For wireless retailers we have found that direct mail produces, on average, 200% of the response rate and two to three times the credit approval rate of newspaper ads and other forms of media dollar for dollar. With this knowledge gained from tracking actual response rates from hundreds of different advertising campaigns,  Dealers would be wise to to give serious consideration as to how every dollar of co-op advertising monies are spent. 

At the same time it is becoming ever more difficult to lure new buyers into stores as the penetration rates approach 75%.  Advertising to new customers now a days is very difficult to get a return on your investment.  With most Wireless Retailers now sitting on very large customer bases,  the time is now to also begin an ongoing customer base marketing campaign to your biggest asset...your customers.   Are you sending out,  professional Thankyou Letters after every new sale?  Do you have a system in place to send well crafted Upgrade Letters to your existing customers before their contracts expire?    If not,  it's time to leverage your existing customers to drive the traffic you need.

Still why do most dealers avoid direct mail? Perhaps they want to avoid the time and effort it takes to (a) find and buy the right list,  or sift through their existing customer base (b) write and design an attention getting, hard-working mailing piece, (c) print the job, (d) determine postage costs, and then (e) coordinate the entire process, so the new direct mailing drops in a timely manner before the current offer expires (a daunting challenge for anyone not in the direct response business).

Today, dealers can outsource the whole process,  or take on the task internally.   They can participate in cost-effective turnkey direct mail programs that make the most of every advertising dollar.

How to drive your wireless direct mail campaign :
Create a targeted and qualified list of best customers. Why waste time and money promoting offers to people who can’t pass credit,  or who are already under contract?   Instead send targeted mail to the potential customers, who are the most likely to respond to certain promotions and also have the highest probability of credit approval.  To assess and set the desired purchasing habits of wireless consumers, identify zip codes for each of the stores involved with the advertising and then select within these areas the demographic criteria that best matches the offer.

To craft effective direct mail campaigns consider the following :
Income>Choose (a) a higher income level when you advertise a high-end product like BlackBerry service, (b) an average income level for traditional wireless phone promotions, or (c) a lower income level for prepaid and starter plans.
Age> Select age brackets to best meet your product offer. For example, target family time offers for individuals 35 years and older. SMS and camera phones may appeal to a younger audience of individuals between 18 and 30 years of age.
Gender> When your advertising message appeals to a specific gender, support your story with a gender-specific wireless application or accessory.
Presence of children> This is a critical consideration for family time promotional offers or introducing the new Firefly type services targeting families with 7-12 year old children. To make your advertising matter to parents, define and resolve their issues with relevant wireless applications. 
Active credit card holder>Will your advertising go to credit worthy customers, who can buy at your stores or over the phone? Targeting active credit card holders increases the predictability of your success.
Delinquency flag> This criteria eliminates prospects with delin¬quency flags, who cannot pass carrier credit for post paid offers. These individuals can still be targeted for pre-paid offers.
Median average credit score> To increase the percentage of re¬cipients who will pass carrier credit, target areas that have a median average credit score of 670 or higher. For your pre-paid offers, target an area that has a median average credit score of less than 600. (Note: Credit score requirements vary by carrier.)
 
Determine your best customer’s buying radius. What is the maximum distance consumers will travel to buy from your store or stores? In most cases, the buying radius should be no more than a 5-10 minute drive or 5–10 miles from your location or locations. (Measure inner city stores in blocks instead of miles.)

Due to the generic nature of newspaper and radio advertising, these broad-based media’s contact-to-closure rate is historically very low. In many cases, newspaper and radio advertising reach people who like the offer, but are simply too far away to consider visiting your stores. As many as 75% of the consumers seeing or hearing ads via these media will be too far away from you to respond. Top wireless dealers eliminate the waste and invest their hard earned advertising dollars to attract a targeted audience who will respond to their offers, drive to their stores, and buy from them.

Offer your customers something different. How might you set yourself apart from your competition? Can you create a compelling offer they cannot match? Stiff competition and the huge number of wireless retail stores make it likely customers will shop and compare offers,  with many using the internet to shop before they go to a retail store. Can you match your competitors’ offers or are you forced to let customers walk out the door back to the competitor?

How might you keep your customers out of your competitors’ stores?
 
Most wireless advertisements offer free phones, free accessories, and a number of minutes. This strategy handcuffs dealers who sell for the same carriers, since all their offers are so similar customers have no compelling reason to buy from one or the other.
 
To keep your target customers out of the competitors’ stores add a differentiator. Think outside the box – offer a free MP3 Player or DVD Player,  free three day, two night hotel stays; a free movie; a free dinner; free gas. Do this and set your offer apart from your competitors.  There are prograrms available that allow you to offer such promotions for as little as $12 ea.   These are the extras that they cannot match,  that drive customers  you spend your co-op dollars on back to your store.

To get started with your direct mail campaign:
1.  Run counts to determine the potential customer list size for your targeted sales area.  Or
2.  Identify the desired criteria for your target audience, such as credit score range, age, income, and other demographics that match and support your offer.  Or if mailing to your customer base,  eligible candidates for upgrades,  or customers who may purchase other products at your store.
3.  Design the graphics and write the copy for your mailing piece.
4.  Include some type of premium or promotional gift with purchase incentive
5.  Obtain co-op approval from your carriers
6.  Print and mail.
7.  Frequency is key.   Continue to use your co-op dollars hitting your customers and prospects around the buying radius of your stores each month.

It is recommended that you spend 50% of your advertising dollars reaching out to your existing customer base with new offers on a repetitive basis.