How to Generate Cost-Effective Response With Inserts, Ride-Alongs and  Co-ops
By Larry H. Tucker
(number one in a series of twelve how-to-do-it articles)

Just about every mailer I've spoken to recently is planning to cut down on new-customer acquisition programs through solo mail and catalog. Not only are postage and production costs up substantially, they point out, but they have  been very disappointed at the failure of these relatively expensive mailing  programs to break even on the bottom line.

But cutting back on targeted marketing is a shortsighted policy. You simply  can't afford to stop building your customer base, which is constantly depleting.  Up to 20% of your current customers move each year, and your Third Class mail  may not follow them. Other catalog marketers, direct marketers and newly  aggressive local retailers - and the InterNet -- are constantly chipping away at  your current customer base. It's more impor-tant than ever before to keep a  steady, reliable stream of new business flowing in.

Some companies have turned to television advertising, remnant magazine or  catalog-request sections, Sunday newspaper FSIs, and other alternative media.  But your most logical - and potentially the most profitable - medium is direct mail itself. There are now hundreds of demographically-targeted, no-waste co-op,  statement-stuffer, ride-along, and package-insert programs available at very reasonable cost, ready to bring your selling proposition to millions of  interested, qualified, ready-to-respond prospects at only a few pennies per  insert.

You can print your offer on free-standing insert sheets carried (exclusive in  their product categories) in co-op mailing programs; this allows advertisers with common demographic and psychographic targets to share the costs of postage, lists, envelopes, addressing and inserting among a number of non-competing  marketers. Or your insert can "ride-along" in (or on) the packages of product being sent out to known recent buyers. And there are many "statement stuffer"  and invoice-enclosure programs: from those reaching catalog buyers of specific products, to magazine subscription bills or cable-TV monthly mailings.

There are so many of these programs that the Standard Rate & Data  directories (SRDS) have dedicated a separate section to listing them. But  finding the ones that will work for you-and then utilizing these programs productively-can take quite a bit of research, testing, time, and money. Proper use of these wide-ranging programs can open up a significant and continuing  source of long-term, profitable new customers.

During more than two decades in the direct response business, I've seen  hundreds of companies succeed in this area-and many hundreds fail. Success hinges on a number of factors: strategy(offer...pricing...timing...graphics...headline...copy...even color, paper, stock, and format.

This is the first of a series of a dozen articles which will discuss and illustrate the elements which many successful direct marketers have utilized in  these programs-several of which you can apply to your own campaigns. Read on...How to Generate Cost-Effective Response

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