WHO DO I BLAME IF MY DIRECT MAIL FAILS?

If you have only 3 seconds, how can you dramatically improve the number of prospects reading the letter inside your direct mail package?

Fail the 3-second test and you've wasted thousands of precious marketing dollars.

You can spend a lifetime discovering the direct mail secrets on your own.

Or, you can tap into the expertise of a direct response agency.

For example, can you name the most important component of your direct mail package?

Following up on last month's newsletter topic on the 3-second rule and the role of decision making shortcuts, your outer envelope (OSE) determines whether or not customers and prospects open your direct mail packages.

A LIFETIME OF STUDYING DIRECT MAIL

As direct marketing professionals, we approach our daily mail much differently than our fellow man…or woman.

We actually look forward to the day's mail.

We are anxious to dissect it; much like a biologist dissecting a frog.

Scalpel in hand – no, make that a letter opener – we carefully separate the whole into its many parts in order to make our curious observations.

"Exactly what are we looking for?" you might be asking yourself.  

Like the skilled biologist, we are attempting to learn everything we can about each mailing…hoping to discover new things that we have never seen before.

Our ultimate goal is the "eureka" moment when we discover something new we can use to improve the direct mail packages we prepare for our clients.

Such was the opportunity recently when your editor received two #10 envelope packages on the same day – both from well-known insurance companies. In itself, this was an unusual occurrence.

Much like a forensic scientist, I carefully placed my two direct mail specimens side by side on the kitchen table (the direct mail expert's operating table) in order to study the fronts and backs of the envelopes in detail before proceeding to dissect them.

Initially, quickly scanning both, much like a prospect would, I chose the Farmers package over Geico.

Almost immediately it occurred to me that perhaps my choice was biased by my extensive knowledge of direct mail. So, I realized I'd have to ask others to make the same choice given only a few seconds to do so.

THE ENVELOPE TEST

I randomly selected 20 people in various locations to view both envelopes placed next to each other. Before showing the envelopes, I asked each respondent to imagine they were thinking about auto insurance at the time both envelopes arrived in the mail. Being generous from a time perspective, I told them they had only 5 seconds to look at both envelopes and tell me which one they'd open first and why. I then wrote down their brief explanation of why.

All 20 responses can be seen in the sidebar.

Having to make a decision after only 5 seconds, each of these consumers had to rely on their mental shortcuts for scanning the outer envelopes of mail received daily.

According to direct mail legend "Rocket Ray" Jutkins, there are five truths about how consumers approach direct mail envelopes.

1. They look at their name first to make sure the mailer was meant for them and that it is spelled correctly.
2. Second, they look at the teaser copy, especially the teaser copy closest to their name.
3. The third thing they do is look to see "who" sent them this mailing.
4. Fourth, they look to see the type of postage used – stamp, meter, or preprinted indicia.
5. And fifth, they turn over the envelope to see if anything appears on the back.

This ritual is performed to answer three basic questions:

1. Is this mailing meant for me?
2. What's it about?
3. Who sent it to me?

And remember, all this is done in approximately 3 seconds!

Without mental shortcuts developed over time, this would be impossible.

MENTAL SHORTCUTS FOR ENVELOPES

Last month we introduced you to Professor Robert Cialdini's trigger events or shortcuts consumers use for making quick decisions…like which direct mail packages to open and which to discard immediately.

Ray Jutkins called these mental shortcuts "the five truths."

Veteran copywriter and direct mail expert Pat Friesen refers to them as OSE hot spots.

We'll now cover each of them in more detail.

THE NAME AND ADDRESS BLOCK

The preferred method of personalization for most direct mailers is to personalize the letter and use the name and address block on the letter as the "driver" for the outer envelope. This requires using a window envelope.

Other, less desirable options are ink-jetting, hand-writing, and applying a preprinted name and address label. These options are generally used on non-window or closed-face envelopes.

Of all the options, the least desirable is applying a preprinted label as it screams of "junk" mail. Unfortunately, labels are often the personalization of choice when branch managers are empowered to create their own mailings.

When electing to use your prospect's, or customer's, actual name, it is mandatory that it be spelled correctly. A misspelled name is guaranteed to get your mailing thrown in the trashcan.

As you'll see in the sidebar, using a window envelope, both Farmers and Geico used personalized letters as drivers. Of the two, Geico took a less personalized approach by including "Or Current Resident" in the second line.

At this point, it's important to note that there are exceptions to personalization. For example, years of testing have shown that improved response results occur when highly targeted prospect mail like ACTON Marketing's free checking program substitutes "Neighbor" or "Current Resident" for an actual consumer name.

An entire book could be written on the science of direct mail customer and prospect lists and personalization. This is why it's so critical that you partner with a direct response agency for your direct mail campaigns.

THE TEASER COPY

Most direct mail experts recommend using teaser copy on the outside of your carrier envelope. The late Ray Jutkins offered this advice: "There is every reason you should begin your direct mail offer on the outside of your envelope; competition for your reader's attention. Clearly 70% to 80% of the mail I receive has teaser copy. This must say something…teaser copy works."

According to direct mail expert Alice Taus Williams, "Try to position important [teaser] copy close to the address block. People always look to see who the mail is addressed to, which means they're more likely to see the copy near their name."

As you can see from the Farmers envelope, the teaser copy offer appearing in the blue and red type appears directly above the prospect's name. The creative director knew what he or she was doing by putting the "hundreds of dollars a year" copy in bright red. It was mentioned by five of the survey respondents.

The Geico folks used the pile of money with eyeballs – named KASH – in an attempt to get prospects to open the envelope and read the letter inside. To ensure a double exposure, KASH was printed on the top of the letter and was visible through the extra-wide window on the OSE.

Commenting on the envelopes, ACTON Marketing's creative director noted: "Geico doesn't stand alone on its own merits. It gets attention and recognition only because it is tied to a multi-million-dollar media blitz."

This is confirmed when you read the comments explaining why some survey respondents chose the Geico package over Farmers.

Robert W. Bly, one of today's most highly-paid and prolific direct mail copywriters, had this comment about teaser copy: "Contrary to popular opinion, the purpose of an outer envelope teaser is not just to get people to open the envelope. The true purpose of the teaser is to create an expectation for what is inside the envelope, making the reader more receptive to the message and offer."

Based on Bly's comments, the teaser copy on the Farmers envelope was superior to that offered by the Geico folks. Perhaps this is one of the reasons more survey respondents choose the Farmers package.

One final note about teaser copy. Did you notice and read the three customer testimonials on the Farmers envelope? Not one of the survey respondents mentioned them during the interviews.

THE CORNER CARD

This is the sender's identification that appears in the upper left corner on the front side of the envelope. While the company's full name and address with logo is the standard, often mailers will opt for less information.

Consumers take a quick glance at the corner card so they know who's mailing to them. Often this one piece of information alone is sufficient to get the mail trashed. Think of those pesky magazine offers, for example.

Geico and Farmers took two very different approaches to their corner card. Take a quick look at the samples in the sidebar. Which one immediately grabs your attention?

Taking the bland approach, Geico opted to reveal only its address using one color. The corporate name in bold type appears on the back flap. Fortunately for Geico, its street address includes the company name.

Meanwhile, the folks at Farmers took a more aggressive, attention-grabbing stance, displaying their bright red and blue name, logo, and tagline. The company address appears on the back flap.  

In some cases, a mailer will attempt to hide the source of the mail. These mailers draw the ire of direct mail veteran Ray Jutkins. According to Jutkins, "For reasons that somewhat amaze me, there are those who say direct mail with NO identification on the envelope is best.

"Would you run a newspaper or magazine ad without your name? Would you go on the radio or television with a commercial without your name? Would you print a brochure or piece of literature without your name? Since the answer is always 'No, of course not,' then I ask you why you send a piece of direct mail without your name on the envelope?"

Unfortunately from an experience perspective, there is no right answer to what works best in the corner card. Only extensive testing will provide you with the right answer for your bank or credit union. And this intelligence often changes over time.

THE POSTAGE

Let's face it…the postage on the majority of direct mail pieces consists of the preprinted indicia like those on both the Geico and Farmers envelopes.

Why?

It's faster, less-expensive, and more efficient than applying live postage stamps.

And really, would a live stamp on either the Geico or Farmers envelope suggest to prospects that something other than promotional mail was inside?

Yet, there are other postage options.

According to freelance copywriter and author Robert W. Bly, "Conventional wisdom says the best to worse, in order of preference, is a stamp, then a meter, then a preprinted indicia."

Going into even more detail, direct mail expert Hugh Chewning suggests, "Live stamps usually more than pay for themselves, with the hierarchy looking something like this: multiple stamps beat a commemorative stamp; commemorative stamps beat regular stamps; regular stamps beat postage-metered indicias; and postage-metered indicias beat pre-printed indicias."

This being said, the type of postage you select should fit the image of the entire package. And the postage decision should ultimately be based on testing.

THE BACK

As mentioned above, both companies chose to put a portion of their company identification on the back flap, leaving the remainder of the back totally blank.

As a result, both mailers failed to effectively use the back sides of their outer envelopes. This could have been a cost decision or a decision based on extensive testing.

One of the most prolific direct mailers in the country, Omaha Steaks, almost always fills the backs of its envelopes with graphics and teaser copy.

Using the back of your envelopes gives you a second chance to ensure prospects open your outer envelope and read the contents inside.

Remember, according to Ray Jutkins, almost all direct mail recipients turn over the envelope to see if anything appears on the back.

Putting teaser copy – even graphics – on the back of your outer envelopes will help make your package stand out in the daily pile of mail because so few mailers actually spend the money to do so.

Ideas for what to put on the back of your mailing envelope include:

• A restatement of the offer which appears on the front.
• Your offer's expiration date.
• Customer testimonials.
• Company awards received.
• A list of satisfied customers.
• Your guarantee.
• Graphic visuals that reinforce your offer.
• Photograph of a free gift offer.

At a minimum, consider the back of your carrier envelope during package design.

AND THE WINNER IS?

Who do you pick as the winner in this month's great "envelope smack down"?

Is it the very colorful Farmers envelope with the bright red offer on the front?

Or, do you prefer the mysterious "What's this?" teaser approach taken by Geico to get you to open its envelope?

Based on our very small, random survey of 20 consumers, 13 or 65% preferred the Farmers envelope. Very interesting is that of the seven respondents choosing the Geico envelope, all are women. And most of them mentioned Geico's ubiquitous TV commercials as the reason for choosing Geico.

Unfortunately, our small survey aside, we'll never know which envelope actually worked better and why.

Major direct mailers like Farmers and Geico spend millions a year on direct mail and are always working with their direct response agencies on testing.

And they NEVER disclose the direct mail secrets they discover through constant testing.

The only way to really know which envelopes work best for your bank or credit union is by testing. And this is why it is extremely important to partner with a direct response agency.

A direct response agency's scientific approach to dissecting everything from newspaper ads to direct mail packages ensures that your marketing dollars are being spent on elements that work and are cost-effective.

The winner is really you – the newsletter reader.

Now you know more about the three-second rule and the fact that consumers use mental shortcuts for making quick decisions. You've become familiar with the shortcuts your customers and prospects use when encountering your newspaper ads and direct mail packages.

Our ongoing goal is to help make you better, more informed marketers.