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Tip 11. Tight targeting

Posted: 26 February, 2018    |    Author: Eleanor

It’s tempting to cast a large net and see what it draws in. However, in order to get a better ROI, your approach should be targeting the ideal, most likely customers in your reach.

Sending out generic, impersonalised mail won’t get you the results you want. Irrelevant direct mail doesn’t catch your customer’s attention and won’t get any response rate. If you send out a targeted direct mail to only 100 customers instead, 5% response rate is obviously still more than 0% of a larger audience.

Customers also react well to personalised mail and are much more likely to give it attention if it’s relevant to them. By targeting customers who might have bought something previously or are the right demographic for your products, you are reaching the right audience to respond to your mailer. Your ROI will be much better as you aren’t going to be wasting money on mail to unlikely customers.

Virgin Trains sent out direct mail including “The Northerner’s Guide to London” and a £10 voucher off their new journey. They targeted a northern audience, specifically to fill seats on their Manchester to London route. By making the content relevant and targeting the right audience for this, they managed to convince 11% of households to go on to purchase a Virgin Trains ticket and generated £2.4million in revenue. If they’d targeted southerners with this direct mail, the ROI may have been much lower.

Be clever with your data and target the right people and you’ll see the benefits.

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