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Posts tagged ‘target market’

29
Oct

Making a Connection

Every direct mail letter should strive to make a connection between the letter writer and the recipient. Response rates can be dramatically increased by forming a common bond between the writer and the recipient. FNBR Inc. - Making a Connection

 

The first step in creating such a bond is to know your mailing list. By studying the demographics of the mailing list, the letter can be carefully crafted to draw in the reader, and the longer that your letter engages the reader, the more likely you are to receive a response.

 

Consider the following two letter styles being used by an insurance agent trying to generate new business:
  • In the first scenario, the agent writes a generic letter that extols the benefits of a new policy her company is promoting.
  • In the second scenario, the agent makes use of the knowledge that when she purchased her mailing list she had used a “Presence of Children” demographic selection. With this knowledge in mind, she opens her letter by saying…”With three small children of my own, I often wonder what would happen to them if something were to happen to me.”

 

Every parent at one time or another has worried about how their children would be taken care of if something were to happen to them. With that simple opening sentence, she has now made a connection with the recipients of her letters. The recipients now have a common bond to the letter writer and a reason to keep on reading. The balance of the letter still goes on to promote the insurance policy.

 

Taking the time to create a letter that connects with your recipients will require a little extra effort on your part, but it is a win – win situation for you:
  • There are no additional out of pocket costs to write a letter that creates a bond between the recipient and yourself.
  • Improved response rates that are generated when a bond is created and that means additional revenue in your pocket.

 

Take the time to analyze your database and then create that special letter, which will make a connection between you and the recipient, you’ll be glad you did.

Learn More at…

Consumer Demographics help make a strong connection.

Know Thy Customer

With FNBR’s mailing services, we can help you create a connection.

 

About FNBR Incorporated

FNBR is a marketing company located in Tampa, Florida.  FNBR offers mailing lists, database management services, typesetting and graphic design services, printing and bindery services, email marketing, and complete direct mail services to companies throughout the U.S. and Canada. FNBR can be reached at 1-888-988-8148.

30
Aug

Producing Success

Are you asking the right questions to produce a successful mailing?FNBR answers these questions and more...

Mailing List: Do you understand the difference between “response” lists and “compiled” lists? Are you sure that your demographics are a good fit for your product or offer?

Customer Profile: Have you developed a customer or prospect profile? Knowing your clientele will help you refine your lists and generate mailers that appeal to their needs.

Offers: Have you made an offer, and is it proactive? For example, a 30 day free trial is more proactive than a 10% discount.

Quantity/Quality: Have you looked at the quantity/quality ratio?  Are you looking for a large volume of returns for your sales force to call on, or fewer quality leads that are easier to turn into sales?

Costs: How much are you willing to spend for a response? Does your conversion rate and gross margin support your cost per response?

Results: Do you offer proof, such as test results, testimonials, or case studies to show the value of your product or service?

Guarantees: Do you provide a guarantee, and if so do you showcase it? The more positive a guarantee is, the more likely you are to make a sale. For example “try it without risk for 90 days” works better than “your money back if not satisfied”.

Continue the Conversation

Obtaining the right answers to the above questions will help to ensure that your mailing is successful. As always, the sales staff at FNBR will be happy to help you with any questions that you may have regarding your mailing campaign.  Call us toll free at 888-988-8148 or send us an email at info@fnbr.com.

 

25
Jul

The CLV Advantage

Customer Lifetime Value (CLV) is the total amount of money a customer spends with you during the time he/she remains a customer.

For instance, let’s say your average order is $100. Your average customer orders four times a year and remains a customer for three years. The average CLV is $100 x 4 x 3 = $1,200.The CLV Advantage

For services with an annual subscription, the formula for calculating CLV is: CLV = [1 ÷ (1 – Renewal Rate)] x annual fee.  If you sell a 1-year gym membership for $500 and your renewal rate is 80 percent then your CLV is $2,500. [1 ÷ (1 – 0.8)] x 500 = $2,500

Once your CLV is known, one of the most important marketing questions to work through is, “How much are we willing to invest to secure a new customer based on our average CLV?”

In our gym example, say the owner of Tiny Tim’s gym only knows that the annual membership is $500, and hasn’t calculated CLV. He’s willing to invest $100 in marketing to gain a member, because he figures that leaves him $400 in profit.

But the owner of Mighty Moe’s gym has calculated the CLV at $2,500. He’s willing to invest $500 in marketing to gain a member because that will leave him a profit of $2,000 over the lifetime of that customer. Armed with his CLV knowledge, he outspends Tiny Tim’s gym five to one and dominates the market.

Knowing CLV is a big competitive advantage because it gives you a more accurate picture of what you can afford to spend to acquire new customers.

Continue the Conversation
Call FNBR Inc. at 888-988-8148 or send us an email at info@fnbr.com.

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