As much as 71% of consumers are frustrated when their shopping experience feels impersonal and generic.
It is probably why small business marketers, with their limited resources and lack of industry experience, face challenges when it comes to generating leads and ensuring a steady ROI.
One solution to these problems? Direct response marketing.
This article shares direct marketing definition before diving into its benefits, specific best practices and the most suitable channels for direct response marketing.
Table of Contents
- What Is Direct Response Marketing?
- 3 Key Components of Direct Response Marketing
- Six Direct Response Marketing Best Practices
- 4 Most Effective Direct Response Advertising Channels
- Nine Highly Efficient Direct Response Marketing Examples & Techniques
- What Are The Benefits Of Direct Response Advertising?
- Direct Response Marketing FAQ
- Direct Response Marketing Takeaways
What Is Direct Response Marketing?
Direct response marketing is a type of marketing that encourages potential customers to take immediate and very specific actions to quickly generate leads.
Its purpose is to evoke an immediate response from the target audience and motivate them through a clear call to action. This can be anything from opting into newsletters, booking a schedule or placing an order.
Direct marketing is low-cost and highly optimized for ROI. While traditional marketing primarily aims to raise brand awareness, direct response marketing is geared toward producing measurable results.
Direct response marketing uses a wide array of channels, such as digital platforms, social media, TV, print media and so on.
3 Key Components of Direct Response Marketing
Marketing that supports direct response aims to make sales instantly. That is why the advertisement and the purchasing decision are immediate and consecutive.
Direct response marketing should prompt and receive instantaneous feedback. If not, then it fails.
So, what are the three key components of direct response marketing? These are the elements that typically compose direct response marketing:
An offer targets a prospect and should appeal to their desires and emotions.
Its initial goal is not to sell but to get the potential customer’s attention and interest which will lead them to take another action. This can be requesting a demo for the product or service or making a purchase.
An offer includes:
- the product or service itself
- features and benefits
- shipping and handling terms
A direct response marketing medium should have sufficient information for clients to consider and help them arrive at a positive decision.
On average, you have three seconds to get and sustain consumers’ attention, so you have a higher chance of getting your entire message across. This means that you need to be persuasive, including only personalized and relevant information in your advertising tool.
You should give reasons for customers to accept your offer and underscore the value of accepting what you are offering.
3. CTA and Means of Response
Direct response marketing should contain a clear and pressing call-to-action that compels a prospective customer to perform a specific action. CTA can be:
- Follow the link below.
- Subscribe to our weekly newsletter.
- Share this image on your social media pages.
- Sign up now to get a 10% discount voucher.
- Get in touch with us via this email address.
- Download a free trial version.
You can include more than one means of response, like a phone number, email, form, or website URL. Besides giving your audience options, this is also an efficient way for you to follow up through different touchpoints.
These CTAs usually involve limited offers that expire at a certain time to create a sense of urgency, making audiences hurry and act as impulsively as possible.
Six Direct Response Marketing Best Practices
Here are proven strategies to make your direct response marketing campaign a success:
- Custom Targeting and Compelling Messaging
- Prominent And Specific CTAs
- Sense Of Urgency And Fear Of Missing Out
- Easy Response
- Regular Follow-Ups
- Customer-Centric Approach
1. Custom Targeting and Compelling Messaging
US consumers see between 4,000 and 10,000 ads every day. In order to grab their attention, your direct marketing needs a compelling ad copy, targeting them strategically on different channels at the right time.
Furthermore, 80% of consumers are willing to do business with a brand that interacts with them through personalized messaging.
Personalization in targeting your specific groups of consumers generates the best results, so knowing your audience and what they respond to is the crucial aspect of direct marketing.
2. Prominent And Specific CTAs
Since direct response advertising is about making prospects take specific actions, such as signing up for a white paper, attending an event or watching a demo, your messaging should encourage them to do so.
Therefore, direct marketing requires a clear, bold, enticing call to action that lets consumers know what they need to do and what they’re getting in return. Using creative texts on CTA buttons instead of the generic “Submit” or “Learn more” copies and placing them prominently on the screen are keys to making standout CTAs.
3. Sense Of Urgency And Fear Of Missing Out
A sense of urgency and fear of missing out (FOMO) are two strong psychological mechanisms that inspire prospects to act quickly and boost conversion rates. Direct response marketing uses time limits (“offer expires on Friday”), scarcity (“only 5 items left”) and competition (“be among the first five to get a special price”) to entice urgency in prospects.
4. Easy Response
Make it a breeze for your consumers to respond to your direct response marketing materials. Boost your conversion rates with forms that require fewer fields to fill, files that take less time to download or support line that is easily accessible via the phone, like chatbots.
5. Regular Follow-Ups
Direct response marketing offers value in exchange for the user’s action, but it doesn’t end there. Ensure that your marketing and sales teams continue to engage with your prospects in order to move them down the funnel.
It can be placing leads into a nurture campaign or following up regarding a potential sale are some steps to include when setting up a direct response campaign.
6. Customer-Centric Approach
Direct response advertising is more about your customers and less about your brand. Focusing on your audience’s pain points and why your services are beneficial to them yields much better results over time.
For example, you can offer a downloadable document on a topic that is of interest to them or encourage them to sign up for regular blog updates that provide relevant solutions to their issues.
4 Most Effective Direct Response Advertising Channels
Direct response marketing applies to a wide variety of channels. However, the four items below yield the biggest benefits for this type of advertising.
- Direct response TV: One of the most widespread ways of selling products via direct response marketing is through infomercials or direct response TV. Also, buying a TV spot during a popular event watched by many can get you more viewership with a high potential for leads.
- Direct mail: Memorable direct mailers that entice readers to respond when they open their emails is an effective channel for direct response marketing.
- Digital marketing: The online space provides some of the best opportunities for targeted advertising that generates a response from the audience. Measurable results and customizable costs ensure that you spend your marketing budget optimally to your business objectives. To explore the full potential of digital marketing and leverage its benefits, you can check out the digital marketing agencies listed in our comprehensive directory, who can offer expert strategies and tactics tailored to your specific goals.
- Radio & billboards: Targeting customers out-of-home or wherever they may be with a catchy phrase and call-to-action is another effective and most commonly used direct response marketing platform.
Nine Highly Efficient Direct Response Marketing Examples & Techniques
Just like there are the most effective channels and platforms, there are the most powerful techniques for direct response marketing.
- Chatbots and Social Media
- Lead Generating Pop-Ups
- Referral Programs
- Special Offers
- Drip Marketing
- Targeting and Personalization
Upselling is encouraging buyers to purchase an upgraded and more expensive version of a product they have or to buy one that will complement their latest purchase. It is easier to sell to an existing buyer than to a potential customer, which is why upselling is a very powerful technique for driving sales.
One way upselling is used in direct response marketing is by asking customers if they would prefer the upgraded version of the service/product they are buying before completing a purchase on your website.
Just remember that clearly communicating the benefits of this upsell is not enough. You should also make it very easy for them to go to the proposed product/service and add them to the cart, as suggested in the above best practices.
2. Chatbots and Social Media
AI or human-powered chatbots help you communicate with your customers in real-time, which is extremely beneficial when they are in the middle of a purchasing decision or need a major issue solved.
Chatbots, as a direct response marketing tool, drive engagement and motivate clients to take action through direct communication.
Combining chatbots with social media is particularly effective in that regard. A Facebook Messenger chatbot that interacts with your interested prospects can offer your latest products and services within Facebook. Not to mention, social media provides you with vast customer data suitable for a more personalized targeting of your audience.
3. Lead Generating Pop-Ups
Direct response advertising is particularly effective in generating valuable leads and one of the best methods for doing so is via website pop-ups.
Let's say a visitor is interested in what your website offers. You can use personalized pop-ups to encourage them to join your email list and build a relationship with them using a succession of highly targeted emails.
4. Referral Programs
Word-of-mouth marketing is extremely powerful: 92% of people trust the recommendations they get from members of the family, their friends or colleagues.
Referral programs are one of the best examples of word-of-mouth in direct response marketing. An example is a campaign in which you can ask your current customers to refer your products to their friends and, if they do, they get a discount.
You can send them an email that invites them to take part in the referral program or ask for referrals on your “Thank You” page following the completed purchase.
Holding an online giveaway contest is an effective and fast way to boost audience engagement. These contests are best run-on social media platforms and live streaming.
It can help with:
- Generating new qualified leads
- Getting more followers
- Growing your network reach
In addition, it paves the way for innovative ideas, especially since you have to be creative and unique with the prizes and incentives you are offering.
It is vital to align your gifts and rewards with your brand messaging and values. Also, these giveaways should be something that your intended audience wishes to receive.
6. Special Offers
One of the benefits of direct response marketing is that it also works when you make specific special offers. This way, you not only ask people to buy any items but encourage them to purchase a particular item that comes with a special promotional offer.
This tempting promotional offer to sweeten the deal can be a discounted price via a voucher.
It can also come in a deal that involves buying two similar goods to get a third item at half its original price. Or it can come in the form of a freebie, free samples from your new product range or educational handouts that inform people more about your brand.
Signing up for your mailing list and getting a free shipping voucher is another good deal. Aside from the sales, you also get the opportunity to collect customer email and mobile numbers through which you can keep in touch with them.
7. Drip Marketing
The drip campaign strategy refers to a series of messages delivered to leads at specified intervals.
It is an excellent direct-response marketing tactic since it intends to drive a specific action from a single CTA at a specific time. And the purpose of this action is to transition your campaign from one phase to the next.
You can leverage drip campaigns to:
- Onboard new customers
- Welcome returning clients
- Keep prospects engaged with your business
- Activate sophisticated marketing solutions
- Maximize the use of automation for communication at scale
8. Targeting and Personalization
Direct response campaigns work most favorably for your business when you have a buyer persona outlined and sketched specifically.
Having a buyer persona can help narrow down your targeting strategies instead of your brand getting lost in a vast target market.
You can customize the way you target customers based on geographical location, interests, occupation, income range, and buying patterns and behaviors.
Hosting a webinar is an interesting way to build brand awareness. During the announcement period, you can promise one month's worth of free access to your membership website to attendees who will stay and complete the event.
As an effective consolation reward to random webinar participants who failed to finish the entire event, you can give away a valuable product they may decide on buying later on.
People will consider your brand generous, one of the essential qualities of a business that lasts.
What Are The Benefits Of Direct Response Advertising?
Direct response marketing is particularly effective for small businesses, although this strategy works for medium and large enterprises as well. It helps SMEs generate leads and traffic, get a good return on investment and secure enough budget — the three primary marketing challenges according to HubSpot’s 2019 State of Inbound Marketing report.
A successful direct-response marketing campaign can do so because it:
- Focuses on lead generation
- Gets faster response rate through fear of missing out (FOMO) techniques
- Is low-cost, trackable and delivers measurable results
- Opens a direct communication channel with high-quality leads
Let’s elaborate on some of these benefits in more detail.
- Simple tracking and measuring of results: In direct response advertising, it’s easy to monitor which campaign prospects and leads come from. Knowing which ads and which channels are the most effective lets you distribute your budget to more effective campaigns.
- Identification of qualified prospects: Prospects that opt in to direct response advertising show interest in your brand. Your sales team can focus on nurturing these interested prospects down the sales funnel instead of wasting efforts on cold leads.
- Establishing direct lines of communication: Directly communicating with your prospects enables you to form stronger relationships with qualified leads. You acquire more information about them and promote your brand in a way that is relevant to them. Getting in touch directly is a major advantage when closing sales.
Direct Response Marketing FAQ
What is direct response vs brand advertising?
Direct response advertising’s goal is to close a deal or sale immediately. It entails urgency and typically involves calls-to-action that ask consumers to take action right here and now so they can get the best value for their time and money.
On the other hand, brand advertising (or delayed response messaging) is more long-term in that it takes time to build and establish a specific image, identity and reputation for a brand.
Direct Response Marketing Takeaways
Direct response marketing is one of the most effective methods for encouraging prospects to take the desired action. Because it is low-cost and optimized for ROI, it is one of the most suitable marketing methods for small businesses and startups.
The basic principles of direct response advertising are:
- Personalized messaging
- Prominent calls-to-action
- Sense of urgency and FOMO
- Easy response and follow-ups
- Customer-focused approach
Direct response marketing can be used on multiple channels, but direct response TV, direct mail, digital marketing, billboards and radio are the most suitable platforms for this type of marketing.