Offer strategy in Direct Marketing

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Sunanda K. Chavan
Direct marketers have to figure out an effective offer strategy to meet the target’s needs. Nash sees the offer strategy as consisting of five elements-the product, the offer, the medium, the distribution method, and the creative strategy. Fortunately all of these elements can be tested.

Each medium has its own rule for effective use. Consider direct mail. In developing a package mailing, the direct marker has to decide of five components.

Each component can help or hurt the overall response rate. The outside envelope will be more effective if it contains an illustration, preferably in color and /or a catch reason to open the envelop, such as the announcement of a contest, premium, or benefit to the recipient.

Envelopes are more effective—but more costly – when they contain a colorful commemorative stamp, when the address is hand typed or handwritten, and when the envelope differs in size or shape from standard envelopes.

The sales letter should use a personal salutation and start with a headline in bold type in the form of a news lead, a how/what/why statement, a narrative, or a question to gain attention. The letter should be printed on good-quality paper and run for as many pages as are necessary to make the sale, with some indented paragraphs and underlining of pertinent phrases and sentences.

A computer –type letter usually out pulls a printed letter, and the presence of a pithy P.S. at the letter’s end increases the response rate, as does the signature of someone whose title is appropriate and impressive. A colorful circular accompanying the letter will also increase the response rate in most cases by more than its cost.

The reply should feature a toll-free number and contain a perforated receipt stub and guarantee of satisfaction. The inclusion of a postage-free reply envelope will dramatically increase the response rate.

Consider on the other hand, a telemarketing campaign. Effective telemarketing depends on choosing the right telemarketers, training them well, and incentivizing them. Telemarketers should have pleasant voices and project enthusiasm.

Women are a script and eventually move toward more improvisation. The opening lines are critical. They should be brief and lead with a good question that catches the listener’s interest.

The telemarketer needs to know how to end the conversation if the prospect seems to be a poor one. The call should be made at the right time, which is late morning afternoon to reach business prospects, and the evening hours between7 to 9 to reach households.

The telemarketing supervisor can build up telemarketer enthusiasm by offering prizes to the first one who gets an order to the top performer.

Given the higher cost per contact telemarketing, and privacy issues, precise list selection and targeting is critical. Clearly, other media, such as catalog mail order, TV home shopping, and so on, have their own rules for effective use.
 
Direct marketers have to figure out an effective offer strategy to meet the target’s needs. Nash sees the offer strategy as consisting of five elements-the product, the offer, the medium, the distribution method, and the creative strategy. Fortunately all of these elements can be tested.

Each medium has its own rule for effective use. Consider direct mail. In developing a package mailing, the direct marker has to decide of five components.

Each component can help or hurt the overall response rate. The outside envelope will be more effective if it contains an illustration, preferably in color and /or a catch reason to open the envelop, such as the announcement of a contest, premium, or benefit to the recipient.

Envelopes are more effective—but more costly – when they contain a colorful commemorative stamp, when the address is hand typed or handwritten, and when the envelope differs in size or shape from standard envelopes.

The sales letter should use a personal salutation and start with a headline in bold type in the form of a news lead, a how/what/why statement, a narrative, or a question to gain attention. The letter should be printed on good-quality paper and run for as many pages as are necessary to make the sale, with some indented paragraphs and underlining of pertinent phrases and sentences.

A computer –type letter usually out pulls a printed letter, and the presence of a pithy P.S. at the letter’s end increases the response rate, as does the signature of someone whose title is appropriate and impressive. A colorful circular accompanying the letter will also increase the response rate in most cases by more than its cost.

The reply should feature a toll-free number and contain a perforated receipt stub and guarantee of satisfaction. The inclusion of a postage-free reply envelope will dramatically increase the response rate.

Consider on the other hand, a telemarketing campaign. Effective telemarketing depends on choosing the right telemarketers, training them well, and incentivizing them. Telemarketers should have pleasant voices and project enthusiasm.

Women are a script and eventually move toward more improvisation. The opening lines are critical. They should be brief and lead with a good question that catches the listener’s interest.

The telemarketer needs to know how to end the conversation if the prospect seems to be a poor one. The call should be made at the right time, which is late morning afternoon to reach business prospects, and the evening hours between7 to 9 to reach households.

The telemarketing supervisor can build up telemarketer enthusiasm by offering prizes to the first one who gets an order to the top performer.

Given the higher cost per contact telemarketing, and privacy issues, precise list selection and targeting is critical. Clearly, other media, such as catalog mail order, TV home shopping, and so on, have their own rules for effective use.

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