Simple: it’s a thank-you letter. The first reason a thank-you letter is so valuable is obvious - it makes recipient feel good. This elevates you from silent majority who never expressed their appreciation in a letter.

A phone call just doesn’t have impact of a letter. In a day, whatever you said on phone fades into horizon like sun. But not a letter. A letter has time to sink in. It can also sit on recipient’s desk as a lasting memento of your appreciation. A phone call just doesn’t compare to lasting goodwill generated by an appreciative letter.

The Most Valuable Letter

So, most valuable letter is to thank someone; and time you ALWAYS write it is when you receive a business referral. “Thank you for opportunity and privilege to be of service to your colleagues.” A business referral is not to be taken lightly or casually, it’s utmost show of trust a client or friend can display in you. It’s leap of faith that you’ll perform exceptionally well. “Thank you so much for your referral and your trust.” The person who recommends you puts their own name and reputation on line for you. Does it deserve a letter? You bet. This letter is least costly AND most effective piece of advertising you can write, bar none. Least costly? AND most effective? Hummm…

Did you notice how casually “Thanks for your kind referral” letter has now become most effective piece of advertising you can write? It’s no longer in “I’ll just dash off this thank-you letter” category.

Not everybody is in a recession. Some firms are doing quite well, thank you. In this down economy selected entire industries are really flourishing: mortgage industry for example, is booming, so is security and protection industry; snack foods are up a few good points and gift industry is particularly strong.

While people stay closer to home local shopping is doing well… like housewares, and home items. There’s a big boom in stereo, and TVs; and local travel - especially places that are short drives - are up significantly. With money people aren’t spending on flying they are buying more stuff, and spending money closer to home. And everybody appreciates fact that gas prices are lowest in years.

Don’t wait More discretionary money is available from people who aren’t traveling. That money is going to be spent somewhere.

Keep mailing You’ll have less competition.

Negotiate with your vendors You can’t squeeze blood out of a stone, but in this economy people are more likely to negotiate and barter terms, price, services and goods than when things are going well and everybody is getting list price. You never know until you ask - so ask.

Use Press Releases to supplement your ads Double your exposure. The magazine publishers (and magazine industry in general) are having tough times, too. They’ll appreciate your advertising support - and are most likely to show their appreciation with editorial support via your press release.

Limit Test Mailings Stay with what works. Pare back on those wild ideas for tests you’ve had, and mail closer to home with tried and true markets you’re pretty dern sure will pay off. Limit experimental tests to markets closer to those home-run markets you’re mailing too, and keep mailing ones that look most likely to pay off in short run.

Test smaller quantities You see a sign on a wall, “Wet Paint.” So, first thing you do is… you go over and touch it. Right? I thought so. Me too. Face it - testing is in your blood, you’re a direct mailer at heart. You can’t stop testing -- and I wouldn’t want you to. It’s a necessary part of direct marketing: you need to explore new market segments to grow.

So while you can’t stop testing, you can test more precisely. And you can test smaller numbers. If you’ve been testing cells of 5,000 records, drop down to 4,000. So statistical analysis of mailing results won’t be as absolute, so what? You’ll save money. It may be a little more work, but… guess what? It’ll save you money. And it make take longer to get exact results you need to predict a profitable rollout, but… you guessed it: it will cost you less, you’ll save money.

By way - if you run a small business; no, I mean a really small business, and mailings of 5,000 are a lot for you - as they are for many of my small business clients and friends, feel free to mail even smaller quantities. Face it, owners of SOHOs and VSBs (very small businesses) don’t have $2,500 to test a 5,000 name list. So heck, don’t let that stop you: mail just a thousand pieces. You’ll be able to tell if you are getting any sales - or any calls at all from list. You’ll know if this mailing paid for itself, and you’ll know it fairly quickly. So what if it’s not statistically sound - you’ll learn enough to mail more or not mail more to that list. And isn’t that what testing is all about?