For as many different types of companies and products there are in the world, it seems like there are just as many different approaches to marketing. For small- and mid-sized businesses, direct marketing is one technique that makes a lot of sense.
Here we’ll take a look at what direct marketing is, the different kinds of direct marketing services and agencies that are available to assist your business, and why hiring a direct marketing agency makes a lot of sense and provides business owners, marketing departments, and small businesses with a lot of benefits.
What is Direct Marketing?
Broadly speaking, you know that marketing is all about getting your brand/product/service in front of people. Direct marketing, then, is a form of marketing that relies on communicating directly with individual consumers or small groups/segments of customers. With direct marketing efforts, there’s no one in the middle (a spokesperson or actor in a television commercial or ad campaign, for example).
Instead, direct marketing is all about reaching out to key customers through an often personalized method like social media marketing, email marketing, or direct mail. Direct marketing efforts may even include targeted PPC advertising, CRM campaigns (with personalization), search engine optimization (SEO), and outbound phone calls as part of the direct marketing strategy.
What is a Direct Marketing Agency?
A direct marketing agency is a firm that specializes in most or all of the various methods needed for successful digital marketing campaigns. Small businesses in every sector, from eCommerce to food service and beyond, call upon the expertise of direct marketing agencies every day to help them with their marketing efforts.
A full-service direct marketing agency is highly likely to offer services, expertise, and consulting capabilities in all of the various digital marketing methods. In addition, a good agency will have expertise and experience in marketing plans and marketing strategy, the development of all sorts of marketing campaigns, and the right methods for implementing your marketing campaign as well as campaign optimization.
Often you’ll find direct marketing agencies staffed with professionals from several backgrounds, including startups, in-house marketing teams, public relations firms, and related experience. This offers a broad range of knowledge for partners and small businesses—including yours.
What are the Different Types of Direct Marketing Services?
There are several different kinds of direct marketing services, some or all of which may suit your marketing campaign needs. A few of the most common examples of direct marketing include:
- Printed materials—Direct mail, leaflets, pamphlets, and handouts are examples of print collateral that can be used as part of a direct marketing campaign.
- Telemarketing—Direct calls to customers are also another useful direct marketing approach, and can be employed strategically for certain campaigns and business goals where they make the most sense to reach a target audience.
- Email/SMS/Text Messages—In the realm of digital marketing, email and SMS or text messaging are among the best types of direct marketing, allowing you to reach exactly the new customers or existing customers that you are aiming for.
Direct marketing services, then, can and will involve most or all parts of these types of efforts and more. If your direct marketing agency has identified direct mail as an important piece of the marketing program, then a direct marketing agency will likely handle the content marketing, design, printing, and distribution of those printed pieces.
For email marketing efforts, a direct marketing agency will either have in-house CRM and HTML development experts, or they will have a relationship with email design-specific resources or a digital marketing agency that has extensive email campaign experience.
Direct marketing services may also include project managers who can keep track of the various components of your marketing campaign. And there will be analytics experts who can not only consider your KPIs upfront, but also report on and explain the metrics of your campaign, areas that are performing best, and ways to modify your marketing program or ad campaigns for improved automation and optimization.
Why Do I Need to Invest in Direct Marketing for My Business?
The benefits of direct marketing make a big difference for all businesses, but can be especially powerful for small businesses who can make a strong connection with new customers. Some of the reasons to devote at least some of your marketing budget to direct marketing include:
Increased sales
Putting your business in front of customers who have been looking for that type of product or service makes it easier for them to make a purchase.
Relationship building
Beyond just the purchase, direct marketing campaigns help you connect with customers and ensure that, when they are looking for a particular product or service, they think of your company first (top of mind).
Research
Your direct marketing also gives you precise information about what is compelling to customers, what they find interesting, and what types of products or services they are in the market for. It also gives you insight into which marketing efforts work best, what kinds of content marketing resonate with customers, and how you can adjust your marketing strategy to benefit from that information.
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Should I Hire a Direct Marketing Agency or a Freelancer?
When it comes to direct marketing efforts, as with many business services, you have several different options. The big two are either working with a freelancer or developing a relationship with a direct marketing agency.
Positives and Negatives of Freelancers
Let’s start with the freelancer option. Outsourcing your needs to freelance direct marketers can have some upsides, including:
Cost
Freelancers in marketing will generally bill less than a full-service agency, for the simple reason that they only have one person to pay (instead of a full in-house team).
Flexibility
Freelancers can often move and shift priorities as your needs change, allowing for a flexible solution that is especially helpful for startups and very small companies.
Dedicated service
Freelancers generally only work with one or two clients at a time, especially for more significant or involved marketing projects. That means direct communication and a serious focus on your direct marketing needs.
There are some cons that come with employing freelancers for your direct marketing campaign, however. Freelancers may only specialize in certain types of direct marketing, and those may not align with the best choices for your business. Additionally, a freelance marketer might not have experience in your specific industry or field, and may not have a background that makes it possible to help you develop a direct marketing strategy.
Positives and Negatives of Working With an Agency
On the direct marketing agency side of things, there are also a number of benefits as well as a couple of considerations. Looking at the positives, working with a direct marketing agency helps your business by providing you with:
Dedicated project managers and marketing managers
There are a lot of moving parts and pieces to any marketing campaign, and keeping track is a big task in and of itself. Project and marketing managers within direct marketing agencies are devoted to keeping everyone informed and ensuring that everything is working as it should.
Access to market research tools and resources
For any small business to get a hold of all the available analysis and reporting tools would be cost-prohibitive, but direct marketing agencies will be able to apply that kind of power to your project. And it will be included in their services.
Access to multiple automation tools
Speaking of tools, automation tools can also be a financial burden for small companies. But since these are necessary to service all of their clients, an agency will have these available for business owners like you.
Experience in all marketing efforts
This is one of the biggest benefits. As we mentioned above, direct marketing agencies are often staffed with professionals who have extensive experience and backgrounds in web design, website development, SEO, content marketing, print, and digital design, PPC and social media advertising, lead generation, email marketing, search engine optimization, and more. And working with a direct marketing agency makes it possible to bring all of that experience into your company without the high cost of building an entire marketing team.
As for the potential downsides of working with an agency for your direct marketing efforts, the cost is usually the first one that comes to mind for every business owner. And yes, working with an agency can seem expensive at first. But the price is still much less than hiring a full in-house team, especially for marketing campaign-based projects and smaller campaigns.
An agency is also likely to have several different clients. While this can be a benefit because they will have a broad base of knowledge to apply to your project, it also means that they cannot focus exclusively on your marketing needs all the time.
Why You Should Hire a Direct Marketing Agency
With all of these things considered, hiring a direct marketing agency is often the best choice for most businesses. Even companies and corporations with full in-house marketing teams often turn to outsourcing for some or all of their direct marketing campaigns, simply because of the powerful results that such agencies make possible.
For business owners of small-to-midsize companies, the potential benefits almost always outweigh the costs. And the potential for growth in eCommerce after implementing a direct marketing campaign makes contracting with an agency the smart choice in any industry or field.
Hiring a Direct Marketing Agency
Once you’ve got your needs and goals in hand and you’re ready to hire a direct marketing agency to make those goals happen, there are a few steps and questions still left to take or ask.
How Much Does It Cost to Hire a Direct Marketing Agency?
Obviously, pricing is a concern for any small business, and so this question is natural—what is it going to cost us to compete in this space? And like most business services, there is no definitive answer. Instead, you’re likely to find a range of prices and estimates based on your company’s needs and goals. For instance, when it comes to something like direct mail, you have to include the cost of design (if needed), printing, postage, and even the distribution list if you do not already have one.
In general, you can expect direct marketing services to range in price from around $800 per month to $3,500 per month depending on the size of your marketing campaign, goals, and needs.
There are direct marketing firms that may also work with you on project-based pricing or campaign-specific pricing, especially for smaller campaigns. If your business is just dipping a toe in the water and testing out direct marketing with a small campaign, you may see a flat rate of $2,500-$7,500.
How Do I Find a Reputable Direct Marketing Agency?
Everyone wants to make the right choice right out of the gate, especially when spending your company’s budget on services. So how can you find the right direct marketing agency for your business?
Much like you would with any other purchase, you can find a lot of information about potential agency partners online. Past client reviews or testimonials from companies they have helped may tell you a great deal about not only their capabilities but the types of organizations they have worked with in the past. You may also find case studies published by the agency that provide more in-depth information about goals, metrics, and performance.
Reviews are everywhere, too. From Google reviews to marketplace sites and marketing publications, there are a number of sources to help you understand which agencies may be a great fit for your company.
Questions to Ask Before Hiring a Direct Marketing Firm
Once you schedule a call or a sit-down meeting with a selected firm, prepare a few questions that can help you better understand how they work and whether they are the right fit for your business. For example:
- What kind of experience do you have in our industry or field?
- What examples do you have of very successful direct marketing campaigns?
- What project or campaign was not as successful as it could have been, and why?
- Will we have a dedicated project manager for updates and questions?
- What tools does your company use for direct marketing?
These are just a few examples to help you get started, but they provide a solid foundation. Asking about successes and failures, for instance, allows you to get a sense not only of their good work but also their honesty about past projects and what they have learned from those.
Mistakes to Avoid When Choosing a Direct Marketing Agency
When you’re ready to get started with a marketing agency, avoid some common mistakes such as:
Hiring the first firm you find
There are several talented companies out there in the direct marketing space, and finding the right one for your business might take a little shopping around.
Taking a meeting unprepared
Make sure that you and your marketing team do your homework first, prepare questions, and bring a clear sense of your current marketing efforts and needs, as well as goals for the future.
Not getting your team on board
Related to the preparation mentioned above, you’ll want buy-in from your team before you bring a direct marketing partner on board. When everyone’s on the same page, success is much more likely, and the process works much more smoothly, too.
What to Expect After Hiring a Direct Marketing Agency
Once you have a direct marketing agency hired, you can expect a knowledgeable and experienced partner who is eager to answer any questions you might have. You can also expect to have guidance for choosing the direct marketing methods and outlets that make the most sense for your goals while fitting within your marketing budget. And, best of all, you should expect to see results almost immediately. Whether your goals are lead generation or driving purchases, a direct marketing campaign is designed to move the needle, and do so just as soon as possible.
Powerful Marketing Performance That’s Ready to Go
Direct marketing is a remarkably powerful avenue to help businesses achieve growth, expand their customer base, and better understand both their customers and themselves. Put the power of direct marketing to work for your organization and you are certain to see the benefits, especially when you partner with a great direct marketing agency.