3 Ways to Grow Your Business with Direct Mail

June 10, 2015 -

The primary goal of every business is profitable growth.  To achieve and sustain profitable growth, it helps to have a clear understanding of how growth occurs.

Business growth strategist, Jay Abraham, teaches that there are three ways to grow your business.

  1. Increase the number of customers
  2. Increase the average transaction value,
  3. Increase the purchase frequency

Run the numbers…

Here’s the strategy Abraham presents in his book, Getting Everything You Can Out of All You’ve Got.

  1. Calculate your number of clients
  2. Figure the average amount they spend on each transaction or sale
  3. Determine how often they make a purchase in a year

For example:

1000 (customers) x $100 (transaction value) x 2 (transactions) = $200,000 (Total Income)

Add a 10% increase in each area:

1100 (customers) x $110 (transaction value) x 2.2 (transactions) = $266,200 (Total Income)

Taken together, those three 10% improvements combine to expand your business by a total of 33%. And frequently, that results in doubled income with very little difference in operating costs.

Direct mail can help you achieve all three… Here’s how.

1. Increase the number of customers

Highly-targeted direct mail is one of the most effective ways to gain new customers. However, in order for your campaigns to be effective, they should include the following.

  • Targeted list - Compile a list of your best customers and mirror those demographics to build a list full of people who will likely purchase your product or service.
  • Consistent Cadence - Set a consistent mailing schedule (once or twice monthly) to create brand recognition, reinforce your message and boost your conversion rates.
  • Stylish Format - Choose the right texture, weight and size for your mail piece.  Larger sized and plastic postcards stand out from other mail and folded self-mailers are ideal for menus, newsletters, sale flyers.
  • Creative Design - Feature attention-grabbing headlines and eye-catching colors and images to pique your prospects’ interest.
  • Compelling Offer - Give prospective customers a compelling reason to buy.  Freebies, discount coupons, and special events entice your customers to take action; while expiration dates encourage them to act quickly.
  • Personal Touch - Use variable printing to personalize your mail piece.  Grab your readers’ attention by highlighting the closest location and addressing the consumer by name.
  • Digital Integration - Add a unique URL or QR code that drives prospects to your website or social media where they can access special deals, learn more about your product/service, or place an order.
  • ROI Tracking - Utilize coupons, PURL’s, website and social media forms, call tracking or other appropriate means to track response rates.  Analyze your results and make adjustments as necessary.

2. Increase the average transaction value

Encourage customers to buy more each time they purchase from you.  Help your customers discover a need they didn’t know they had.

  • Cross-sell - Offer related products or services that compliment or enhance your original offer.  Customers are often intrigued by an add-on product/service that boosts the benefit of the original purchase.
  • Up-sell - Offer bigger or better alternatives to your original offer.  Customers are often willing to get a bigger size or better version of a product/service for a few more dollars – if they know it is available.

3. Increase the purchase frequency

Acquiring more sales from your existing customer base is a smart way to grow your business.  Existing customers already know, like and trust you… Now all you have to do is give them a reason to come back for more.

  • Coupons - Incentives such as coupons are a great way to encourage customers to purchase from you more often, as people often feel they are wasting money if they don’t redeem coupons. Also, you can widen your range of potential clients by offering multiple coupons.

For example:

10,000 postcards x 2 offers = 20,000 redeemable purchases for your customers


10,000 postcards x 8 offers = 80,000 redeemable purchases for your customers

You pay the same price for 80,000 offers as 20,000 offers, yet significantly increase the number of times a customer will likely purchase from you.

  • Loyalty Programs - Include items such as magnets and loyalty cards to stay top-of-mind with your customers and encourage repeat purchases.
  • Limited time or quantity offers - Use words or images that create a sense of urgency. When something is limited, customers perceive the value to be higher and their likelihood of purchase increases.

Now that you know the three ways direct mail can help grow your business, you want to ask yourself these questions:

  1. What processes need to be in place to enable successful execution of a direct mail campaign?
  2. Do we have the right people and skills to effectively implement a direct mail campaign?

If you would like some help setting up your processes and executing a successful campaign, reach out to The AMG Team.  We have the skills and expertise necessary to help you grow your business by incorporating the methods described above and:

  • Providing you with the best lists possible,
  • Leveraging our extensive knowledge of USPS regulations to get you the biggest impact for the lowest price,
  • Printing your piece to your specifications, and
  • Mailing your piece with quality control and on time.

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3 Ways to Grow Your Business with Direct Mail | Blog