Basic Guide

A Step-by-Step Guide to Profitable DM for Novices

Introduction

WanttobuildandstrengthenyourbusinesswithDirectMailbutarentsurehowto
get started? Then this is the guide for you. In it, youll find all you need to know
aboutDirectMailineasytofollowsteps.Youllalsobeequippedwiththebasicskills
forplanning,rollingoutandevaluatingyourDirectMailcampaigns.

What is Direct Mail?

DirectMailisoneofthemostsignificant,influentialandeffectiveformsofmarketing
communications. It gives you many competitive advantages in building and
strengtheningyourbusiness,tohelpyoustayaheadofthecompetition.

The most important difference between Direct Mail and other forms of marketing
communications is that you get to know your customers as individuals and, as a
result, develop a deeper understanding of their needs and interests. This allows
youtoemployverypersonal,targetedandpersuasivemethodsofselling.

Direct Mail gives you many competitive advantages

in building your business:
1. Confidentiality:twobigadvantageshere:firstly,youcantalktoyourcustomers
withoutyourcompetitorsknowing,and,secondly,yourcustomerscanseeyour
messagewithoutthedistractionandcluttercommoninmassmedia.
For example: If you're running a TV commercial offering a 5-day holiday in Bali for HK$8,500,
your competitors will see it and may respond by cutting their price to HK$7,750 and possibly
adding extra benefits such as room upgrades and complimentary breakfasts. When you use
Direct Mail, only you and your potential customers know and understand the deal you are
offering.

2. Flexibility:youcanmailyourpotentialcustomersatanytimeyouchoose,using
a wide variety of designs. You can mail letters, postcards, colour brochures,
product samples and even joint promotions, all of which contain a response
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 device.Itsentirelyuptoyoutodecidewhattouse,andtheonlyconstraintsare
yourbudgetandyourimagination.

3. Targetability:decideexactlywhomyouwanttoreach,andthenspeaktothem
onetooneintheprivacyoftheirownhomesoroffices.

For example: If you want your target audience to sign up for a prestigious golf club where
membership costs HK$400,000, a Direct Mail piece should be sent to people who earn more
than HK$1,000,000 per year. You could do a TV commercial instead, but this would also be
seen by many people who are neither interested in, nor able to afford, a golf club membership.

4. Measurability:nothingislefttochance.ThesuccessofaDirectMailcampaign
can be easily measured by counting the number of responses, unlike a TV
campaign in which you may have no clear idea of how effectively your
marketingmoneywasspent.

For example: You're building circulation for a new lifestyle magazine. After testing several
different targets and formats of Direct Mail, you discover that by mailing high-net-worth
individuals in Kowloon with a personalized letter offering a 6-month free subscription, you get 3
times the response rate than for an offer of wine at a reduced price.Your calculations prove that
you will get a lower cost per response by using the 6-month free subscription offer to high
networth individuals on Hong Kong Island.

5. Accountability: as soon as youve seen just how well Direct Mail can work, it
becomesaselffinancingmedium.Youcanactuallyidentifyacostperresponse
andfinetuneyourfuturebudgetsandtargetsaccordingly.

Planning

An Easy Guide to Creating Great Direct Mail

Campaigns
NowthatyouknowthebasicsofDirectMail,youcanmoveontothenextimportant
step: planning. Planning can be conveniently divided into three areas: setting your
objectives,definingyourtargetandlocatingandreachingyourtarget.

Step1
1. SettingYourObjectives
Forexample,doyouwantto:

Selloneproductorarangeofproducts?
Promoteaserviceorarangeofservices?
Generate leads for future mailings, followup phone calls or for your
representativestomakeasalescall?
Increasebrandawareness?
Build loyalty or undertake other forms of Customer Relationship
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 Management?

Becausecommercialsuccessismeasuredbyresults,itsvitalthatyouknowprecisely
whatresultsyouretryingtoachieve.

Step2
2.DefiningYourTargets
Just as there are many types of objectives, there are also many different types of
targets.Dependingonwhetheryouwishtocommunicatewithindividuals,orwith
organizations such as businesses, clubs and government departments, the type of
informationyouneedtogathertoclearlydefineyourtargetwilldiffer.
Forexample:

Individuals: here you will need information about age, gender, income,
spending patterns, geographical area, type of accommodation, hobbies and
interests, specific needs and so on. If you have difficulties in terms of time
and/orbudgetforcollectingallthisinformation,themostimportant pieceof
informationthatyoushouldnotmissoutisage.
Businesses: the type of data required here could include nature of business,
numberofemployeesandcompanystructure,aswellasinformationrelating
to your objectives, such as the brand name of the product or service theyre
currentlyusing.

Detailed information of this nature will allow you to create a Direct Mailing piece
thatismorerelevanttoyourtargetsandthereforemorelikelytogetgoodresults.

Thesuccessofyourcampaigndependsonanaccuratemarketprofile.

3. LocatingandReachingYourTargets
Atthisstage,youshouldknowpreciselywhatyourobjectivesare.Youshouldalso
haveaclearpictureofthetypeofindividualororganizationwithwhichyouwishto
communicate. The next task is to gather information on where they are, and to
marshall and process that information for commercial advantage both now and in
thefuture.

Step 3
DatabasesandLists.
Simply put, lists comprise raw information. They contain basic data such as the
targets name and address. Most lists are generally either response lists (people or
organizations who have responded to your, or other peoples, offers) or compiled
lists (people or organizations who subscribe to certain magazines or who hold a
particularcreditcard).

By contrast, a database can provide you with vital insights that will increase the
effectivenessofyourDirectMailactivities.Agooddatabaseisaverypowerfultool
andis,withoutdoubt,themostimportantcomponentoftheDirectMailersarmoury.
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Apart from just a simple name and address, your database should contain every
singlepieceofinformationyouneedtomakeyourmailingsmorerelevantandbetter
targeted.

For individuals, you can also add your targets hobbies and interests, favourite
shoppingspots,regularholidaydestinationsandspendinghabits.

Fororganizations,youshouldincludejobtitlesaswellasnames,theidentityofkey
decisionmakersandproductrelevantinformation,alongwithanythingelsethatyou
thinkwillhelpyoutocommunicatebetter.

Withagooddatabasemanagementsystem,allofthisinformationcanbecustomized
precisely to your needs, mailing by mailing. But remember, before you can set
aboutbuildingyourdatabase,youmustfirstcompileyourlist.

Step4
Compilingyourlist
In addition to the lists that you already have as a result of your previous mailings,
otherlistscanberentedfromalistbrokerforaspecificperiodoftime(normallyone
year) and for a limited number of uses. These lists can be as comprehensive as a
telephonedirectory;orasnarrowasalistingofcouplesaged2331,bothofwhom
workintheairlineindustryandwhohave2childrenbeingeducatedabroad.

Nomatterhowobviousitsounds,whenyourecompilingyourlist,alwayskeepin
mindexactlywhoyouretryingtotarget.

MostcompetentlistbrokerscanbefoundthroughtheYellowPagesoradsinDirect
Marketing publications. They will either supply you with lists theyve compiled
themselvesoractasagentsforlistscompiledfromothersources.However,inorder
tomakethebestuseofyourpromotionmoney,youhavetoclearlydefinewhoyour
targetsare,andensurethatthelistbrokermatchesyourrequirementscarefully.You
shouldalsonegotiatewiththemfortakingasamplefortesting,beforecommittingto
rollingouttheentirelist.

Awordofcaution.InHongKongtoday,itsvitalthatyoumakeenquiriesaboutthe
exact source of the information youre about to rent or buy, in order to avoid any
complications under the Personal Data (Privacy) Ordinance, which came into effect
inDecember1996.

On a more general note, its also important that you check into the freshness and
frequency of updating of any data youre planning to acquire. Any list that hasnt
been deduplicated recently or contains dead information could adversely affect
yourproductionandpostalcosts,anddetractfromyourcompanysimage.

Step5
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 BuildingYourDatabase
Nows the time to take all the information youve accumulated in compiling your
DirectMailinglistandturnitintoadatabase.Insimpleterms,inbuildingadatabase
youtakehard,drydataandbreathelifeintoit.

Your database should be much more than just an electronically stored list of
information relating to individuals or organizations. It must also be able to stand
updating and interrogation by a crosssection of users. This is what makes a good
databasethesinglemostimportantcomponentoftheDirectMailmix.

A good database will not only tell you your targets name, address, sex, age,
occupation, income and lifestyle habits, it will also give you vital information
regarding each individuals reaction to your previous mailings. This important
segment in the database is usually marked as PSTs, or Promotion Sales Trailers.
Forexample:

Didtheyignorethosepromotions?
Didtheyrespondtoanyofthem?
Whenwasthefirsttimetheyrespondedtoyourmailings?
Of those three different formats you tested in your last mailing, which did
theyrespondto?
Ifoneofyourmailingsincludedaquestionnaire,didtheycompleteandreturn
it?
Hastheirresponsebeenconvertedintoasale?
Whatareyournextstepswiththisindividualorgroupofindividuals?

Inmanycases,marketersinvestinkeepingPurchaseHistories,butforgetaboutthe
importance of tracking their targets response to previous mailings. There is an
almostinfiniteamountofinformationthatyourdatabasecangiveyou,dependingon
howitisdesigned.

Buildingadatabasethatsuitsyourrequirementspreciselyisacomplexbusiness,and
youshouldseekadvicefromaprofessionalDirectMailMarketingconsultant,rather
thanjusttalkingtothelistbrokeralone.

To get the best results, heres a checklist to consider before you brief an outside
specialist:

Whatareyourobjectivesandpreciserequirements?
Whatwillthedatabeusedfor?
Howfrequentlywillyoubeupdatingyourdatabase?
Howmany,andwhattypeof,peoplewilluseyourdatabase?
Whatistheanticipatedsizeofyourpotentialcustomerbase?
Arethereanycompatibilityrequirementswithexistinginfrastructure?
Andlast,butnotleast,whatisyourbudget?

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A final thought. Having spent a lot of time and energy on this important project,
alwaysrememberthatyourrelationshipwithyourdatabaseisatwowaystreet.For
ittogiveyoueverythingyouaskofit,youhavetokeepitconstantlyupdatedwith
theresultsofyourDirectMailactivities.Olddataisuselessdata.Freshdatawillhelp
youmakemoneybyoutthinkingandoutmarketingyourcompetitors.

AnImportantOptionTheHongkongPostCircularService
In addition to building and using databases for your Direct Mail activities, you
should also consider the advantages of The Hongkong Post Circular Service. This
highly efficient and costeffective service allows you to target geographically
clustered demographic groups such as highincome or highnetworth individuals.
HongkongPosthastheabilitytoidentifyandlocatesuchgroupsandtodeliveryour
message directly to their letterboxes for as little as HK$ 0.90 per item much less
than thepostage costof mailing astandard letter. Thisservicehasbeenenhanced
withtheincorporationoftheMOSAICdatamanagementsystem,toimproveonthe
selectivity of the targets and hence the response rates of Direct Mail promotions.
PleasevisittheservicepageofHongkongPostCircularServiceformoredetails.

Creating

Production Guidelines - A Word from Hongkong Post

Firstthingsfirst. EvenbeforeyoustartcreatingyourDirectMailpiece,wesuggest
youvisittheDeliveriessectionoftheHongkongPostdirectmailwebsiteforasneak
preview of the many systems Hongkong Post will use to get your Direct Mail
campaignintothehandsofyourpotentialcustomers.

Thereasonwerecommendyoudothisisthat,dependingonwhichdeliverysystem
youoptfor,theremaybecertainsize,weightandsortingrestrictionsinplace.These
are designed to ensure that your Direct Mail campaign is delivered as quickly and
costeffectivelyaspossible.

Youllalsodiscoverthatbystickingtotheseguidelinestherearesomeverygratifying
costsavingstobehad.Andthemoneyyousaveherecanbeusefullyappliedtoother
aspectsofyourcampaign.

OnceyouarriveattheDeliveriessectionoftheHongkongPostdirectmailwebsite,
simply click the delivery method youve chosen for full details of guidelines and
savings.

Designing and writing your Direct Mail piece

NowwecometotheinterestingpartpreparingyourownDirectMailprogramme.
Beforeyoubegin,pleasetakeintoaccountthefollowingimportantpoints:

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 Step6
1.Theproposition

Analyzethemarket.
Find out what your competitors are doing. That way, you can be sure that
youllbesayingsomethingfreshanddifferent.

Step7
2.Themessage

ThemessageisthemostimportantelementinyourDirectMailpromotion.Itwill
significantly influence your customers responses. It is absolutely essential to
createtherightmessageforyourDirectMailcampaign.

Workoutyourobjective.
Workoutwhatyouwanttosay. Visualizeyouraudienceanddeterminehow
yourproductorservicematchestheirneeds.
Work out what the USP (Unique Selling Proposition) of your product or
serviceis.
Example: Are you selling a knife that can cut through steel, or glue that can
pullafreighttrain?AndifthereisntaUSP,inventoneaddaguarantee,or
aservice,oraproductupdate,etc.

Makeitconversational.And,keepitsimple,shortandfriendly.
Stresstheconsumerbenefitsratherthanthefeaturesofyourproduct.
Focusontherecipient:useyoumorethanme.
Dont forget to create a compelling calltoaction so more customers will
respond.
Makesurethatyoutellyourcustomershowtoorder(acceptyouroffer)and
howtoreply.
Keepitlegalandhonest.

Step8
3.PricingandOffers

Ifyourcampaignisbasedonprice,makesureitsanattractiveone.
Ifyouhaveagoodoffer,e.g.freegiftsuponpurchase,makeitprominent.
Ifitsanexclusiveoffer,usephrasessuchasOnetimeorLimitedoffer.

Important
Dontforgettheimportanceoftestingdifferentoffers,messages,creativeexecutions
and timings. The results will have a dramatic effect on both the response rates and
profitabilityofyourDirectMailactivities.PleasecheckPostCampaignActivitiesfor
moredetailsontesting.

Step9
4.EncouragingResponses
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 Ifyouwantpeopletoorder,ortocontactyouformoreinformation,givethem
aneasywaytodoso,e.g.viaareplycouponorenvelope.
Maketelephoneand/orfaxnumbersprominent.
Make sure your coupon has enough space for customers to complete all the
detailsyouneed.
Offeringanincentivetendstoincreaseresponse.Yourincentivecouldbeafree
gift,adiscountoraluckydrawchance.
Urgencymakeyourincentivetorespondtimesensitive,inordertoinduce
fasterresponsesandmoreresponses.
ForgreaterefficiencyyoucanmakeuseofHongkongPostsResponseService.
Options include Freepost, Business Reply Service and International Business
ReplyService.

Step10
5. Budgeting
How much will your Direct Mail programme cost? Its vital that you spend time
workingoutyourbudgetbeforeyoubeginyourprogramme.Considerthefollowing:

Postagecoststhenumberofcustomersyouremailingoutto.
Materialcoststhequalityofpaperyoureusing,thenumberofpieces,etc.
Printingcostschooseaprinteryoucanrelyon.Discussthecostofmaterials
with your printer to save more money. Caution: always check paper weight
carefullytoensurethatyourDirectMailpackdoesnotunintentionallyexceed
theweightlimitofapostageclass.
Miscellaneous costs temporary staff wages, extra phone lines, transport,
lettershopping,etc.
Be honest with yourself. Do you have sufficient cash flow to pay for the
campaign?
Waystobemorecosteffective
1. Bulkmailing.
2. Consideralowerqualitypaperstock.
3. Reducethenumberofelementsinyourmailpack,e.g.printtheletter
on 2 sides, cut down the number of pages in the brochure, or
incorporatetheresponseformintothebrochure.
4. Rework your target market profile to create a smaller, more precise
target.
5. Testbeforebulkmailingtheentirelist.

Useful Templates are provided in Hongkong Posts direct mail website to help you
withProfitabilityAnalysisandBreakEvenAnalysisforyourDirectMailcampaigns.
PleasevisitAnalysisTemplatestodownloadthem.

What goes into a mailer?

NowletsdiscusswhataDirectMailpackconsistsof.Basically,thereareafewcore
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elements.Letstakealookatthemindividuallyandseehowwecanmakethemwork
effectively.

Step11
1.Envelopes

Usestandardsize,readymadeenvelopesforcostefficiency.
Personalize yourenvelopeeithera stickeron the front orawindow where
thenameandaddressonthelettercanbeseen.
Allowmailopeningincentivesshownthroughfrontand/orbackwindows.
Use a teaser line when you have a compelling offer. A teaser line has these
advantages:
1. Itencouragesthereadertofindoutmore.
2. Itgivesahintofwhatstocome.
3. Itarousesinterest.

TeaserLineExamples:
10waystomakemoremoney.
Howtoearnupto10%interestforyourtimedeposit.
Exclusiveprivilegesyoudeserve.
Theinformationyourequestedhasarrived.
Youcouldhavealreadywon$1,000,000
Imaginewhatwouldhappentoyourfamilyifyouwerenolongerabletowork.
Thesecretstoprofitabilityexplained.

Step11
2.Letters
LETTERSSELL.Theletteristheheartofthemailing.Itdoesmostoftheselling
andpersuading.

Makesuretheyarepersonalized.Personalizedlettersseemmorespecialand
get more attention. Remember, Direct Mail is all about being personal with
yourcustomers.
Selecttherightkindofpaper.Cheappapermaylooklikeasaving,butitsthe
kindofthingthatpeoplenotice,anditcanadverselyaffecttheirresponse.
Make it friendly and conversational in most cases, except in an official
corporateletter,lettersshouldbewrittenasifyouaretalkingtoafriend.
Usetherighttoneandmannerforeachdifferenttargetgroup.
Example: If your letter addresses students or teenagers, use a tone that is
casual, friendly and employs simple words. If you are writing to a CEO or
ManagingDirector,useamoreformaltoneandbeprofessionalwithoutlosing
thefriendliness.

Usehighlights,e.g.headings,indents,boldandunderlining.

Dontforgettoincludeacompellingcalltoactionwithtimesensitivereply
incentives,somorecustomerswillrespondandreplymorepromptly.
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 Always use a P. S. at the end of the letter. The P.S. sums up the gist of your
proposalanditiswhatmostbusypeoplewillreadfirst.

Step11
3. Brochures
BROCHURES TELL. A brochure gives you a chance to put in ALL the details of
your products or services. An effective brochure should incorporate the following
features:

Informationmustbeorganizedinaneasytoreadstructure.
Keepitconciseandrelevant.
Makesurethebrochureistalkingintherightwaytothetargetmarket.
Emphasizethebenefitstothecustomer.
Keepitsimple.Dontconfuseyourmessageorboreyouraudience.
AlwaysincludeaHotlinenumber.Itwillencourageyourpotentialcustomers
tomakeenquiries.
MakesurethatthemostimportantUSPispresentedinthefrontpanelofthe
brochure.Thisisthefirstmessagetobepresentedtoyourcustomerwhenthey
openyourmailandreadthebrochure.

Step11
4. ResponseForm

A return prepaid envelope or postcard will increase response. It is a cheap

and easy way to reply, and conveys an image of your organization as being
customerfriendly.
You may want to preprint(personalize)your customers name on the reply
device,makingiteveneasierforthemtofillinandsimplerforyoutoprocess
theirresponse.
To make it more convenient for your customer to respond, you could also
consider using Hongkong Post Response Services. Options include Freepost,
BusinessReplyServicesandInternationalBusinessReplyService.

Step12
WorkingwithAgencies
If your marketing plans are very simple sending out a letter, and perhaps an
existingbrochure,toasmallnumberofexistingcustomersthenyoumayfeelthat
youcanmanageeverythingyourself.However,ifyourplansaremoreextensive,you
mightwanttouseaprofessionalDirectMailMarketingconsultant(agency)tohelp
you plan and manage your campaign. There are a large number of experts in this
fieldavailableinHongKong.PleasecheckHongkongPostsdirectmailwebsitefor
DirectMailMarketingAgencies.

Heres a rough guide to what you can expect from an agency to get your moneys
worth:

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 Help, from planning and creating the Direct Mail piece to printing and
mailing.
Sourcing,evaluatingandnegotiatingfortheappropriatelists.
Trackingresponsesandreportingresults.
Establishingandmanagingausefuldatabasefromresponses.
Mostagencieswillworkwithyouasyourmarketingpartner,insteadofasjust
asupplier.

Deliveries

Bynowyouvealreadyinvestedaconsiderableamountoftimeandeffortinplanning
and executing your Direct Mail campaign. Youve finetuned your offer. Youve
defined and identified your target precisely and built your database. And youve
spent many hours designing, writing and producing your Direct Mail pack. What
counts now is to ensure that your campaign is delivered into the hands of your
potentialcustomersinthemostefficientandcosteffectiveway.

At Hongkong Post, weve spent many years listening carefully to the needs of our
commercialcustomers.Asaresult,wevereshapedsomeofourtraditionalservices
andintroducedanumberofnewservices,allofwhicharedesignedtohelpyouget
theverybestoutofyourDirectMailcampaigns.

HongkongPostMailingServices
We offer five clearly defined delivery methods, which will ensure that your Direct
Mailcampaignworksashardaspossible.Dependingonyourprecisetarget,thesize
ofyourdatabase,andtheweightanddimensionsofyourDirectMailpiece,youcan
choosebetween:

NonBulkMail
BulkMail
LocalCourierPost
HongkongPostCircularservice
HongkongPremiumPostCircularservice

Having decided which of these methods is best suited to your current Direct Mail
campaign, you should also consider employing one or other of the following
additional services which will dramatically increase the response rate from your
chosentarget:

Freepost
BusinessReplyService

As a final thought, if you wish to consolidate your Direct Mail responses, or keep
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yourbusinessaddressconfidential,youcanalsoconsideropeningaPostOfficeBox.

For exact details, simply click on the service that interests you. What follows is a
generaldescriptionofeachserviceandhowitwillhelpyoutomaximizetheresults
ofyournextDirectMailcampaign.

Step 13
NonBulkMail
In simple terms, this service refers to the normal postage procedure of addressing
your Direct Mail pack, putting a stamp or franking mark on it and posting it at a
standalone Post Box or Post Office. With NonBulk Mail there is only one delivery
standard, 1st Class, and your mail is guaranteed to arrive the day after posting.
NonBulkmailisacosteffectivewayofhandlingsmalltomediumsizedmailingsof
lessthan2,000pieces.

BulkMail
Bulk Mail is the most costeffective way of delivering large mailings of more than
2,000 pieces. With Bulk Mail you simply deliver your Direct Mail packs to a Post
Office. There is a choice of payment methods depending on the type of mail,
including Franking, Postage Prepaid and Permit Mail. Bulk Mail has two delivery
standardswith1stClass,yourmailwillarrivethedayafterposting,andwiththe
morecosteffectiveBulkEconomyClassyourmailwillarrivewithin3workingdays.
TherearefurtherdiscountsavailableifyourDirectMailpacksareofastandardsize
andformat.YoumayrefertotheLocalBulkMailserviceguidebookfordetails.

LocalCourierPost
SomeofyourDirectMailcampaignsmayrequirefasterdelivery.LocalCourierPost
provides you with highspeed, reliable and pricecompetitive deliveries throughout
HongKong.

ThisserviceisavailabletoyouaseitheraCasualCustomeroranAccountCustomer.
As an Account Customer, you will be billed on a monthly basis and enjoy free
pickup.

Local CourierPost is ideal for small to mediumsized mailings that need to arrive
promptly.

HongkongPostCircularService
Thisserviceisthemostcosteffectivewayofreachinghighlytargetedgroupsoutofa
population of over 6.8 million throughout Hong Kong, with a cost per delivery as
lowasHK$0.90.

Whether youre introducing a new product to the whole of Hong Kong, promoting
new stationery to offices in Central or announcing the opening of a new shop in
Kowloon East, youll find the Hongkong Post Circular Service simple, convenient
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andeconomicaltouse.

HongkongPremiumPostCircularService
WithourPremiumCircularService,customerscantargettheirendusersbychoosing
twosocioeconomicindicesfromalistincludinghouseholdincome,householdrent,
propertyownership,educationlevel,occupation,gender,maritalstatusandage.

Applications can be completed in 12 working days. You can lodge your campaign
and pay by cash, cheque or EPS at dedicated Circular Service acceptance offices.
Deliveriesarrivewithin4workingdays,andtheresnoneedforaddresslabels.

With an additional volume discount of 5% available on quantities between 200,000

and500,000,anda10%discountforquantitiesover500,000,HongkongPostCircular
Service and Hongkong Premium Post Circular Service are the most convenient,
lowcostwaysofreachingyourpotentialcustomers.

IncreasingResponseRatesofYourDM
Withcompetitionincreasingeveryday,HongkongPostoffersyou2importantways
ofstayingahead:FreepostandtheBusinessReplyService.

Freepost
WithFreepost,yourpotentialcustomerscanbeeasilyencouragedtorespondtoyour
DirectMailcampaign. Allthey havetodoissimplyquoteyourFreepostnumber.
Nopostageischargedtoyourcustomers.Andtheresnoneedforapreprintedreply
envelope.

YourFreepostlicencewillbeissuedwithin7daysofreceiptofyourapplication,and
nolicencefeeordepositisrequired.Ifyouredeterminedtoincreaseyourresponse
rate,FreepostisanidealadditiontoyournextDirectMailcampaign.

BusinessReplyService
OurBusinessReplyServiceisthemostcosteffectivewayofimprovingyourDirect
Mailresponserates.

Yousimplyencloseanunstampedreplydevice(aletter,cardorenvelope)withyour
next Direct Mail campaign, which your potential customers can use to respond to
yourofferatnocosttothemselves.

Your licence will be issued within 7 days of receipt of your application, and no
licence fee or deposit is required. Hongkong Posts Business Reply Service is the
lowestcostmethodofdramaticallyimprovingtheresponserateofyourfutureDirect
Mailcampaigns.

PostOfficeBox
Many companies who use Direct Mail as an integral part of their marketing

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communicationsactivitiesmakeuseofaPostOfficeBox.

Theyregreatvalueformoneyandprovideaconvenient,dedicatedcollectionpoint
forallresponsestoyourDirectMailcampaigns. Annualchargesarenotexpensive,
depending on the sizes and the locations chosen. Post Office Boxes are available at
mostPostOfficesthroughoutHongKong.

StepForwardGuide

PostCampaignActivities

Step14
Handlingyourresponses
Sendingoutyourmailerisonlythefirststep.Youneedtobepreparedtohandlethe
responsesitgenerates.Makesureyou:

Getreadytoenterresponsesintoyourdatabase.
Arereadytomailanyincentivesoffered.
Preparethenextstepsforfollowupmailing.
Ensureyourcallcentreisreadytohandlebulkenquiries.
Briefyoursalesteamforpersonalvisits.

Step15
AnalyzingResponse
As the results of your Direct Mail piece come in, youll need to analyze its
effectiveness. This will make it easier (and more costeffective) to produce a
successfulmailernexttimearound.Tomakethisanalysis,youneedtoaskaseriesof
simplequestions:

Howmanyresponsesarebeingconvertedintosales?
Isonemethodoffulfilmentworkingbetterthananyother?Forexample,are
prepaidreplycardsworkingwell,ordiditpayforsomeonetotelephonethe
respondent?
How long does it take for you to fulfil a response (i.e. send out what youve
promisedthecustomer)?
Howlongdoesittaketoturnaresponseintoasale?

Step16
Usingyourresponses
Inadditiontogeneratingorders,anotherbenefitofusingDirect Mailistogenerate
informationaboutyourcustomers.Itsveryimportanttousethisinformationwisely.
Thatway,youllknow:

ThatyourDirectMailpiecesuccessfullyhititstargetaudience.
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 Thatyoucanusethatinformationtoaddtoyourdatabase.
Thatyoucancreatemoreeffectivemailersinthefuture.

Hereareafewofthepointsthatyoullneedtocover:

Whoonthemailinglistresponded?
Knowwhowasreceptivetoyourmessage.
Usethatinformationtorefineyourtargetmarketprofilesforthefuture.
Whatdoyouknowabouttheserespondents?
Recordalltheusefulinformation.
Ifyouneedtoknowmore,followupwithatelephonecallorasimpleletter.
Whatdidtheyactuallyrespondto?
Useyouranalysis(orafollowupphonecall)todiscoverexactlywhatitwas
aboutthemailerthatcaughttheirattention.

Step17
FurtherAnalysis
Ifatfirstyourcampaigndoesntsucceeddontloseheart.

Someresultsmayarriveinstantly.
Butthetimingmaynotberightonthecustomersparttobuyyourproducts.
Keep track of these respondents they may decide to buy your product or
serviceatalaterdate.
Youshouldalsolookcloselyatthecustomersyourmailerattractedarethey
differentfromyourexistingcustomers?Ifso,how?
Collecting and analyzing this data will allow you to decide whether your
campaignwasasuccess.
Askyourself:Diditmeetitsinitialobjectives?Andifnot,whatcanbedoneto
ensurethatthenextonewill?

Step18
Testing
TestingisavitalpartofDirectMail,andcanbedoneinavarietyofways.Usuallyit
involves testing the list, the message, the offer, the price, the format, etc. Here is a
simpleillustration:

Ifyouhaveidentifiedaprospectuniverseof200,000,youdonthavetomailall
of them in the first round. Select samples to run several tests, say, 15,000
people.
SetaControl(Base)Offer,andprepare5,000directmailpacksforthat.
For5,000directmailpacks,offeradiscount.
Forthelast5,000,offerafreegift.
When the responses are in, you can determine which works best and save
costsforfuturemailings.

Tomaximizeprofit,youprobablyhavetorunapricetesttofindoutwhatwouldbe

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theoptimumpricingforyourproductorservice.Toillustratethis,wehaveprepared
a Sample and a Template for your review and reference in designing and planning
yourpricetest.

OtherUsesforDirectMail
CustomerLoyalty

HowdoesDirectMailhelpestablishbettercustomerloyalty?Well,DirectMailisthe
startpointtocustomerloyalty.Ithelpstoestablishtherelationshipbetweenyouand
yourcustomer.Customerloyaltyhelpsyou:

Betterunderstandyourcustomerswitheachcommunicationthroughthedata
gathered.
Buildtherelationshipbyunderstandingtheirneedsandmeetingorexceeding
theirexpectations.
Build longterm sales, because customers are loyal to companies that care
aboutthemandtheirfeelings,anddelivervalueinawaythatismeaningfulto
themonanindividualandpersonallevel.

Itcostsmostcompaniessixtotentimesmoretogetnewcustomersthanit
does to keep the ones they have happy and loyal. And without your
realizingit,losingcustomersmightjustbeyourbiggestcost!

Remember, it is easier and costs less to sell to your own customers than
tryingtoacquireanewone.

Howtoturncustomerloyaltyintolongtermsales

Consistently deliver a level of service that exceeds and even anticipates the
customersexpectations.
Provide experiences that shout, WE CARE through each customer
touchpoint.
Keepyourofferscompetitive.
Keepupwithmarkettrendsandcustomersdemandinganddiscerningneeds.
Match these new trends to your customers changing needs with relevant
productsandservices.

A good example of the potential of customer loyalty would be this: Let's say you're
selling insurance to a customer. As a single person, he probably needs a hospital plan
and perhaps an endowment plan. When he gets married and starts a family, he will
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need some insurance for his spouse, his house and perhaps later on, an education
policy for his children. By constantly keeping up with his needs and his status
throughout the years, you are meeting his needs in a very relevant way. He grows
loyal to your services and your business inevitably grows.

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Bonus Tips
1. TheoneminuteDirectMailchecklist:

2. WhatmakesagreatDirectMailpack:

Personal Nothing is as intriguing as seeing your own name on a

mailer.VariableDataPrintingtechnologyallowsyoutoselect
different colours or visuals for different data subjects. Make
thebestuseofthem.Theyllpayoffinmuchhigherresponse
rates.
Insightful Askingaquestionlikehaveyouever?showsthatyouknow
andunderstandyourcustomer.
Attractive Whats in it for me when I respond? this MUST be
answered.
Intriguing Astoryoracasehistorywillkeepthereaderinterested.
EntertainingTheres no reason why a Direct Mail piece cant both amuse
and intrigue your customer, e.g. This is why you should
nevereatfoodonanaeroplane.
Valuable Save your customer money. People find it very hard to
throw away a valuable certificate, a cheque or a premium
showingthroughanenvelope.
Rewarding Peopleliketofeelasthoughtheyveachievedsomething so
why not give them a puzzle to solve or, of course, an
applicationformtocomplete?

If you can check off all these attributes against your mailer, then you're probably on to a winner!

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TemplatesforCreatives

Tohelpyougetstarted,herearesomebasicguidelinesrelatingtothreeofthemost
commoncomponentsofaneffectiveDirectMailpackthebrochure,theletterand
theenvelope. FollowthesesimplerulesandyoullbewellonyourwaytoDirect
Mailsuccess. Pleasenote:thedimensionsshowninthissection,whiletypical,are
usedbywayofexampleonly.

Brochure

Clickonthethumbnailtoenlargetheimage.

[1]Frontandbackcovers

[A,B]YourFrontCover(Panel)isthemostimportantpresentationofyourBrochure.
Dominateitwithaneyecatchingvisualthatworkstogetherwithanattentiongetting
headline.
[C]Yourcompanynameandlogoshouldalsobehere,soyourcustomersknowwho
youare.
[D]Thefocalpointofthebackcovershouldalwaysbeyourcompanynameandlogo,
togetherwithFreeTrial,NoCommitmentorGuaranteeofSatisfaction typesof
service copy, in order to set your customers mind at peace with good product and
goodservice.

[2]Insidespread

[E] Ensure that the headline inside relates to the front cover headline AND that it
givesyourcustomersrelevantinformation.
[F] Use side visuals to grab the readers attention and to give additional product
information.
[G] Subheadlines, short paragraphs and bulletpoints make brochures much easier
toread.
[H]Additionalvisuals(photographs,illustrations,graphs,tablesetc)provideuseful
informationandcontinuity.
[I]Testimonialsfromsatisfiedcustomerswilladdcredibilitytoyourbrochure.
[J]Allcopyshouldbebenefitorientedandtothepoint.Youonlyhavealimitedtime
togetyourmessageacross.
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[K]Makefulluseoftheclosingparagraph.Itsyourlastchancetotellyourcustomers
whatsonoffer.

Envelope(NormalEnvelope&WindowEnvelope)

Clickonthethumbnailtoenlargetheimage.

[A] The recipients name and address should be placed here. Normally, the area
allowedfortheaddressisapproximately100mmwideand30mmhighandbeginsat
least 40mm from the top of the envelope and 15mm from all the other sides. Its
importantthatyoudontputanycopyorartbelowthisarea,otherwiseyoumaybe
incontraventionoflocalorinternationalpostalregulations.Alternatively,awindow
isopenedtoshowthroughthenameandaddressprintedontheLetter,ortheOrder
Form.

[B] Dooropening. This piece of copy is also known as the Envelope Hook. Its
purpose is to get the recipients attention and to persuade him or her to open the
envelope immediately. The Envelope Hook should be related to the contents of
theenvelope,andisoftenmoreeffectiveintheformofateaserorquestion. Ifyou
are using a question, the answer should always be YES. This is critical to the
successofyourDirectMailcampaign.Iftheenvelopeisnotopened,nomatterhow
goodtheofferinsideis,itwillneverbeknowntothemailrecipient.Youcouldalso
considerofferingasmallfreebieshowingthroughasecondwindowontheenvelope,
soastoteasemoremailrecipientsintoopeningtheenvelope.

[C]Yourstamp,frankingmarkorpostalindiciashouldbeplacedorprintedhere.If
youre uncertain about what type of postage to use, you can discuss this with
Hongkong Post. Well help you decide whether you should use franking or live
stampsandwhichclassofpostageshouldbeemployed.

Letter(A4size)

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 Clickthethumbnailtoenlargetheimage.
DownloadLetterTemplate [linkthistohkpolettertemplate1]

[A]Thisareashouldbeusedtoshowyourcompanysnameandlogo.

[B] Start your letter with a Johnson Box. This is normally one line in bold
underlined or a short list of points, that summarizes what youre about to say and
themajorbenefitsofthepromotion,tothemailreader.
Forexample:NowyoucanOWNyourhomein5yearsorless.

[C]Followthiswithasalutation.Thisshouldbeasfriendlyandpersonalasyourlist
data allows. The least effective is Dear Sir/Madam. Depending on the purpose of
yourletter,tryDearOccupant,DearDoctoretc. Becauseeveryonelovestohear
their own name, the most effective salutation is Dear Mr. Brown, Dear Mrs.
Green.

[D]Thisiswhereyoustarttosell!Explainyourofferclearlyandprecisely.Remember,
everything you say here must be to the readers benefit, or you will lose their
attention. The trick is to keep them reading, so plan what youre going to say
carefully. Keep your letter concise and short. Ideally, everything should fit into
two A4 pages. (If the product you are selling is suitable for readers, for example
magazinesandbooks,preparealongerletter,say,fourpages.)Thetypefaceorfont
youchooseisimportant.ThemostcommonlyusedisCourierbecauseitlookslikeit
comesfromanoldfashionedtypewriter.Itgivestheimpressionthatitwasspecially,
andpersonally,writtentothatreader. Alsomakesureyoudontendasentenceat
the end of page one. Instead, keep your consumer reading by continuing the
sentenceontothenextpage.Thisreallyworks!

Use underlining, bold type, subheads, italics, and bulletpoints liberally to

emphasizethestrongestareasofyouroffer.Thelastparagraphofyourlettershould
containafinalcalltoactiontellingthereaderhowtoorder(action),andincluding
yourcontactdetails,eg.phonenumber,emailaddress,websiteandsoon.

[E]Signoffhere.UseSincerely,Withbestwishesoranotherrelevantterm.Your
letter will sound more personal if it is signed by a real person in your company.
Makesureyouprintthesignersname,his/hertitleandthenameofyourcompany
below the signature. Use the image of a real signature (that is really signed by the
namedsignatory).

[F]TheP.S.isactuallyoneofthemostimportantpartsofyourletter.Researchshows
that it is often the first sentence a consumer reads when opening a direct mail
envelope. Use the P.S. to place an important message. It is often your first, and
certainly your last, opportunity to communicate your offer clearly and precisely to
the consumer. Repeating a timesensitive special offer or free gift here will help
promptmorereaderstoactfaster,andhencebringyoumoreorders.

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