Direct Marketing Strategy to Maintain Profitability

Direct marketing produces a comparable, if not higher, return on investment (ROI) to any other marketing system. 

According to direct marketing expert, Edward Nash, most businesses employing a direct marketing strategy incorporate a combination of direct marketing methods for the generation of leads, the maintaining of current customers, as well as mass advertising to increase their lists of prospects and customers.

During tough financial times, like everyone else, you are trying to make the most out of what you’ve got with your business.  You may want to allocate more resources to marketing methods with the highest proven ROI. 

Your current customers have the same idea in mind.  With slimmer wallets, customers don’t want to waste the money they have.  Because of the relationship you have with them, they are - more than ever - more willing to spend their hard-earned money with you…

… as you are somebody they trust and have had good experience with.  But just like all relationships, you have to put some effort into maintaining that relationship.

Widely accepted as applicable to direct marketing strategy, the 80-20_rule means that 80 percent of your business comes from 20 percent of your customers.  By redirecting a part of your direct marketing resources toward current customer retention, you increase your chances of making a sale.

“If you look at the bottom line profitability of a company, I think it’s without question that retention efforts produce more to the bottom line,” says Don Barlow, Senior VP of Business Strategy at direct marketing agency Javelin Direct.

Focusing a greater portion of your direct marketing strategy on current customers should help you maintain, if not improve, profitability.