Direct Mail isn’t dead yet!
Yes you heard it right, in an increasingly digital world, direct mail seems outdated and boring but this is not the real truth. Direct mail marketing is a great way to reach your customers and prospects to connect with them on a personal level and grab their attention.
For many small or local business owners, it’s hard to decide if it’s worth the investment? With the options of online advertisements, and technology-based techniques, how do you know what’s the right option for you? To get rid of this confusion, you need to choose a strategy that can assure you with the effective response rate and ROI.
“ Response is one of the five keys of successful direct marketing. And if you have that the
other four don’t matter” ~ Dean Rieck, Freelance Copywriter
As the report by the Data and Marketing Association, “ There was significant growth in direct mail response rates from 2017 to 2018! House rates rose to 9% (3.9% increase) while prospect response rates rose to 5% (2.1% increase). This is the highest number for house lists since the report started.
Many marketers feel that direct mail is old-fashioned but the data is undeniable. Direct mail marketing is still widely recognized as the most effective form of advertising. But why direct mail marketing is so promising?
Let’s look at the advantages of direct mail marketing that can help you to maximize your advertising efforts.
What is Direct Mail Marketing?
According to Mailchimp, “ Direct mail marketing is any physical correspondence you send to customers in the hopes of getting them to patronize your business.”
The strategy of direct mail marketing helps marketers to engage with prospects and customers with a physical marketing piece. As the entire world had gone digital, direct marketing still occupies a well-deserving place in marketing. It is the most effective way to connect with your customers in a meaningful way.
1. High Response Rates and ROI
What if we say that direct mail rules in giving high ROIs than paid search and online ads? Well, it does.
According to a recent study published by DMA, the median Direct Mail ROI is 29% while the ROI for other channels like social media (30%), paid search (23%), and online display (16%).
Ultimately, you want to communicate directly with your targeted audience using direct mail campaigns. As direct mail offers the highest ROI and is expensive than running an online paid ad but it can give you more bang for your bucks.
2. Highly Targeted
For every direct mail campaign, you can tailor your email to a specific audience, from existing customers to new prospects. As direct mail marketing is direct, so your customers will receive a campaign that meets their individual needs or buying habits.
You don’t need to find your targeted prospects at all. Just tell your direct mail provider about your campaign goals and they will do the research and send out the list of audience you want to target.
A 2018 study of the Data and Marketing Association (DMA) reports that direct mail received a 9% response rate – when businesses use their email lists and 4.9% for prospect lists.
Personalized direct mail campaigns really work for your business. Email can be personalized in such a way that it lets your customers heed your message and speaks directly to the contact.
Before curating your direct mail campaign, consider these five tips recommended by Forbes to grab your customer’s attention:
- Contains appealing graphic, images
- Pick bright colors and easy to read font written in English
- Convey your message in a short format
4. Works well with Digital Marketing
Just because direct mail marketing gives a higher response rate than paid advertising doesn’t mean that you can just rely on direct mail marketing. Well, obviously not. Consider direct marketing as a part of your marketing strategy.
Combining it with digital marketing allows you to connect with your audience on various channels and maximizing the possibilities of success.
5. Builds Brand Loyalty
Direct mail marketing is one of few marketing channels that is tangible, you can touch and engage with it. In fact, in this digital world, 75% of consumers trust direct mail and for this reason, it builds brand loyalty.
When it comes to making a buying decision, many customers still consider direct mail to be trustworthy. So, you can’t deny the fact that direct mail marketing is the traditional marketing method.
Marketing Sherpa says that seventy-six percent of people trust the ads/catalogs they receive in the mail.
With an average ROI of 29%, direct mail marketing is the most cost-effective channel for any budget. Where digital campaigns require high investment, direct mail campaigns work far better than this. You will know exactly how much you can spend on each customer and it works even with a small list.
So, if you’re looking for the most economical method of marketing, there is no better than digital mail campaigns that will drive customers to respond.
7. Direct Mail is creative
When it comes to creativity and attractiveness, everyone loves to interact with the mails. Whether because direct mail campaigns are tangible, but the versatility of campaigns that’ll receive in the inbox is more exciting.
Marketing Sherpa found that 54 percent of consumers surveyed said they want to receive mail from brands they like!
8. Tracking campaigns
Being used for over a long time, direct mail campaign is trackable. Yes really. But it can be only possible if you choose a unique CTA for your direct mail campaign and when the customer clicks on the CTA you’ll know from which campaign it came from.
Here are a few tricks on how you can track your next direct mail campaign:
- Unique phone number: if your goal is to call you, choosing a phone number will help you to determine how many people call or responds to your campaign.
- Website URL: if your goal is to get traffic to the website, choosing a website URL will help you to track results.
- Coupon code: if your goal is to let people buy your product, choosing a coupon code will help you to track the campaign code is referring to.
Direct Mail Marketing Really works!
We’ve piled some of the statistics demonstrating the power of direct mail campaigns for many marketers:
- 73% of American consumers say they prefer being contacted by brands via direct mail because they can read it whenever they want.
- Up to 90% of direct mail gets opened, compared to only 20-30% of emails.
- The top direct mail tracking methods are URLs (61%), call center or telephone (53%), and code or a coupon (42%).
- 70% of customers say that direct mail is more personal than online interactions.
Despite being replaced with online advertising or other forms of marketing, direct mail marketing still occupy a deserving place as a thriving marketing channel.
With the expansion of digital marketing, direct mail can help you to create a cohesive and effective marketing strategy. It can give you the highest ROI than paid ads and will remain the user-friendly, profitable way to capture the attention of your customers.
Whatever your goal, direct mail marketing will definitely work for you.