Time for marketing agencies to rediscover the power of the VAT-free direct mail pack
by Julian Gratton
At the beginning of every year marketing experts begin to predict what they think will be the next big thing in marketing and advertising. In the past we have had the year of the mobile, the year of Twitter and the year of Social Marketing. Yet in 2011 in the UK, it could be that it’s not something new and technologically advanced that is the next big thing but something tried and trusted… the VAT-free direct mail pack.
Thanks to George Osborne’s planned rise in VAT on 4th January from 17.5% to 20%; it could be that the marketing departments for financial services clients turn to the good old VAT-free pack to help stretch their budget further.
What makes a direct mail pack VAT-free and who can have one?
Unlike other businesses, Financial Services cannot claim the cost of VAT, which is why when it comes to marketing they can create what is known as a VAT-free direct mail pack, thus saving money.
Basically to qualify for VAT-free status, you have to have more Non-VAT-able content in your pack than VAT-able content. VAT-able content is defined as anything addressing the recipient by name and anything that’s designed to be kept; such as terms and conditions and key features booklets.
Non-VAT-able content are printed pieces that are not personalised and are disposable, such as flyers, brochures and letters… pre-printed letters that are non-personalised like those awful ‘Dear Valued Customer’ ones!
Be careful though, additional pieces need to be significant to the pack, essentially you have to prove that the pack needs the extra leaflet. Also the non-VAT-able paper area needs to be greater than the VAT-able paper area. There are so many grey areas with these packs that it’s best to seek advice from a good Print Production person or a good Direct Mail printer.
So what makes a VAT-free pack powerful?
Like all good direct mail packs first you need an engaging outer that tempts the reader to open. Once inside you’ll have a letter that meets the reader in their life and uses such tried and tested techniques as a Johnson Box, a strong P.S. and understanding at a glance. In addition to these you could include:
- The ‘don’t say no’ or ‘lift note’
When you talk about anything that qualifies as a ‘lift note’ it sounds cheesy, but trust me they do work. The classic lift note is a sheet of paper that folds in half. On the front is usually a tease of a headline to get you to look inside. On the inside is a note, usually written by someone other than the person who signed the letter… a publisher, editor, customer or respected professional.
Basically the note will highlight what an amazing offer it is that you are being given and that the person writing it is staggered that you are hesitating in taking this offer up… and in their eyes this could be the best offer they have given to any of their prospective or current customers.
- The testimonial leaflet
Usually the first question on someone’s mind when they pick up your direct mail pack is ‘is this for people like me?’ Showing a picture of the target market is a quick and easy way to put their mind at ease that it is indeed for people like them.
Pictures are nothing without words, though, which is why it’s important to then use the words of your satisfied customers to convey the benefits of your product or service. This may sound predictable, but just remember that we are in an age of deference versus reference… we trust the advice of each other more than we trust the advice of professionals, which is why such things as customer reviews on websites are so popular.
- The Q&A leaflet
No matter how well written your letter or how comprehensive your brochure enclosed within your direct mail pack; people will always have questions. The great thing about a Q&A leaflet in a direct mail pack is that it forces you to put yourself in the recipient’s shoes and anticipate any possible objections they may have to what you are offering.
Just remember to make sure that your last question is a call to action!
- The Business Reply Envelope (BRE)
Privacy in Financial Services these days is an issue, which is why it’s important to not only offer as many ways to respond as possible (phone, internet, post) but also ensure that the postal response feels as secure as possible.
Alan Rosenspan
Some good advice on BREs comes from marketing guru Alan Rosenspan; he has this to say with regards Business Reply Envelopes:
“I have a test that I call the “empty envelope” test. Basically, if your mail got opened and everything fell out of the package except the reply device, would it 1) give people enough information to respond, and 2) give people enough reason to respond? If the answer is yes, you have a great reply device”.
So make sure your offer is on the envelope, use tick boxes to allow people to say ‘yes’ I am interested in your great offer. Use the lip and reverse to remind the reader that they are being incredibly savvy in responding. It may sound old-hat and quite cheesy… but it works!
- Sell your expertise or online presence
People are looking for reassurance, and they are also subconsciously looking for reasons to say ‘no’. Just remember it’s harder to decline an offer from someone you can trust, so make use of a leaflet to highlight how long you have been around serving people just like them.
The Internet has also changed a lot of people’s lives and has made applying, responding and entering into a dialogue a whole lot easier. So make sure you highlight your online presence and how it can make their life easier whilst also giving them the peace-of-mind that their information is secure.
Go on, go VAT-free and see what it can do for you
With the rise of PPC advertising and email marketing it’s easy to forget such great things as the VAT-free direct mail pack and how effective they have been in driving sales. If you work in Financial Services or have Financial Services clients now’s the time to start remembering how powerful they can be so you’re ready for when 20% VAT kicks-in in January!
If you’d like to have an effective VAT-free direct mail pack created for you… why not give Red C a call on 0161 872 1361 or click here
Tags: BRE, Business Reply Envelope, Direct Marketing Agency, Direct Response Agency, Don't Say No, Financial Services Advertising, Financial Services Marketing, George Osborne, Internet Advertising, Lift Note, Marketing Agency, Marketing Departments, PPC Advertising, SEO Company, VAT-free direct mail pack, VAT-free status
