Rule #1: Establish Trust

The reason you should direct market to your trade professionals is simple: Increase Sales - Increase Profits – Get New Customers - Enjoy The Rewards

 

In order to fulfill that process, you must understand that after all your customer's service, pricing and deliverability questions have been answered, the final buying and selling decision is based upon one thing - Trust!

 

If there's no trust, then there's no sale! If you don't know why the customer should trust you over someone else, then you need to go back to the drawing board to figure it out.

 

Direct marketing to the trades is all about establishing a one-on-one, trusting relationship from which to do business. Everything you do must convey that one most essential element.

 

 

Rule #2: Work Your House File

Your database of past and present customers is called your House File. Rule #1 has already been established – they trust you!

 

Most wholesalers exist by the 80/20 rule, where 80% of their profits come from 20% of their customers. This is the House File Triangle where the top reflects a small number who generate the most income, and the bottom represents a large number who each bring in the least income.

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You have only three goals for your House File:

 

1. Get them to buy more

2. Get them to buy more often

3. Keep them

 

You also want to grow your customers 'up' the triangle. By doing this, they become increasingly more valuable to you. It's over 23 times easier to resell the House File vs. pursuing new ones. Think about that in terms of dollars!

 

Ironically, most wholesalers constantly search out new business; thus ignoring a great potential for cash-in-hand income from their House File. Working your House File is your first, most powerful and important act in direct marketing to your trade professionals.

 

 

Rule #3: The Prospect - Funnel Them To Your House File

Now that you'll be getting the most out of your House File, it's time for you to get new customers.

 

Who are they and how do you find them? Actually, they're just like many of your best customers, but they're just not buying from you right now.

 

Modeling and finding them is more involved than just matching a Standard Industry Classification (SIC) code and downloading names. It takes a detailed look into both the geography of your market area and the make up of the list. These are usually compiled lists from public records that need manual review. A qualified, targeted list of prospects will improve your response while saving you from waste. Well worth the time.

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Remember, once they're on the House File, the less expense and greater sales you'll have while movng them 'up' the traingle.

 

 

Rule #4: The 4 Facets of Your Direct Marketing

There are four facets you need to understand and work within to make your direct marketing program successful. These are in order:

 

1. The List (Who you are approaching)

2. The Offer (Terms of an agreement)

3. The Creative (Packaging of your message)

4. Timing (When your message is received)

 

Outside of #1 The List, Facet #4 - Timing, can float freely among the other facets of the list. It can be the most or least important element to your overall success.

 

No matter how good your offer, no matter how good your message is packaged, no matter when you get the message to them, remember, if they're the wrong audience, they'll never buy! That's why determining the right list is the most important facet.

 

 

Rule #5: Make An Offer They Can't Refuse

The offer is defined as the terms and conditions of an agreement. The Offer is critically important. Saying it the right way can mean all the difference between success and failure.

 

First, make sure your offer is simply presented and easy to understand. It must allow for the least amount of risk to which to reply. The more you can offer for the least amount of commitment will build the highest amount of trust between you and the potential customer.

 

Finally, use the 'AIDA' formula to surround your offer creatively:

 

A – Attention. Talk about them

I - Interest. Promise something that will reward them

D - Decision. ''Yes! This is a really good"

A - Action. Respond now or forever lose this offer!

 

Many marketers fail here by not knowing the basics of what sells audiences within direct marketing graphic design. They rely on uneducated or inexperienced designers who think its easy – it's not. The use of white space, the right type styles for headlines, copy writing that sells, the use of certain words, etc. all play into the rules of success.

 

 

Rule #6: Contact Them Often

Variously contact and sell your House File continuously. Many people feel it'll offend them, It won't! First of all, if you're not soliciting them someone else is. And honestly, they would rather buy from you - someone they trust, versus anyone else. That’s why they do business with you.

 

There are so many different ways to be in front of your customer at any time. Some ways require permission and others don't. Coordinating and mixing your messages through various electronic and classic medias will get maximum effectiveness as each builds upon and supports the other.

 

 

Rule #7: Acquire Information

The more you know about your customer, their buying habits, their buying cycles, their needs, etc., then the better a customer they will be to you - as long as you address those needs. And addressing those needs is what it's all about!

 

Directly marketing to your trade professionals is a necessary tool if you want to grow them 'up' that House File Triangle and if you want to 'Keep them'.

 

In short, it's nearly impossible to follow Rule #2 if you don't utilize the information that's available on your customer. It's finding the relationship between what you offer and the buying habits of your customer, as well as knowing the needs of your customer. And this is what it's all about.

 

By continuously refining your marketing within these 7 Rules, your program will become much more effective both in generating sales & profits, but also in an ever improving return on your investment.