You’ll remember that I’ve defined marketing as delivering the right message to the right people with the right presentation and there is no better way to do that than direct marketing.
There’s no doubt in my mind that any conventional small business – restaurant, retail store, service station, etc. can easily and inexpensively double it’s business within thirty days with direct mail marketing.
In fact, I want to give you one very simple, cheap strategy that you can use for any such business. It’s a little labor intensive but very inexpensive and very effective. It’s based on the simple idea of credibility coming from the fact that someone you know patronizes a particular business.
Here’s what you do…
- Get a list of all the names and home addresses of your best customers
- Get your local criss-cross street directory available at your main library. This directory allows you to take a customer’s address and look up the people who live on either side of that address or across the street from that address.
- Compile a prospect list from that directory by name and address of the neighbors of your best customers
- Design a form letter to send to all those prospects that lets you insert the names of the neighbors.
For example, your letter might say:
Dear Mr. & Mrs. Jones,
Did you know that Herb and Barbara Gratitude, your next door neighbors, have been our customers for over a year. It just occurred to me that you might be looking for the same kind of (insert whatever your service or product is) that Herb and Barbara come to us for.
So I’ve enclosed six special coupons made out in your name only for your use.
This strategy will get you business. In fact for every four letters you mail with a really strong offer you should get at least one customer. Each of your customer’s has four eligible neighbors, one on either side, two across the street, so you could double your customer count with just this idea.
Author Info: Dan Kennedy is internationally recognized as the 'Millionaire Maker,' helping people in just about every category of business turn their ideas into fortunes. Dan's "No B.S." approach is refreshing amidst a world of small business marketing hype and enriches those who act on his advice. 
{ 15 comments… read them below or add one }
Brilliant idea. There may be some privacy issues depending on your business when you use this strategy…
I’m not sure if it would work quite so well in the UK for the same privacy reasons, however it is certainly a creative and innovative idea and one that could be adapted.
I guess with this strategy, it would be no different than door to door. Doesn’t matter if a current customer lives near by or not.
…not sure why you would raise the privacy issue, since you are mailing the letter to your existing clients neighbors… The letter is geared to building trust and credibility. If you don’t want to mention names then say “your neighbor at” (list the address) – not as effective as a real name, but should help with the privacy issue.
You can use google maps in a carefully orchestrated strategy to target particular neighbors… for example, only neighbors that have pools, or newer houses, or that have landscaping, and so on….
I raised the privacy issue for certain products or services, such as what the customer would be upset about if you told his neighbors. E.g. plastic surgery, hair growth solutions, etc. But even if it’s not something embarrassing, to what extent is it OK for us to tell others what a customer has bought from us? I’d see no problem with permission granted…
That is a great idea. I’ve been involved with a similar idea but a little bit if a twist. The coupon was actually a private table at the restaurant for that group of neighbors. It was pitched as a Meet the Neighbors Summer Party.
Ryan Malone
SmartBug Media
An inbound marketing agency and Hubspot Partner
@RyanMalone
The letter is geared to building trust and credibility.
with follow up touches 2-3 times per month.
including newsletter.
Your neighbor Bill is using our penile enhancement product and we thought you too would enjoy getting a rise out of the neighborhood
…you’d be nuts not to try it!
In most countries in the OECD there are privacy LAWS that would prevent you naming customers and addresses in this way. You would obviously have to get permission, first. If you have a service business that takes appointments you might send out a quick mailing to the area saying something like, we’ll be on your street in a couple of days doing ______________________ so call now to book an appointment and we’ll take $20,$30, $50 or whatever off the price thanks to the gas we;ll save, etc.
I think my customers would be a little annoyed if I did this, and all I’m selling is portrait photography! It’s one of those ideas that is *almost* there, but needs a tweak and I haven’t figured out what it is yet.
I get door-to-door salespeople doing a phony version of this all the time. One came to the door last week, selling some sort of service, and he had just booked the x, y and z households. None of the names I recognized, but more importantly, he rattled those names off like he’d said them a hundred times before. FAIL.
I’ve got to think on this one more.
Dan, have you actually tried this one or is it theoretical? If so, what did your customers think about it?
I have purchased a list and then matched up the list with existing clients on those streets and then called the clients asking them if they knew so-and-so on their street. no luck so far. few know their neighbors. let alone talk to them.
Scott,
You are going to love the blog post I just put up… it was in my mind for a few weeks, but your comment above mine made me realize I’d better spit it out of my head and onto the screen…
http://issamar.com/strategy/the-true-story-how-air-conditioners-have-destroyed-america/
Dan,
Great Idea. Coupons combined with an introduction. Response should be high. Direct mail is a numbers game.
I would pick the 20 closest neighbors on the street. In real estate that use to sell the most houses the fastest.
Steve Amos
author