9 Tips to Increase ROI Across Direct Marketing Channels

Mastering direct marketing channels in terms of ROI and advertisements is an art! We have handpicked 10 different direct marketing channels for you to illustrate the concept in detail.

Due to the upward spike in digital marketing channel trends, customers’ expectations are touching the sky.

Marketing managers all over the world are merging traditional and digital marketing strategies. Despite such a big shift, the primary focus to generate revenue has remained constant. For this, the marketers require direct ways to determine whether their strategies are effective and generate their goal revenue or not.

This is where Return On Investment (ROI) and direct marketing enter the scene. The former is an essential metric for any organization that is looking to assess the impact its digital marketing strategies are having. There’s not much to an ROI.

It is quite simple. It is the cost spent for a campaign versus the result received due to that campaign. The ROI theory becomes a little complex when it’s time to measure and analyze it.

Having said that, businesses mainly focus on the channels most likely to produce the highest ROI. When it comes to the highest ROI marketing channels, the digital world dominates.

If you’re a results-driven marketer (*which you should be), focus on tactics within these channels because they can deliver short- and long-term revenue.

All of the strategies, like search engine optimization (SEO), pay-per-click (PPC) advertising, and email marketing are discussed in this post in terms of increased ROI on direct marketing channels.

Read on…

What Is SEO In Terms of Direct Marketing Channels In 2022

SEO is a strategy that offers the analytical information gold, including the basic metrics like traffic and bounce rates to much more complex metrics like user flow.

SEO is used to improve your website’s placement in search results – the higher up it is, the more traffic, leads, and sales you will have. It improves by optimizing your site for search engines and users by creating content and experiences worth their while.

Now, coming to PPC – if you like a lot of concrete data on your marketing strategies, then this will be your favorite way to reach new customers. The good thing about it is that you only spend money when someone clicks on your ad.

With tools, like Google Ads, you can research each of your potential keywords, select the most effective ones, and determine exactly how much you’re willing to pay for each click. To maximize your ROI on any number of direct marketing channels, you can use ads that use machine learning – such as; responsive ads, and then link your Google Ads account with your Google Analytics account to notice visitors’ behavioral patterns.

While SEO dominates in producing the best ROI and that’s because it is a long-term strategy built for driving long-term revenue; PPC advertising targets bottom-of-the-funnel users to produce the best ROI. PPC advertising also has added data like location, interests, etc. that helps it produce top-notch ROI.

Here’s a simple method of calculating ROI (SEO and PPC)

Value of Conversions – Cost of Investment) / Cost of Investment = ROI

What Is Direct Marketing?

Direct marketing is a powerful strategy that companies around us use to improve their customer outreach, overall sales, and revenue. Direct marketing is a form of advertising that allows direct communication between businesses and customers. The modes used to carry out direct marketing include:

  • Email & Newsletters
  • Mail & Postcards
  • Social Media
  • Cold Sales’ Phone Calls
  • Text Messages
  • Brochures, Catalogs, Etc.
  • Coupons
  • Targeted Online Ads

With the help of direct marketing channels, businesses can inform their customers about their products and services without the use of a third party to create and air advertisements.

One of the best ways to convince your customers to interact with it is through call-to-action. They are typically used to increase the response rate of people by making the deal, the product appears more exclusive.

Components of a Direct Marketing Channels' Campaign

There are three components of a direct marketing campaign:

1. Targeting

As mentioned before, this happens to be an effective way to target your audience. For this matter, companies usually make use of promotional materials to entice the customers.

2. Data Grouping

This is what you call it when you record and organize customer information. Data grouping allows companies to make categories out of patterns exhibited by their target audience. For instance, a common age group, gender, location, occupation, etc. would be a suitable example data grouping, or segmentation in terms of direct marketing channels.

After the groups are made, it is easier for companies to conduct direct marketing specific to each group.

3. Tracking Results

Companies need to know what is working for them and what isn’t. It is a little harder to do so for physical campaigns, but all digital campaigns can be well-analyzed using software and virtual tools.

9 Awesome Advantages of Direct Marketing Channels

There are so many advantages to scaling your business through direct marketing channels. So much so, that it makes sense why a lot of companies use these direct marketing channels for themselves.

Some of the best advantages are listed below for your ready reference.

1. It reduces the overall marketing cost as it eliminates the potential of third parties.

2. It helps in building better customer relationships as you’re communicating with them directly.

3. It is very personal as you are talking to them as a person and it increases their loyalty to the company.

4. It is a great way to keep your customers informed about your new products, news, etc.

5. It increases sales because you are conducting personal, direct marketing on your customers.

6. It is fast with zero to no waiting time before you start getting a response on your campaigns.

7. It is an efficient promotional strategy because it focuses on a targeted audience that is already interested in the brand, product, or both.

8. It is customizable which means businesses can personalize it according to their needs, campaigns, and audience.

9. It is measurable because it provides easy data to be used to calculate ROI.

9 Tips To Expedite & Increase ROI Through Direct Marketing Channels For Your Business

1. Lead with what’s in it for your prospect

Many strategies overlook to promote the fact that they are providing solutions to problems many people face.

When you attempt to close the deal by plunging straight into the various bundles, offers, etc. your customer can get, you’re showing them that you don’t have compassion for them as humans and are not offering them solutions for their problems.

Understanding your customers should be among your initial moves because that is what will convert them into long-lasting, happy, and loyal customers.

Sometimes strategies don’t do the product justice and end up not informing the customers about its benefits fully. So, do your best research while putting your target audience’s needs first and then initiate the outreach conversation.

2. Clearly articulate results

When people buy something, they are buying the results of that product as they symbolize the value it will add to the person’s life.

A cool jacket will mean a cool outfit.

A big house will mean comfortable, luxurious living.

The responsibility thus falls upon the strong shoulders of companies to explain everything about the brand especially the end results.

This business strategy is especially pertinent if you’re selling an item or service that accompanies a forthright charge. a complex rollout, time-sensitive integrations, or continuous cooperation with your clients in the wake of closing the deal.

3. Start with small niche markets

Remember what we said about direct marketing, targeting, and data grouping in relation to direct marketing channels?

That “stuff” that we mentioned earlier in this post?

We’re talking about using those tactics here.

By targeting your groups, you are improving the effectiveness of your cold outreach. Don’t let the foolish notion enter your mind that you are limiting your options by sticking to limited groups. According to Pat Flynn of Smart Passive Income:

“It’s great to think big and shoot for the stars, but when it comes to niche selection you can get more results, faster, by thinking specialized. Start by picking a market that actually interests you.”

4. Be flexible

Many people will tell you to go with the flow – in life and otherwise – but you will continue hitting a few snags here and there.

But that’s alright. It’s not about the snags, after all.

Just like, in this case, it’s not about being afraid of the new challenges and unique demands coming from your customers.

Be flexible instead of telling them ‘you can’t’, ‘you won’t’, or ‘that’s impossible. Such phrases could lead your brand to its premature deathbed. Instead, go for ‘I’d love to make it happen for you’ and check in with your team if this could actually happen for your customer. If it can’t, it’s still okay.

As Grant Cardone puts it, the bestselling author and sales strategy coach, “Most salespeople think selling is about gaining trust, but in reality, selling is about getting the customer to trust themselves enough to take action and close—which often takes flexibility. Learn to close the sale not just make a sale.”

5. Use lead scoring to prioritize your prospects

Swarmed with a lot of leads?

Then lead scoring should be in your strategy!

Start by interviewing the prospects and see how relevant they are to your company and if they are serious buyers or not.

Lead scoring is fairly basic to grasp. It is a point framework for categorizing customers on a scale from 1 to 10. Work on your list thoroughly so that you’re scoring to the best of your ability and who have the potential to be converted.

6. Connect with the decision-maker

Cut the lower-level managers out of the way and head straight towards the decision-makers who will actually be making some form of effort to push your solution (in the shape of a product or service) through to implementation.

The decision-makers for brands are usually their customers.

The best foundations of customer relationships are based on upfront value without expecting in return immediately.

As a brand, ask yourself, what can be such a thing that you can offer? Once you are able to provide that value, they can then be persuaded to buy from you.

7. Perfect your sales pitch

Speaking of persuading them to buy from you, you need to have a pitch perfected that is exciting, convincing, and filled with confidence that you have in your brand.

The effective sales pitch will capture the attention of the target audience and push the conversation in the direction of closing the deal.

8. Use storytelling

If your sales pitch still seems a little lacking, incorporate storytelling into your sales strategy to help you to captivate your clients on a deeper level.

Storytelling is an effective strategy to help your clients remember details about you that they would forget otherwise in between numbers and brochures.

9. Listen to what your prospects are telling you

One thing to note here is that you shouldn’t just talk about your brand, your products, your services, and just you, you, you! Instead, pause for effect and let the other person do the talking.

This will help you build trust and a relationship with the person. This will also help you understand the client better and cater to their needs accordingly.

A behavioral investigator and author, Vanessa Van Edwards says, “One of the most important aspects of selling or even going into business for yourself is being flexible. Listening to feedback from your prospects, watching the data, and making changes as needed. Sometimes having a rigid plan can limit you.” 

What's Your Stance On Direct Marketing Channels?

To conclude, there are quite a few ways to increase your ROI across marketing channels.

However, to get your business in front of the right people, at the right time, you have to know what tactics to use and when to use em’.

That being said, if you have tried your luck with advertising through direct marketing channels before, feel free to consult a digital marketing services company. After all, taking advice, or using paid services from an expert removes a lot of hassle and A/B Testing on your part. Give it a shot and let us know how your experience went.

Good luck!

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