Before we get into the article, I need to mention that watching the video will probably add a lot more value to your life than just scanning the section below.
Do you want to be overwhelmed and bombarded with outdated information?
Then just Google, “Best digital marketing strategies.”
You’ll find hundreds of websites shoving each other out of the way for the first spot on Google as they compete for your attention.
The good news is, year after year, Google has gotten better at showing relevant, new, and valuable content first; however, this doesn’t mean you are always going to get the best advice on the first page.
This is why I decided to write this article; I want to ensure you receive the best advice, without having to worry whether it’s true or not!
You see, the advice I’m going to provide you with has helped me build two companies from scratch!
And even though the two companies were founded six years apart, the strategy has worked exceptionally well for both!
However, I promise you; it hasn’t just worked well for us; it’s worked for thousands of other companies as well!
Companies like Amazon, Takealot, and Mr Delivery make use of this simple strategy!
Building a Direct Marketing List
What is a direct marketing list you might wonder?
It’s simple, really.
Think of What’s App.
What’s App is a form of direct communication.
You are speaking directly to the person you want to speak to, and there is a direct line of communication between the two of you.
Yes, you get What’s App groups as well, however, let’s ignore that for now.
Now ask yourself, what works similar to What’s App?
Back when we didn’t have What’s App we had to use your standard everyday SMS.
Facebook Messenger is one of the fastest-growing communication tools in the world, and it is already close to a billion active users a month!
Also, don’t forget email!
I know, you, probably like everyone thinks email marketing is dead; however, I disagree, and so does Takealot, Amazon and thousands of other companies.
In fact, it’s the number one thing we are using that’s assisting with our growth, and it’s something you should really consider if you are serious about yours!
Direct Marketing vs Paid Media
We all know that paid media is fantastic because it’s got a direct impact on your website traffic and results!
Direct Marketing, on the other hand, is slow-acting, as you first need to get people to join your communication list before you can educate them about your service or drive them back to your site.
Even though both are powerful, they work entirely different when it comes to your marketing.
You see, in terms of paid media, if it costs you R300 to generate one lead, then the chances are it will always cost you R300 a lead.
Sure, pricing might go up because of rising advertising costs, or it might go down slightly because of some optimisation; however, the chances are, it will always be a set price to an extent.
However, if you build a direct marketing list, on the other hand, your lead cost, in the beginning, might be a little bit higher.
The more people join your list, the higher the chances of you generating more leads while your budget remains the same throughout the year.
This means that you will be generating more leads at a lower lead cost.
Now regarding your costs.
With paid media, you are always going to have to spend around R300 to generate a lead.
On the flip said with a direct marketing list, if it cost you R300 to get 10 people into your email list, with a 10% conversion rate (utterly arbitrary number for the sake of the explanation) then you will generate 1 lead.
That’s also a lead cost of R300.
However, next month you spend R300 again, and you generate another 10 subscribers.
Now, with a 10% conversion rate on 20 people, you generate 2 leads.
But keep in mind, your investment this month was still R300, it didn’t increase, and you generated 2 leads for the same R300.
That now means your lead cost has dropped to R150 a lead.
And so, your lead cost will keep lowering the more you build your direct marketing list.
Do you see now how you can start to generate more leads per month with the same cost investment?
This is the exact strategy we’ve used to grow our business, and we always recommend it to all our clients as well!
Now it’s a numbers game.
This is, of course, a long-term strategy and not a short-term solution, so we advise that only companies truly serious about their business follow this method.
Before we close off, you do need to know that people in your direct marketing channel are not randomly going to wake up one day and ask for your services.
You need to stay on top of their minds by sending out communication that adds value to their life.
The reason why I say it needs to add value is that if there is no value to the receiver, then your communication is basically just considered spam, and let’s be honest we all feel the same way about spam!
Here at V8 Media, we send out a communication approx. once a week, and I kid you not, every week we get people replying saying they are officially interested in learning more about our offering.
In part 2, we are going to uncover the different ways you can go about growing your direct marketing list while looking at specific strategies that can add value to your prospects’ lives.