The benefits of 'keeping in touch'. Making sure that consumer is aware of what you are doing, e.g.: news of new products, environmental issues, price reductions, new stockists, etc. Basic courtesy. Simply saying "Thank you" to customers can have a powerful benefit.
"Assisted" brand loyalty/customer retention
Repeat purchase schemes, build-up and collection schemes, rewards for regular purchasers. Best examples are frequent flyer programmes, Pampers, and garage forecourt schemes. Direct marketing has advantage of gearing schemes to specific prospects, e.g. nonusers of a brand can be targeted exclusively. Overcomes the enormous waste associated with conventional promotion schemes.
Personal/Interactive/or Relationship Marketing
Marketing to customers who have volunteered data about themselves: a two-way dialogue. Feedback.
Lifetime marketing
The ultimate in loyalty marketing: marketing on the basis of the lifetime value of a lifelong customer. Makes staying in touch all the more important. Different economics from the short-term promotions - much more affordable. A strategic application.
Identifying and servicing niche markets
Markets that can only be reached direct; small or scattered markets for which conventional advertising is uneconomic. Response advertising - getting prospects to identify themselves when there's no other way - with mail or telephone follow-up. Typical niche market includes arthritics that do not necessarily want to identify themselves in stores. Likewise people with small/large feet!
Promoting and selling un-advertisable products
Reasons why products can't be advertised include:
legal restraints/prohibition by regulatory bodies (e.g. cigarettes)
lack of budget (conventional advertising too expensive)
lack of distribution (renders advertising wasteful)
embarrassment factor (people won't buy product in stores)
no suitable media available
story too complex/lengthy for conventional advertising
too many products to advertise them all
religious objections/fear of retribution/misunderstanding
charities/fund-raising - in some countries.
Historically, direct marketing has always operated successfully in these areas; it is the area, which most interests conventional branded goods advertisers.
Products that can't easily be sold retail
Too complex, too many parts, too many steps in the buying decision, etc. Products that people simply won't buy retail for whatever reason. A common reason is: the range is too extensive - shops won't stock all/enough of the range.
Products not supported by retailers
May or may not be stocked, but not pushed. Complex products that require an expert, lengthy explanation benefit from direct support. Products not understood by sales staff.
Supporting brand awareness advertising
Adding to the image advertising; completing the circle. The missing link. Three-dimensional demonstrations that can't be delivered by conventional media advertising. Samples. Extolling at greater length, the full meaning behind the headlines of awareness commercials. Fleshing out the bones. Delivering the proof/credibility. Answering the customer's unspoken or spoken questions.
Applying seasonality/topicality/individuality
Adding individuality to generic advertising campaigns, e.g. remembering a customer's birthday and sending a product sample. Reminding prospects of image advertising at their most likely decision-making time.
Launching new products
When product is not in wide distribution, or is confined to specific areas, or may not be available in sufficient supply. When retailers refuse to stock because competitors are entrenched. When the buyers/stores cannot be identified. In all these cases direct selling is an option. Obtaining trials. Building up successful case history file before wider launch. Forcing retailers to pay attention and ultimately to stock the product.
Information!
The key too much direct marketing is information. All those situations when the customer would respond to more information dm is the best way of getting it to them. Newsletters and catalogues answer most needs. Information services as a raison d'être for database maintenance. Advance warnings of new products to best customers, etc, etc.
Promoting new uses for established product
Nobody wants to tamper with an established brand image - but when talking one-to-one it is possible to suggest new uses without harming product positioning. Especially useful for this purpose are newsletters. The suggester of a new use can then be a customer and not the company. Newsletters as a source of new product usage ideas and other feedback
Incremental sales and line extensions
The customer buys the main product: how to sell the ancillaries, the extras. You have their names: tell them about the line extensions. The names may be obtained from entries to contests, guarantee cards, in-pack and on-pack offers, etc.
Using strong products to support weaker ones
Weaker products often cannot afford advertising: by various means, direct marketing can bring to the attention of prospects new products effectively at no cost.
Adding value to a product or service
The techniques of direct marketing can be use to make products more interesting, unique, valuable, etc, e.g. personalisation of the product itself in the case of paper products. Information as an added value service.
Selling-in to inaccessible retailers
Retailers who are too small or too distant for personal selling - or where there is a need to release details to thousands of retailers simultaneously. Direct marketing can sell goods to retailers as well as to consumers.
Supporting sales forces
Generating leads, making more frequent contact, filling in for irregular or "gappy" call cycle. Doing the salesman's job for him when he's unable to. Keeping the company in the retailer's eye when the salesman is elsewhere.
Replacing sales forces
When sales-force becomes uneconomic/unworkable, it may be possible to switch to direct selling - especially for a wide range which the salesman cannot do justice to or which no retailer can be expected to sell in total. Some products do not naturally fit in with any particular type of retail outlet
Training & motivating dealers and their staffs
Retail managers often receive incentive offers. But how often does a manufacture bother to communicate with retail staff - to motivate, explain, train, incentivise, receive feedback, etc, etc.
Delivering samples and POS material
The unique advantage of direct mail is that it can deliver tangible samples and display items. Why send a description and picture of a product when you can deliver a sample?
Dealer retention and loyalty
As with consumer retention.
Influential audiences
DM techniques can isolate influential opinion leaders (whether professional or amateur) to give them special treatment, i.e. more and better information. Possibles include journalists, bankers, politicians, trade union leaders, etc, etc.
Alleviate/obviate complaints
Turning potential complaints into opportunities. Nipping complaints in the bud by providing a vehicle for communicating dissatisfaction. Putting a face, voice and signature to an otherwise soulless company.
Protecting a brand
Using a brand name for direct sale of related merchandise could help to establish legal right to it. Also acts as "double-duty" advertising. Merchandise sales, e.g. non-relevant products, i.e. T-shirts, hold-alls, etc. 26 Double/Treble Duty advertising
Double/Treble Duty advertising
Brand advertising that also builds a customer files and/or sells product. Self-liquidating advertising. Advertising 'without cost'. Advertising coupled to dm techniques can have innumerable secondary objectives - all for no cost.
