VUCA, BtoB, 3C, STP, CS, ES, etc. Marketing and the business environment surrounding it are flooded with horizontal letters and coined words, and even those in charge of actual work understand and explain them all. Can you do it? I think there are many people who lack confidence when asked this question.
In particular, there are many types of abbreviations and coined words that are just alphabets, and the same abbreviation often means different words, so it is difficult to accurately decipher what they mean from the context.
Among these, “DM” is an abbreviation that has been used for a relatively long time, and since the beginning of the concept of marketing in Japan, it was sometimes used as an abbreviation for “direct marketing” and sometimes as “direct mail.” It has been used as an abbreviation.
Until now, in actual business, it was often used as an abbreviation for direct mail, which is carried out very frequently, rather than direct marketing in a conceptual sense, but in recent years, with the spread of SNS, the term “direct message” has also been used. Now that it’s expressed as DM, things are even more complicated.
Therefore, in this article, we will organize DM as “direct mail” along with surrounding concepts and methods, and explain it so that it can be understood in its correct meaning.
Furthermore, I would like to clarify the advantages and disadvantages of DM as a form of direct mail, and introduce key points for implementing it effectively.
Organize the meaning of DM
DM as direct marketing
Reconfirming the meaning of direct marketing
Direct marketing, as the name suggests, is a
marketing
method in which companies directly reach out to customers.
Until now, companies have conducted
mass marketing
primarily through mass media such as television, radio, and newspapers as a means of disseminating information.
The easiest example to understand what mass marketing is is a television commercial. In television commercials, the information that a company wants to convey can be broadcast “unilaterally” (with a certain core target in mind, of course) to an “unspecified majority” audience.
Mass marketing is characterized by these two points: “unilaterally” and “to an unspecified number of people,” while direct marketing is characterized by “bidirectional” and “detailed target setting.”
In recent years, with the diversification of information transmission methods such as the Internet and social media, it has become possible for companies to communicate directly with their target audience.
Against this background, companies segment their customers more precisely than mass marketing, set detailed targets, and then send out information only to the targets they want to appeal to, while monitoring the target’s response. We now have one-on-one communication with customers, exploring
their needs
and preferences and conducting marketing based on the measurement results.
This is direct marketing.
What are the characteristics of direct marketing?
Historically, the term “direct marketing” is said to have been used by Lester Wunderman, who is said to be the founder of direct marketing, in 1961.
Later, in 1981, the American DMA (Direct Media Association, now the Data and Media Association) defined direct marketing as “the use of one or more advertising media to produce a measurable response or transaction.” It is defined as “an interactive marketing system that can be achieved anywhere.”
The characteristics of direct marketing derived from this definition can be summarized into the following four.
1. Ability to use one or more media
2. Being able to measure customer reactions
3. Can be done anywhere
4.Be bidirectional
Due to these characteristics, the number of companies adopting direct marketing has been increasing since the latter half of the 20th century, as it has many benefits such as being highly cost-effective and leading to stable income.
DM, also known as direct mail, has been used as one of the direct marketing methods (hereinafter, DM is written as an abbreviation for direct mail).
DM was often used in the latter half of the period of high economic growth and during the bubble period, with the idea that “if you hit a lot, you would win”, so it is often talked about in the context of “a method of the past,” but in reality, DM This is not to say that this is an old method that no longer works; in fact, the response rate of DM is higher now than in the past, and more and more companies are making this the mainstay of their direct marketing.
Direct messages and direct mail
This article will focus on direct mail, but I would also like to clarify the meaning of direct message in comparison to the seemingly similar word and method.
It has been a long time since the Internet has become widespread and we have become a digital-centered society, and various events have been replaced by SNS. “Direct message” is also one of the direct marketing methods that was born after SNS became commonplace in society.
Depending on how you think about it, some people define SNS marketing and add direct messages as one of its methods.
SNS marketing is a general term for marketing that utilizes SNS such as Twitter, Instagram, and Facebook, and companies that adopt it because it has the advantage of being able to communicate directly with users through their accounts, getting closer to customers and making it easier for them to become fans. There are many. If your customers become fans and you can develop them into good customers, they will likely become repeat customers, and you can expect constant profits.
Also, in terms of information gathering, it is advantageous to be able to hear the real opinions of customers, which cannot be obtained through one-way methods such as so-called corporate surveys. This is where direct messages come into play.
Direct messages allow you to have private conversations directly with your target audience through platforms such as Twitter and Instagram, without the knowledge of other users.
The benefits of using direct messages can be summarized as follows.
- No one else knows about your interactions with the target
Direct messages allow you to exchange messages directly with your target.
Since it is possible to have a certain degree of personal conversation, it is possible to send targeted messages.
In addition, if it is an official company account, it can also serve as an inquiry function and can also handle pull-type marketing from customers.
Furthermore, most SNSs have a group direct message function that allows not only one-on-one communication but also group communication, so if you want to use it for recruitment strategy, for example, you can use it for round-table discussions with prospective candidates or group interviews. is also possible.
- Bring out your real true feelings
In addition, social listening tools such as word-of-mouth analysis have recently become more available.
If you use these tools to analyze customer feedback, you will be able to draw out impressions and opinions that are closer to the real feelings than corporate surveys, and you will be able to draw out more realistic customer needs and utilize them to improve your own products and create new plans. It can be done.
DM as direct mail
Direct mail definition
Everyone has probably seen the “direct mail” that is sent on a daily basis, and many people must have had the experience of being on the receiving end of the mail.
So, what exactly is DM?
In general, direct mail is advertising about products, services, campaigns, etc. for sales and advertising purposes that is sent directly from companies and stores to homes and workplaces, and is a form of mass media. It is a method of direct marketing that does not involve other media.
Broadly speaking, DMs can be divided into DMs, which are delivered to an individual’s address by specifying the address based on customer information that the company has stocked or obtained from a specialized directory company, and DMs, which do not specify the address and are sent to the area around the store or special sales. There are two types of DMs that are sent to all members of a certain segment, such as the day before the event.
The former is often used to approach existing customers and repeat customers, while the latter is mainly used to acquire new customers.It has the characteristic that it can be used depending on the purpose, and the purpose and target can be set freely.
What are the characteristics of DM?
So, what makes DM different from other media?
As digital technology permeates society, it is easy to think that the analog media of DM is a thing of the past, but in reality there are many companies that utilize DM, and its characteristics are worthy of renewed attention.
Some of the characteristics of DM that are still valid today are as follows:
1. A wide range of expressions such as photos, illustrations, and POP typefaces The first characteristic of DM is that since it is a printed product, it can be freely expressed using photos, illustrations, and various typefaces. Digital media such as email newsletters have a limited number of fonts, and using too bright colors can give a bad impression.
With DM, for example, you can use gold leaf on an invitation to a test drive of a luxury car, or use a handwritten typeface to create a sense of intimacy.
2. Can provide real experience This is also related to point 1, but since DM can actually be sent, a major feature of DM is that it can deliver real experience to the customer’s hands.
For example, digital media can provide detailed images of cosmetics, but it is not possible to experience the feel, texture, or even fragrance.
On this point, by delivering samples of the cosmetics to users through DM, they can experience the actual product and provide valuable real-world experience that cannot be found through word-of-mouth.
Of course, you can also use the one-off method of sending samples, catalogs, coupons, etc. to those who request it after conducting a DM on the web.
3. Build a special relationship with your customers One of its features is that by repeating DM, you can increase the repeat rate of your customers and improve their familiarity with your products and services.
By analyzing customer data and understanding their needs and preferences, you can, for example, target people who like luxury cars and branded products and encourage them to participate in test drives and fitting events with luxurious invitations, or create seasonal events. It can be said that methods such as sending envelopes in handwritten calligraphy to encourage elderly people to repeat taking supplements are already well-established.
Advantages and disadvantages of DM
The role of DM that influences marketing
As we have seen so far, DM plays an important role as part of direct marketing, but its effectiveness has been evaluated according to the “DM Media Actual Status Survey (2020)” conducted by the Japan Direct Mail Association (2020). 199 men and women in their 50s and 50s were asked to “monitor all received DMs” in a diary format every day. 1,233 DMs were sent to themselves, 815 were sent to family members other than themselves, and 310 were left unaddressed, for a total of 2,358 DMs) You can know by.
source:
https://www.jdma.or.jp/data/research.php
https://www.jdma.or.jp/upload/research/20-2020-000016.pdf
According to this survey, the number of DMs received during the survey period was 6.7 per week, and the read rate of DMs addressed to individuals (1,233) was as high as 74.0%.
Additionally, the percentage of people who took actions after receiving a DM such as “talking about it,” “searching it on the internet,” “visiting a store,” and “actually making a purchase” was 16.3% of the total number of DMs received. However, when looking at this by age group, the increase was 21.8% for men in their 20s and 26.2% for women in their 30s, indicating that it has a relatively high appeal to young people.
DM can be expected to have the effect of calling people to action, but of course there are disadvantages as well, and it is important to keep these in mind, so let’s summarize the advantages and disadvantages below.
Advantages of DM
The benefits of implementing DM can be summarized in the following four points.
1. It’s easy to show off your individuality through a variety of expressions The first advantage is that you can differentiate your products and services by making full use of photos, illustrations, and various typefaces that are characteristic of DM. .
By changing the paper quality and folding method to create a high-quality invitation card, booklet, or simple catalog, you can make it easier to convey the image of your product or service and increase the open rate. can.
2. You can control the amount of information included.In addition to expressions, you can also control the amount of information included by choosing a format such as a postcard or envelope.
For example, you can send postcards to repeat customers with discounts and bonus coupons, while new customers can be sent a booklet with a wealth of content, including company information, catalogs, and usage examples.
3. Measurement of effectiveness can be utilized Generally speaking, it is more beneficial to conduct DM several times and in several types. Which project had the highest response rate by type and number of times by conducting it multiple times? Which customers had a high purchase rate or repeat rate? This is because it can be measured, analyzed, and utilized for marketing.
Conversely, analyzing the results and utilizing the obtained data can be said to be an essential measure for marketing using DM.
4. You can reach people who have no connection to digital technology.
Another advantage of DM is that it allows you to reach out to people who don’t have much exposure to digital technology, such as the elderly. This is because marketing using the Internet, such as SNS and owned media, cannot reach these people.
In addition, as measures against special fraud have recently been strengthened, telemarketing by obtaining a list of phone numbers is not an effective method as it often requires answering machine or does not answer the phone in the first place. I don’t get it. However, with DM, you are often able to reach these people because you are sending the message to the customer’s address, and the open rate is high.
Disadvantages of DM
On the other hand, the following points can be considered as disadvantages. However, there are countermeasures, so I’ll list them as well.
1. It takes time, effort, and cost Traditionally, it has been thought that implementing DM often requires difficulties in the preparation stage.
This is because, in the first place, a lot of money and time must be spent on planning, drafting, and designing, as well as segmenting targets and creating customer lists, all before shipping.
However, recently, services and tools that act as DMs have been developed, and the accuracy of the lists held by list companies has improved. Therefore, as long as you can balance the cost, you can use these services to save time and effort. Additionally, if you hire a professional to handle the writing and design, you can get a high-quality product.
2. Sometimes the package is not opened. Thanks to the tools and services mentioned above, the accuracy of target segmentation and characterization has improved, so it is not as bad as it used to be, but sometimes the package is not opened even if it reaches the target. It is also true that there are cases in which the materials are disposed of instead.
To deal with this, we need to conduct research and analysis from a medium- to long-term perspective, patiently go through the PDCA cycle, accurately capture the information and needs of customers, and explore ways to get them to open the package. There is no other choice.
How to use DM for marketing?
Three points that lead to successful DM measures
So far, we have introduced the advantages and disadvantages of DM, but from now on, let’s think about ways to utilize DM for marketing activities.
First, let’s introduce three points you should keep in mind when implementing DM.
Point 1. Clarification of target and timing
The most important thing in DM measures is the target (purpose/goal) of sending to whom and for what purpose, and it is important to decide and clarify when is the most effective time to approach that target. Keep it that way.
It is important to set out objectives and goals numerically and to divide timing into short-term, medium-term, and long-term so that everyone involved has a common understanding.
For example, a specific setting could be, “One month before the end of the fiscal year, send a DM about a year-end sale to 1,000 highly loyal repeat customers, and have 200 people visit the store during the period.”
Point 2. High quality creative and attractive benefits
As already mentioned, DM has the characteristic of conveying a large amount of information, but in order to make the most of this characteristic, it is necessary to have a high level of creativity, not only in design but also in copywriting and printing technology. It is necessary to keep it.
You should also consider offering benefits such as discounts and benefits to increase the open rate and encourage action.
This is because the quality of the creative required changes depending on the content of the benefit.
For example, if you are looking for an inexpensive discount offer, you can use a POP feel to encourage people to come to the store, or if you are looking for a test drive of a luxury car, you can create a celebrity impression by using an invitation card with a high-quality and rich image.
Therefore, rather than simply in-house production due to cost considerations, it is better to create high-quality DMs by commissioning art directors or outside experts who are particular about their work, as it is more likely to lead to better results. In the end, it can be said that cost effectiveness can be improved.
Point 3: Measure the effectiveness of your business after thoroughly considering the plan based on the above two points, and then implementing the DM. Measure the effectiveness while counting specific responses such as the open rate and number of store visits, and conduct PDCA. Another important point is that this will lead to improved effectiveness of the next measures.
It is important to continue implementing these activities steadily, but tools and methods for measuring effectiveness have recently been developed, so you may want to take advantage of them.
What are the next-level DM measures?
We have introduced the three basic points when implementing DM, but we will also introduce some next-level ideas that you should implement if possible.
it is
1. Internal sharing of DM measures
2. Approach potential targets
3. There are three points to consider when determining secondary effects.
1. Internal sharing of DM measures
When implementing DM, in most cases, sales support departments such as planning sales and business promotion and marketing departments take the lead in planning and operating. Of course, it is often a company-wide initiative in the sense that it requires the judgment of top management, but is the target (purpose/goal) and timing of implementation shared with all employees?
You can’t expect your DM measures to be effective if some employees say, “Oh, you sent me a DM like that? I didn’t know.”
It is important to share information with all employees about when and why DM will be conducted. This is because everyone’s every action is connected to business.
If the purpose is to lead people to your company’s web page, it goes without saying that the person in charge of the web page needs to know this, and all employees who view it also need to know why the web page is being updated. This will also improve your motivation.
Also, by presenting specific goals, all employees will be able to direct their energy in the same direction, allowing them to work together as one to achieve their goals.
2. Approach potential targets If you identify your target audience from your existing customer list, extract those people, and send them a DM, your response rate will definitely increase. This is a natural result, and of course it is a good method, but we cannot expect it to spread further.
By broadening your target audience and conducting DM while always looking for people who are likely to become customers, you can uncover potential targets.
If you find it difficult to create a new list on your own, it may be a good idea to consult with a company that handles DM for you.
If you are sending a DM without an addressee, you can ask a posting company to post it after making detailed settings such as the area.
3.Identification of secondary effects
Since DM is carried out as a business measure, it must be linked to profits, so we tend to focus on how effective it is relative to the cost.
This is, of course, not a mistake, but it is important to not get caught up in just the cost, but also to think about “creating and delivering really good DMs.”
As mentioned in the creative section, if you are too concerned about costs and end up doing the design and copy in-house and sending out boring DMs, it could lead to a decline in your company’s image.
In addition to measurable effects such as open rate and number of store visits, we would like to run the PDCA cycle by taking into account secondary effects such as impressing the company name and product name and making people remember new services. .
What kind of DM is there, its shape and purpose?
Features and application examples by shape
Now that we have completed the necessary preparations for implementing DM, let’s take a look at the characteristics of each format and the content that should be included.
- postcard type
Speaking of DM, the first thing that comes to mind is the postcard type.
In addition to being sent by mail with a specified address, many are also distributed widely as postcard-sized prints without an address. This postcard type can be introduced relatively easily, from major companies to individual stores, and can be used for a variety of purposes.
Another feature is that it can be sent anywhere in Japan for as low as 63 yen per sheet, if you ignore the cost of design and printing.
In addition to standard postcard sizes such as official postcards, non-standard sizes are also available, and there are various types such as double postcards and pressure-bonded postcards that can be printed on the inside, and can be used depending on the purpose and use. I can do it.
Additionally, because there is no need to open the envelope, it is easier to convey information than envelopes.
The shape can be used for a wide range of purposes, including introducing new products and stores, promoting campaigns such as special sales days, and announcing events and seminars.
- letter type
There are also many letter-type DMs that use envelopes. It can contain flyers, pamphlets, greetings, etc., and is unique in that it can contain a large amount of information. However, it is necessary to take into account that mailing costs tend to be higher compared to postcards, etc., and that there is a high possibility that the envelope will be thrown away without being opened.
Therefore, it can be said to be an effective type when a certain degree of open rate can be expected, such as guidance for existing customers or announcements for users whose needs are already known to be high.
- FAX
If you can get the number information, fax is also an effective form of DM. It has the advantage of being cheaper than postcard or letter type, which incur postage costs, and eliminating the hassle of packaging.
On the other hand, since most of the data sent is monochrome, it is necessary to take design into account from the beginning, and there is a high possibility that the data will be thrown away without being read. In addition, there are many households these days that do not have fax machines, so it is essential to carefully select and target targets in order to target general consumers.
In particular, it can be said to be excellent in terms of cost-effectiveness if the content can be sufficiently communicated in black and white, such as regular ordering and sending/receiving surveys in BtoB.
It’s safe to say that email has become the mainstream form of DM these days. The reason why e-mail DM is so popular is because of its three advantages: volume, immediacy, and low cost.
In other words, you can send DM to many targets without worrying about the cost as long as you have the address, you can provide information in a timely manner because it will be delivered to you immediately, there are no postage or communication costs, and you can design it easily. There are three things that can be done at low cost since nothing fancy is required.
On the other hand, from the perspective of information security, it is important to consider that the email may be judged as spam.
E-mails can contain a variety of content, but they are especially suited for Internet-based businesses, such as direct links to websites and e-commerce links.
In recent years, there are services that specialize in DM mail, and the quality has improved, so outsourcing it to outside staff with the know-how may be an effective option.
summary
- In this article, we have introduced the definition and uses of DM, as well as the types, advantages, and disadvantages of DM as direct mail. However, DM is just one method of direct marketing, and there are many targets, products, services, and technologies that cannot be appealed to without web marketing or other marketing or sales methods.
- The important thing is to implement measures that suit the content and customers of your company’s products and services, and if you decide that DM is the best option, then implement it.
- When conducting DM, the hurdles seem to be high as it is necessary to select a target customer list, create creatives that suit that customer list, and come up with various ideas (such as attractive benefits) to increase the response rate. I might be able to do it.
- Therefore, when implementing DM, it is a good idea to keep in mind that there is an option to utilize the know-how of a specialist company, rather than being limited to operating it on your own.