SMA Fall 2005 Newsletter

USPS Direct Mail Certificate Classes to Resume on 2/15/06
Here's an easy way to boost your direct mail knowledge: the Postal Customer Council will again present a series of 6 morning seminars starting on February 15, 2006, that will earn you the USPS Certificate in Direct Mail Marketing. If you didn't get to complete all 6 classes in 2005, you can take the classes you missed in 2006 and still earn your Certificate.
	Karen Marchetti will be presenting the first 4 classes, including:
	How to Test Your Way to Success (Testing, Tracking, Financial Analysis) on 2/15 Copywriting Workshop (expanded to a 2 ½-hour session) on 3/15 Creative Review (format, package elements, design, and entire package review) on 4/12 Offers that Sell on 5/17
For more information, visit www.sdpcc.org.

Copywriting Workshop on 10/18/05 at SDDMA

Did you miss Karen's Copywriting Workshop earlier this year (and you don't want to wait until March 2006 for the next one at the USPS)? You can attend her 3-hour morning seminar, "Copy That Sells", on October 18 at The San Diego Direct Marketing Association. Go to www.sddma.org for more information and to register. (Note that attendance at this session does not earn credit towards the Certificate in Direct Mail Marketing from the USPS.)

THE NUMBERS:
What's a "Good" ROI?

ROI - or Return on Investment - can be used to measure how much of your Direct Marketing investment was returned in the form of gross profit (generated from that DM effort). The simple ROI formula is:

          (Gross Profit)/(Direct Marketing costs)

          where

          (Gross Profit) = (Gross Revenue) - (all direct costs of delivering those orders)

          For example . . .
          If your DM effort generated $20,000 in gross profit (revenue - product costs), and you spent $10,000 on the effort, ROI would be: $20,000/$10,000 = 200%

          In this example, you returned 100% of your DM investment, plus another $10,000 (or you returned double your DM investment).

          Is that good? It depends on your company's particular situation. Is $10,000 enough to cover overhead until your next DM effort? If not, a 200% ROI program (alone) will not be enough to keep your company in business.

          Consider also the Lifetime Value (LTV) of the customers you bring in from your 200% ROI DM program. Can they be expected to order repeatedly throughout the year? Can you expect a significant portion to continue ordering from you for several years?

          If these customers have a significant LTV, then your company may be happy bringing them in at 200% ROI. (This assumes, of course, that you have other programs that have a higher ROI, or you have other resources to cover overhead in the meantime.)

          So there's not really any particular ROI that is "good" versus "poor".

Returning at least 100% of your marketing investment is always promising, but not always required for a successful program. Many times, it makes economic sense to bring in customers at an initial loss, if you know they have a significant LTV.
If the program is your only revenue-generator, a "good" ROI for you will depend on your particular overhead.

CREATIVE CORNER:
"Gee, that sentence isn't even grammatically correct . . ."

          Good copy is written the way people speak. Most of us usually speak in simple language. And usually in relatively short sentences. And that type of writing is very easy to get through for the average reader. However . . . our speech is not always grammatically correct - even though it may sound perfectly fine . . .

          Many times, people will start sentences with the word "and", or "but" or "because" when speaking. Although those types of sentences aren't grammatically correct, they make for much easier reading when used in copy. Starting sentences with "and" or "but" helps the copy to "flow". And it makes the writing much "friendlier".

          (This is one reason why testimonials get such high readership. Most testimonials are written in simple, easy-to-get-through language - they're written just the way the person would say it to you face-to-face.)

          So before you get out your red pen (or accept your computer's suggestions for grammar fixes), read the sentence out loud. If it reads exactly the way you'd likely say it out loud, leave the words as they are.

          Herschell Gordon Lewis in the Art of Writing Copy advises "clarity but not illiteracy". We want the copy to be clear and friendly, but not illiterate. For example:

          - Replace "This is the information you requested" with "This is the information you asked for". Even though the sentence ends with a preposition, Lewis believes the second version is not only clearer, but also less condescending, less pompous, and much more positive. (When's the last time you actually said the word "requested" in normal conversation?)

          - "They kept it for people like you" is okay, because that's the way you and I would say it. The grammatically correct "They kept it for people such as you" sounds stuffy (and you'd never say that out loud).

          Too many marketing efforts (especially web sites and direct mail packages) sound like the writer was trying too hard to be "professional." Lots of perfectly constructed, complete sentences. Unfortunately, that style of copy doesn't SELL. And that's one reason why a lot of copy generates very poor results.

          If the words don't read the way you'd ever say them out loud, revise, revise, revise . . . and don't worry if you have to break some grammar rules in the process. Clear and friendly copy that gets read is always preferable to stuffy copy that will be ignored.

"My audience is highly technical, and they expect highly technical information"

          There is a huge difference between delivering highly technical information - and delivering it in an easy-to-read format. No matter how technical the audience, they still read the same way you and I do. The eyes and brain prefer short sentences, and short paragraphs - they just look easier to read.

          When reading, the eye looks for a comma or period or em dash - or some type of punctuation -- to take a "comprehension breath," a place where the eye and brain can both briefly stop to comprehend the information being read.

          So, your audience - no matter how technical - will be more likely to read things that look easier to get through.

          Listen to your audience speaking

          When an engineer is speaking, he may be using words and discussing concepts that most of us wouldn't use in regular conversation. But he is likely speaking in the same STYLE as we would. He is likely speaking in short sentences - because he needs to stop and breathe.

          It's the same when an engineer is reading. His brain needs places to stop and "breathe" (so he can comprehend what was read). So no matter how technical your audience or your information, you should still write in the same easy-to-understand STYLE. Use short sentences - break up ideas with commas, ellipses, or em dashes. Give the brain places for a "comprehension breath".

          Easy-to-get-through copy will get higher readership, no matter how technical your audience. If you make it easy to read, your audience will likely read more -- and read longer.

          Remember the Wall Street Journal, the nation's business newspaper:

They write the front page at a 15-year-old level, and use a larger font size.
They write the rest of the paper at a 17-year-old level, and use a smaller font size.
That's because they know the EASIER they can make the front page to read, the more readers they can get into the rest of the paper.

          If your web site and sales collateral have been developed by technical writers, it's highly likely they're not as effective as they could be. When you are selling (generating a lead or selling your product directly), you need copy written by a writer who knows how to sell.

          Take a look at the copy from a Direct Marketing point-of-view - explain concepts simply, use short sentences and short paragraphs, and revise the information so it reads the way you would say it out loud.

Feedback?

          Have a question you'd like addressed in this newsletter? Need clarification of something mentioned here? Do you know someone else who might benefit from receiving this newsletter?

          Email Karen at: kmarch@smaresource.com

Are you planning for 2006?
Do you need some guidance on new directions to test for 2006? Do you need help developing your Direct Marketing plan or programs? Could your web site use a careful review? Would a planning session be helpful with your staff? Or would an in-house workshop on a Direct Marketing topic be helpful? Does your agency have a Direct Marketing challenge that you'd like some help with? Karen does: In-house planning sessions with your staff In-house workshops with your staff Review and recommendations for package, program, or web site improvement Copywriting, copy revisions, and editing Design direction Direct Marketing plan development Hourly consulting If your package, ad, program, plan, or web site could use a year-end "tune-up", contact Karen at 858-456-6122 or info@smaresource.com. Hourly rates, or by the project.
	Copyright © Strategic Marketing & Advertising, Inc. 2005. All rights reserved. You may reprint or copy or distribute "SMA Resource October 2005 Newsletter" with this copyright notice included.