At the bottom of the pile was yet another car dealer promotion. What’s so special about the next “great offer,” I often ask myself? It’s not like these dealers don’t send tons of mass mailings.
But this piece was well done. My last name was included in the license plate graphic. Impressive, I thought. Reading through the piece, I thought back to Dale Carnegie’s salesmanship courses, which stress the importance of a client hearing his name. It seems people like reading their name as much as hearing it.
The technology used in the mailer is called variable data printing. Although VDP is not a new technology, VDP has made massive strides in recent years. Direct mailers have gone from only being able to provide name and address to fully customizing graphics and content. VDP resulted from businesses aggregating mountains of information. Printing presses then interface with this massive network of personal info. The result is VDP: each piece is printed specifically with “my” demographics in mind.
Information and technology are the difference. Today’s databases are not only more available but also much more detailed. For starters, list companies are combining their respective lists and truly creating a “snapshot” of clients. In addition, digital printers with computer interfaces and powerful software are becoming the norm. Not surprisingly, VPD is becoming an increasingly effective communication tool.
The VDP trend is music to a lot of ears. Considering the fact that direct mail is a multi-billion dollar industry with an average return of 1.5%, the potential is huge. Even slight increases in ROI would be lauded, as today’s marketers struggle with sliding return figures.
Although critics point out that VDP is expensive, it can produce responses of around 25%. Compare this with the industry average of 1.5%. If that’s not stunning enough, some VDP trials have reported response as high as 70%. In short, VDP is breaking records while changing all of the rules.
The beauty of VDP is that it can work with any client. However, if all the customer surveys are correct and It’s five times easier to get business from an existing customer than acquiring a new one VDP is best served with current clients. Naturally, there is a wealth of information and understanding already in place with those pre-existing clients.
Well, I suppose the license plate offer was different. With fully customized content and design, the message was pertinent and engaging. Someone was talking to me one on one. I was a client in the past and I’m suddenly listening again. What music to a direct marketer’s ears?
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