Information to help you implement direct response marketing for your SMB.
Small business owners know that there are dozens of types of marketing they can engage in to help their companies grow and thrive. But with limited budgets, small departments, and only so many hours in the day, it would be impossible to implement all of them. The decision of where to focus energies and funds—from CRM to social media and influencer marketing, to traditional media (radio/television), to streaming, and more—can seem overwhelming.
For many small business owners, even across many different industries, one of the best places to put your effort is in direct response marketing. Here we’ll guide you through some must-know information, including a direct response marketing definition, some direct response marketing examples, and why this path makes great sense for both small and mid-size businesses looking to connect with customers and expand their potential for growth.
What is direct response marketing?
Direct response marketing is, quite simply, what it sounds like. Your business sends a message directly to a designated customer (or customers), and that customer takes action or responds in the way that you have directed.[1]
Chances are very good that you yourself have interacted with direct response marketing from some of your favorite organizations. Direct response marketing examples that you are probably familiar with include clicking through an email or social media link to sign up for a newsletter, utilizing a specific discount code when purchasing a product or signing up for a service, providing your email address to download a white paper or expert article, and so on.
Direct response marketing differs from many other types of marketing mainly because it is much more specific and often personalized. While TV ads or pre-roll ads on YouTube are often created to reach a mass audience, direct response marketing leverages more specific customer data and incorporates more personalization or customization in order to resonate with selected individuals.
One of the reasons why businesses are finding success with direct response marketing is that it feels more authentic and directed at the customer. A billboard is meant to be seen by everyone, but an email based on past purchases and specific interests or needs is much more likely to elicit a response.
Another reason businesses implement direct response marketing campaigns is because of the valuable customer data that they can gain. From basic information such as email addresses to customer preferences about products and services, direct marketing has tremendous potential to tell companies more about their current and prospective customers, in turn powering more effective marketing efforts in the future.
Benefits of direct response marketing
It’s no surprise, then, that direct response advertising offers numerous benefits for companies and customers alike. Let’s take a look at some of the top benefits that come from implementing a direct marketing campaign as part of your overarching marketing strategy.
Benefits for businesses
1. Affordability
Direct response ads and full direct response campaigns are often much more affordable than other marketing efforts. From email marketing campaigns you develop in house to even targeted social media ad campaigns and other channels, direct response marketing offers a lower overall price tag, as well as lower cost-per-acquisition (CPA) and cost-per-lead (CPL) figures.
2. Direct line of communication
Since you are speaking directly to your customers, you can customize and tailor your messaging appropriately. This in turn offers you a better chance at high response or engagement rates. Leads are taking action to interact with your business, so they are already interested in your company and what you have to offer. This makes them stronger leads who are much more likely to be interested in purchasing either now or in the future.
3. Metrics and more metrics
As mentioned above, you’ll learn much more about your customers with direct response ads and marketing efforts. Additionally, you’ll have a campaign that provides outstanding metrics[2], allowing you to better adjust as needed and increase your success along the way.
4. Offers and urgency
Direct response advertising gives you a chance to provide customers with special offers as well as specific dates during which those offers are available or valid. This can drive more immediate engagement and response, and boost purchase performance during the campaign.
Benefits for customers
1. Offers
Everyone loves a discount or special offer, and your customers are no exception. While you benefit from more sales in a short span of time, your customers benefit by saving on products or services they are already interested in and/or planning to purchase.
2. Direct messaging
Effective direct marketing is tailored to the individual customer, so there is increased authenticity and resonance with direct marketing ads. When you leverage information about their preferences, interests, and needs, they feel like you are communicating with them directly and this strengthens their connection with your business or brand.
3. Relevance
Customers are bombarded with marketing and advertising everywhere they turn, but direct marketing ads are different. When done properly, your direct response advertising will speak to customers about an issue or topic that they care about, and will cut through the clutter so that they get the information that matters to them.
Common direct response marketing channels
There are countless media and method options for marketing, and especially digital marketing. Some of the best and most common direct response marketing examples are listed here.[3]
Social media marketing: Social media advertising offers tremendous options for narrowing down and engaging with your selected audiences, targeting users that make the most sense for your business and your campaign. Paid ads, boosted social posts, and direct sales links are all options on social media.
Email: Email might be the first direct response tool that people think of, and for good reason. When it comes to providing information and offers directly to customers, there may be no better method than email marketing. Especially if your email campaign is part of an overarching CRM effort.
Direct mail: While we are definitely in the digital age of advertising, small businesses should not overlook the power of print. Catalogs, coupons, flyers, pamphlets, newsletters … all these and more are often a pleasant surprise for customers to receive in their mailboxes, and for some customers they may feel less intrusive or inundating than email marketing.
SMS or phone calls: Sure, the phone is a great option for direct communication with customers, but the options have expanded with SMS messaging. If your database includes mobile numbers for your customers, it can be a great way to provide them with a specific or limited-time offer.
These are just a few of the many great examples of direct response marketing. Other options you might consider include digital or streaming videos, or even offers/promo codes on the back of your business card.
Direct response marketing examples
You have certainly seen a few great examples of direct response marketing yourself, but there are definitely some favorites that have set the bar very high (and which provide terrific ideas for you to follow).
Starbucks[4] is one such example. With customer data that includes not only phone numbers and email addresses but even favorite beverages, favorite/frequent locations, and time of day when they typically place orders, Starbucks utilizes all of this to provide in-app messaging, email communications, and more.
Hyundai of Australia created a Facebook campaign that drove customers to book a test drive through Facebook’s Messenger app.[5] This then created a conversation between prospective Hyundai buyers and a chat bot that could help them schedule a test drive at a nearby dealership.
And of course, there are always the local restaurant menus that you receive in your mailbox or on your doorstep. They’re simple and classic as an example of direct response marketing, but they sure are effective (especially around lunchtime).
Dive into direct response advertising today
Whether you are looking to grow your database of prospects or you want to boost this quarter’s revenue figures with an influx of sales, direct response marketing is one of the most effective ways to accomplish your company’s goals. And with so many options to choose from, you also have a great deal of flexibility in how you structure your campaign, how many customers you want to reach, and which method makes the most sense to support your overall marketing efforts.
Best of all, there are numerous direct response marketing agencies available within Capterra’s directory of digital marketing agencies. Trusted and reviewed by countless small business owners, there are many terrific direct response marketing companies in the network who can help your SMB explore new options and growth potential.
And if your marketing team is ready to add direct response options to their comprehensive marketing strategy, then they should explore the software and tools available in Capterra’s All-in-One Marketing Platform Software directory. With comparison tools and complete information about the available options, you and your team can quickly narrow down the right tools for all of your marketing needs, including direct response.