Direct marketing: the basics
Why use direct marketing?
Direct marketing allows you to generate a specific response from targeted groups of customers. It's a particularly useful tool for small businesses because it allows you to:
- focus limited resources where they are most likely to produce results
- measure the success of campaigns accurately by analysing responses
- test your marketing - you can target a representative sample of your target audience and see what delivers the best response rates before developing a full campaign
A direct marketing campaign can help you to achieve the following key objectives:
- increasing sales to existing customers
- building customer loyalty
- re-establishing lapsed customer relationships
-
generating new business
You can use direct marketing in both business-to-business and consumer markets. Of course, your strategy will need to be modified depending on which you're targeting. While business contacts are used to receiving marketing emails, consumers may be less receptive to mailshots or telemarketing calls - so you need to plan your approach carefully.
Response rates can vary substantially - read direct marketing statistics on the Royal Mail website - Opens in a new window for an idea of how response can vary between business and consumer markets.
But remember that the results of direct marketing aren't guaranteed. A poorly planned or targeted campaign will be a waste of money. A badly designed mailshot, for example, could simply end up in the bin. And worse still, it may irritate recipients and damage your business' reputation as a result.
Subjects covered in this guide
- Introduction
- Why use direct marketing?
- Using your database
- Direct mail
- Leaflet drops and handouts
- Telemarketing
- Email and fax marketing
- SMS/Text marketing
- Get help with a direct-marketing campaign
- Legal issues and best practice
- Here's how direct marketing improved my business
Actions
- Direct marketing statistics on the Royal Mail website - Opens in a new window
- Download business-to-business marketing guidance from the DMA website (PDF, 526K) - Opens in a new window
- Use our interactive tool to find out whether you need to notify the Information Commissioner about the data your business holds
- Manage your personal list of starting-up tasks with our Business start-up organiser
