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Direct Response Marketers can toss the Law of Diminishing Returns

In direct response marketing, traditional logic dictates the more you can customize a message to reflect what you know about that customer, the better the results.

In 1994, Don Peppers and Martha Rodgers promised that the concept of “one-to-one” marketing was the way. However, the pursuit of this theoretical segmentation ideal has never been practical or effectively achieved. Still today, the practical number of executions (or cells) in most direct marketing programs is limited by the law of diminishing returns for all the wrong reasons… except at Trellist.

Many marketing executives accept the idea that as they pursue more precise segmentation, their total costs will increase due to added creative & production time, increased coordination and production hours, and additional QA time (or its converse, the likelihood of costly errors). To this thinking, as incremental production costs increase, there comes a point where incremental yield from more precise customer segmentation is no longer profitable.

Trellist, however, has demonstrated that as you control the creative and production costs by leveraging production technology and deploying a disciplined creative approach, the incremental costs of customer segmentation are significantly lowered (changing the slope of the incremental cost curve). With a very different approach to email development, print and direct mail creative methodology, marketing executives have much greater freedom to personalize offers, creative treatments, and marketing messages, all while reinventing their marketing program strategy with greater personalization. 

By dramatically moving the point in which the incremental costs for customizing direct marketing are equal to the incremental return, Trellist has demonstrated the capability to increase the marketing team’s ability to customize marketing content. As a result, our clients are able to deploy more precise messaging, increase the effectiveness of each campaign and produce higher ROI for their organizations.

At Trellist, we are proving that through integrating marketing and technology, we can toss out the “Law of Diminishing Returns.” This approach offers direct marketers new options that dramatically change traditional assumptions and produce a very different kind of business results.

About the author

Jim Auer

Strategic Leadership | Marketing & Research
Jim leverages his proven skills in brand, campaign strategy, paid search, display, video, email, print, out-of-home, and broadcast advertising to benefit marquee client engagements in health care and life sciences. 

About Trellist

Trellist is a professional services firm delivering performance-driven business solutions that are flexible, innovative and optimized to maximize efficiency and return. The firm consults on, and integrates, data with marketing, design, technology and digital services for clients at the global, national and regional level. Trellist utilizes a unique approach to business—from the firm’s employee-shared structure, to how it partners with its clients. 

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