Mail and Direct Mail Campaigns for Generating Business

Mailing regularly to your existing database of customers and prospects is a good way to reactivate accounts, uncover new leads, and generate new business from customers. And by purchasing an outside mailing list you can exponentially increase your potential to reach new customers.

For an in-house mail campaign all you need is a customer or prospect database, postage, and enough motivation to get the mail out the door. Your letter or collateral materials can be generated by you if your message is simple and straightforward, or it can be something like a brochure that you have professionally designed by an agency that specializes in this type of writing.

For a direct mail campaign, success is relative and depends upon your goals. The purchase of an outside list of names and addresses distinguishes a “direct mail” campaign from ordinary mailings. Direct mail is an established industry that buys, sells, trades, and maintains mailing lists. The smallest lists available generally consist of at least 5,000 names. Of course, you aren't obligated to use all the names.

Direct mail resources require more capital, and brokers generally charge around $100 per 1,000 names. You can purchase a list through a good list broker. However, it is essential that you make sure the list is targeted, current, and legally sold. You should update your lists every three to six months.

For an industry such as publishing, which relies on direct mail to solicit, 3 percent to 5 percent is a decent response rate. Direct retailers, who mail more frequently, look for a higher response.

For small companies, a successful direct mail campaign should eventually generate enough revenue to cover the costs of the mailing. Those costs would include the list, postage, paper, printing, and the labor associated with the mailing.