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Direct Marketing at a Glance

Direct marketing is the umbrella term for all forms of advertising which address the recipient directly. Learn how this type of marketing works and how you can use it for your business.

What is direct marketing?

There are three main elements to direct marketing: customer, data and testing. Essentially, it is the process of contacting your existing and new customers directly and leaving them with a specific call-to-action. Thanks to a specified actionable segment, you are able to easily track campaign results. While being cost effective, this is also an extremely powerful sales generation tool. It focuses on maximizing response rates while keeping advertising costs down.

what is direct marketing?

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Email marketing
Direct mail
Brochures & leaflets
Reply cards
Event invitations

Different types:

Direct advertising generally refers to simple advertising by means of personalized letters or emails.

Dialogue marketing is also known as direct response marketing. As the name suggests, this is all about entering into a dialogue with existing or potential customers. The interaction possibilities are therefore higher than with direct advertising. The customer is explicitly encouraged to contact the company. Dialogue marketing is usually implemented by means of particularly high-quality advertising media or via direct contact, e. g. by telephone.

CRM is all about taking care of existing customers. Here, marketing is carried out based on existing customer data, mainly in order to improve customer loyalty. This data is used to segment the customer base. Due to this focus on data, CRM may also be referred to as database marketing.

How does direct online marketing work?

To some extent, direct online marketing and email marketing can be used interchangeably. Emails especially lend themselves to personalization, and are a low-effort, low-cost way to send each and every recipient a unique message. With an ROI between 1 and 40, email marketing is definitely worth it.

Email marketing not only consists of newsletters; automation is also a crucial component. Many of the most important customer retention emails can be automated, saving you considerable time and effort.

Direct marketing methods

There is an extremely diverse range of channels when it comes to direct marketing. Even mass media, such as TV, can be used. Some examples include:

 Leaflets, circulars, magazine inserts, brochures and catalogs

Telemarketing: Telemarketing: follow-up calls, customer service over the phone, telephone surveys

TV: Sales programmes, infomercials, phone competitions

EMail Marketing: Direct email campaigns such as newsletters, transactional emails, lifecycle campaigns, autoresponders, trigger emails

direct marketing benefits

Benefits of direct marketing

Direct marketing allows you to generate a direct response from targeted customers.

  • Focus marketing resources on targeted customers
  • Improve future campaigns
  • Boost sales with a clear call-to-action
  • Increase customer loyalty
  • Recapture old customers
  • Get trackable, tangible results

Who should use direct marketing?

Businesses of all sizes can benefit from direct email marketing, be it technology companies or non-profit organizations. Compared to general advertising, it offers a healthy return on investment. According to a 2010 study by the Direct Marketing Association, commercial marketers and non-profits spent $153.3 billion on direct marketing – a figure which accounted for over 50% of all advertisement spending in the USA.

Who should use direct marketing?
Email is the most popular method of advertising among consumers – over 70% prefer it to other forms of communication!

Building a successful direct email marketing strategy

There are four basic principles to launching an effective strategy:

Step 1: Start with the database

Before you send out another marketing communication, make sure that your database is accurate and up-to-date. Remove duplicate entries and correct any typos or mistakes to prevent hard bounces. Lean more about managing your contacts using our newsletter software.

A clean database is a great source of intelligence when it comes to your customers. It will provide you with basic customer information (gender, age, location) as well as their buying habits. Once you are finished with data analysis, you can divide your customers into various groups and target them with tailored email campaigns. Learn how to choose the best sender address for your email campaign.

Step 2: Call-to-action

In order to be measurable, marketing communications should track the user’s responses somehow. Every direct marketing campaign should encourage the reader to take a specific action, such as “Subscribe to download this whitepaper” (preliminary step leading to sale) or “Buy now to enter prize draw” (sale).

No matter what the call-to-action may be, a successful direct marketing campaign uses the response-rate data to measure campaign effectiveness. While the data should adjust the immediate campaign, marketers shouldn’t stop there. All campaign data should be analyzed in order to get a better overview of your direct online marketing pursuits.

Step 3: Choose the right tools

Once you’ve divided your subscribers into different segments and come up with a compelling call-to-action, you can decide how you’d like to reach them. Newsletter2Go’s world-class newsletter dispatch system will enable you to reach your audience securely and reliably.

Make the most of:

  1. Flexible newsletter dispatch: Design the subject and preheader, schedule newsletter dispatch ahead of time and send out newsletters with attachments.
  2. A/B Testing and test emails: You can also test different versions of your emails on sample groups, before rolling out the campaign that will deliver the best response rate.
  3. Personalized newsletters: Customizing your newsletter has never been easier. With Newsletter2Go, you can easily personalize the subject line, preheader and sender address for each newsletter. You can also customize specific sections of the same email, so you can send targeted messages to different customer groups without having to create entirely separate campaigns.
  4. Email marketing automation: Create automated direct email campaigns in no time and track your customers’ lifecycle. You can use automated dispatch features to create lifecycle campaigns, including birthday emails. Lifecycle campaigns deepen your relationship with customers and enhance your brand.

Learn more about Newsletter2Go’s professional email dispatch.

Step 4: Track campaign results

Direct marketing puts the emphasis on measurable responses. Learning from feedback and acting on it is an essential component of any successful marketing campaign. Newsletter2Go offers a wide range of tracking tools that will provide all the insights you need in order to continuously optimize.

Use our real-time tracking tools to:

  1. Track your open and click rates: Measure your subscribers’ engagement.
  2. Gauge the conversion rate number: Build conversion tracking into your newsletter to measure the conversions and sales that have resulted from it.
  3. Measure bounce rates and unsubscribes: Get real-time statistics regarding any emails that could not be delivered (bounce rate). The unsubscribe and bounce rates give you information about the quality of your address list and of your newsletter.
  4. Evaluate newsletter content: Discover which content elements of your newsletter perform best with the heat map. See which links in your email were clicked on. Furthermore, you receive the actual figures as well as the results in percentage format.
  5. Connect with third-party tracking tools: With Newsletter2Go, you can activate third-party tracking tools such as Google Analytics or econda.
  6. Clustering: Clustering allows you to segment your recipients according to identifying traits and find out how your email divided up the recipients within this given group.
  7. Geolocation: Track open rates according to location with Google maps.
  8. Export newsletter statistics as PDF or Excel: Send out white-labeled reports to your customers or colleagues in PDF or Excel format.
email newsletter reports

Want to use direct marketing for your business? Discover the power of professional email marketing – try Newsletter2Go free today!

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