Simple Self-mailer Outperforms 5-piece Package

By Grant A. Johnson, Johnson Direct

"Within six months, a cost-effective self-mailer helped Wisconsin’s number one health insurer,
BlueCross & BlueShield United of Wisconsin, generate a 1.7% response rate for its Personal Choice
product, dramatically increasing sales leads. Not only did the self-mailer campaign exceed its weekly
lead generating goal, but its cost per mailing was four times less compared to its test opponent,
an attractive, glossy five-piece package."

Cathy James, marketing manager, BlueCross & BlueShield United of Wisconsin (BCBSUW), teamed up with Johnson Direct, to produce a strategic direct response program that would double sales for Personal Choice. The first solution took the form of a traditional package including: two-color, two-sided 9 x 6 envelope glossy four-color three-panel brochure two-color, two-sided lift note business reply envelope two-color, two-sided letter with attached reply form

Before unleashing the new, eye-catching mailer on the BCBSUW audience, Johnson Direct kicked-off “part two” of its program to create and test a worthy direct mail opponent.

Because packages almost always outperform other types of mailers, we were very happy with our first solution, however, this is not a reason to call it a day. We challenged ourselves to base our second solution on an entirely different type of mailer while using the same ‘comfort’ concept.

Going for a dramatically different test opponent, Johnson Direct designed a three-panel, four-color self-mailer as an alternative solution. The design included straight-forward copy appealing photography, and a simple call-to-action in the form of a pre-addressed, perforated, postage-paid business reply postcard. Compared to the package, this mailer’s copy was condensed and more to the point. Images, headlines, subheads and bullet points helped lead the readers’ eyes from left to right – where the offer was featured.

The self-mailer cost substantially less to produce and distribute. It was printed on a matte finish paper stock, rather than the traditional glossy. At under $.40 per piece (lists, creative, print and mail), the self-mailer concept was a very economical solution.

Both mailers contained the same offer: Use the postage-paid “EZ Reply Form” or call toll-free to receive a FREE fact kit.

A test matrix was set-up to map and track the performance of both mailers.

The multifaceted mailer was sent to 75,000 recipients. The results:

• 858 leads
• a 1.14% response
  

The self-mailer was sent to 50,000 recipients. The results:

• 1,091 leads
• a 2.18% response

The self-mailer proved the most successful, so the concept was fine-tuned and Johnson Direct implemented the new campaign as the control.

This program was a textbook study on why testing is so important and how to test effectively. It reminded me that I can't use the word "test" enough. If we hadn't tested the new self-mailer approach, no one would have guessed it could outperform the existing five-piece package like it did.

Not only did the self-mailer campaign exceed BCBSUW's weekly lead generating goal, but its cost per mailing was more than four times less costly per lead ($75 to $17 per lead). The results:

• 275,000 uninsured individuals received it (25,000 per drop)
• 4,694 leads
• a 1.70% response rate
• an average of 235 leads per week

Johnson Direct also dramatically increased the drop frequency of the program, compared to only two drops per year previously.

“Johnson’s strategy to drop every week
created consistent response rates for
our sales team. The reps could respond
to the leads in a timelier manner than
ever before, which really
improved productivity.”

-- Cathy James, marketing manager,
BlueCross & BlueShield United of Wisconsin

Companies should test not only to increase ROI, but also to learn to better market to segments that emerge as the marketing programs forward.

From a direct marketing standpoint, we can test the list(s), the offer, the package creative, components of the package, the format, and so on. The ability to test and measure results is what differentiates direct marketing from all other communications efforts.

According to the U.S. Postal Service, testing will prove, fairly quickly, how much response your offer will generate. A rule of thumb is that within one week, you'll receive about 25% of your total responses; within two weeks, 50%; and within four weeks, 75%. The last 25% will trickle in over the next few weeks.

As the late direct marketing guru Dick Benson said, "You've got to determine if the information you can reasonably expect to gain is really worth the expenditure."

For more information about testing, read Test is a four-lettered word. The U.S. Postal Service is also a good resource for “the basics of testing.”

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