Direct Marketing Update 10/04//07
CDMG, Inc.
Nobody knows direct marketing better!

Dear Direct Marketer,

     Welcome to this week's issue of Direct Marketing Update. In this issue, we'll show you an effective way to boost your credibility...and your response.

    We'll also share the results of last issue's testing corner and put you to the test on price points!

In This Issue...
  • Direct Mail—Consider This Incredible Response Booster
  • Last Issue's Magalog Test Results!
  • "Homepage Suicide" Blunder #4—Anemic or Nonexistent SEO
  • Copy Tip—A Simple Question That Can Supercharge Your Response
  • Testing Corner—Price Point Test Doubleheader

  • Direct Mail—Consider This Incredible Response Booster


        Credibility is an essential key to a successful direct mail campaign. You want your prospects to see you as the pro, the expert, the one who's going to make their life better with your product or service.

        A value-added piece is an outstanding way to do this.

         A value-added piece is a component of your direct mail package that establishes value.

        It can be an insightful article, a helpful checklist, a flyer or even a list of telephone numbers. In short, it's an item your prospect will want to keep.

        For example, if you publish an investment newsletter, the value-added piece may be an article about the coming boom of a particular sector. If you're selling vacation timeshares, it may be a checklist of inexpensive travel ideas.

        In short, the piece adds value to your direct mail package (To read more about the effective strategy of adding value, click here to read to about my V.I.V.A.™ direct marketing strategy (Valuable Information, Value Added).

        The value-added piece achieves 3 goals:

    1. It establishes a relationship between the prospect and the marketer and gives perceived value.


    2. It positions you as someone trying to help, rather than as a salesman.


    3. It makes the mailing package itself something valuable a prospect might send to a friend, post on the fridge or share with a family member.


        To the right is a value-added piece we created for a newsletter geared toward children who provide care for their elderly parents.

        As you can see, the piece is a checklist of emergency caregiving considerations. It's an informative list the prospect could keep handy or reference.

        Here are a few considerations for creating a value-added piece:

    • Start with your USP (Unique Selling Proposition) and tie your piece into it. If you provide a service that helps seniors prepare for retirement, the piece could be "8 Ways You Can Ensure A Comfortable Retirement."

      If you're selling all-natural vitamin supplements, your value-added piece could be about the dangers of not getting enough nutrients.


    • Lists and bullet points can be very effective in a value-added piece. 7 Ways to Profit in Bear Markets, 12 Unbeatable Tips to Beat Airfare Costs or 10 Reasons People Hurt Their Retirement Strategy.


    • The value-added piece is not a hard sell. Save that for your sales letter. The main goals are to build credibility, show you're there to help and demonstrate your expertise.


    • Make sure you include a "call to action" at the end. The value-added piece reinforces your sales letter, but it can also drive the sale. "For more information on how you can increase your profits, call 1-800... or go to www.yourcompany.com."

        Could your product or service benefit from a targeted, response-generating direct mail campaign?

        Give me a call at 310-212-5727. My team and I at Creative Direct Marketing Group have created award-winning campaigns that deliver impressive results. And we can do the same for your company.


    Last Issue's Magalog Test Results!


        In the last issue, we showed you two magalog covers and asked you to guess which one generated more response.

        To refresh your memory, or in case you missed it...here's Cover A:



        And here's Cover B:

        We told you that the answer is...Cover A! We also asked if you know why. Here are a couple responses from readers...

        Rich wrote: "My first instinct was to select B due to the younger looking folks that might be more appealing; then, after reading that you said it did not pull as well, I examined it more closely and realized that B looked like it appealed to rich folks, as opposed to common folks. There was more identification with A due to the 'common folks' association."

        Another reader, Bobbie, wrote: "My guess is that Cover A doesn't look staged. It looks real which gives more credibility to the message it is sending versus Cover B, which looks almost like those fake touched-up pictures on the cover of Glamour. If the photo can't be trusted why should the message?"

        Well, you're both correct. Our testing showed that Cover A was more relatable because the woman in Cover A was an actual customer and gave a genuine sense of reality.

        Cover B had gloss and style, but couldn't connect to prospects in quite the same way.

        It's interesting to note that most people incorrectly guess Cover B. It goes to show that sometimes our gut responses can't compare to the hard and fast results of good testing.

        You may be wondering...so what was the actual response? Cover A generated 36% more response than Cover B!

        Keep reading to see a brand new test at the end of this issue. Or click here to go to the Direct Response archive and read my article on effective creative testing.


    "Homepage Suicide" Blunder #4—Anemic or Nonexistent SEO


        In the last three issues, we covered 3 of the 4 major causes of homepage suicide. So far, we've discussed navigation nightmares, too many click options and failure to apply direct response rules. Click to read the past issues.

        This week we'll address another major cause of homepage suicide—Anemic or nonexistent Search Engine Optimization (SEO).

         If your prospect can't find you, how is he or she supposed to buy/subscribe/sign up? You don't exist.

        However, with good SEO, even small marketers can compete with giants. Remember, as much as two-thirds of all traffic delivered by Google, Yahoo and MSN comes from organic listings.

         Here are 6 tactics for increasing your SEO:

    1. Keywords. Make sure you use your most powerful keywords in your title bar and website description. The title bar is still the most powerful place to place your keywords.

      But make sure to support those tags with keywords and phrases in your headline, introductory paragraphs and conclusion. The first 150-250 words should be rich with your keywords and phrases.


    2. Open directory. Make sure your site is listed in the Open Source Directory (dmoz.org). Google, in particular, gives higher rankings to sites listed on the Open Source Directory.

      Email me at craig@cdmginc.com if you'd like a copy of my open directory checklist.


    3. Direct response copy. Your entire site should have keyword-rich direct response copy. This means making sure both your copy and art are search engine friendly and user friendly.

      And it means you should write for search engine spiders and crawlers as well as for your prospect....intelligently compromising between the two.


    4. Research. Comb through your referrer data log and see which keywords are bringing you the most traffic (and conversions), then concentrate on making sure your site and copy focus on them.

      Of course you want the highest ranking possible, but don't forget you also want traffic that leads to conversions.


    5. Competitive intelligence. Use tools like Hitwise and Trellian's Search Term Intelligence to gauge the search terms your competitors are using, then optimize your pages so you can compete.


    6. Linking strategy. Having other sites link to your site increases your SEO. Type your webpage address in Google (www.xyzcompany.com) and see if anyone is linking to you. Then check your competitor's site and see who they're linked to.
        This article only comprises the tip of Search Engine Optimization. I could write an entire book on the subject.

        For even more information on SEO and Internet marketing click here to read my article "12 Critical Tactics, Strategies and Tips to Make Web Marketing Increase Your Profits."

         So there you have it—the four most common homepage suicide blunders. In the next issue, we're going to take a look at the profitable strategy of expanding your website campaign to an international marketplace.

         Call me at 310-212-5727 if you'd like Creative Direct Marketing Group's team of professionals to help you boost your SEO efforts.


    Copy Tip—A Simple Question That Can Supercharge Your Response


        "Will you allow me to send you this exclusive FREE Special Report?"

        What you've just read is an effective copy strategy essential to your copywriter's toolkit: asking your prospect for permission.

         Online or in print, asking your prospects for permission to become a client, a lead or to register, can strategically increase response.

        When you ask permission, you avoid the mistake of talking down to your prospects. You also project the feeling that the prospect is in control of the decision.

        If you're a regular reader of Direct Marketing Update, you know I rarely recommend asking a question in your copy. However, asking permission is one of the rare cases where it's highly advantageous.

        Here are some examples of what I mean:

    • "Will you allow me to send you this FREE Special Report?"


    • "If you buy now, you'll receive a 10% discount. All you have to do is say yes to receive your coupon by mail."


    • "Won't you sign up for our monthly e-newsletter loaded with alternative health tips and advice?"

        Another advantage of asking permission is it subtly conveys the "one person talking to another" feeling that fuels effective direct response copy. It's impossible to ask permission without projecting a sense of respect and one-on-one interaction with your prospect.

        One final tip: Follow up your permission copy with a subtle suggestion of the response you're looking for...while making sure not to remove your prospects' sense of control.

        For example:

         "Can I send you this FREE Special Report? Simply call me at..."

        If you need help putting together a campaign with effective copy, simply call me at 310-212-5727 for a FREE evaluation of your current marketing materials.

         I'll put together a professional critique (a $1,000 value) absolutely FREE. Or you can email me personally at craig@cdmginc.com


    Testing Corner—Price Point Test Doubleheader


        This week we have two tests for you that make one important point about price testing...

        Three price points were tested for a paid subscription website. Each price point had its own identical landing page. The only difference was price.

        The three subscription price points were:

    • $10.00 per month
    • $12.50 per month
    • $14.95 per month

        Can you guess which one brought in the most subscription orders? If you guessed $10.00 you're right. The $10.00 price point generated 33% more revenue than the $12.50 price point and 51% more than the $14.95 price point.

        Now here's a second test...

        Three price points were tested for online sales of a new book. The three price points tested were:

    • $7.95
    • $14.00
    • $24.95

        Which do you think brought it in the most orders? If you answered $14.00, you're right. The $14.00 offer received 480 orders ($6,720 in revenue), whereas the $7.95 offer had 390 ($3,100 in revenue), followed by the $24.95 offer which had 300 orders (for $7,485 in revenue).

        There's an important point here. Can you see it? The $24.95 book brought in more revenue, despite the lower volume of orders and therefore wound up being more profitable!

        There are 3 lessons we can take away from these two tests:

    1. Always test your pricing. Never assume you've chosen the right price point.


    2. The lowest price point isn't always the most profitable.


    3. While you may make more revenue with the highest price point, you'll also have less buyers. This means less opportunities for repeat buying, upselling, cross-selling and word of mouth.


    ACTION ITEMS

    1. Examine the results of your last direct mail campaign. Are you experiencing a loss of leads or sales? I can help. Contact me at craig@cdmginc.com.

    2. Are you up-to-date on the newest trends in direct marketing such as podcasts, viral video, pay-per-click ads and exciting mailing formats?

    Subscribe to the industry-leading digest Direct Response and keep current. Call
    310-212-5727
    now and tell the representative you'd like to subscribe to Direct Response.

    3. Click here to read the revealing article "5 Critical Strategies for Direct Marketing Success." It's a must-read article for every direct marketer and business owner.

    4. Click the Forward to a Friend button in the upper-right corner to pass on this Direct Marketing Update to interested friends and business associates.

        That's it for this week's edition of Direct Marketing Update. I hope that you'll keep an eye open for my next issue, as I have so much more exciting direct marketing information to share with you.



    Craig A. Huey
    President
    Creative Direct Marketing Group
    email: craig@cdmginc.com
    phone: 310-212-5727
    www.cdmginc.com

    Click here to visit the Direct Response Library. You'll find numerous articles from past issues of my Direct Response newsletters that provide even more valuable direct marketing help.

    CDMG Inc Home Page/Case Studies/Direct Response Library/Contact Craig/Direct Response Newsletter/Direct Marketing Update Archives

        This direct marketing newsletter has been prepared by and is the property of Creative Direct Marketing Group, Inc. The information contained herein has been carefully compiled from sources believed to be reliable, but its accuracy cannot be guaranteed. All photos and graphics are used by permission of their creators. Reproduction or electronic transmission of information contained in this report in whole or in part is strictly prohibited.

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    Craig Huey Hotline

    Need to talk
    to Craig?

    Call
    310-212-5727



    About Craig Huey:



        Craig Huey is the #1 authority on accountable advertising.

         He's recognized as one of the top direct response marketing experts in the nation.

        In addition to publishing Direct Marketing Update and the industry newsletter, Direct Response, Mr. Huey is president of Creative Direct Marketing Group, a full-service direct response advertising agency, and InfoMat, a postal and email list brokerage and management company.

        You can email Craig at craig@cdmginc.com
    or call him at
    310-212-5727.



    Top Direct Marketers Insist on Knowing the Latest Secrets, Strategies and Trends

    That's Why They Subscribe to Direct Response, Direct Marketing Update's
    in-depth sister publication



    Click to subscribe


        If you enjoy the information in Direct Marketing Update, you'll love the detailed and more extensive information found in our monthly industry digest, Direct Response. It covers today's most current direct marketing strategies and news.

        Direct Response also keeps you in the know by sharing key findings and information from more than 100 publications.

        Click here to subscribe to Direct Response.

        The latest issue of Direct Response contains the following information:
    • The Internet's Latest Profit-Building Secret


    • The Pros...and Cons...of Slim Jims


    • Site-to-Store Trend Watch


    • Success with Microtargeting


    • New Database Strategies


    • News and Views from the Marketing World


    • And much more...
        If you are not already a subscriber to Direct Response, click here to subscribe, and we'll send you the latest issue.

         As a Direct Marketing Update subscriber, you're eligible to save $15 on a new subscription. For more details, click here!



    Direct Marketing
    Tip # 167:

    Have You Tested Your Toll Free Call Center?



        If you use a toll-free call center, have you tested their efficiency lately? A few questions can determine if your call center is effectively gathering your orders—or causing you to lose sales.

        Ask your call center how many dropped calls they experience within a week or a month (dropped calls happen when prospects have to wait too long on hold).

        And while you're at it, ask them the average number of rings the prospect has to endure before getting their call answered.



    Schedule a Direct Marketing Bootcamp for Your Company Today




        Now is the time to set up a marketing bootcamp
    for your company or professional organization.

         Listen to one of the country's top direct marketing experts address such topics as:
    • Defining Your Unique Selling Proposition (USP)


    • Strategic Planning and Positioning


    • Review of Your Current Efforts


    • Database Marketing


    • Repositioning of Weak Products for Success


    • Improving Your Response and Profitability


    • And many more topics...
        Craig recently gave a
    3-day lecture series in Germany that ended with a day of personalized, one-on-one critiques of current campaigns.

         Craig can do the same for your company or professional organization. He still has a few openings left in 2007 and 2008. He also has several smaller, private briefings available for groups of 15 or less at his mountain retreat in California's San Bernardino Mountains, but spots are going fast.

        Contact Veronica at veronica@cdmginc.com for more information.



    Quote of the Week




        "Advertising is the ability to sense, interpret... to put the very heart throbs of a business into type, paper and ink."
        
       —Leo Burnett



    Book Corner:

    Check Out This New Book on Social Marketing




        This week in Book Corner we're going to take a look at Social Marketing: Advances in Research and Theory, edited by Debra Z. Basil, PhD and Walter Wymer, DBA.

        If you're involved in fundraising or any social causes, take a look at this informative book.

        It outlines the ways commercial marketing theory and practice can be applied to social marketing programs (for example, programs such as encouraging people to quit smoking or increase seat belt usage).

        It can also be applied to any sort of social change marketing campaign like fundraising or programs to better society (battling racism, tackling hate crime, etc.).

        The book is laid out like a compendium, presenting various articles, case studies and theories such as using the Internet to improve America's health, social marketing to decrease drug use in sports, and research into techniques to increase recycling.

         Social Marketing: Advances in Research and Theory is an excellent book for anyone seeking to expand their knowledge of social marketing theory.

        Click here to go to Amazon.com to find out more about the book.


    Profit Secret—Increase Your Company's Income...with Hardly Any Cost



        Now's the time to turn your postal or email mailing list into a consistent and highly profitable revenue stream.

        Since 1972, Craig Huey and his staff at InfoMat have helped direct marketers generate rental income from their mailing lists. In fact, it's not uncommon to double or triple your income on lists that are already on the market.

        That's because we don't wait for orders to come in. Instead, we take the initiative to generate more orders because of our creative abilities.

        We also uncover new opportunities for your list by finding new and unique markets.

        If you have never rented your list before, remember it's for a one-time rental. You sign a contract, and you always approve or disapprove the rental.

        If you want to make the most out of your list, call InfoMat at 310-212-5944 or visit www.infomatbiz.com.

        And while you're on our site, you can also check out our new lists...

    Active Canadian Investment Seekers

    Mail Order Fortunes

    ETF Global Investors

    Real Estate Market Report

    InfoMat
    Leveraging your list for maximum profitability



    Direct Mail Tip #37:

    Choosing the Right Paper Stock




        Choosing the correct paper stock is an essential part of the direct mail process.

         Spend some time considering the goal of the piece (like maybe a textured weighty paper for financial pieces), your budget (heavier paper will cost more to mail), and even the durability (how will your piece be mailed?).



        Call Craig at
    310-212-5727
    or email him at craig@cdmginc.com to discuss how he and his team of marketing professionals can create direct marketing copy that will work for your next campaign.



        To see various media that Craig works with click here.



    Resources

         Visit cdmginc.com for complete information about Creative Direct Marketing Group, Inc., a full-service direct response advertising agency. Here you'll find case studies, tested and proven web and direct mail marketing strategies, direct marketing tactics that can increase your bottom line and other FREE resources.



    The Direct Response Archive: Your Library for a Wealth of Information

        The following category links will lead you to a wealth of successful direct marketing strategies...no matter what medium you use.

    Creative Testing

    Success with Magalogs

    Offline Marketing

    Improve Your Subheads



    phone: 310-212-5727