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Topics
- Overview
- Elements
- Strengths and Limitations
- Preparation and Production Time
- Business Considerations
Overview
An Insert is a Direct Marketing tool composed of words and images reproduced on paper or another material that can accommodate a printed or recorded message. It communicates an offer from Company A (the mailer) and includes the means to respond to the offer. It is exposed to consumers by “hitching a ride” with materials that Company B (the Program Owner) distributes during the course of doing business. The associated media form for Inserts is the Insert Program opportunities made available by Program Owners.
An example of an Insert Program might be a credit card company’s monthly statements that are sent to its credit card holders. The credit card company (Company B) allows the mailer (Company A) to include its inserts in the same envelope the customers’ monthly statements are mailed in.
Insert Programs are typically categorized by their distribution method.
Bind-In Programs describe situations where an insert is attached to the binding of a magazine or catalog while it is being assembled. The consumer must tear these inserts out of the binding to be able to mail back a response to the offer.
Blow-In Programs exist where a publisher allows Direct Marketers to have their inserts blown into the pages of their magazine or catalog after it is assembled. These inserts are the pieces of paper that fall your lap as you read through the publication, capturing your attention.
A Package Insert Program is a program where Inserts are distributed in the packages that deliver the products ordered by the Program Owner’s customers.
A Ride-Along Program is a program where the mailer’s inserts are included with the distribution of the catalogs, mailing pieces or promotional materials the Program Owner sends to their customers.
Many times college students are given a gift box including samples of products when they arrive at school at the start of a semester. These are Sampling Programs that frequently include inserts mixed in with the product samples. Other Sampling Programs exist for new homeowners, new mothers and other narrowly defined markets.
A Statement Insert Program is a program where Inserts are distributed in the same envelope as a Program Owner’s customers’ statements.
Generally inserts are limited in size to keep their weight down and to accommodate Program Owners’ required specifications so they can be handled by automated inserting equipment that may be used, or so they will fit into the program’s envelope or package
Many insert programs are distributed using the postal service or other carriers that base their charges on the weight of the material being shipped. The carriers’ charges typically increase as the weight of material increases and reaches preset weight plateaus.
The difference between the weight of the Program Owner’s material and the weight that changes the carrier’s shipping price to the next higher plateau represents the total weight of the inserts many Program Owners will allow to be included with their materials.
Sometimes Program Owners will allow a mailer to include inserts that exceed the weight that will boost the shipping cost to the next weight plateau. The mailer will be responsible to pay for the difference in shipping cost.
Many Program Owners allow several mailers’ inserts to be included in the same envelope or package. Some Program Owners limit the number of inserts allowed to perhaps two or three. In most cases Program Owners will not allow inserts from two competitors to be included in the same envelope or package.
Insert sizes range from 3” x 5” at minimum, to 5 ½” x 8 ½” maximum. Some types of programs will allow larger size inserts to be included. The maximum weight allowed for inserts in most programs varies from 1/10 of an ounce to ¼ of an ounce. Once again, some types of programs will allow larger weights.
Direct Marketers that are heavy insert users frequently create different size inserts to accommodate the varying sizes and weights that are acceptable for the different types of programs they participate in.
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Elements
Headline
The headline appearing on an insert must immediately capture the reader’s attention and create interest in the offer. The amount of time a consumer might take to glance at an insert to determine whether to read it is typically less than two seconds. The Direct Marketer relies on the headline and perhaps a photograph to draw the consumer into the message.
A headline should be concise, directly to the point and should focus on the most important benefit the consumer might perceive from responding to the offer.
Sub-headlines
When an insert provides enough space to include sub-headlines they should be short and very much to the point of describing a key benefit the consumer will receive by responding to the offer. Sub-headlines help lead the reader through a message to the point where they can find the response mechanism.
Photograph
A well-thought-out photograph can show off product features more effectively than a full paragraph of explanations. When space is confined a photograph can go a long way to get the Direct Marketer’s message understood by the consumer.
Coupon
A coupon is a visual tool people recognize as commanding a specific action or having a specific benefit. Some coupons look as if their purpose is to be completed and sent somewhere. Other coupons look as if they are certificates to be redeemed for something of value.
When working with limited space, a coupon sends a message to the consumer without taking up space explaining what it is.
Response Mechanisms
Some inserts use an Order Form that must be completed as a response mechanism. Some inserts are actually postcards that can be completed and mailed. Their communication to the consumer appears on one side and the reply address appears on the reverse. They may even be postage paid to remove any obstacles the consumer may have in responding.
As with any response mechanism, it is important to keep the response process simple and user friendly.
Once again, it is good practice to include a phone number and a website address for consumers that prefer those methods to respond.
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Strengths and Limitations
Ability To Present Message
Most inserts have limited space in which to present a message. A smart Direct Marketer will carefully choose a message that can be conveyed in the space available. In some cases this causes an insert to be used to generate inquiries. The Direct Marketer will use a follow-up package to provide complete information and present an offer.
On a relative basis, inserts do not provide a strong Ability To Present A Message.
GSR Rating: 2
Creative Flexibility
Space is an issue that limits Creative Flexibility when preparing inserts. A strong headline, a good photograph, bold-faced words, colors and graphic elements like certificate borders can be used to attract attention.
GSR Rating: 2
Involvement Capability
An insert can be used to develop consumer involvement. Some inserts can include scratch-and-sniff sections that consumers can use to experience the scent for a new perfume.
A Direct Marketer might print an entry code for a contest on the insert and have the consumer phone a special telephone number to find out if they have won. When they call the number they will hear a special message from the Direct Marketer while they check their entry code.
The key to effectively using involvement on an insert is to lure the consumer to a presentation that is in a format that has a stronger ability to present a message about the product that will be sent to the consumer by mail, as an email message or by some other means.
GSR Rating: 4
Interactive Capability
An insert is not an interactive Direct Marketing tool.
GSR Rating: 0
Ability To Establish Credibility
With limited space in which to present a product and an offer, it is difficult to do very much to establish credibility.
A Direct Marketer that is unknown to the consumers that will receive the inserts might focus the message on the insert on generating a request for further information. The follow-up package would be used to establish credibility.
Organizations that are known to consumers have less of a need to address this issue on their inserts. They can focus more of their message on a product and an offer for the product, although they may also choose to use the insert to generate inquiries and allow the follow-up package make the offer.
On a relative basis an insert has less of an ability to establish credibility than other Direct Marketing tools.
GSR Rating: 1
Anticipated Attention Time Span
Inserts do not include a lot of information and they are typically small in size. Include the fact that they are distributed with other materials that many times are much larger than the insert and more compelling and you see why an insert does not have a long Anticipated Attention Time Span.
GSR Rating: 1
Ability To Test
Insert offers, headlines, creative and programs can be tested in the same ways as other Direct Marketing tools. Sometimes the results will take a long time to be received.
The distribution pattern of inserts in some programs can be a very drawn out process. For example, a Direct Marketer may test placing 50,000 inserts in a Package Insert program that ships 1,000 packages a day.
It will take almost two months for those inserts to be distributed and even longer for all of the results to be received and tabulated.
The same Direct Marketer may test placing 50,000 inserts in a utility’s Billing Statement program. The inserts will be distributed in one day. Results will be received in a much shorter period of time.
When testing insert elements such as creative approach within the same distribution of inserts in the same program the results will be more comparable than testing one program against another. The length of time it may take for the two programs to distribute the inserts may cause seasonality or other outside factors to influence the results which may skew the test and make it invalid.
GSR Rating: 4
Ease Of Response
When an insert is actually a postage paid reply card response could not be easier.
Other insert formats can include Order Forms, phone numbers and website addresses making inserts as easy to respond to as other Direct Marketing tools.
Some inserts are actually coupons that can be redeemed at retail establishments. These are also easy to respond to.
GSR Rating: 5
Impact Of Clutter
Inserts are distributed with other materials. This is a fact of life for Direct Marketers that use inserts. Some Program Owners restrict the number of inserts they will allow in a distribution of a program, but the Program Owner’s materials are also fighting for attention.
On a relative basis inserts do not stand up well to other Direct Marketing tools when it comes to the Impact Of Clutter.
GSR Rating: 1
Impact Of Competition
Many Program Owners do not allow competing inserts in the same distribution of their insert programs, so the Impact Of Competition is not a factor.
GSR Rating: 5
Preparation and Production Time
An insert can be created in just a few days and can be printed in large quantities within one to two weeks. When compared to other Direct Marketing tools, inserts stack up well in this category.
GSR Rating: 5
Relative Costs of Creative and Production
The size of an insert alone controls some of the costs of creating and producing it. I have seen situations where it cost $250 to create an insert including writing copy, art direction and taking a simple product photo. Other inserts I have seen have cost as much as $2,500.
The size of the insert, the complexity of the photograph required and necessary illustrations are some influences on the costs of creating inserts.
When materials are not provided for a printer in electronic form, the production costs to prepare materials for a printer can range in most cases from $50 to $250.
On a relative basis, inserts cost considerably less for Creative And Production than most other Direct Marketing tools.
GSR Rating: 5
Measurable Response
As mentioned earlier in this discussion, inserts have the same ability to develop Measurable Response as other Direct Marketing tools. The primary area of concern when testing the results of one program against the results of another program would be the outside factors that can influence response if a program is distributed over a long period of time.
A Direct Marketer can judge each program on its own merit by measuring its Return On Investment. This information can be used to determine whether the program meets expected benchmarks and whether it is advisable to continue inserting into that program. We will discuss measuring response in Chapter 12 of this text.
GSR Rating: 5
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Business Considerations
The philosophy behind why Direct Marketers use insert programs involves four key factors.
- When an insert is included in a bank statement or a package that is used to deliver the merchandise a person ordered, there is a high likelihood the statement envelope or the package will be opened causing the insert to be noticed by the recipient.
- When an insert arrives in a communication sent by a Program Owner the consumer is familiar with, there is an implied endorsement that the Program Owner approves of the materials included in that communication. The relationship the consumer has with the Program Owner is the catalyst that causes some consumers to read the inserts and accept the credibility of the product and organization making the offer.
- Inserts included in packages delivering merchandise consumers ordered take advantage of the “comfort zone” created by the consumer’s happiness with the merchandise and the associated good feelings the consumer has about the Program Owner they bought the merchandise from. Couple this with the implied endorsement factor described above and the possibility that an insert will be read and responded to increases.
- As we have discussed elsewhere in this text, there are certain factors that indicate a consumer’s likelihood to order. One of the most dominant of these factors is the recency of their prior order. A principle most Direct Marketers subscribe to is that consumers that ordered recently are more likely to order again than consumers whose most recent orders were placed less recently. An insert placed in the package of someone receiving the merchandise of his or her most recent order is in the right place at the right time to take advantage of the principle of recency.
Insert Programs can be used very successfully to prospect for new customers. They are cost effective. They typically cost 10% of the cost of Direct Mail – or less, for creative, printing and distribution. Costs vary by type of program and within each type of program, on a program-by-program basis.
Some programs produce response rates measured in tenths of one percent for an offer that sells a product. This equates to one order per 1,000 inserts distributed. A distribution of 25,000 inserts might produce 25 to 100 orders. A distribution of 1,000,000 inserts might produce 1,000 to 4,000 orders.
When an insert program is used to acquire inquiries the mailer would typically expect to receive a higher response rate than when the same insert program is used to produce orders directly from the inserts. An insert program used to produce inquiries might produce 250 to 1,000 responses from a 25,000 distribution. A distribution of 1,000,000 inserts might produce 10,000 to 25,000 inquiries. These are similar to response rates some Direct Marketers experience with their Direct Mail Package efforts.
There are many factors that affect the response rate a Direct Marketer might experience when using inserts. Some of these include the type of program the inserts are placed in, the ability to find a program that is distributed to consumers that are most likely to purchase the product, the type of offer – whether it is a hard offer or a soft offer, the cost of the item being sold, the consumer’s perception of the company and the consumer’s perceived need for the product.
As with every Direct Marketing tool, the results Direct Marketers can anticipate will vary on a case-by-case basis. The best way to determine whether insert programs will be productive for an organization is to test different inserts that have different offers in a number of programs.
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