, consider a back-end premium.

And premiums aren’t just for acquisition mailings. Test them to your house file too.

But whatever you decide, do the math first! Know how much the premium must increase response to breakeven with the control. It makes no since to test a premium that’s so expensive it needs a 500% lift to break even.

Good luck and let me know your results.

There are only two occasions when you should test direct mail premiums.

The first is when you’re not using premiums. If you’re not, you should test them now. The second occasion? When you are using premiums, you need to continue testing new ones.

Many organizations hate premiums. But most donors and customers love them and since this is a customer-driven business, I suggest you test them now.

Premiums don’t have to be expensive gifts. Often the best ones are unused merchandise sitting in a warehouse or the nearly forgotten informational pamphlet that’s begging to be used.

Countless organizations have enjoyed huge success by offering address stickers, note cards, decals, bumper stickers, iron-on patches, certificates of recognition, membership cards and a host of other relatively low-cost premiums. As long as you can give the premium a perceived value, it can be a valuable tool in increasing your mailings’ response.

If you can connect a premium to the organization’s mission or offer, all the better. For example, the American Diabetes Association offered a cookbook of low-sugar meals. An auto club offers an emergency road kit while an environmental group offers a backpack. Not only do these offers connect with the group’s mission, they give the prospect an additional reason to respond.

But don’t overlook the “greed factor.”

Net dollars is the deciding factor of success and a calculator, radio or iPod may, for example, work better than a premium that is a natural tie-in. It’s something you’ll have to test.

Why do premiums make such a difference in a mailing’s success? Because when you add a premium to the mailing, you’re affecting the offer. And, as we know, nothing other than list selection will make more of a difference to the mailing’s success than the offer. The return on investment can be significant just remember. . .

• Do the math first! Know how much the premium must increase response to breakeven with the control. It makes no since to test a premium that’s so expensive you’ll need a 500% lift to break even.

• Don’t make the mistake of adding the premium offer into the letter’s P.S. and thinking you’re done. The premium is part of your entire package, not just an afterthought. You may want to feature it on the outer envelope, in the letter’s “Johnson box” or lead sentence, the response form, or even in a separate insert. And, depending upon the premium, you may want to build an entire story around it.

• The prospective donor or buyer isn’t obliged to respond just because you enclosed a premium. And even when the mailing enjoys a higher response rate, the average contribution or order is often lower.

• But a lower average contribution/order isn’t reason enough to shy away from testing premiums. It simply means you need to give extra attention to your efforts to upgrade the donor or resell/cross-sell the buyer.

• Many first-time buyers/donors may require another premium to continue responding. Once you’re into the premium business, you may always be in the premium business. On the plus side, with a premium you can recruit a donor or customer who would not have responded otherwise. And as long as your premium offers out net non-premium offers, you’ll still ahead.

• With premiums, your package cost will be higher. But what’s important is net dollars.

• Don’t assume that if a particular premium works for another group, it will work for you. You’ll need to test different premium offers — and non-premium offers — to see what works best for you.

• Don’t forget to consider the cost of fulfillment when using a backend premium.

You do want to test a premium but remember it’s only one part of your direct mail package. You must still observe the essential elements of traditional direct mail — list, offer, copy package and timing. While a premium can dramatically improve your mailing’s results, it alone won’t guarantee success.

Oh…I mentioned that there was only one reason to test premiums and that’s to increase net dollars. Whether you’re trying to please shareholders or raise more money to feed the hungry, cure the sick or shelter the homeless, it’s net dollars that gets the job done.