Direct Response Marketing and Why It's The Only Type of Marketing You Should Be Doing

How do you direct response?

No lewiswharf, cold calling would be direct marketing if calling them directly. Direct response marketing would be a message or ad that causes them to respond to your message.

Like the definition I gave...

"direct marketing means...The marketer contacts the potential customer directly." which for example would be cold calling.

But Doran's comment about yellow pages not being direct response marketing...

Yellow pages can actually be direct response if the message has direct response triggers in it...

it would not be direct response if just said for example "were company x and the phone number or address listed."

It becomes direct response when your message causes them to respond no matter where it is.

Most yellow pages are just another ad, but the smart ones who use the yellow pages have ads with the direct response marketing triggers in the message.

Question:

What would you do with a list like this (attached 690 targeted ornage county dentists) on a direct response campaign?

I am really open to the answer, because if there is a better way I want to know it.

Would direct response be any quicker, more efficient or less costly than just taking a day and calling these people?

Why would it be more effective? Cheaper or more efficient?

At a cost of .30 per mailing lets say... it would cost me $207 just on postage alone to reach these people... and probably another 10 cents per copy to create the flyers... and then at least a day of licking stamps and stuffing envelopes... and then it would take me a week probably to see the results of my campaign... just from what I figure. Then maybe a couple of phone calls to close the prospect anyway... if anyone responded with interest.

A print ad costs about as much... a 690 click google campaign for chiropractors would cost probably more... and then you only reach the ones who are regularly online, whereas EVERYONE has a phone.

A telemarketer costs less than 100 bucks per day, and I could reach every office on the list in that day and at least leave a message on their answering machine (A form of direct response).

I believe in direct response, classified ads...just wondering why it would be preferred over other forms?

Hey John in regards to your question...It depends on how your marketing to them, but...

For example..The costs would be less obviously to call as you know because if approaching them on a mailing you figure about 50 cents a piece including your stamp, envelope, and letter so 690 people is $345 (on 1st mailing) versus someone with an unlimited call plan or phone bill which is pretty much free. However...(and again depends on your goal of the campaign)

The direct response mailing in my opinion would be way more effective if done correctly for a few reasons...

When people respond to your mailings...they raised their hands and said they are interested and you are only spending time with interested prospects and they are calling you.

On the other side of the coin...if you are cold calling them...

You are going through trying to get them on the phone, leaving messages, dealing with gatekeepers(which I know you know your way around those people) and spending a day or two on the phone screening through your list, following up, and other time taking issues and in business time is money as we all know.

Plus, in my opinion the positioning is not nearly the same. Cold calling them you are calling them, direct response they are calling you and already saying they are interested.

There's a lot of ways to go after them...but the best way if doing the mailings is to use a direct response offer to get them in the funnel and take the next step and then work with them from there if they have not bought right away.

I just did something similar but with chiropractors in a direct response mailing and results were phenomenal. Then the people who didn't respond to 1st mailings..

I would send the follow up sequence and if not heard from would follow up by phone but now I still had the better position and "lead in" since they already were familiar with myself and company versus me just cold calling and trying to start from square one.

There's a lot of ways to do this, but that's one profitable way if done right.

Sounds like alot more steps and alot more cost to get the same end result to me... I was giving it the benefit with the ".30 per mailing...".

At a minimum cost of $345 to reach the same list, along with days of preparation and weeks of follow up...I dont see the advantage, but thanks for the answer.

I think if you dont like cold calling, or dont want to hire a cold caller, this is a good way to go.

If you need targeted a list holla. I'll be glad to help.

Alright John...kind of a long reply but important to take home the true reality and point.

I think you missed part of the whole point John and I know your a big cold call fan and actually back in the day used to do that and was successful until I realized direct response marketing is way better and achieves better results if done right.

I actually even helped a few large companies with setting up their whole marketing departments from a to z included the telemarketing and to give you an example...

One of my clients was State Farm Insurance and they used to have all cold calling and nothing else in one of their agents branches. They would have callers power dialing and reach a few interested people a day and a lot of messages and a lot of the old "not interested" responses.

So rewrote their scripts and results become much much better but by adding the direct response marketing to the mix, he became one of the top 10 agents because of the direct response marketing and the switch on positioning.

There's actually way more steps usually in the cold call. That example I gave in response to your question never needed calls or even follow up mailings, however that I added it to make even more profitable.

Lets break it down even more simple as an example using your dentists and cold calling...

You have 100 dentists-

You have a telemarketer call those 100 people and maybe they reach 3 doctors on the phone directly, 80 messages on machines and the rest of the 100 (17 left) are messages left with the secretaries because the doctors with patients.

100 dentists in the mix John...

Now lets say the 3 out of 100 busy doctors they got on the phone maybe 1 says right away not interested because he's used to telemarketers bugging him all the time and they didn't even get to talk about what you were trying to do.

The 2 others may have a few minutes for you and then you set up a follow up time and if a dentist or doctor, hopefully you'll get all the time you need when you talk to them again.

The other dentists is a crap shoot if the dentists call you back from the messages left and you spend time again following up with those dentists again to try to reach them directly.

And the 17 messages you actually left with the secretary mostly go like this "Yes Dr. Some guy, telemarketer, or sales person called you about your business and left his number" which most likely go's right in the garbage. So then again you spend time following up with them. All that time to reach a few and maybe close 1 out of the 4 you eventually physically get on the phone...if they even know how to close that.

So you paid some telemarketer lets just say $8 an hour for 8 hours to do that which is $64 for the day which you would end up paying them way more hours because they need to follow up and get a hold of those people left messages with on different days.

That's a lot of unproductive time used and money spent.

Now lets use that same example but with my example of direct response mailing like I was speaking about. You mail 100 dentists at 50 cents a piece for letter, stamp, and envelope. We are only at $50 compared to your 1st days telemarketers cost of $64.

Lets just say you get 4 out of the 100 people right away to respond and there calling you because they are interested. Even if you close 1 of the initial 4...you are way ahead of the game in costs, time, and effort.

Now the other 96...let's just say eventually only 2 of the 96 call you a week later and again they are calling you because they are interested and lets say you just close 1 again. Now again your way ahead of the game in time and money. $50 versus more with cold calling and you are only spending time with interested parties.

You've accomplished more with less effort, time, and investment. Now of the other dentists, lets just say even on the low end, one more comes into your business...again your ahead versus cold calling.

Now the rest of the dentists you have a choice from that point...

Follow up or let go. The smart way to go is the follow up either by phone and or mail and again the choice is up to you. But now if you call them...they know you and know who you are versus a cold call or several follow ups.

The direct response marketing will always outpull for a major reason...

The telemarketer is on the phone trying to get that action that very moment from a cold call. Whether it's a sale or next step.

The proper direct response marketing piece is there for him to look at on his time whether it's during the day or at night when he gets home but injects the direct response you desire. And if you used direct response correctly, they will read it and respond right away.

It doesn't matter if you are the best in the world on the phone, if you can't talk to them...you can't close them.

I know you guys are big into cold calling and I think that's fine to have in the mix to generate leads, but have found from personal experience, working with clients, and huge amounts of other people online and offline...that direct response marketing will always win.

Now mailing is not the only way to go and the most deadliest number in marketing is 1...one sale, one lead, one way to generate leads or sales. You should always be using more than one method online and offline.

Now we could go into a whole other post about how to use cold calling with the direct response aspects but the positioning and results if done right are better with direct response versus other ways.

Also like you said at the end of your post about targeted lists...that's the only profitable way to go so if ever need help with the direct response marketing side...Holla as well...would be glad to help.

Sounds good... other than the fact that I expect a telemarketer to do 100 calls per HOUR, not day. So no, it doesnt cost $64 bucks to make 100 calls ... more like $8-10 bucks in your example.

So your original cost break down is more correct. The comparison is really $345 (minimum) against $64.00 at 8 bucks per hour.

However I pay TMs 15 bucks per hour and work them 7 1/2 Hours per shift... so lets call my cost $120 to reach the entire list as opposed to $345 minimum for mailouts...

I dont mean to hijack your thread though honestly. Wanted to know what the appeal was.

I think its just easier for some to do mailouts than telemarketing honestly, and more effective in that case, and thats not a bad thing... just wondering how the numbers stacked up.

Thanks for the great response.

For people who cant or wont cold call for one reason or another (The majority) to me this looks like a great plan, just requires some (Minor) investment and planning, maybe a little patience.

Honestly it sounds easier than managing a sales crew. "Easy" is a benefit that shouldnt be overlooked.

Whats positioning? If they buy... whats the difference between coming from one position or the other?

Post sale it means nothing how you were positioned prior to the sale... so it comes down to which one makes more sales faster with less cost in my book.

No doubt its EASIER to close someone who called you... but how many of those per day can you generate?

I would rather make more sales with cruder positioning than less with more glamorous positioning.

Seriously... I think this is a great idea, and it has worked for lots of marketing companies... just dont see what positioning has to do with it if one produces more volume (Gross revenue) faster than the other, with less cost... even though the positioning pre sale seems less glamorous.

Still I dont want to blow your thread. Thanks for sharing your experience with this. Its very informative and interesting.

Thanks David and i agree John on they should be making 100 calls at least an hour, but you have to put into account the facts like...people spoke to, messages, and if they are a true dialer like i used to do where wouldn't even hang up the phone-just click and keep dialing.

Using your $120 a day to reach that list on phone example compared to my $345 direct response mail example though on 690 people...

With the phone, the people they didn't get a hold of that day...you are paying the telemarketers to do so another day and follow up calls are involved and hang ups, messages and whatever. Lets say between the people they get of hold of, talk to, and close even 1 out of 200. Your total is like 3.5 people or something.

With the direct response mailings even on a 2% return...13.8 100% qualified responses calling you or responding yes I want it versus calling them.

Like I said, I know you're a big cold call fan and have done it for myself and other companies, I just feel from personal experience, working with clients, and others...

That the direct response marketing will outpull as far as overall closes or results and the positioning is way better. I think the cold call to generate leads is great, but more profitable to follow up with those leads through direct response after. Especially if your dealing with like for example...doctors and lawyers or other busy professionals who are in and out with clients or patients.

Anything can be great and bad depending on how used. I think adding a telemarketer to the lead generations is fine but would never use them for the close. I would either do that personally over the phone or through my direct response marketing.

But like I said...whatever works for you is great and every one of us should never just use one method to generate business or leads.

Typical institutional advertising is something often referred to as "tombstone advertising" because it sits there like a lump with typically no more than a "name - address & phone number" and possibly some useless slogan like "we're the best".

On the other hand "direct response advertising" is an advertisement that compels the reader/listener to TAKE IMMEDIATE ACTION ... to call you, come see you, send you money, email you, clip your coupon, etc.. It gives your prospect a reason to do something and do it now. Direct response makes an "offer" and gives you a reason to get off your butt and "respond" to what they've just heard read or seen.

You're right fasteasysuccess ... it's the kind of marketing that a small business owner SHOULD be doing.

Direct response is badly needed when it comes to offline businesses... most of their marketing is laughable I love direct response!