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Direct MarketingLetter Design
Your group, as amarketing team have to provide a direct marketing letter (with no enclosedleaflet) selling Life Insurance for the company of Planet Zogg Ltd. Themanaging director has already decided that too many leaflets go out with aletter, which are then just discarded. Therefore the aims of the letter are asfollows;
1 The letter willserve as an introduction to make consumers aware of the company "PlanetZogg Ltd"
2 The letterdesign will have a "non intrusive feel".
3 The letter willencourage customers to seek further information, but the quicker the customerresponse time the better.
4 The letter mustbe coded in some way in order to analyse response.
5 The pricingstructure of the product is as follows:
Single personFamily (4 persons) Family (8 persons) Family (>8 persons) ?14pm ?34 pm ?54pm ?89 pm (pm=per month)
Your role is todesign this letter and provide a report justifying its layout, style andcontent from a direct marketing perspective.Discounts areavailable if a customer signs up for the following periods:
Direct MarketingLetter Design
Report
To: Ivor Claim, Managing Director
From: May Linglist, Marketing Manager
Date: 8th August 2005
Re.: Direct Marketing Campaign Letter
1 Introduction
This report proposes a text and layout for a direct marketingletter using techniques to maximise the response rate.
It is important to note that the letter will be competingfor attention with many other items of direct mail: the average UK householdreceives 14.1 items every 4 weeks, with households in AB socioecomonic groupsreceiving 370 (www.dmis.co.uk). On average, 60% of such letters are opened, and40% of letters read (www.dmis.co.uk: these up-to-date figures show a fall fromthose from the DMIS quoted in Brassington & Pettitt 2005: p366). Tomaximise the first figure, consideration should be given to the envelope designand messaging in addition to the letter.
The DMIS research shows direct sales from mailshots ofcomplex insurance products like life policies are still relatively low, at 2%(www.dmis.co.uk). However, the value of the mailshot is more than thegeneration of sales in the short term. It may also:
- help raiseawareness of Planet Zogg Ltd as a provider of life insurance
- open an ongoingrelationship with prospects and customers
- provide marketingdata such as response rates, cost per sale, and if the market aimed at issegmented, comparative figures for different segments
The proposed letter follows, with anexplanation of elements of layout, style and content after.
2 Letter
Mr A Somebody 31stAugust 2005
1 Any Street Ref:DB1
Somewheretown
AB1 2YZ
Dear Mr Somebody,
Peaceof Mind: A Special Discount for You
Wouldn't you like to be sure that, if the worst happens,your loved ones will be financially secure?
That's why I want to introduce you to Planet Zogg lifecover. Allow me to show you how we go that bit further than other insurers togive you complete reassurance.
We pride ourselves on combiningsome of the best rates and policies available with our friendly, jargon-freeservice.
- Life insurance from Planet Zogggives you
- reassuring full cover, with no nasty surprises in the small print
- competitive prices to save you shopping around
- UK-based Planet Zogg customer service advisers to help youwhenever you have any questions - we don't outsource to call centres, so youget the expertise you want
How do ourprices look? You can get an even better deal by signing up for 2 or 3 yearsand there's a 10% early bird discount if you call us within 3 weeks ofreceiving this letter.
Single person | Family of 4 | Family of 8 | Family of 9+ | |
1 year policy | 14 per month | 34 per month | 54 per month | 89 per month |
Sign up for 2 years: get 10% discount | 12.60 per month | 30.60 per month | 48.60 per month | 80.10 per month |
Sign up for 3 years: get 20% discount | 11.20 per month | 27.20 per month | 43.20 per month | 71.20 per month |
3 year policy with Early Bird discount | 9.80 per month | 23.80 per month | 37.80 per month | 62.30 per month |
Of course, you'll want to knowmore about our policies before buying. We're ready to answer any questions youmight have about Planet Zogg or our products, whether you want to take out newcover or change your current insurance. Why not call today?
Peace of mind is just a phonecall away. Ring us on 01234 567890 within 3 weeks of the date on this letter,and you'll qualify for an extra 10% discount if you decide to take out apolicy.
We look forward to hearing fromyou.
Yours sincerely,
Ivor Claim
Managing Director
PS Don't forget - you have only 3 weeks to claimyour extra 10% Early Bird discount.
Call us today on 01234567890 to find out more
3 Layout
The layout of the letter hasseveral functions. It helps make the message clear and easy to read, and todraw the reader into the letter through its structure, ensuring that even ifthe letter is not read in full, important messages are still delivered.
The address in the top left handcorner of the letter must fit the window of the envelope and careful checksmust be made that this is the case prior to printing the letters. It alsoserves to personalise the letter. The Direct Marketing Information Service'sresearch found that 73% recipients rate correct addressing as very important,so the address functions as an indicator of attention to detail.
The Institute of Direct Marketing(www.theidm.com) suggests a number of approaches to layout that will increaseresponse rate. Use of a heading encapsulating the offer and benefit stands outto the reader and encourages them to continue reading. After the opening, a'PS' is the second most-read part of the letter, therefore is a tool to make animportant point to anyone who might skim through the body of the letter.
The IDM also recommends creatingvisual interest through indented paragraphs, tables, bullet points and usingvariants of text such as italics and underlines. There are additional benefitsto bullet points and tables: both can clarify information that if laid outwithin a paragraph, could be confusing for the reader.
As this letter is relatively short,there is a danger of making the layout too busy through excessive use of thesetechniques, so not all have been incorporated.
The text has been justified to theleft. Fully-justified text, although giving a clean, aesthetically-pleasingmargin on the right-hand side of the page, can also lead to uneven word spacingwhich makes the text harder to read, and the different line lengths of textjustified only on the left make it easier for the eye to keep its place.
The font used is 12 point,recommended as a minimum under Disability Discrimination guidelines. Seriffonts (the serif is the small horizontal line at the bottom of the verticalline of an f or l) are easier to read than non-serif fonts (sometimes referredto as 'sans serif'), and the Times New Roman used for the letter is a seriffont.
The letter keeps to one side of apage of A4. There is no reason why it should not be longer, but it is importantthat if the text is run over onto a second page, the break is mid-sentence toensure the recipient turns the page and continues reading.
4 Style
The style in which the letter iswritten should take account of the recipient and be appropriate to theirindividual profile and circumstances, to the extent to which we are aware ofthem.
The use of names helps establishthe letter as part of a potential dialogue between the recipient and PlanetZogg. Addressing a letter 'Dear Reader' or using some other generic termcreates a feeling of an impersonal, untargeted mass mailing and may result inthe recipient not reading further. Using the title and surname of the recipientrather than their first name conveys respect. Use of the name of a member ofPlanet Zogg staff as the sender of the letter is important to give the letter amore personal feel than being from an unnamed 'team' or individual. Using the nameof the most senior person at the company implies that the recipient of theletter is important enough for the Managing Director to want to write to them.
Also creating a more personalfeeling is the use of the first person singular (I/me/my), which underlines thewriter of the letter as an individual addressing the recipient. There is someuse of plurals (we/us/our), but these are to refer to the Planet Zogg teamwhere necessary. Also important is the use of the word 'you': for example, 'Apolicy gives you' rather than 'A policy gives the insured' or 'A policy givesa person'; the word 'you' makes the letter more personally-addressed, againimplying one person talking to another.
A non-intrusive feel has beenstipulated as important for the letter. Intrusive marketing could be defined asthat which reduces the control of the recipient by being overly 'pushy', oreven threatening. Non-intrusive marketing seeks to establish a dialogue,talking with the recipient rather than at them. While a letter is a difficultmedium to use to do this, it is important not to dictate to the consumer.Instead, several techniques are used to give the recipient a sense of control.Rather than telling him or her to look at the prices, the question is asked'How do our prices look?' inviting the individual to form their own opinion.The description of Planet Zogg staff ready to answer questions again puts therecipient in control. It is up to them to decide to call the company andinstigate further dialogue.
The style of the letter is shortand to the point. Paragraphs are brief, containing one idea only. Sentences areshort, and points are made impactfully as a result. Short words are used inpreference to more complicated language; they are easier to take in becausethey don't take as long to read and they pack more emotional punch (Bird 1994:223).
5 Content
The content of the letter includesthe offer and the information surrounding it that can compel the recipient torespond to the letter.
As mentioned with regard to layout,the correct name and address is very important, and can have a significanteffect on response rates. Initially, this is dependent on the list provider,but as the Planet Zogg database grows, it is important that name and addressdetails are checked in conversation with respondents, or by inviting recipientsto contact us in the event of their details being incorrect. The list providershould also check lists against those from the mailing preference service.Individuals register with the MPS if they do not wish to receive unsolicitedmail. They are unlikely to respond to it, and by removing them from the list,the costs of the mailing are reduced and the letters that do go out are bettertargeted.
The date of the letter needs to beaccurate because of the discount available for responding within three weeks.Careful co-ordination with the mailing house is therefore important. The use ofphrases such as 'date as postmark' create an impersonal, 'mass mailing' feel tothe letter. The reader is more likely to retain the letter and throw away theenvelope than to keep both, and referring to the postmark complicates the callto action within a prescribed time.
The letter should still incorporatea time limit for the discount, even though dating the letter becomes morecomplicated. A request to respond within a specific period can increaseresponse by between 12% and 50% (Bird 1994: 207).
The reference is important so thatresponses can be coded, and it is important that all staff taking calls notethe caller's code. Using different codes allows segmentation of a databaseaccording to demographics, for example, and can provide information on whichsegments are most profitable or have the best response rates.
It is worth briefly noting thepotential of coding letters when trying contrasting approaches. Two differentletters could be sent within the same segment to gauge which letter generatesthe best response. In the event that this mailing, without a leaflet, produceddisappointing results, measuring responses in a future mailing by sending someletters with leaflets and some without would help establish whether this wasdue to the absence of a leaflet or whether some other factor had caused the lowresponse rate.
The heading should outline theoffer and the benefit: a 'special discount' and 'peace of mind' respectively.Use of the word 'you' helps make the letter more personalised at its opening,drawing the recipient in. It immediately raises questions in the reader's mind:firstly, what discount, and secondly, how will I get peace of mind? They arelikely to read further to find out.
The first paragraph introduces thecompany and product. It is not threatening, but makes a subtle reference to arisk that a purchaser must be aware of in order to buy. It also addresses thereader's motivations: there can be few exceptions to the rule that those with afamily have an instinct to protect them. The second sentence invites therecipient to read further to find out how Planet Zogg differ from othercompanies: in a market where there are many mailings selling life insurance,and many competitors, differentiation is a key factor in the success of aparticular firm. This is also helped by the Planet Zogg name - unusual anddistinctive within the life insurance market.
The bullet points list features andbenefits. While these could be addressed within the body of the text, bulletsdraw attention through a clearer layout. It is important to give the benefit aswell as the feature: WIIFM is a common anacronym in selling, and stands for'what's in it for me?' There is nothing in it for the reader if the feature -e.g. the competitive pricing - does not have a benefit - e.g. saves shoppingaround - for them, so this must be made clear.
The table, like the bullet pointsabove, makes disseminating information easier for the reader. The final line ofthe table has been formatted in bold to draw action we would most like therecipient to take: to respond quickly, committing to a 3-year policy. It alsoemphasises the difference a speedy response can make, as well as the costadvantage of signing up for a longer term. Giving prices for an extended familyinvites the recipient to consider buying a broader policy than they might haveinitially considered.
The next step is to invite thereader to find out more. It should be noted that a significant proportion ofthose receiving mailings will already have some kind of life insurance: 40% of25-54 year olds have bought a policy in the last 2 years (www.dmis.co.uk). Theletter therefore needs to engage those who currently have no cover and thosewho are looking to renew, or who might consider changing from their currentinsurer.
The letter draws to a close with areiteration of the offer and a call to action - which is repeated in the PS.Urging the reader to respond leaves them in no doubt about what to do next.
6 Conclusion
The layout, style and content of adirect marketing letter are all important considerations to maximise theresponse rate of the mailing. The best practice suggested in books and byorganisations such as the Institute of Direct Marketing is the result ofinformation from countless campaigns over the years and the monitoring ofresponse rates, looking to see which techniques generate the best results.
The value of information gainedfrom monitoring a mailing such as that planned by Planet Zogg cannot beunderestimated, as it gives us marketing intelligence that can be applied infuture campaigns, making them increasingly cost-effective and efficient atgenerating business for the company.
It is advisable to segment the listof recipients and to tailor letters according to the recipient's profile. Forexample, mailing lists are available categorised by size of household, age andnumber of children. There is evidence that the more targeted the letter, thebetter the response rate, while badly-targeted letters are quickly discarded.If it helps targeting, several different letters should be used.
Once the letter design and text isdecided, it is advisable to test it on a sample from the database to checkresponse prior to sending out a larger-scale mailing.
The response is not whollydependent on the letter: timing, packaging, list quality and the offer are allinfluential on whether a recipient decides to respond to the mailing. However,the letter is one of the main elements of potential success or failure, hencetime spent researching techniques to improve response rates and applying themin the letter may have a considerable bearing on the success of the campaign.
Bibliography
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Bell Q (1993) Winthat Pitch! Kogan Page, London
Bird D (1994) How to Write SalesLetters That Sell Kogan Page, London
Cambridge Marketing College (1999) MarketingOperations (Chartered Institute of Marketing Advanced Certificate StudyGuide) BPP, London
Cambridge Marketing College (1999) TheMarketing Customer Interface (Chartered Institute of Marketing AdvancedCertificate Study Guide) BPP, London
Christopher M & McDonald M(1995) Marketing: An Introductory Text Macmillan, Hampshire
Brassington F& Pettitt S (2005) Essentials of Marketing Prentice Hall, Harlow
Davey R and Jacks A (2000) Howto be Better at Marketing Kogan Page, London
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Hingston P (2001) EffectiveMarketing Dorling Kindersley, London
Lancaster G and Reynolds P (2002) MarketingMade Simple Elsevier Science, Oxford
Leppard J and Vyakarnam S (1995) AMarketing Action Plan for the Growing Business Kogan Page, London
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www.datahq.co.uk(list broker)
www.dmis.co.uk(Direct Marketing Information Service)
www.theidm.com(The Institute of Direct Marketing)
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