Direct marketing involves reaching out to individual sales prospects, whether it’s through traditional channels like telephones and snail mail or modern alternatives such as email, text, and social media. You’re presenting your prospects with an offer and encouraging them to take action. This is a more aggressive approach then simply posting ads and hoping for a satisfactory response.

MLM, or multi-level marketing, is a related but different approach which is also called network marketing. It involves inviting people to join your organization and direct-sell for you in exchange for a share of the profit. Working with MLM companies like Xyngular can work when communicating a legitimate offer to the right people.

Many direct marketing firms are very successful with these tactics. Amway made $9.5 billion in direct sales by the end of 2015. There are several important things your company can learn from direct marketers.

1. Target the Right Prospects

Direct marketing allows you to distribute your offer to thousands of people, yet customize your message to different groups. You can focus on identifying and tailoring your message to your most likely buyers to boost response rates. With today’s digital tools, you can personalize your message to each recipient at the same time. Well organized marketing campaigns will include codes and other identifiers so you can analyze which customers are responding to which offers.

2. Budget Your Marketing

Trying to send varied messages to hundreds or thousands of people can be a huge gamble of time and money. Even good response rates will be fairly low. However, as you analyze and adjust your efforts to target the right groups correctly, you’ll find positive responses are rising. When you have predictable and consistent results, you’ll be able to budget your direct marketing for a managed and sustainable rate of growth with the best ROI. Since direct marketing is fairly cheap, this frees up more revenue to upgrade other aspects of your business.

3. Boost Repeat Sales

Direct marketing is also a good way to stimulate repeat sales from lapsed or current customers. Direct messaging is a good way to bring your brand into their thoughts. Customers that have had a good experience with your company previously will be more likely to purchase again. By tracking your direct marketing campaigns, you can keep updated on who these customers are, when they last purchased, what they like, and how to reach them. You can also invite feedback on why they stopped purchasing to improve your business practices.

4. Customer Loyalty

What you learn will suggest better ways of communicating to improve the customer experience and build loyalty within your market. Both MLM and direct marketing could easily incorporate reward programs, discounts, offers for giveaways, and other incentives to improve value. Consistent, friendly communication that also provides real value will help to quickly create a personal link to your company. You could also offer incentives for customer referrals to widen your network.

5. Create New Customers

If you’re continually experimenting and measuring your direct marketing efforts, you can also raise your conversion rate of prospects to buyers. For example, if you add a digital coupon to your email, and 15 percent of those using the coupons are new customers, you’ve got a starting point for introducing changes. Called A/B testing, this involves changing one factor at a time and monitoring responses to establish what works best. This leads to constant improvement.

The affordability and versatility of direct marketing makes it a powerful tool to develop branding as well as promote sales. You can also improve your returns by providing excellent training and promotional materials to your MLM sellers. Best of all, with proper tracking techniques, you can learn and improve your marketing with every campaign.