Going Direct

Direct mail is one of the most effective ways of growing your customer base, but it can be costly if you don’t know what you’re doing.

Of all the marketing methods available to pest control companies, one in particular offers great potential for attracting new prospects and maintaining current business relationships with customers. And that’s direct mail.

WHY USE DIRECT MAIL? Direct mail enables you to specifically target your audience, an opportunity you rarely receive in “mass marketing” like radio, television or newspaper. And it’s the best way to keep in touch regularly with current customers.

Few other marketing methods match direct mail in its ability to support your overall marketing campaign. If prospects see a billboard, hear a radio commercial and receive a direct mail package containing the same unified message, they are likely to remember your company when they need service. In doing so, you are building awareness, name recognition and subsequently a larger customer base.

COMMON OBJECTIONS. Direct mail sometimes receives a bad rap among pest control companies that have tried it and received less than desirable results. Let’s address, up front, the most common objection to direct mail: cost.

The actual cost of producing a direct mail package depends to a large extent on the format used. A postcard mailing or single letter mailing will be the least expensive from a production and postage standpoint. To create a more elaborate direct mail effort, consider the following elements that contribute to the overall cost of the campaign. The approximate percentage of the total cost of a typical direct mail campaign appears in the chart on page 56. This example is based on a classic direct mail package that includes a letter, brochure, reply card and envelope going to 20,000 recipients.

  

RESPONSE RATE. Most direct mail gurus agree that a 1% to 3% response rate to a direct mail campaign is about average. However, you can increase your response rate in several ways.

Clarify your message. All direct mail requires writing copy. If writing is not your strength, make some notes and turn the writing over to an expert who can represent your company and your services in the best possible way. Test the message by having it reviewed by both employees and potential recipients.

Timing. Given the seasonal nature of the pest control business in many areas of the country, mailing just prior to spring or during the summer will appeal to consumers when insects begin to become visible problems.

Regularity and repetition. Repetition is one of the keys to a successful direct mail campaign. A one-time mailing to prospects is rarely effective. Many marketing experts agree that a person must be contacted at least five to seven times before they consciously think of you when they need your service. Distributing a unified mailing (one with a consistent look and message) every two to three weeks for a six- to 12-week period will increase awareness.

THE MAILING LIST. Your most valuable mailing list is your customer list. Some of the most effective direct mail goes to your current customers to keep them informed of all the services you offer and to generally keep in touch. A newsletter is one of the best ways to keep in regular contact with current customers and “cross-sell” other services. “Well,” you may think, “they’re already customers, so why should I send a direct mail package to them?” Nearly every pest control company provides a variety of services that all customers may not know about. This is the easiest kind of selling. How many of your present customers are fully aware of all the services you offer? Do they know that you offer deck cleaning services or specialize in ant control work? Cross-selling services to current customers through direct mail represents a significant profit potential and one that should not be overlooked.

Mailing lists can be rented or purchased from list brokers and mailing companies. Before renting or buying a list, however, determine a profile of your targeted customer — income, geographic area, new residents, age, etc. Then use these demographics to determine the list you rent or buy. Because a one-time direct mailing is rarely effective, negotiate for a three- or four-time use rate with your list broker. The price of a list is usually based on a cost-per-thousand basis, depending on if you buy or rent the list.

Take advantage of organizations where you hold memberships and use their roles as a prospect list. Check with the organization’s policies. Some groups discourage use of their membership list for marketing purposes.

DIRECT MAIL OR BULK? Other factors to consider before embarking on a direct mail effort include determining if you want to invest in a first class or bulk mailing and selecting the various components of your direct mail package. A review of each of these factors follows.

In mailings of more than 200 pieces, you’ll save significantly on postage by using a bulk mail service. Check with your local post office on bulk mail regulations and services. The most effective direct mail packages include a personalized letter — addressed to the recipient by name. Of course, this is most easily accomplished when mailing to your own customers.

Though they may be less expensive, lists without actual names (those addressed to “current resident”), are not as effective as lists with contact names. Remember to ask for a printout including phone numbers for later phone follow-up.

Reaching customers through direct mail can be accomplished through various formats. Some of the most cost-efficient ways include letters, postcards, newsletters and self-mailers. Multi-part mailings containing several components, such as a business reply card, brochure and letter are very effective, but more expensive than the above-mentioned formats.

FOLLOW-UP. Direct mail reports indicate that response rates are increased by systematic phone follow-ups after a series of mailings. Unless you have someone devoted to marketing your services, it is best to subscribe to the services of a tele-marketing company that will call everyone on your list.

There is no single correct method to track the responses of a direct mail effort. However, a tracking system is an important part of all direct mail efforts because it enables you to learn what works and what does not. As prospects call, ask whether or not they received your mailing or how they heard about your services.

A final word of advice … if you’re reluctant to launch a sizable direct mail effort, start small. Mail to your own customers or to a small geographic area in your service area. If you feel you lack the expertise necessary to produce an effective direct mail campaign, solicit the help of a marketing expert.

COST BREAKDOWN FOR A DIRECT MAIL EFFORT

In planning for direct mail, determine your break-even point using the following formula:

Average current selling price of service minus cost of materials, overhead & labor per service equals: Profit per service

Total expenses of direct mail production and development divided by profit per service equals: Number of additional services necessary to break even

June Van Klaveren, owner of Compelling Communications, Inc., specializes in helping pest control companies grow their business through effective marketing techniques like direct mail. She can be reached at 800/779-0067.