[PCO Marketing] Bull's Eye

In a marketing environment that can best be described as fragmented, direct mail remains an excellent way to deliver a message to a targeted audience.

Pest management professionals typically should use direct mail through the U.S. Postal Service for two reasons: First, mail is used to invoice and communicate with existing customers. Second, mail helps us efficiently expand our customer base and increase route density.

“Throughout the year we contact our customers regarding new programs, updates in our services or offering them additional services for their homes,” said Lynne Frederick, vice president of marketing for Massey Services. “We are committed to developing strong relationships with our customers and direct mail allows us to do this more effectively and efficiently than other means.”

Jim Grogan, CEO of MBI Direct Mail, a national marketing company based in DeLand, Fla., says PMPs especially can maximize results through strategic direct mail. “Pest companies that have a decent customer base can build additional capacity around existing customers very efficiently,” Grogan said. “Messages can be delivered to potential customers next door, around the corner and up the street from existing customers by generating a list and then cleansing that list of existing customers.” Grogan said the mailing even can be personalized so the prospective customer, as well as nearby existing customers, are contacted and referenced by name.

Historically, direct mail marketing has relied on a four-step process necessary for success, Grogan said. First is getting the message to your desired target. Second is getting your target to open your piece. Third, your target needs to actually read it, and fourth, the target customer must act on the offer. These days, with hundreds of broadcast, satellite and cable TV stations, endless billboard ads, terrestrial radio and the Internet, consumers are deluged with messages. The secret to cutting through all of that noise and then turning that prospect into an opportunity for PCOs is simple but not necessarily easy.

“Direct mail gets ‘directly’ into the hands of consumers we’re trying to reach,” said Mike Davis, chief operating officer of Black Pest Prevention, Charlotte, N.C. “If the message is compelling and the mailer arrives where and when it’s supposed to, then it seems like that would be a recipe for success.”

IT'S ALL ABOUT THE LIST. There’s an old axiom that the three most important issues in real estate are location, location and location. In direct mail, it’s pretty much the same.

“Make no mistake,” Grogan said. “The three most important aspects to a successful direct mail campaign are, in order, the list, the list and the list.” Specifically, in direct mail, the list must reflect the right potential customer.

“We’ve always understood that our best next customer often lives right next door to our current customer,” said Massey’s Frederick. “If their demographics and psychographics are similar, then their purchasing habits can be expected to align.”

The next requirement for success is extending an attractive offer. Many PCOs already know how much both a lead and a sale cost as a percentage of their marketing investment. It stands to reason that the more compelling an offer is, the higher the potential rate of return will tend to be.

“At first, we tried sticking with our standard marketing discounts,” Davis said. “That resulted, frankly, in a less than satisfactory return. So, we bumped the offer up from a 15-percent discount to a 25-percent discount. The difference in cost was insignificant, but the difference in response was major!”

Direct mail in the pest management environment typically skips the “get them to open it” step with the use of oversized postcards instead of envelopes. Although there’s some mystery to an offer in a sealed envelope, the discount number (whether a percentage off or actual dollars off), right on the face of the postcard is hard to miss.

“Getting the customer to act involves two elements,” Grogan said. “The first is urgency, typically in the form of a deadline. The second is some tangible bonus for actually buying,” such as a gift card, a free future service or even a cash rebate.

Massey Services also uses mail to ask satisfied customers for referrals. “Our ‘Pass It On’ program rewards both sides of the transaction,” Frederick said. “The referring customer and the referred customer, upon actual purchase, of course, receive the incentive. We use either department store or restaurant discount cards.”

The best part of direct mail is that it provides easily measured results. On internal applications to existing customers, the transaction is captured internally, so it’s simple to track. And leads and sales from external applications can be tracked via incoming phone calls or Web site contacts, and by asking for the “coupon” to be presented at the time of purchase.

“As long as mail is delivered to homes and businesses, direct mail marketing and advertising are going to have a place in most service applications,” Grogan said.

Frederick agrees. “By no means are we relying solely on direct mail,” she says. “We invest in all forms of media and marketing communication. But in certain and specific applications, direct mail provides the best means of reaching a very targeted and specific audience.”

“The right offer delivered to the right audience at the right time” — this phrase applies in virtually all marketing initiatives, but no more so than in strategic direct mail.

The author is vice chairman of Massey Communications, Orlando, Fla. He can be reached at bbrewer@giemedia.com.

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The Low Down on Direct Mail

While some feel direct mail is in a downfall, supporters say that a smarter, more targeted approach and a wide variety of new mail applications will continue to emerge.

“A Channel in Transformation: Vertical Market Trends in Direct Mail 2009,” a white paper by the Winterberry Group released in February 2009, predicts that companies who invest in direct mail will shift “their focus to lower-volume, more targeted and higher-value campaigns, with traffic generation to the store, Web and call center being the primary objective…” Nearly 87 percent of respondents, who represent categories such as data management companies, marketing agencies and fulfillment centers (among others), say they are seeing higher demand for digital products that link mail usage to other marketing channels. To make the most of your marketing dollars: segment, segment, segment and include a powerful call to action that helps prospects connect directly with your company. — Chris Brazell, PCT contributor