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Anatomy of a Promotional Postcard Mailing
by David Foley

 
   
 
   

 

Postcards can be an inexpensive and highly effective format for customer promotions provided that one can quickly communicate the offer and call to action.

The postcard you see above was mailed to active customers of Bloor West Winery, a winemaking business in Toronto, on Sunday, August 16, 2009, and the response began almost immediately. During the promotional period, the card produced over $10,000 in sales after discount and a double-digit response rate.

This article will delve into the details of this promotion, since these details may assist you in determining if – or when – a postcard mailing would be appropriate for your business or clients.

Background: Twice a year, Bloor West Winery offers its customers a promotion where “every winemaking order is on sale”. (At other times of the year, only a few wine styles are on sale at any one time.) It’s fair to say that customers are aware of these special sales and perhaps even anticipate them. Both are in times of seasonal sales weakness, specifically in January and August. 

The Offer: During these sale periods, a discount is offered on new winemaking orders, which range in value from $124 to $228. Historically, the discount has been “laddered” – from $7.00 to $14.00 depending on the price of the wine made. This time, with margins being squeezed through higher costs for ingredients, other cost increases and a reluctance to raise retail prices, a single discount ($8.00 per wine made) was offered. Customers could receive this discount on up to two winemaking orders.

This discount tied in with the “8th birthday” of the business. Based on this year’s results, the offer will likely by $9.00 in August 2010 and $10.00 in August 2011.

By any measure, this is a modest offer. But, it worked and, in our view, it worked well – creating cash flow when it was needed, without unreasonably compromising future transactions. (When Bloor West Winery launched, the then-franchisor recommended a “Make one wine selection at regular price and get a second for half price” deal. The promotion worked too well. Customers bought in … and then disappeared for months as they enjoyed the fruits of their well-stocked cellars. The lesson learned? Just because customers bought the deal does not mean that they will increase their consumption rate!)

The Promotional Period: The offer was valid from August 18 to September 5, 2009. Specifically, the copy stated that customers should “bring this card to the winery” to receive their discount.

The Results: The table below shows response to this offer for the three weekly periods ending Saturday.

Week ending, Saturday …

Response “A”

Response “B”

Total

August 22, 2009

  3

13

16

August 29, 2009

  7

11

18

September 5, 2009

12

  4

16

Pending inventory being received

  2

  0

  2

Total

24

28

52

“A” represents those customers who, as directed, came to Bloor West Winery with their card in hand.

“B” represents those customers who came to Bloor West Winery ready to order but who left their postcard at home. (Of course, they received the discount.)
Only time will tell if any of these sales are actually incremental, although past experience suggests that some of them will be. 

The Embarrassing Omissions: I wrote the copy for this card and it is absolutely my fault that two support elements are missing from the mailing piece.

It is doubly embarrassing that they are missing because my Direct Response Creative Check List specifies that one must be included in every mailing and that the second is usually a good idea.

It is a matter of being “too close” to the project – and the very reason why every direct response campaign should be proofread by someone who has not worked on it before it goes into production.

Take a quick look at the postcard. Can you name the missing elements? 

They are – drum roll, please –

The website URL and the business telephone number.  

A final note: I placed the physical elements on the postcard, but I am not a designer.  Almost certainly, a professional designer’s touch would have improved response and the higher response rate would have more than covered the cost.  

As demonstrated by this little story, in direct response marketing, the details count. Yes, they do!

       
   
 
       
   

The Author

David Foley

David Foley and his team offer practical, results-oriented advice to organizations that strive to get more from their marketing budgets using proven, targeted direct and database marketing for up-sell, cross-sell and customer acquisition. A conversation to discuss your situation is always offered without cost or obligation. You can reach David in Toronto, Canada, at 416-253-1224 or by e-mail at david@davidfoley.ca

Visit www.davidfoley.ca/ for additional information  

 
       
   
 
       
   
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Copyright 2009 by David Foley. All rights reserved.

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