Three ways to frame choices and get better answers with direct mail

Every day, people make decisions. We make those decisions of our own free will. Or do we? Consider: you walk into a grocery store to buy a carton of eggs. We want to buy one thing: that carton of eggs. But then we pick up a loaf of bread, primed by a bright yellow “For Sale” tag that tells us the loaf is a steal. Then we notice a chocolate bar at eye level and grab that too. We’re home-free to the checkout line, but then we notice a bag of chips right below the register. We buy chips too!

Yes, we are free to make our own decisions. But in making decisions, we face what behavioural psychologists call “choice architecture.” It refers to the context and conditions of a decision that shapes our choices. By shaping those choices, we influence them. So, for instance, we are more likely to buy products at eye level. We are unconsciously primed to buy a product when it seems cheaper than normal.

These and other tactical framings of choice architecture form the basis of nudge theory. It’s a popular movement of psychological insight in marketing, government, and every area of human life. It’s all based on a simple idea: How can we frame peoples’ choices to encourage better choices?

You can integrate the insights of nudge theory into your direct mail campaigns. Here are three ideas for how to be tactical about choice architecture. These ideas will help you get better results through your direct mail campaigns.

Help readers stick with the crowd

You’ve heard the adage that humans are social animals. But that’s so much more than conversation and cliques; social life requires much unspoken cultural understanding. From firm handshakes to eye contact in conversation, unspoken rules define social life. These social norms can be powerful tools: psychological cues to encourage particular behaviour.

For instance: littering. In 1990, researchers wanted to determine what social cues might encourage people to litter. Their results found that participants were more likely to litter in a space where litter was already present. They were even more likely to litter after watching someone else litter first. But they were less likely to litter when they saw neatly-swept piles of litter in the same space. These subtle cues set the norm for whether it was acceptable to litter in the area or not. People responded right on cue.

How can we use this in handwritten letters?

Use your letter to show readers how most people are behaving in a given situation. They will aim to ride with the crowd. British taxpayers late on their return received letters with social norm messaging, like “9 out of 10 people in your area are up to date with tax payments.” Recipients of these letters were 15% more likely to end up settling their debts. Find ways to establish similar social norms in your own letters. For instance, share a fact like “9 out of 10 donors donated at least $100.”

Research shows that the social norm effect becomes even more influential when visualized. Show the people setting the norm. Britain’s Behavioural Insights Team once worked with a client to encourage greater employee charitable giving. All employees received a card from an existing donor to the charity, explaining why they give and why employees should donate. A control group received the same card but with a picture of the donor. This control group gave at much higher rates than the non-control group. For example, why not throw in a picture of yourself if you’re a realtor mailing potential clients?

Anchor readers’ choices to encourage the best option

Let’s say you walk into a high-end clothing retailer. You see a t-shirt priced at $1000. “That’s ridiculous,” you think. But a step later, you see another t-shirt “on sale” for $200. Still a ridiculous price for a shirt? Yes. But you’re now primed to see that $200 t-shirt as a bargain because the first shirt you saw set your expectations. Psychologists call this the anchoring effect. The first information received about a particular subject will distort our thinking.

This effect is so powerful, it can undermine our objectivity. And it can manifest in ridiculous ways. One study showed participants the last two digits of their social security number and then asked them if they would pay the same amount as those digits for a series of products. There is no connection between the two. The price of a chocolate bar shouldn’t be set to $21 if the last two digits of your social security number are 21. Yet, the study found that those with higher digits priced the same items at higher amounts. That’s how powerful this effect can be.

How can we use this in handwritten letters?

Here’s one way we can put the anchoring effect to good use in fundraising letters. Let’s say you are mailing donors on behalf of a food bank. Open the letter with the number you’re hoping these recipients will gift. Even the presence of the number will prime readers to give that amount. For instance, you could write: “It costs our food bank $100 to feed one client for a week.” Then, later in the letter, ask for $100. The anchoring effect will go to work in priming potential donors to give your preferred amount.

Don’t ask readers to take action. Give them a plan to take action.

You’ve decided you want to lose 20 pounds. Good for you! But we’ve all seen the following happen. We commit to weight loss, cut back on meals or exercise a bit more, then fall back time and again. The ones who make it happen are always the ones who put together implementable plans. In nudge theory, this is known as implementation intentions. It’s the process of planning out specific actions in pursuit of a goal.

In the case of losing weight, that could be how often one will exercise, at what time, and how much; meal-planning in advance to improve nutrition; and more. Research suggests that implementation intentions have an enormous effect on ensuring that intended outcomes happen.

Behavioural scientists put this insight to the test during the 2008 U.S. presidential election. They studied the effects of implementation intentions by helping potential voters enunciate a specific plan for voting on Election Day: “What time they would vote, where they would be coming from, and what they would be doing beforehand.” Turnout among this control group grew by nearly 10%.

How can we use this in handwritten letters?

Let’s say you’re a realtor sending out a solicitation letter to potential clients. Put together a specific, step-by-step strategy for anyone looking to sell their home. Include a list of questions and considerations for every stage of the process. Show the potential clients what the process looks like. Provide clarity and prove how you can help. Watch as these soon-to-be customers recognize your expertise and follow your plan.

Want to level up your direct mail? Contact us.

Turn e-commerce into an IRL relationship with handwritten letters

E-commerce is everything for entrepreneurs in 2020. The NASDAQ estimates that by 2040, 95% of purchases will be facilitated by e-commerce. But we are already seeing that shift happening now. Consider: An Adobe report found that American consumers spent more than $50 billion on their smartphones during the 2019 holiday season—accounting for 84% of the holiday season’s spending growth that year.

E-commerce represents an amazing growth opportunity while also being plain scary. Why? Two words: frictionless and spontaneity. E-commerce sales represent a nearly frictionless experience for consumers. Today, a customer can see an ad for a watch, feel an instantaneous emotional connection, and make an impulse purchase under a minute from their phone with pre-loaded credit card information. The time between initial awareness and purchase decision can be less time than it takes for a freshman to microwave a bowl of instant noodles—a food that literally has the word “instant” in its name.

But a spontaneous purchase decision is also an easily abandoned one, and that’s a scary thing for online retailers. That Adobe report we mentioned above found that 50% of smartphone shoppers abandon their carts—half of online shoppers! You can lose them as quickly as you get them, and you can lose them as soon as they click off their browser to open a text from the ex they weirdly still talk to. Distractions abound. But as long as these distractions continue to negatively impact the bottom line—letting checkout carts collect dust in your backend—online retailers are left with a critical challenge.

How do you create a personal relationship online with an easily distracted customer you’ll never talk to?

You see, back in the good ol’ days…  (Narrator: “They weren’t that good.”)

Customers would come into your store, and you would talk to them. Over time, you could build a relationship. They would recognize you and your expertise. And you had opportunities to persuade them about the value of a product or a purchase.

Today, persuasion is happening over ad images and tight copy. And as much as you’re competing with others in your product category, you’re also competing for customers’ attention as they scroll through the device in their hands. Insert The Simpsons’ “Old Man Yells At Cloud” headline. Your enemy in this scenario is a calendar notification as much as a competitor.

To win the fight, get off the digital battlefield onto winning ground. Go analog. Handwritten letters can be a surprising but effective counter-measure in the battle for customers’ online attention.

E-commerce retailers think everything about their customer experience has to be digital. Flip that thinking on its head.

Here are six specific ways an e-commerce retailer can use handwritten letters to outsmart the competition—not to mention that pesky calendar notification.

1. Send a handwritten thank-you note along with a shipped product.

A thank-you note is just an incomparably personal and simple way to build a connection with a customer. You’re shipping to this customer anyway—why not include a personalized, handwritten note thanking them for their purchase? There’s so much research to support the conclusion that expressing gratitude is a powerful way to build trust and relationships. Telling a customer how much you appreciate their business is just one effective way of making a one-time customer a loyal and long-term one.

2. Send a follow-up letter months after a customer has purchased a product…

There’s an impactful generosity to giving a customer free information before they become a customer.  In turn, to check in on a customer’s experience of your product months after they’ve purchased shows how deeply you care. Consider including your phone number or email address so they can follow up personally with feedback. This is also a great way to keep you top-of-mind with a previous customer, and an encouragement for them to come back.

3. …And up-sell in that letter.

Use that follow-up letter as an opportunity to up-sell the customer on new products. This is especially true if you’re in a product category where certain items can complement your customers’ purchases, like a new hamper for a towel set, or a travel bag for shampoos and other bathroom items.

4. Drive direct mail targets to your website.

One InfoTrend survey found that more than half of customers who responded to direct mail either went to the brand’s website or visited their offline store. Once you’ve piqued a potential customer’s interest with a piece of mail, they’ll visit your website and start browsing. Worst case, they are sharing data through their clicks, allowing them to be targeted with paid ads. The boundary between online and offline is gone. With handwritten letters, you’re sending recipients straight to your website—right where you want them.

5. Try special discounts for letter recipients.

Send handwritten letters at scale with the help of Postalgia to a new market segment in a certain geographic area. For any new customer receiving your letter, include a QR code or a special checkout discount code. Like the thank-you note mentioned above, a personal invitation, combined with the opportunity to save a little money on their first purchase, is a great way to create a relationship.

6. Send a newsletter with product tips, along with a handwritten introduction.

People love getting things for free. Especially when those things are valuable. And whether it’s fashion tips for a new season, the most up-to-date info on local real estate prices, or the hottest trends in home furnishing, a colourful, visual newsletter can deliver high-value information to potential customers that might inspire them to buy from you. Even better: with today’s direct mail targeting, it’s easier than ever before to micro-target a newsletter right to your best consumer demographic.

Including a handwritten introduction with a newsletter is a great way to personalize the information shared—include an email or phone number so a potential customer can reach out to you and learn more.

These are just six examples, but any creative entrepreneur can think of occasions than fit their sales process. The lines between the offline and online worlds haven’t just been blurred—they’re gone. Take advantage.

Want to level up your direct mail? Contact us.

Gratitude is a Business Strategy

Gratitude: you might know it as a hashtag, or an Indigo mug, or a word your mom has crocheted on her wall. What you may not know is that gratitude is also a business strategy—because a grateful business is a business that customers return to again and again.

Consider a 2017 research article entitled Undervaluing Gratitude: Expressers Misunderstand the Consequences of Showing Appreciation. In it, researchers Amit Kumar and Nicholas Epley demonstrated how we often assume expressing gratitude will be taken awkwardly by the recipient of our affections. In their study, participants expressing gratitude underestimated how happily surprised the recipients of gratitude would be and overestimated how awkward they would feel. Which is too bad, because the researchers also found that both expresser and recipient reported positive emotions and better well-being because of gratitude.

The simple fact is that people love being thanked and love thanking—even if, on the surface, they think they don’t.

The power of gratitude in building loyalty

Decades of research has confirmed this, as Harvard Medical School attests. “Gratitude is strongly and consistently associated with greater happiness,” they write, and “Gratitude helps people feel more positive emotions, relish good experiences, improve their health, deal with adversity, and build strong relationships.” Your mom was on to something.

But before we call your mom the next Jeff Bezos, it’s worth asking the question: how can we apply the positive emotions of gratitude to a business strategy?

Let’s start by considering how expressing gratitude builds loyalty and commitment in stakeholders—whether customers, clients, or donors. Gratitude is motivating. In Globoforce’s Spring 2014 Employee Workforce Mood Tracker Survey, 86 percent of employees recognized at work felt more motivated to do their jobs. 85{c5c42d2e0b68f182649ca85478c9eaed180e8fe94e932f32b8af828d359c4a57} of employees said recognition added humanity to the workplace. And those who express gratitude are more extraverted, agreeable, open, and conscientious, leading to more employee friendships at the office and, consequently, more long-term commitment to the company.

Now apply that thinking to your key stakeholders, whether your biggest donors or your most critical customers. The same outcomes that gratitude generates in employees are just as powerful and relevant. A customer or donor who feels deeply appreciated will feel more motivated to continue working with you. A customer or donor who finds you agreeable, open, and conscientious has found a comfortable place to park their hard-earned dollars.

And in a world where AI and technology are replacing the human element, we know customers still prefer human interactions—and want to do business with brands they view as “human.” One study conducted by Forrester Consulting found that consumers who perceive a brand as human are more than twice as likely to love the brand, nearly twice as likely to purchase from that brand, and nearly twice as likely to recommend it. What’s not to love about being twice as effective with your sales? Gratitude brings humanity to your business interactions. When customers feel like appreciated people, rather than numbers, they come back.

The best part about gratitude as a business strategy?

How easy it is to implement.

Becoming an organization that intentionally expresses gratitude to its customers, donors, or clients doesn’t require rethinking your growth plan. It doesn’t require a million-dollar marketing campaign. It doesn’t require a guy in a just-too-well-fitted suit clicking through a PowerPoint and telling you how Tik Tok is the next Amazon.

Actually, all it takes is a pen, a piece of paper, and a good old-fashioned thank-you note.

Don’t take our word for it. Here’s etiquette expert Dan Post Senning:

“When I get a handwritten letter, I’m excited to open it. The art of the postage stamp, the feel of the paper, the graphic quirks of a friend’s handwriting: There is simply nothing as personal as a handwritten note. In a stack of bills and flyers, it’s a treasure in a sealed packet, full of promise and potential. It is a visceral reminder of someone far away… Handwritten notes still have a personality, warmth and, when needed, gravitas that computer screens don’t.”

Why do handwritten notes deliver a gratitude punch that no other medium can?

  1. They take just a little bit more effort. It’s easy to quickly type out an email or a text on your phone. You can jam out either of those while you’re sitting on the toilet. But a handwritten note is tailored. The uniqueness of each note and the effort of the sender says to the recipient, “I cared enough about you to write this down.”
  2. They can’t be missed, and they stick. How easy it is to delete an email or miss it entirely. Our inboxes are sources of stress, not sources of delight. But a handwritten letter is unignorable. In a pile of junk mail, there’s no joy quite like seeing a real note—they will be opened, every time. As Dan Post Senning puts it, “You can’t hold digital thanks in your hands the way you can hold a note. When was the last time you printed out an e-card? Right. Email is read and deleted. A mailed note is seen again and again on a desk or counter. Would you rather your thanks be remembered or deleted?”
  3. They are authentic and human. Penmanship is the child of personality. When we read someone’s handwriting, we can feel them on the other side of the ink—and we can sense the authenticity of their words, considering that precious time was taken to put them to paper. Earlier we talked about how customers want to do business with “human” organizations. The sense of authenticity, humanity, and personalization produced by handwritten letters offers an incomparable human touch. And that will keep the recipient committed to you for a long time to come.

Building an authentic, long-term, loyal relationship with your stakeholders is as easy as thanking them, again and again, for being part of your work. And all it takes is a handwritten note.

The best part? Handwriting letters are easier than you think

Gratitude is a winner, but let’s address the elephant-shaped pile of paper in the room. “Of course, I’d love to write handwritten notes to everyone,” you’re thinking, “But who has the time?”

Good news: you don’t need the time. Here’s how.

Oh, and we almost forgot:

Thanks for reading.

Want to level up your direct mail? Contact us.