Improve Your B2B Direct Mail Response Rates With Premiums.

Premiums are an effective way to increase your direct mail response rates. Whether you are selling a product or service directly through the mail, or whether you are using a sales letter to generate leads, premiums can help you boost response, increase conversions and motivate buyers to pay now rather than later. A premium is simply an item that you offer to your buyer to take action. As Dick Benson has said, "a premium is a bribe to say yes now." Premiums are effective because, dollar for dollar, they are better incentives than cash discounts. Given the choice between receiving a free Apple iPod or a $200 discount on their order, most buyers will opt for the iPod. Here are some tips on using premiums effectively. Aim for desirability over relevance The key to choosing the right premium for your audience is desirability. If the premium is related in some way with what you are selling, that is great, but whether your prospect desires your premium is more important than if the premium is associated with your offering. For example, a firm that manufactures heavy-duty fasteners could offer prospective customers an oversize bolt in the form of a paperweight, or they could offer a $200 gift certificate to Best Buy (the home electronics store). The paperweight is relevant but undesirable. The gift certificate is desirable but not relevant to the firm's business. The best premium, of course, is closely related to your offering, is desirable, and makes your prospect look like a wise buyer. Choose premiums with high perceived value You want your premium to look as though it costs more than it does. A leather attach