In this article I’ll give an overview of classic, direct response marketing based business principles and attitudes.
I hope this becomes an evergreen resource for you, and you want to get back to it over and over again to revise and continuously improve your business.
These principles can change the way you do business completely as they are extremely powerful once you start implementing these with consistency.
Chances are, we can optimize a thing or two in our businesses. Let’s consider incorporating these into our marketing and sales processes, track and measure the results and test, test, test.
Let’s dive in.
Benefits of Direct Response Marketing
These are the main benefits of direct response rooted marketing:
- Generating Immediate ROI. Direct response marketing is all about immediate results and revenues from direct sales. Profits can be re-invested for (faster) scaling.
- Specific Targeting. By targeting a specific audience, fears and problems can absolutely be nailed (addressed in a very focused way). Then, specific solutions to these problems are offered. We can focus on our ideal, high-value clients. Ideal client’s reaction: “Hey, this is for me!”.
- Profitable Advertising. Direct response based advertising allows for cost-effective advertising. Every marketing dollar spent gets measured. Every advertisment gets tracked, nothing is wasted. What doesn’t work gets improved or discarded. What works gets scaled.
- Powerful Lead Generation. Ideal outcome and goal for (direct response based) lead generation advertising: Spend $1 to get $1+ revenue plus a new client on our buyers list. We can sell to that person over and over again later.
- Efficient Business Process. Direct response marketing is ideal for most small businesses to guide potential customers / leads from vague interest to making the sale. Modern (online) platforms allow for highly targeted advertising, this is powerful.
- Allows for “Expert Positioning”. No more cold calling, no more inefficient and annoying lead generation / prospecting practices that nobody likes. No frustration, instead dealing with (more) ideal prospects and clients, being the hunted instead of the hunter.
Philosophy of Direct Response
How does our product or service really solve a pressing issue / problem / pain in the marketplace?
What is our USP (unique selling proposition)? Do we communicate it clearly and consistenly?
Always lead with value. Educate. Become a thought leader.
Teach people valuable stuff and they are more likely to buy.
The goal? KLT: Know, Like and Trust
Some say RTR instead: Respect, Trust and Rapport.
Educational marketing: We educate our prospects and pre-frame our solution. We deliver incredible value upfront and become the leader in our field.
We want to position ourselves as the expert, as THE solution.
We choose to be the person who delivers consistently value in advance.
We position ourself as THE preeminent choice for our clients.
Learning from Examples
When companies get big, become very successful or go public, different shareholders with different (personal) agendas enter the picture.
That’s why we need to look specifically at what these corporations did to become successful, not necessarily how their current marketing and sales activities look like.
As a small business owner, we don’t have access to (almost unlimited) resources – because we are not venture-capital backed and instead invest our own time and hard-earned money.
That’s why we strive to get an (almost) immediate ROI on any marketing dollars spent, while at the same time we understand the required patience for an efficient, powerful back-end.
3 Ways To Grow a Business
- More / new clients
- Higher transaction value per transaction
- More often / more frequent transactions
Whoever can spend the most to acquire a new customer, wins
We have to know/calculate our client’s LTV (customer lifetime value) to determine how much we can spend to acquire a new customer (while still making a profit).
Applying the Scientific Method to Advertising
There is no guesswork.
We don’t do “shots from the hip”.
We always test and measure. We perform effective marketing only.
We come up with a theses / message, then we test it in the real market.
We track and measure the result and optimize from there.
Here’s how the process looks like in a more structured way:
The Basic Process of Direct Response Marketing and Advertising
- Put out a message / “Rack the shotgun” / stimulus
- To a specific group/audience
- Ask for an action
- Measure the results / response
- Adapt and optimize (test new, different messages etc.)
Most Important Factors
- Target Client / Avatar / Audience / The “WHO”
- very important factor (selling dog food to sb who hates animals / selling refrigerators in the antarctica)
- goals and values
- challenges and pain points
- sources of information
- psychological profile / attitudes
- behavioural factors
- potential objections
- Offer / The “WHAT”
- very important factor
- try to make it irresistible for our ideal prospects (requires us to get into the head of them)
- deliverable (product or service)
- high perceived value (judged by our audience)
- deadlines / urgency / scarcity
- USP (why should I do business with YOU instead of every other option available to me, including working with a competitor, figuring the issue out myself or doing nothing?)
- risk-reversal (we don’t ask the client to take on the risk, but take on the risk of the transaction ourself, ideally with a “better than no risk” guarantee)
- Messaging and Ad Creative
- from problem to solution (before and after states)
- agitate (emotional, pain, gap…)
- solution (why is our solution the best? USP!)
- ask / CTA
- logical / practical
- from problem to solution (before and after states)
Focus on Lead Generation
Highest ROI for our marketing/advertising dollar spent, and our time and energy.
No interested prospect gets lost, and we have the option to communicate, follow-up with our prospects and educate them. Plus, we can pre-frame our solution to the interested prospects, we position ourself and our solution as THE solution.
A subscriber is a much better prospect than somebody (cold) who doesn’t know us at all.
It’s all about the relationship with our subscribers and buyers. We always lead with value, we don’t engage in scammy methods, no gimmicks.
We always think and provide value for our prospects and clients. We get them results!
How Do We Get People To Give Us Their Valuable Email Addresses?
Simple: We give them a reason why. We provide valuable lead magnets and fulfill instant gratification needs.
We create simple opt-in pages without any fluff or distractions.
Traffic + Conversion (+ Economics)
What does it really take to be profitable online?
We need traffic. (getting the attention)
And we need to convert that traffic. (making the sale)
We can exponentially scale if we pay less for traffic than what we make in return. ($1 out, $1 in (return) + new customer = infinite scalability)
Email marketing gives us a much better chance to convert our visitors/traffic than just trying to make a sale on the website itself.
Without collecting contact information, we only have one “try” to sell our visitors directly – otherwise they are gone and won’t come back.
Conversion rates are usually extremely low because we can’t follow-up, we can’t answer questions (upfront) and we only have one chance to make a good impression. We don’t even know who they are!
That’s why we need to focus on lead-generation first and then nurture our leads.
There’s Always a CTA (Call-To-Action)
We provide great content and always lead with value.
But: What specific action do we want people to take?
There’s a CTA in every step along the customer journey.
If we want people to take (certain) action, we have to make sure that what we offer has a high perceived value and represents (almost) no risk.
We take on the risk of the transaction. (with honest no-risk involved guarantees)
This requires us to offer an excellent, results-delivering product and/or service.
That Which Is Measured, Improves
We always track and measure what we do and the results we get.
Then we adapt and optimize based on the results achieved.
Test, Test and Test
We try different things and see the response we get.
This is often called split-testing (or A/B testing).
When testing, we don’t change too many variables. We want to track and measure changes and their corresponding results.
The Roots of Direct Response
In the beginning of the 19th century the “mail order business” was born. (think catalogues and classified ads in newspapers)
The marketing/business problem back then was: How do we get people to read an ad, get up from the couch to pick up the phone and make an order?
Fathers of Direct Response
- Claude C. Hopkins (“advertising exists only to sell something and should be measured and justified by the results it produces”), book: Scientific Advertising
- Albert Lasker
- John E. Kennedy (“advertising is salesmanship in print“)
More Marketing Legends and Copywriters
Hi – I’m Tim, an online marketer from Germany and the founder of Online Business Dude. I run a couple of websites, and I openly share what works when it comes to starting and growing online businesses. I specialize in value-first and results-focused content marketing. I live, eat, and breathe free/organic and paid traffic generation, list building, and email marketing. If you need a helping hand with your SEO, SEM, PPC campaigns, list building, or email marketing efforts, simply let me know. Stay awesome!