Mind Your Behavior (jschmid.com)

Understanding how to stand out in the mailbox is more important than ever in 2020 and beyond, especially so because of today’s competition for consumer attention. In fact, a 2015 study said the average American is exposed to anywhere between 4,000 and 10,000 ads per day. That’s madness! With the large majority of these being digital ads, this provides a huge opportunity for direct mail and print marketing campaigns. Though the average person’s mailbox is much less crowded now than it has been in decades, this competition for consumer attention is more fierce than it has ever been. That’s why when it comes to your direct mail marketing campaign, you need to be very calculated in your approach; understanding cost, attribution, average ROI and the overall health of your house file are vital considerations that must occur with the launch of any successful direct mail program. Click Read More below for details

In the last two blogs written by Michelle Houston, she covered the importance of using Contribution Per Order (CPO), instead of ROAS when evaluating the performance of marketing programs. At the end of one of those blogs, she talked about the importance of also assessing and understanding the significance of lifetime value (LTV) as part of the equation. I wanted to continue that thread and take it a step further by incorporating LTV as the last step of the proper analysis into the equation. As covered in past discussions, LTV is an important metric to track as it will vary widely by acquisition source. When applied to the first order for a new customer, CPO is the equivalent to cost or profit per customer acquired. This will vary by acquisition source as well. When CPO is combined with LTV, those metrics are a powerful tool in driving your company in the right direction (or wrong direction if you’re not careful). In the analysis below, we can evaluate the total effect that CPO and LTV have on the current and future business.

We spend a good deal of our marketing efforts incenting customers to be loyal to us; to be our brand advocates. But doesn’t loyalty go both ways? Don’t we, in turn, need to demonstrate our commitment to our customers? It’s a two-way street, after all—a dialogue. One way to display your commitment—or loyalty—to your customers is to show them you know them: who they are, where they are, what they buy, and what they want. We all experience this kind of dialogue daily online: ads served up to us reflect our searches from 5 minutes ago; recommender engines tell us what else we’d like based on what is in our baskets. These days, it’s expected. Ubiquitous, almost. But what about in print? I’d posit that sending a targeted, relevant print mail piece audience conveys a more authentic investment to your customer. The real impact comes from using data and understanding your customers’ behavior. Variable data printing allows us to create powerful, relevant direct mail that speaks to individuals on a truly 1:1 basis. Personalization allows us to move beyond mass mailings and “spray-and-pray” direct mail. Instead, we can create messages and offers based on customers’ demographics, preferences, and histories… and show them we know them. Let’s revisit a few ways to consider showing your customers you know them in print. I’ve written about them before: they are the Three Ps. read more at: https://www.jschmid.com/blog/show-them-you-know-them/