Intensive selling: a comprehensive analysis of possibilities for increasing profitable sales through supplemental direct advertising methods

Part One Possibilities For Increasing Sales

THROUGH INTENSIVE DIRECT

ADVERTISING

The business world is awakening under the present condition of intensive readjustment, to the possibilities of direct advertising as one of the mightiest influences in selling. The power of printed salesmanship to stimulate demand direct can be applied by any selling business. It is the one method that can be used by all advertisers, applying as advantageously to the requirements of the smallest advertiser as to the largest.

It is estimated that over $930,000,000 is spent each year in the United States for advertising. Direct advertising now ranks first in importance in the list of the various kinds of advertising as indicated by the estimates that follow.

The following is an estimate as to the annual advertising expenditures in the United States for the various kinds and mediums of advertising. These figures are based on an estimate made in 1915 by Printer's Ink, and supplemented by later information from various sources.

Direct advertising (circulars, form letters, enclosures, house organs, etc.) $420,000,000

Display advertising (display and general) 270,000,000

Farm and mail order 75,000,000

Direct advertising

immense

sales aid

Estimate of totals paid for different kinds of advertising

Estimated totals spent for direct advertising based on group expenditures

Magazine advertising 70,000,000

Billposting 30,000,000

Outdoor, electric signs 24,000,000

Demonstration and sampling 18,000,000

Street car advertising 10,000,000

Theatre programs, curtain, etc 5,000,000

Distributing 4,000,000

$930,000,000 The following estimate as to money invested yearly in the United States in direct advertising, made after careful investigation and analysis, seems conservative:

"The nearest approximate figures that we

have been able to arrive at in our analysis is

as follows:

39,000 manufacturers in the United States of high ratings, including all national advertisers who are manufacturers, spending on an average of $5,000 a year in direct advertising gives a total of $195,000,000

100,000 manufacturers in the United States, not including the above 39,000, spending on an average of $500 a year for direct advertising « 50,000,000

40,000 wholesalers and jobbers, spending on the average of $500 a year in direct advertising 20,000,000

1,500,000 retail merchants and trades people in the United States, averaging approximately $50 each year in direct advertising 75,000,000

100,000 miscellaneous lines of business not classified above, including banks, real estate agents, brokers, commission houses, public service companies, insurance companies, land companies, selling agents, trade and business associations, investment companies, etc., estimated average spent in direct advertising every year is $500 each 50,000,000

600 mail order houses in the United States, average amount spent annually, $50,000 (approximately).. 40,000,000

2,500 leading department stores spending on an average $5,000 a year 12,500,000

Total spent for direct advertising yearly $422,500,000

"We believe these figures are conservative, as the amount of direct advertising is steadily increasing and will further increase.

"The amount spent by the United States government is not taken into consideration. This is an immense item in itself." 1

As a manufactured product, direct advertising is an important part of the incomer J. Buckley — estimate of present approximate totals in direct advertising in 1918.

Every advertiser should strive to get the biggest possible value from every dollar spent in advertising

Distribution Theatre Programs Street Car Advertising Demonstration Outdoor Advertising Bill Posting Novelty Advertising Magazine Advertising Farm and Mail Order

Display Advertising

Direct Advertising

Diagram showing relative totals spent for different kinds of advertising, based on estimates.

Total dividends returned from direct advertising tremendous

Further figures showing importance of direct advertising dustry that ranks sixth in the United States in volume of business.

It is estimated by the United States census report for 1914 that there were 31,612 printing establishments in the United States in 1914. These represented an investment in plants, machinery and other equipments of $588,345,708, employed 388,466 people at an annual wage of $268,086,431, and turned out printed products to the value of $810,- 508,111. The census report figures are valuable in indicating the rapid growth of the industry and the increasing importance of direct advertising, but the figures are suggestive rather than complete.

As large as the amount annually invested in direct advertising is, however, it is insignificant compared to the total dividends returned to advertisers by the investment.

A further indication of the importance of direct advertising to manufacturers alone can be appreciated when we consider that there are today some 140,000 manufacturers in the United States. Of these, selling conditions permit not more than 40,000 to make use of the force of national publicity to the consumer. This means that fully 100,000 must depend upon direct advertising or trade paper publicity for stimulating their business through advertising.

Competition is constantly forcing business to operate with greater efficiency in developing sales and in lowering the cost of selling. This is making it more vitally important that every business should intensively apply direct advertising methods wherever possible in the highly competitive battle for business.

The possibilities for increasing business through direct advertising are suggested in the Standards of Practice adopted by the Direct Advertising Departmental of the Associated Advertising Clubs of the World at the Toronto Convention in 1914:

"Every advertising manager or business executive in charge of merchandising establishments, also every advertising counselor, in dealing with his clients, should dedicate his best efforts to making truthful direct advertising an efficient aid to business and should pledge himself :

1 : To study carefully his proposition and his field to find out what kind of advertising applies. The reason for every advertising failure is that the right kind of advertising and its proper application for the particular product and market were not used. The only forms of advertising which are best for any purpose are those which produce the most profit.

2: To bring direct advertising to the attention of concerns who have never realized its possibilities. Many concerns do not advertise because they do not know that advertising can be started at small expense. They confuse advertising with expensive campaigns and hesitate to compete with others already doing general publicity.

3: To determine the different ways in which direct advertising can be used effectively to supplement other forms of advertising and to study the other forms used that the direct advertising may become a component part of the entire publicity plan.

4: To study the special advantages of Direct Advertising, such as individuality, privacy of plan, facility for accompanying with the advertisement, samples, postals, return envelopes, inquiry or order blanks,

Standards of practice for direct advertisers

Decide where direct advertising is best— and use it there

Plans for making direct advertising efficient aid to business ability to reach special groups or places, personal control of advertising, up to the minute in mailing, and other recognized advantages.

5 : To strengthen the bond between manufacturer and dealer by encouraging the manufacturer to prepare direct advertising matter for the dealer, so well printed with his name, address and business card as to make the dealer glad to distribute it, provided always that the cost of special imprinting is in proportion to the benefits to be derived. Test out mailings 6: To take advantage of the opportunity

in advance t0 test out letters and literature on a portion

remove element oi a nst before sending them out to the

of chance entire list. Wherever it is possible to ap-

proximate in advance his returns from his advertising he has made his advertising more efficient. Direct advertising makes this possible. Testing out direct advertising returns in advance does much to remove the element of chance.

7: To consider inquiries as valuable only when they can be turned into sales. An inquiry is a means to an end — not an end in itself. The disposition to consider cost per inquiry instead of cost per sale has led many a firm to false analysis.

Good mailing 8 : To give the mailing list proper impor-

lists vital to tance. Many advertisers use poorly pre-

success in direct pared lists, which are compiled in a careless,

advertising haphazard manner, and never take the trou-

ble to check them or expand them. Mailing lists should be constantly revised. Poor lists and old lists cost money in two ways: one, by missing good prospects, and thereby losing sales, and the other by money spent on useless names.

9 : To encourage the use of direct advertising as an educational factor within their organizations with sales forces and dealers. Many concerns have raised their standards of efficiency through the use of letters, house organs, bulletins, mailing cards, folders, etc. 10 : To champion direct advertising in the right way. General publicity and direct advertising are two servants of business and each has its place and its work to do. No form of advertising should ever attack another form of advertising as such."

Every firm selling a product or advocating a service to classes or groups of prospects can segregate prospective customers into lists and appeal to these lists by mail, or indirectly, with printed matter. This makes it possible to place an appeal before large lists at nominal cost in a few hours' time.

An analysis of the practical features of direct advertising suggest these ten advantages for advertisers:

1 : By using good lists of logical prospects there is practically no waste — each given prospect receives your appeal.

2: You can reach any and all prospects in a field in a few hours' time. Thus you can divide the lists into natural units and go after each unit separately.

3 : Your mail advertising can secure business direct or assist the men in the field by doing missionary work.

4: You can get quick action in reaching any given list. Timely advertising can be released at the psychological moment. You can take advantage of opportune market or business conditions or circumstances to advantage.

5 : There is an intimate and personal touch in direct appeals — especially in letter mailings — that is an advantage. It "gets under the skin." An advertisement in a publication is a speech to a crowd, a letter or a mailing folder is a talk to one man in his easy chair at home, after dinner, or at his desk during the day.

6: Through the more personal appeal of direct advertising the advertiser can bring to bear a different kind of force than that derived from general advertising; he can hook this up to national, class or trade advertising in many ways.

The appeal to groups instead of to the masses

Ten advantages of direct advertising

Direct results can be keyed and developed

How direct advertising can be taken advantage of in selling

7: Your sales strategy is hidden from competitors. You don't have to show your hand.

8: It permits you to key results. There is no big element of gamble when proper tests are made and results noted. Direct advertising has the one great advantage of remaining under the eye of the one for whom it is working. He can watch it, train it. develop it intelligently. Its operations are visible when properly systematized.

9: You can get prompt action under the most favorable conditions — your proposition is placed in the hands of your prospect, with order blank, return envelope, postcard or other means of reply.

10: Most important of all perhaps, you can build up an intimate, personal acquaintance and good will among your prospects and customers, of immeasurable value, and at less expense than by any other means.

Direct advertising can be applied in many ways. Customers and prospects may be appealed to as often as may be desired. Any territory may be combed for orders or inquiries. Through direct advertising the sales force can be enthused and helped. This method of selling can be employed in securing "leads" to be followed up and sold later, or to influence the favor of the list, to develop good will of the trade, or to promote greater efficiency in co-operative action.

One of the most important and profitable applications of direct advertising is to secure orders direct. The catalogue and literature is sent out and an order is solicited by mail. The great mail order houses of the country have been built up on this principle of selling.

By sending direct advertising in advance of salesmen it is possible to acquaint the customer with the fact that the salesman will call, and at the same time give the details of the proposition for the customer to be considering.

Doing this advance work by mail the advertiser enjoys important advantages. The salesman's time can be economized, he can make more calls, sell his customers in less time, and the cost of selling can thus be reduced. The advantages of mail advertising, as a supplement to salesmen is indicated by the following extract, which, while it uses letters as an illustration, can be applied with the same force to other mediums.

"You can cut the high cost of selling goods with the right kind of personal letter advertising.

"One company reduced the number of salesman's calls necessary to secure a sale from seven to five, in one year, through the timely use of letters. The figures on which it is based are real figures; they are taken from the records of one of America's largest manufacturers.

"For the company quoted, the cost per call of its salesmen was $11.23. The cost of a personal letter sent out by its salesmanager was 35 cents. It took thirty-two letters to equal the cost of one salesman's call. But the concern whose figures we quote did not send out thirty-two letters : it averaged but three for each of its salesmen.

"During the year previous, when practically no letters were written, the salesmen averaged one order in seven calls. During the past year, since the adoption of the letter policy, the salesmen have been able to secure one order in every five calls." 1

Another wholesale house found that by supplementing its salesmen with

^'Backing up your Salesmen," booklet issued by Hampshire Paper Co., South Hadley Falls, Mass.

Paving the way for salesmen

How direct advertising cuts cost of selling through men

Letters supplementing salesmen permitted a sale to be made in five calls instead of seven

Using catalog to supplement work of salesmen

How direct advertising supplementing salesmen increased volume of business 25% catalogues and devices for convenient ordering of requirements, they were able, in five years' time, to increase the volume of their business 25 per cent.

"Until we made a determined effort to build our business we never realized how much trade we were losing," said the sales manager of a large wholesale house. "We had always assumed that our big force of traveling salesmen — 150 of them — covered the field thoroughly. Now we know that many an order was placed elsewhere between the salesmen's calls.

"We began by issuing a new catalog — one modeled on the lines of those in the big retail mail order houses — with every device included for making easy the placing of orders. Perforated pages of postcards were bound in the book; sheaves of order blanks were included.

"Then we assailed the problem of securing the cooperation of our salesmen. We explained that our plan was to obtain more sales from each customer, and this, logically, would increase the commissions of each man.

"Between calls, your customers are inclined to place orders with competitors, we argued. Persuade them to use the catalog and you'll find many commissions credited to you for sales you never worked for." This made a strong impression.

"Our aggressive campaign for mail orders has achieved several good results. Not only has it increased our gross sales over 25 percent, but it has added stability to our business — centralized it at the home office, and weakened the salesmen's personal control of a territory." 1

"Many manufacturers and wholesalers are using the mails more and more in moving volume of goods among retailers. Their men seldom call back every couple of weeks — frequently not once in every three months —

l New York World: "Supplementing Salesmen's Efforts Through Mail," by H. J. Barrett.

and retailers develop needs when salesmen are not on the scene to take orders.

"As John Allen Murphy, a retailer, says in Printer's Ink : 'Modern merchandising almost compels the retailer to do a great deal of his merchandising by mail. The mail order method of purchasing has developed among retailers almost as much as among consumers, but in the case of retailers it is more of a necessity. The retailer who wants to keep up his variety and keep down his stock is obliged to order a great deal by mail — between the calls of salesmen there should flow a constant stream of mail orders." 1

The first list of potential value in the established business is the list of customers from whom further business is desired. It is advisable to keep before customers continually with literature suggesting desirable goods and urging an order or an investigation of the proposition advertised. There is a natural bond of intimacy between a progressive house and its satisfied customers, and it usually is possible to take profitable advantage of this through direct advertising.

The possibilities of direct advertising as a means of educating and selling prospects is well known. Nearly all manufacturers, wholesalers, and to a large extent, retailers, sell goods to certain easily segregated classes of industry or to known legitimate prospects. Such lines of business or known prospects can be listed and appealed to direct by mail at a cost of a few cents for each name on the list. An enclosed order blank, a return postcard or coupon, along with the letter or literature, may serve to bring

*ldeas: No. 35, by Flint McNaughton.

Direct advertising used in winning more orders from retailers

Lists of customers first logical list for advertisers

Prospects easily listed and appealed to direct

Getting specific buying information through which a list of known prospects can be built

Follow-ups used to turn lists into business back the orders or inquiries for further paticulars or prices.

Direct advertising methods are being made use of by manufacturers and wholesalers to secure market information and facts on which to base economical selling plans, as described in the following instance:

"The manufacturer of a dress fabric was considering advertising, but as his goods were sold through jobbers who sold through the country, he had no way of telling just who his retailers were, where they were or in what part of the country they were strongest.

"He appropriated a certain sum for advertising, but decided to devote the greater amount to research work.

"His investigations showed some 8,500 dealers in* the United States who were highly enough rated and properly located to handle the fabrics.

"He addressed a letter to these dealers telling of the approaching campaign, enclosing a large sample of the fabric and a stamped return postcard containing two notations for the dealer to check, namely: 'I handle your product and I would like to obtain free cooperative advertising service,' and 'I do not handle your product but would like to receive samples and list of jobbers handling them.'

"Of the 8,500 circulars sent out, 4,000 replies were received, 2,500 saying they carried some of the fabrics and 1,500 requesting samples and list of jobbers. While the former did not represent all the dealers handling the line, it gave the manufacturers a working nucleus.

"The 1,500 dealers were followed up to induce them to order goods from their jobbers and the other 2,500 were urged to carry and maintain complete stocks." 1

When manufacturers distribute their

^Advertising £r* Selling: "Finding out how Jobbers Feel."

products through dealers it is to advantage to interest the dealers in their line and assist them in every way possible in increasing sale for their goods. This can be done in many ways — by devising practical selling plans which the dealer can co-operate in carrying out, by supplying window trims, signs, display racks, literature to be sent to lists of dealers 5 customers, newspaper electrotypes, booklets, enclosures and "schemes" for local selling.

In connection with literature sent out to lists of customers' prospects, dealers and salesmen, it is important that a selling plan be provided, of which each mailing is a unit or part. A properly prepared plan ties up each mailing to the others, making each a cog in the machinery of influencing the list. A series of letters or mailings of any character, prepared and designed to be sent out to lists at predetermined intervals, usually fifteen or thirty days, is known as a "follow-up" system. These systems are extremely effective in accomplishing important work of sales influence and education in a way which reduces labor in the advertiser's sales or advertising department to the minimum.

Direct advertising affords an opportunity to the advertiser for taking advantage of other kinds of advertising. There are many ways in which direct advertising can be applied as an auxiliary means for furthering co-operation.

When an advertiser who distributes through dealers spends money for na-

Selling plan important as the foundation for success in a direct advertising campaign

Strengthening many kinds of publicity by direct advertising "hook-up"

"Selling" national advertising to the dealer direct by mail

Supplementing street car campaigns

Winning interest of jobbers and their salesmen tional, trade paper or display advertising it is to advantage to circularize dealers and explain the advertising plans, send proofs of advertisements, and point out where it is to advantage of the dealer to co-operate in getting the greatest possible benefit from the advertising.

Letters, with proofs of local newspaper consumer - influencing advertising, are often sent to dealers, outlining the advertising plans and urging dealers to be prepared to intelligently meet the demand that the newspaper advertising develops.

The effect of a street car advertising campaign can be benefited through direct advertising in which attention of dealers is called to car cards which will be used. Such a campaign enables dealers and jobbers to keep advised as to street car advertising plans and permits them to intelligently take full advantage of consumer interest which street car publicity develops.

When direct advertising campaigns are carried on to dealers, or when national advertising or trade paper advertising is done, it is well to keep jobbers who handle the goods advised as to what effort is being made by the manufacturer to influence the consumer to ask for the goods, and as to what measures are being taken to hook the dealer up in the campaign. In this book this problem is considered from many angles, especially as it applies to one important phase of direct advertising.

A method of advertising for which business in the United States spends over $420,000,000 a year merits the most exhaustive study by every executive. An increase in efficiency in this kind of advertising means an increase in profits.

In the volume of direct advertising done during the past decade, investigations have been made, results have been keyed, and watched and recorded, tests have been carried out, theories have been demonstrated. The problem of direct advertising confronting thoughtful advertisers has been viewed from varied angles and definite conclusions reached.

In this brief outline of the subject of direct advertising space has permitted us to merely touch lightly upon the important channels which afford opportunity for advertisers to increase sales. Each phase of this subject is deserving of intensive thought and constructive development.

One important and neglected medium of direct advertising is considered especially in the following sections. The subject of enclosures, in their many forms arid practical applications for stimulating sales is worthy of intensive study in any business. In this book an analysis of the sales possibilities of enclosures is made, the vital features that count in enclosure successes are pointed out and scores of practical, proven ideas are suggested for adaptation and effective use in all lines of business and under all kinds of selling conditions.

Intensive selling plans worthy of the most careful study

Facts gleaned from costly experience presented on the following pages

Sales-influencing possibilities of enclosures as an advertising medium

Part Two How Enclosures Are Applied In

INTENSIVELY INCREASING

SALES

Where one man's eyes were opened to value of enclosures

How he put the idea to work in his business

A manufacturer of a line of metal specialties picked a printed enclosure from an envelope that bore a business letter to him. The message on the enclosure caught his interest. The enclosure opened the door to business ; it delivered its message in the executive's office when salesmen sat patiently in the outer office waiting an interview.

This man was impressed with the idea of advertising his own firm's products through enclosures with letters. An investigation showed that several hundred letters went out of his office daily, besides invoices and statements. At least ninety percent went to logical prospects for products sold by the firm. There were eleven agents controlling territory : most of these reported they were in position to make profitable use of quantities of good enclosures every month.

The firm's list of dealers were checked over and a letter was sent to each asking how many enclosures could be given judicious distribution. The response was encouraging.

Part of the firm's line was handled by jobbers. The distribution of sales-winning arguments through jobber's correspondence afforded another medium of productive distribution.

A series of enclosures was carefully prepared and given systematic distribution. The sales influence that developed — direct returns as well as indirect — demonstrated that advertising through enclosures pays.

This medium of direct advertising, too little recognized and vastly misused, is known variously as enclosures, inserts, package slips and envelope " staffers."

Enclosures are small advertisements in the shape of booklets, leaflets, folded circulars or simple slips of paper stock to be given distribution in many available ways.

No other medium of direct advertising can be applied to so many channels as enclosures. The distribution costs nothing as it already exists, whether it is used or not. This reduces the cost of enclosure advertising to practically the expense of printing. Further than this, it is often possible, by efficient management and forethought, to reduce the cost of printing to merely the mechanical cost of set-up and makeready.

"When we consider the subtle and far-reaching distribution possible for enclosures, and against this, the relatively insignificant cost for printing, it is surprising that this selling influence is not taken advantage of a great deal more than it is. But recognition of this well-worth-while possibility is becoming apparent. Some firms systematically map out the year's enclosure campaign just as they plan their mailing folders in series." 1

l Judicious Advertising: " Making Printed Enclosures a Selling Influence," by Flint McNaughton.

Enclosures — an effective medium for aiding sales

Distribution available whether it is used or not

Where enclosures can be given distribution

Ways of using enclosures to attract business and increase sales

Keeping dealers informed as to advertising

The distribution that can properly be given enclosures varies with the conditions of the business and with the class of prospects appealed to. Enclosures may be inserted in outgoing envelopes, with correspondence, form letters, follow-up letters, with invoices and statements. They can be used to advantage as supplements with follow-up letters, bearing a part of the burden of telling the sales story to the prospect.

"A good percent of the letters mailed out by manufacturers go to prospective buyers of their products; every letter affords free distribution of interest-awakening printed matter. This sort of printed matter is simple and inexpensive; it demands but a twist of the wrist for the office boy or stenographer to slip an enclosure in the envelope with the outgoing letter." 1

Advertisers are applying enclosures in numberless ways to stimulate sales by carrying information and selling suggestions to groups of prospects. Successful advertisers who reach consumers through national advertising and sell through dealers adopt methods for keeping dealers informed as to national and trade paper advertising. By doing this they get greater value from such publicity. Enclosures are effective mediums for accomplishing this at minimum cost.

The most common application of enclosures is found in direct selling propositions when the advertiser is appealing to a given list for business.

In order to illustrate the sales influence of enclosures there is no better way,

Udeas: No. 16, by Flint McNaughton.

perhaps, than to relate instances of their profitable use as applied to many selling conditions and lines of business.

An advertising manager, upon analyzing conditions in connection with a firm with which he was connected, discovered that in a large correspondence, with bills going out daily, statements monthly, and even with follow-up letters — the envelopes bore no printed enclosures.

He selected a series of strong sales arguments regarding products that his company manufactured and apportioned his list of subjects over twelve months of the year. Then he prepared a series of twelve enclosures in which the selected features or subjects were exploited in copy and by illustrations.

They were released and distributed at thirty-day intervals during the year. Every out-going envelope spoke through its enclosure. Limited quantities were supplied to dealers. The travelers used them.

Frequent orders were traceable to the enclosures. One inquiry resulted in a connection that netted the house more in profit during the year's time than the entire cost of producing the enclosures.

A sales agent for garments found himself carrying a considerable stock of tan waterproof ulsters of a character especially suitable for the use of professional men. In connection with letters advertising a similar black waterproof garment to clergymen who had formerly bought garments, an enclosure was sent,

How one advertiser systematically used enclosures to stimulate sales

Stock of raincoats sold through enclosures

Results astonished the advertiser carrying a sample of the tan material, and requesting the recipient of the letter to pass the enclosure along to some professional friend. The enclosure described the garments and listed them at a very moderate price, with the privilege of ten-day inspection.