Increase direct mail response rate by 30%

Personalisation of direct mail, although still regarded as a form of junk mail, is growing globally twice as fast as above-the-line advertising; this is opening up opportunity for creativity and better results in marketing.

Through merging customer-specific information as opposed to data from a database with a creatively designed document, direct marketers can communicate with their target market on a more personalised level than was ever previously possible.

One template document is designed, but the text and graphics in the document can be changed to produce limitless unique messages. Variable data printing (VDP) adds impact to print communications, arouses interest and increases response rates. Promoters of VDP say recipients respond positively to the fact that the sender knows who they are, what they do, what their preferences are and other important personal information.

Customised

Graphics and words are customised to each prospect's demographics, purchasing patterns or other individual data. Marketers can even include the name and photograph of the appropriate sales representative or branch office of their company. The main aim of the direct mail is for it seemingly to communicate on a one-to-one level with individual prospects.

VDP is a great tool for conducting a wide range of marketing campaigns, and can be effectively used any time marketers want to appeal to individuals or particular target groups. Through the combination of essential marketing principles, strong creative work and an accurate database and knowledge of their customers and target markets, VDP can increase response rates from between 1% and 5%,that was previously thought to be acceptable by direct mail averages, to well between 20% and 30%.

Although VDP is still in its early stages in South Africa, according to figures released by research company InterQuest, VDP will increase by 30% in 2007, effectively doubling since 2003.

Two market segments

There are two distinct market segments that can be addressed by VDP.

Firstly, there is the monthly printing and mailing of customer statements and invoices that includes all personal transactions and purchases. This category of merge and mail is well understood by most businesses.

Then there is direct marketing that is much more complex in that its success depends on the quality of the information that a company possesses pertaining to its target market and customer base. The problem is that most companies are still sending out mass general messages or promotions to purchased databases or to all their customers.

This results in a low response rate as there is little or no appeal for the majority of recipients who are not the exact target market.

The real benefit of VDP is only realised when marketers make use of meaningful databases or when they use specialist CRM software that collects and maintains all relevant information pertaining to their customers.

Creative with technology

Marketers must also be creative with the technology available when developing campaigns. VDP is enabled by technology but not driven by it. Creativity must drive the use of the technology, and the more organisations see what can be done with VDP, the more creative future projects will be, and the more the technology behind it will take hold.

When these aspects are achieved, marketers will be able to see the power of VDP and then it will grow into a formidable marketing tool.

The ultimate success of VDP depends on more companies understanding the benefit of CRM as a business tool and the importance of one-to-one marketing. And, as markets mature, CRM and the customer retention benefits VDP promises can become key marketing tools.