Direct Mail Advertising
What is Direct Mail?
The purpose of distributing direct mail is not to sit around and wait for customers but to actively attract new customers. Certainly, there are more methods to attract customers other than DM.
There are many ways to publicity starting from least costly window sign to local newspaper, radio, TV, direct mail, etc. However, because all of aforementioned means of publicity has both merits and demerits, there is a need to grasp which one will be the most appropriate for you prior to beginning.
“ 80:20 rule ” (Pareto's Law)
This is something you are already known or heard about it …
But, how many of those owners actively take part in their business? Probably, only a few of you are actually walking the talk.
Although all of you may know, I will explain once again what aforementioned rule is. With annual sales of $500,000, if total number of customers is 5000, 80% of total sales which accumulate to $400,000 are from 20%, 1000 in number, of loyal customers, not 80% of customers, 3200 in number.
For example, Dry cleaning business.
Here, what we need to think about is that, those customers who only bring in laundry, therefore not bringing you much profit, may be premium customers in others ' businesses. For example, you purchase computers or other electrical goods if you need them regardless of the prices, or some of you unsparingly spend money on expensive brands ' or famous makers ' clothes or bags.
Likewise, we need to know that everyone has different life patterns as well as different areas of expenditures. People who will be profitable to cleaners ' are those who wear clean suits everyday, and to restaurant owners are those who are epicures. It is when you are acquainted with people with such life pattern, both owner and customer can be accommodating each other.
But, majority of retail businesses, including cleaners ' , have limits in their business district. Given limited population in a limited area of business, you need to be attentive of the following when running a business.
First, you need to grasp the percentage of current number of customers when compared to the total number of households in your business zone. Even if you ran a business in the same location for more than 5 years, it is rare to have . Of course, this value includes those who ' ve been to your store at least once, therefore is not correct representation of present customers. Actual value will not even be half of the stated amount. To reiterate, the reality is that you wait and just hope for 90% of total tentative customers to come to you.
What is the reason? Why are there people who haven ' t used your service at least once or people who stopped coming to your store? First of all, you need to check if there is anything wrong with the services you are providing and compare. If your customers have stopped coming to your store to go to competitors just because of price, the problem is simple and is nothing of big concern. However, if the reason was due to dissatisfaction of your service, the problem is critical.
Also, one more thing to be concerned about is that satisfaction of your business ' s service is not absolute but rather conditional. In other words, the loyal customers who continue to use your service do so because they are satisfied to an extent, not because of utter “ need for your particular store ” . If loyal customers, who were steadfast even with assail of sale from competitors, realize that there isn't much difference in service between yours and competitors ' , your business is bound to suffer a big blow.