Direct Response Marketing: Does Your Business Need it and How to do it Properly
What could be better than provoking an immediate response from your audience? If this is your primary marketing goal, direct response marketing would be the right approach for you.
Direct response marketing spending in the US alone reached $29.61 billion across multiple industries. The biggest chunk of advertising expenditure occurred in the world of retail with $7.74 billion, followed by the automotive industry and travel.
This may sound impressive but it doesn’t really prove just how effective direct response marketing is. According to one study, for every $167 that direct response advertisers spend, they get $2,095 in sales. In other words, the return on investment exceeds 1,300 per cent.
In order to experience such impressive results, it’s obviously essential to do direct response marketing in the right way. The following guide will acquaint you with the concept and give you some ideas about making the most of such a campaign.
What is Direct Response Marketing
Let’s start by examining the definition of direct response marketing (DRM). It’s a completely different concept from mass advertising because it provokes an immediate response from the audience. The response could be anything – from signing up for a newsletter to making a purchase.
The response is highly specific and easy to measure, which enables very accurate campaign tracking. A marketer knows just how many interactions a specific ad has resulted in, which enables them to declare the campaign either a success or a failure.
Usually, DRM targets a very specific audience. This is needed to provoke a response. Doing a mass promotion and attempting to get a response from different groups of people will be nearly impossible. Thus, DRM requires intimate knowledge of prospects in order to work.
There’s one more highly specific aspect of direct response marketing that guarantees results. A concrete offer is being made – the audience knows what they’re signing up for right from the start. People understand what the next action is going to be (not necessarily a purchase) and they’re willing to make the steps required in order to get from point A to point B.
DRM Application: A Few Examples
If you do a bit of research, you’ll come across hundreds of highly successful and engaging DRM examples.
The Data and Marketing Association has focused on a couple of those. One of the examples presents a change in a Moz landing page. When it comes to search engine optimisation, Moz is one of the most prominent entities. Its landing page, however, wasn’t performing according to expectations.
The Moz team considered a redesign in which a lot of content was added. After the change, Moz generated approximately one million dollars through the landing page. The new content was six times longer than the original and it presented a detailed sales pitch. Previously, the page featured solely a brief summary.
Through the change, Moz found out that people needed details in order to trust a certain brand. Presenting the sales pitch in a similar that a company would in real life, the digital team managed to boost the effectiveness of the landing page.
Another example is the one of Holy Family Online. The company makes statues and jewellery. It relies on PPC advertising in order to drive targeted traffic to its website. Through carefully chosen keywords, Holy Family Online is capable of addressing the right crowd, resulting in a big number of purchases.
Groupon is yet another company that utilises the approach effectively. It uses multiple media to deliver a targeted message. Via TV advertising, people learn about the company’s website. Going there, they sign up and begin receiving special offers. The content is targeted and it doesn’t require a purchasing commitment right from the start. Groupon is focusing on people who sign up and it’s not pushing sales. By building such a community, the company is doing highly effective DRM.
The Keys to Successful DRM
A successful DRM campaign needs to have a number of key components:
- Add value to your message: as already mentioned in one of the examples above, don’t push sales. Instead, you should offer information or a highly specific solution to a problem that your audience has. If you accomplish such a shift in focus, your engagement level will get to be much higher.
- Find a way to boost the emotional appeal of the ad: DRM should illicit an emotional response from your audience. Emotions build a relationship between the brand and the prospect. This is why many companies focus on an experience rather than the actual product itself. Know the thing that moves your target audience and use it in the campaign, regardless of the communication channel that you’ve chosen.
- Make the campaign as specific as possible: ambiguity has no place in the world of DRM. Choose your focus and stick to it. If you tell people succinctly what you want from them, chances are that a bigger number of people will follow through.
- Create a sense of urgency: immediacy is one of the biggest strengths of DRM. Managing to create a sense of emergency through the campaign will stimulate people to undertake action. You could offer a limited-time discount. You could reveal a product that’s available in a one-time collection. Creating a sense of urgency makes it much easier for people to make a decision on the spot.
- Build your brand persona: while this isn’t a DRM technique per se, it will impact the outcome of your campaigns. Build the right brand persona in every message and visual that you send out. If you promote values that appeal to people, chances are that they’ll respond to your message in a positive way.
DRM is versatile, effective and capable of producing a high ROI. If you’re looking for engagement, this strategy is the one to try. The more effort you put in putting the campaign together and addressing a specific audience, the better the results are going to be.