Why do Premium Offers Improve Direct Mail Response?

First and foremost, everybody wants something for FREE! It is a simple human instinct that appeals to our need for self gratification. That’s the simple answer.

Premiums cost very little, but have a high perceived value. You can very often offer premiums that your prospect perceives as very valuable but costs you very little in ‘real’ dollars. Remember, you are only sending a picture of the premium to the whole mailing and then giving the actual gift only to those who respond!

With this in mind, you certainly don’t want to alienate a customer, so make sure your premium (free gift) is as described in your literature.

Premiums can Lower Your Cost per Transaction!

This is a very interesting thing about premiums. And you’re probably thinking it’s counter-intuitive that a premium would lower your costs, but here’s how it lowers your cost per transaction.

Let’s say you mail out 10,000 sales letters, with no premium and you get a 2% response rate. That would be 200 responders. Let’s further assume you can be profitable with 200 responders. Now let’s say you offer the premium, and response goes up to 3%. This is not an out-of-the-ordinary response when you offer a premium. You now only need to send out 6,700 pieces of mail to get the same 200 responders as you did without the premium. And, for easy math, let’s say each mailing cost $1.00. You would save $3,300 on just the single mailing. If you assume your premium cost you $5 each for the 200 responders for a total cost of $1,000. You’re still saving $2,300!

How to Create an Irresistible Offer, Part I

Over the next several weeks we're going to talk about creating an irresistible offer. This is a vitally important element of your marketing campaign.

I often get letters to critique and the most commonly missed or lackluster element is the offer. So sit back and hold on tight as we wind down the adventurous ride that is the irresistible offer!

So what is an irresistible offer? It’ what you dangle in front of your target market that gets them salivating for your product/service. It triggers emotion and focuses on an end results.

The ultimate reaction you want from your clients or prospects from your offer is, "I'd be a fool if I said No to this!" Every piece of marketing you do must have an offer. And it can't be a ho-hum, run-of-the-mill offer. It must be something so great, so ideally matched to your target audience that there is no way someone could possibly justify ignoring it.

An irresistible offer can be used for lead generation in both B2C and B2B to get your prospects to 'raise their hand' and identify themselves as potential clients. The can also be used for a one-step sell of your product/service.

Finally, don't ignore the importance of making offers to your existing clients as well. You see this error all the time. Here’s an example I’m sure you can relate with.

Look at the lengths cable and satellite companies will go to get a new client. You see or hear the ads and you think, “Hey! What about me, I’m the guy paying for you to run those ads!” Don’t let your current clients feel ‘betrayed’ by such offers. Keep them in mind.

You should be using an irresistible offer in all three scenarios, lead generation, one-step sales and to your existing clients.

Stay tuned for later this week as we'll discuss the importance of matching your irresistible offer to yourperfect target audience. I'll see you then!

www.3DMailResults.com

We Interrupt this Broadcast

Send Us Your Mail and I’ll Send You on a Cruise!

Yes, you really did read that headline right. If you send me you’re 3D direct mail pieces I’ll send you on a cruise. Let me explain.

I’m always on the look-out for new, creative and clutter busting 3D mail. Most marketers are cheap or lazy, and most of the time both. So I get very little good direct mail in my mailbox each day.

Here’s where you come in and how you could win a cruise to either Mexico or the Bahamas. I want to see your new, creative and, most importantly, UNBORING direct mail.

When you send me your 3D Mail I’ll do two things. First, I’ll send you a written critique of the letter. A complete, written critique of what you did well, what needs improvement and what you should add.

Second, for each 3D Mailing you send me, I’ll enter you into our drawing for a 3-Day cruise to either Mexico (leaving from Los Angeles) or the Bahamas (leaving from Miami), plus $250 towards your airfare to and from the port city. If you send me one mailing, you'll get one entry. Two mailings will get you two entries, etc.

The drawing will take place in May 1, 2009. So be sure I receive your 3D mail before then.

Here’s all you’ve got to do. Just add the address below to your seed list and do your 3D mailing. About a month later I’ll send you my personal critique, plus confirmation of your entry into our drawing. It’s that easy. Simply add my name and my address that’s listed in the return address portion of this newsletter.

Travis Lee
3D Mail Results
6205 S. 231st St.
Kent, WA 98032

I can't wait to see all the great 3D mailing I get!