CPA Marketing Blog: Direct mail still works in acquiring new clients
One of the most effective ways to acquire new clients is by direct mail.
Mailing to local businesses can provide a very profitable return on your time and money. Unlike acquiring more 1040 work, a business account can be anywhere from a few hundred dollars tax return to several thousand dollars of work throughout the year. That is why a very small percentage of new contacts from your mailer can still be very profitable.
Let’s assume that you have sent out 500 letters to local businesses and you have only acquired one new client. The percentage return is very low. But, let’s look at the numbers. Depending on what you included in your mailing, your cost could be two dollars per contact. So, you have spent $1,000 to complete your mailing to 500 local businesses.
Suppose the one new client resulted in $3,000 in annual fees. And let’s assume further that you retain your business clients for an average of say five years. That is $15,000 in new fees for a mailing that cost you $1,000. Not a bad return. Because you are dealing with what can turn out to be a large ticket item, the percentage of new clients from your mailing is not what matters. What you need to compare is the dollars out versus the dollars back over the long haul.
If you would like to mail to local businesses without all the preparation work, you can purchase the needed letters and instructions at http://www.mostad.com/cpadirectmail/directmail.php
Mostad and Christensen, Inc.
Marketing Solutions for Accountants