About Offers

"Success in direct mail," wrote the legendary guru Ed Mayer many years ago, "is 40 percent lists, 40 percent offer and 20 percent everything else." On the Internet, lists count the least. Names are so cheap, you can blitz the world practically for free. For example, a 2010 study revealed that to sell $100 worth of Viagra, a spam provider needs to send 12.5 million messages. In direct mail, 12.5 million messages at 60¢ each would cost $7.5 million. In a medium where lists are basically free, who needs arithmetic and ROI? A more reasonable ratio for Internet direct marketing success would be more like 70 percent offer, 10 percent lists and 20 percent everything else. So let's talk offers. If you want a response to a marketing effort, you must make an offer. No offer, no response. If the offer is not clear—or difficult choices must be made—the mailing, email or ad will be set aside for later consideration, and you have lost the order. To further make my point, here are some takeaways from direct marketing greats: "Nothing is more profitable than the right offer powerfully stated to the right person at the right time." —Gary Kauffman "If you want to dramatically increase your response, dramatically improve your offer." —Axel Andersson "It's the offer, stupid! If you do not get the results you need or response is flagging, check the offer first." —Bob Hacker "The right offer should be so attractive that only a lunatic would say no." —Claude Hopkins "The offer should be so clear and simple that an idiot can understand it." —Malcolm Decker "A special discount to customers as compared to outsiders will increase response by more than the discount." —Dick Benson Maxwell Sackheim on OffersGive the prospect a chance to make a deal with you—not tomorrow or next week, but RIGHT AWAY. Make it easier to say yes than say no.It must be a bargain in one form or another.—Max Sackheim When you make an offer in any medium—broadcast, print, direct mail or Internet—always, always, always have a reply mechanism—order form, 800 number or clickthrough. Quite simply: No reply mechanism, no reply. Walter Weintz, circulation director for Reader's Digest in the 1950s, created the famous "penny mailing," in which two shiny new pennies showed through a second window in the carrier envelope. People could not bear to throw out U.S. currency, so they opened the envelope. Weintz called these pennies—or variations, such as tokens, certificates or cents-off coupons—hot potatoes. The reader is forced to make a decision whether to take the requested action or throw the thing away and take the chance on losing the actual or perceived value of the goodie. In print, mail or online, consider using a hot potato—a certificate or coupon that must be returned to take advantage of the offer. As well as encouraging action, a returned certificate, properly keyed, shows precisely what the person responded to. This closes the marketing loop. For online replies, use a landing page devoted to that offer only. Know your arithmetic. In the early 1990s, a number of big agency account executives conned some gullible, inexperienced package goods brand managers to use direct mail to promote their shampoo, soap or cereal using solo direct mail. Quite simply, at $600/M, solo direct mail cannot be used to promote low-cost items. (Nor should it be used to build brand.) For inexpensive items, use co-ops, free-standing inserts or the Web. If you use a general agency, don't be surprised if the account people pooh-pooh the idea of closing the loop with an order mechanism. It's only direct response practitioners who love accountability; their brothers and sisters in general advertising are scared to death of it. Denny Hatch is a freelance direct marketing consultant and copywriter, and author of the Business Common Sense. Visit him at businesscommonsense.com or dennyhatch.com, or contact him via email at dennyhatch@yahoo.com.

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About Offers

Denny Hatch

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Denny Hatch