Formulating the offer.

• Author: Turner, Jim
• Position: Direct Mail Essentials - Brief Article

"Make me an offer." That's often a salesperson's favorite way to get the sales process started. And, in direct mail, there are two important variables in the process of creating a successful campaign: First is selecting a list; second is designing the offer.

The list ensures that you are speaking to the right persons. The offer ensures you are saying the right thing--words that will motivate people to respond. The best copywriting and the finest photos will be ineffective if the offer doesn't appeal to your reader.

What makes an offer?

The offer has two parts: One is a benefit to the reader, the other, an action the reader must take. For example, "Pay no closing costs (benefit) if you apply (action) for your home equity line of credit now." Or, "Earn X percent interest on a money market account (benefit) if you deposit $10,000 or more (action)."

Your offer must logically balance the desires of the reader (earn more interest) and the needs of the bank (a profitable interest margin). The offer can be challenging because it is at the core of both the effectiveness and the profitability of the promotion. if you're too generous and generate a big response, the bank suffers a loss, If you're too generous to the bank, you risk getting little or no response. Usually, though, you can use a mix of internal cost analysis and competitive reality to come to an effective compromise.

Your offer typically will include a time frame or deadline: For example, "Apply by November 30 to qualify." The time requirement is important for several reasons:

* It establishes urgency for the consumer to respond now, Consumers receive new offers daily from all types of advertisers demanding attention, As time passes, a consumer can cool to your offer or be distracted by other more immediate concerns. Thus, stating a deadline with your offer keeps it on the respondent's priority list.

* A deadline establishes the time period for the bank's pricing liability, if any, in the offer. For example, you would likely want to limit the duration of a reduced interest rate offer on a loan to a specific time period in which your rate assumptions will be valid.

What makes your offer effective?

Your offer should be stated concisely, and it should always be clearly...