The roughly 3,700 direct marketing services industry in the United States produce a combined annual revenue in excess of eleven billion dollars. The typical account executive in a direct marketing services company is responsible for about $150,000 in revenue per annum.
These companies earn their keep by helping you to make your direct response advertising campaigns successful by using media such as email, snail mail, telemarketing, cell phone text messaging, radio, and television. Although the industry is quite fragmented, the fifty largest companies are responsible for approximately forty five percent of this revenue.
Direct marketing services companies can offer you and your company five major services. They are concept development, mailing list services, letter shop services (this service prepares and sorts your mail pieces), printing, and full direct mail services. There are several other services these companies offer to help you to advertise your products and / or services. They include distribution, sales promotion and fulfillment. The full direct mail services, which account for almost $7 billion dollars per year in revenue in the US, includes concept development, mailing list, letter shop, and printing services.
The Biggest Benefit of Direct Marketing Services
One of the biggest benefits of direct marketing is being able to test concepts and campaigns for a relatively small amount of money before you commit significant amounts of money to any project. The company you work with should be able to take a small sample to test the concepts you agree on.
If the test does not produce the results you want it can either be tweaked or abandoned. However, when the test is successful it can then be replicated on a much larger scale. And because the parameters will be the same you should expect a very high probability of success.
When deciding which company to hire, business owners who want to compete in a specific geographic market or type of service often choose a small companies. That’s because smaller direct marketing service companies can specialize in a particular industry and area. However, they can cost more to work with than larger companies because a large direct marketing company has the benefit of economics of scale throughout their operations.
Whatever route you take a little research prior to hiring a direct marketing firm can go a long way. Make sure to interview the company before climbing onboard. Find out if they will take the time to thoroughly understand what your business does, how it operates, and what you are looking for. Only then can they generate the most effective sales leads and material for you.
Highly effective companies will help you to increase your conversion rates by optimizing your campaign over time. They can also show you how to invigorate your old leads and bring life into sales leads that you were not able to sell before.