I saw another one of those “how to grow your business“ articles this weekend. It talked about getting more sales, asking for more referrals, hiring a commission only sales person, etc. There’s only one (rather big) problem with these ideas, and that’s saturation. All these “how to grow your business” articles suggest that you add more marketing campaigns. That takes work, it takes time, and it takes money. Obviously, you need time and money in order to grow your business, but you also need sales. So you end up with a chicken and an egg problem.
What can you do about this? I’d like to invite you to explore an option which you might not have heard of yet, but which can help you create the growth you've been looking for.
Direct Mail and Creating Predictable Income
Imagine having a “magic marketing campaign” that you could launch at ANY time. What if you had a campaign which would guarantee you a solid stream of new business inquiries every time you ran it? What if, in addition to this, you had a follow up campaign (one which you’d send to existing customers) which would bring in new sales every time you ran it? I know, it sounds like a pipe dream, but you can do this using direct mail. All you need is:
• A list of qualified prospects (which you can buy from a reputable list broker).
• A multi-step direct mail campaign using proven, prewritten flyers.
• A multi-step followup campaign using direct mail online marketing.
Now, imagine this, you send out your direct mail campaign, you get some leads AND some sales, then you funnel your leads into the follow up campaign which you’ve already created. If your original multi-step direct mail campaign and your follow-up campaign have solid conversion rates, you could literally predict how much money you’d make by sending out the campaign.
Of course, marketing isn’t an exact science, but if you test responses and refine your campaign, you WILL come up with a way to systemize and to predict your results. Don’t believe me? Here’s something which might make you want to reconsider…
A Billion Dollar Business Model…Based on Chance?
Casinos depend on probability to make sure that they win more money than they give away. They have winning down to a science; at least, I’d assume that they do, considering that they’re making billions of dollars every year. For casinos, winning isn’t just about luck. They’ve perfected a system which allows them to use probability to create winning patterns. Does this “uncertain” approach work? Of course it does. Just look at the size of their building. So why can’t you create a multi-step direct mail marketing campaign, test your results and identify the winning and losing patterns and create something that brings predictable results?
For example, here are a few things to look at the next time you run a direct mail campaign:
• Your lead generation rate
• Your conversion to sale rate
• Your campaign ROI
• Your profit margins and total lifetime value per customer
• Your review rate (earning reviews is just as good as earn money)
Looking at these will help you see all the potential areas for improving your direct mail campaign. Many marketers assume that they’ve “failed” when this equation doesn’t work:
Money earned from new sales - Money invested = ROI
But what if you miss ROI by $100? Is that a failed campaign? What if you examine the campaign, look at the conversion to sale rate, the lead generation rate, the profit margins and the review rate, and determine whether the campaign has potential for creating long term profits? What if the real problem isn’t ROI and you simply need to improve your follow up success? What if the REAL problem isn’t conversions? What if it’s profit margins? How many options are there for improving the performance of your direct mail campaign? Can you test a higher price point to solve this problem? Can you develop a more dependable system for getting reviews and use those reviews to beef up future campaigns?
These are the questions you need to be asking yourself. It’s not just about hitting ROI. If you make a few improvements - run the campaign again - you might end up breaking even. You might even find a way to make up your losses on the back end. And what if every time you ran that same campaign, examine results and refine your process, you start making more and more money? This certainly makes more sense than scraping the entire campaign and trying something else doesn’t it?
Just try it, and remember that once you create a campaign which gets predictable results, you can drum up new business almost on command. This could give you the freedom to work on the growth of your business, without having to constantly scramble after new marketing strategies. If the Casinos can find a way to win through probability, surely you can use direct mail marketing to create a predictable model for success.