6 Tips for Direct Mail Marketing

By George Otte

In the right hands, direct mail marketing is a powerful tool for lead generation, prospect cultivation and even direct sales. Its well-documented benefits, per Chron and Hearst Newspapers, include:

• The potential for precision targeting within well-defined geographic areas and demographic groups
• Ease of testing and measurability
• High level of individualization potential
• Cost-effectiveness
• High degree of flexibility

"Like any good marketing tool,  well-planned and targeted direct mail campaigns can increase brand recognition and sales ratios." —George Otte

If you are considering implementing direct mail marketing at your organization, incorporate these six best practices into your first campaign.

1. Keep It Simple and to the Point

Direct mail is effective in part because mail is such an integral part of most consumers’ lives. According to a landmark study by Epsilon, nearly three-quarters of U.S. consumers have a strong preference for direct mail over other forms of brand communication. A separate study by the U.S. Postal Service found that 80 percent of U.S. householders sort the mail as soon as it arrives. Most of the remainder sort mail later on the same day.

However, these benefits come at a cost. Because people sort mail so soon after receiving it, they typically make snap decisions about what to keep and what to discard.

To increase the likelihood that your prospects will notice and keep your direct mail collateral, keep its contents as simple and to the point as possible. Use large fonts and clear imagery to reinforce your messaging. If possible, include all key information—or, at least, your best marketing messages—above the fold, where they are clearly visible at a glance.

2. Use Attractive Color Schemes

Attractive color schemes bolster the effectiveness of your direct mail marketing messages and draw your prospects’ eyes exactly where you want them to be. If you are not sure how best to incorporate color into your collateral, test the performance of multiple color schemes and choose the option that attracts the most responses.

3. Segment Your Audience by Geography

To reduce the financial cost and logistical challenges of a larger direct mail marketing operation, segment your audience into manageable geographical groups: ZIP codes, municipalities and even neighborhoods. Stagger your mailings such that only one or two groups receive mailings at a time. This will put you in a much better position to analyze your results and make adjustments for the next batch.

4. Use Reliable Lists

Your direct mail operation is only as good as your address lists. Make sure you are procuring these lists from reputable sources. Once you have your own lists, devote ample resources to maintaining their accuracy and timeliness. This simple safeguard can significantly reduce your miss rates.

5. Experiment With New, Exciting Designs/Materials?

Direct mail is quite versatile. You can choose from traditional security envelopes, glossy catalogs, single- or multi-sheet flyers, postcards, paperboard and other materials. Your ideal choice will depend on the most effective means of delivering your message, the nature of your collateral and other factors. Experiment with multiple options to determine the best fit for your company’s needs.

6. Follow Up on Schedule

Unfortunately, most prospects will not respond to your first mailing. That does not mean you should stop trying to follow up with them, however. Circle back to each geographical area or demographic group on a set schedule, keeping close track of those prospects who have responded and those who have yet to acknowledge your outreach. When a prospect does respond, use a different, more targeted piece of collateral to cultivate the lead.

Add Value to Your Direct Mail Marketing Campaign

Direct mail marketing is an effective marketing channel. Like every type of marketing, it does present some unique challenges, but businesses that follow the strategies outlined here are more likely than not to be pleasantly surprised by the results.

Of course, direct mail on its own is not sufficient to support a company’s marketing efforts. For best results, direct mail should be paired with other proven forms of marketing; depending on the company, these might include radio, television, print and various types of digital marketing. These efforts are complementary, not competitive. Deployed properly, they can dramatically increase marketplace awareness of your company and chart a course for impressive sales growth.

Bio: George Otte is a Miami-based entrepreneur and executive with more than 15 years of multifaceted business operations experience.

Buying an Existing Company? How To Spot a Great Opportunity

By George Otte

Rather than build their own businesses from the ground up, many entrepreneurs choose instead to purchase existing businesses.

If you have the resources or leverage to acquire an existing company, this strategy presents a number of advantages: extant product and service lines, established processes, loyal customers and more. But it also presents unique challenges—the effects of which can be mitigated by choosing your target wisely.

“To raise the likelihood that your newly acquired business will survive and thrive for years to come, look for targets with these attributes.” —George Otte

Positive Cash Flow

Cash flow is one of the most important financial indicators of an attractive acquisition target. Business coach Jean Murray defines cash flow as “the money that is moving (flowing) in and out of your business in a month.”

Basically, cash flow describes the movement of short-term, liquid financial reserves within a business. For ease, cash flow statements are usually segmented by month. Companies with a positive cash flow take in more cash than they send out on a monthly basis. Companies with a negative cash flow send out more cash than they take in.

As a buyer, it is in your best interest to seek companies with a positive cash flow. Such businesses are more financially stable. If you decide to implement large-scale changes, such as discontinuing product lines, ramping up research and development, or shuttering facilities, a positive cash flow protects your investment until you have fully implemented your strategy.

Motivated Sellers

Motivated sellers are often willing to accept below-market consideration. In family-owned businesses, common signs of seller motivation include:

• Owners are nearing retirement
• Next generation is not interested or trained to take over
• Owners are not willing or able to invest in new processes or equipment necessary to remain competitive

Deep Reserves of Talent or Expertise

According to the Society for Human Resource Management, U.S. employers are facing the worst talent shortage in at least a decade. In this environment, it is vastly preferable to retain key employees than to embark upon a long, potentially costly search for replacements. Look for acquisition targets with experienced executives or process-critical knowledge workers.

Sustained Growth

All companies experience temporary setbacks. It is more important that your target demonstrate consistent, sustained sales and revenue growth over the medium-to-long term than that their most recent quarter exceed expectations. Sustained growth indicates competent management, sound practices and strong fundamentals.

Lean Inventories

Be cautious about purchasing companies with bloated inventories. A well-stocked warehouse can be a boon, but only if its contents are marketable. Examine inventories carefully to determine whether they contain obsolete or hard-to-sell items before agreeing to take them off the seller’s hands.

Well-Defined Niche With Limited Competition

Attractive acquisition targets tend to operate in well-defined niches with reasonable levels of competition. It is not realistic to expect your target company to have a monopoly in its field. At the same time, an effective turnaround can be hard to execute in a crowded marketplace.

Access to New Markets

Look for acquisition targets that operate in new, potentially lucrative markets. This is especially important if you already own a complementary business that you plan to expand. It is much easier to mount a geographical expansion by acquisition than to start from scratch in a new location.

Straightforward Capital Structure

Attractive acquisition targets generally have straightforward capital structures: a single class of stock, easy-to-understand debt, simple ownership arrangements. Unless you have a background in corporate finance or access to experts with the same, there is little upside to investing in a company with an opaque capital structure.

Established Customer Base

An established pool of loyal customers is invaluable. Look for companies that have successfully cultivated customers and clients over many years, and then do what you can to build on their efforts.

Do Your Due Diligence

Acquisition targets are not always what they appear. Companies that seem attractive on paper can harbor hidden liabilities that pose financial and legal risks for their acquirers. No matter how sure you are that the company you intend to acquire is a low-risk, potentially profitable proposition, it is in your best interest to conduct thorough due diligence. And, no matter how small or seemingly trivial the transaction, this requires the assistance of experienced professionals. A targeted investment in due diligence now may well prevent unforeseen problems in the future.

Bio: George Otte is a Miami-based entrepreneur and executive with more than 15 years of multifaceted business operations experience.

5 Skills Every Entrepreneur Should Have

By George Otte

Launching a new enterprise is hard work, and because of this entrepreneurs need a wide range of skills and competencies.While the exact mix of required skills depends on the entrepreneur’s industry and other factors, some skills are more or less universal.

Most founders share these five skills. For those who are not particularly strong in some or all of these areas, there’s good news: Many entrepreneurs learn them on the job—and go on to achieve great things.

1. Planning and Organization

Devoting the proper attention to the various facets of your business requires great planning skills, a keen sense of organization, and the discipline to adhere to deadlines and timetables.

“Businesses do not run themselves. As a CEO and leader, 

you need to attend to short-term tasks, medium-term projects 

and long-term objectives.” —George Otte

Most people can plan and organize their own workflows; however, if you are more of a big-picture person, it is imperative that you find a partner or key employee who excels in detail-oriented planning and project management. They will prove invaluable as your new company tackles larger, more complex projects with multiple process owners.

Tip: Use a digital planner with alerts and reminders to keep track of everything you need to do, when you need to do it.

2. Time Management

Even big-picture entrepreneurs need effective time management skills.

Whether you work in a home office, a coworking space or a separate suite, look for and eliminate anything that could possibly distract you from your work.

Next, set up a work schedule that separates your time into manageable chunks with small breaks in between. Devote each chunk of time to a single task or set of related tasks. Relegate necessary but low-value tasks, such as responding to non-urgent emails, to the in-between periods. And create realistic daily goals that you must complete before leaving the office or work space.

3. Willingness To Take Risks

By definition, starting a new business is risky, as many companies fail relatively early on. However, even after you make the initial decision to launch your own business, you will face countless choices that present varying degrees of risk. Sometimes, the riskier choice will be the correct one. In other cases, the safer choice will be the right call.

If you always favor the safe choice, you are likely to miss opportunities. Over time, that could mean the difference between success and failure.

4. Inspirational Leadership

When you first start out, your company will likely have few—if any—employees. Still, it is never too early to develop effective strategies for motivating your employees. As your company grows, so will its workforce. Each new hire will look to you for inspiration, motivation and guidance. If and when you deliver, you can be certain that your team will respond positively—by working harder, putting in longer hours and consistently exceeding your expectations with their work.

5. Willingness To Delegate

In an article for Inc., entrepreneur Jayson DeMers writes that “the biggest problem most...bosses and leaders face is the inability to let go of their own work.”

Pride in one’s work is natural. So is the conviction that no one can do it better.

However, if your goal is to build and scale a consequential business, you will quickly find yourself overwhelmed by your workload. You will need to hire new employees to handle the work.

More important, you will need to give these new employees real responsibility to make and execute plans. By delegating some of your workload to subordinates, you will free yourself to focus on the tasks at which you excel—and those likely to have the greatest impact on your company’s growth trajectory and bottom line.

Don’t hesitate to ask other business owners what they did to improve their delegation skills.

Entrepreneurs Are Lifelong Learners

These are not the only five skills that well-rounded entrepreneurs can or should pursue. If you are thinking seriously about launching your own business, or have already taken your first tentative steps as a founder, commit to learning as much as you can about the ins and outs of leading a growing firm. You can learn a lot from successful leaders who have gone before you—just don’t be afraid to ask.

Bio: George Otte is a Miami-based entrepreneur and executive with more than 15 years of multifaceted business operations experience.

Here’s Why Your Business Needs Fulfillment and Telephone Answering Services

In an increasingly competitive economy, businesses of all sizes need to stay one step ahead of the curve. This means hiring the most talented workers, investing in the best products and services, cutting costs wherever possible, and leveraging new technology to enhance productivity and reduce inputs.

Business owners of all sizes are discovering the benefits of two services that, while not exactly new, have never been more important: business fulfillment and telephone answering services.

Regardless of what your company does or where it operates, it’s likely that it could use a boost from one or both of these mission critical solutions. Here’s what you need to know about telephone answering and fulfillment services — and why they could offer the “juice” your company craves.

What Is a Telephone Answering Service?

Telephone answering services perform a range of value-added services for companies in a variety of industries, including:

●      Healthcare (primary, tertiary and emergency)

●      Legal services

●      Other professional services, such as finance and accounting

●      Utilities and civil service providers

●      Property management and construction

●      Travel and leisure services

●      Government

●      Transportation and logistics

●      Funeral homes

●      Charity

●      Commercial services

Although every telephone answering service is different, their core functions generally include:

●      24/7 live answering with well-trained, professional staffers

●      Appointment scheduling

●      Dispatching services

●      Call screening

●      Message delivery (by phone and other channels)

●      Business registration

●      Virtual receptionist services (off-site reception)

Answering services allow businesses of all sizes to tap experienced, responsive call answering professionals in support of — or instead of — an in-house inbound team. Some of the benefits of this highly efficient service are outlined below.

What Is Business Fulfillment?

Business fulfillment companies serve clients in a similarly broad range of industries. Some of their services complement those offered by telephone answering firms, offering companies that leverage both a powerful one-two efficiency punch. That said, business fulfillment services tend to be a bit more technical, and often involve a physical inventory. Common fulfillment functions include:

●      Order fulfillment services, including shipping, tracking, promotional mailings, troubleshooting, and more

●      Order processing services, including database management, telemarketing and data entry, and customer relationship management

●      Inventorying and warehousing for physical storage

●      Direct mail services, including cutting-edge list building and management functions

●      Contact center services, including multi channel customer contact (online, phone, and more) and customized sales or help script deployment

5 Benefits of Telephone Answering Services

1. They’re Always on Duty

Unlike in-house receptionists, telephone answering services don’t have bathroom breaks, lunch hours or sick days. They don’t sleep or take care of their kids.

No, they’re not robots. They’re smart, savvy humans who work in team rotations. When one team member goes home for the day or grabs a bite to eat, another is there to take her place. This means you never have to worry about missing an important call because no one is there to take it.

2. You Don’t Have to Rely on Voicemail

Many companies plug the gaps when human receptionists aren’t available with voicemail. The problem is, voicemail is impersonal, brief, and prone to error. Many prospects and customers simply hang up without leaving a message, leaving the reasons for their call a mystery and potentially leaving money on the table as well.

3. Dispatching and Appointment Scheduling Is Easier and Less Error-Prone

Telephone answering services are adept at scheduling appointments, dispatching assets and personnel, and delivering messages to the appropriate parties. They’re ideal for companies looking to maximize efficiency, reduce downtime, and allocate assets effectively. In short, they’re a good match for pretty much every company.

4. Great for Your Margins

Whether you’re using a telephone answering service to take appointments after hours, dispatch personnel, or serve as your virtual receptionist, it’s likely to provide superior service at a fraction of the cost of in-house employees. This is because telephone answering services work with dozens or even hundreds of clients, facilitating economies of scale that control costs, passing on the savings to their customers.

5. Simpler HR

Telephone answering services allow you to make do with fewer front-line contact employees. This means fewer employees and departments to manage, freeing up your human resources team’s bandwidth for higher-value work.

5 Benefits of Fulfillment Services

1. Better Geographical Reach

Fulfillment services allow you to scale your geographical reach without physically expanding outside your home region. With a centrally located warehouse, solid transportation connections to the farthest corners of your market, and a robust digital presence that facilitates order-taking, data-entry, and customer relationship management, you can reach and satisfy customers and prospects wherever they’re found.

2. Great for Your Margins

When it’s true, it’s true. Like telephone answering services, fulfillment services are great for your company’s margins. Why? Because they cost a fraction of what an in-house operation of similar quality and breadth would cost. Opt for a fulfillment service and let your team focus on high-value work.

3. Direct Mail Is a Whole Lot Easier

Comprehensive business fulfillment companies don’t just warehouse and ship inventory, they also help move that inventory indirectly by providing lucrative direct mail services. Look for a fulfillment company that offers strategic list-building services. Not all do, and not all that do go the extra mile with cutting-edge data analysis tactics. Once you’ve worked with a fulfillment company that offers direct mail services, you’ll wonder why you waited so long.

4. You Don’t Have to Staff Your Inbound Lines Internally

Comprehensive business fulfillment companies have extensive inbound call handling capabilities. Say goodbye to staffing your phone lines 24/7 to catch those late-night orders and requests, and say hello to courteous order-taking, expert data entry and accurate, timely information processing. Oh, and fulfillment companies’ inbound staffers are more than happy to upsell and cross-sell, as per your instructions.

5. Customized Script Design

Don’t have the time or inclination to design a sales script? Many fulfillment companies are happy to do this for you, exposing inbound callers to tightly honed messaging and boosting your ROI in the process.

So, are you sold on the benefits of telephone answering services and business fulfillment?