Do you ever wonder if direct mail is worth your time? With the digital world of email, traditional direct mail seems dead right? Wrong. Direct Mail is making one of the biggest comebacks as an effective sales tactic. 66% of respondents said they were likely to respond to a direct mail piece according to research at InsideSales.com. This was much better than the 34.7% perceived response rates with email.
Direct Mail is a top channel for direct response. How?
Direct Mail Gets Undivided Attention
Consumers swamped by inboxes filled with unsolicited marketing emails are more receptive to direct mail, which comes in on a much less-cluttered channel. When you receive an email you have at least 30 other tabs open on your computer at work, but when you receive a piece of mail, your at home with time to view each letter. When it comes to direct mail there are no distractions. Direct-Mail advertisements give us time to think. Were not interrupted by social media updates, text messages, and in-app notifications. It doesn’t matter if we throw it in the trash right away or quickly make a purchase, we look at the offer and decide what to do with it. In a way, we are “forced” to consider each and every direct mail offer. The advertiser bypasses our “mental wall”. This is the power of direct mail in a digital world.
Direct Mail has a feeling of being valued
People have a stronger emotional response to physical ads and remember them better. This is why direct mail has a feeling of romanticism to it when you personalize your letter. Think about it. When you get a written letter in the mail you feel excited that someone cares enough to write you a letter. It’s not very often you receive something like this. I bet you that you sit down and read every word of that letter too. 57% of people said that getting direct-mail makes them feel valued. Because people are receiving less mail every day, this makes mail even more exciting. Especially if your direct-mail is handwritten. Because mail is tangible and shows creativity, your audience will also be more likely to remember the message you sent.
Importance of Targeting with Direct Mail
Can you target your optimal client well enough to make it worth your time and money? Yes!
Direct Mail can target your audience better than you might think. Success is based on a foundational rule: Reach the right prospect, at the right time, with the right offer. Marketing is about effective, persuasive communication, and this kind of mail is no exception. The analysis of existing customer and prospect databases along with competitive research can provide valuable insight, and help advertisers build a persona for the ideal prospect. Targeting right prospects can be substantial as shown in 2015 DMA response rate report. The average response rate using a house list is 3.7%, while the average for a prospect list is 1.0%. A high suitable offer, sent to the right audience, will usually boost up rates. With USPS you can use their service called every door mail tool to send different customers in different areas.
An example of direct mail that was targeted to me was a new food chain company that started out in Gainesville, FL. Vale Food Co recently opened a new location near my home. So to grow their brand awareness and welcome new customers they sent locals postcards targeted by geography. Their offer was a free bowl, similar to what Chipotle offers but a healthier selection. I remember sticking that offer on my fridge and ended up going the following weekend. They definitely got me.
Direct Mail has a high ROI
Would you be surprised if I said that direct mail is more cost efficient than paid search and online display ads? Well, it does.
Direct Mail has a median ROI of 29%. This puts the ROI in third behind email and social media marketing. The average click-through rate is about 2%. The ROI of direct mails response rate is 5.3% for mail sent to houses and 2.9% for prospects list. Despite what people say, direct mail is still holding its own against other marketing channels.
Direct Mail + Email?
Despite the rumors of mail being dead, it couldn’t be more alive as of now, especially with the combination of digital marketing.
Every great marketing strategy uses multiple channels. Using two channels results in an up to 35% lift over a single channel. While you shouldn’t invest only in direct-mail, you should consider combing your email and direct mail campaigns together. Why?
- Reinforces the message in both channels and increases the likelihood of making an impact
- Ensure both email and direct-mail adhere to the same graphic standards and reflect the same voice so each piece extends your brand promise
- Using direct-mail to initiate a conversation with the people whose email addresses you do not yet have, or who have repeatedly not responded to your emails
If you want to stand out in a world where everything is electronic, consider accompanying your digital-marketing with a direct-mail campaign.
You will be rewarded with higher response rates and higher attendance rate for your meetings and as every marketer knows, being personal pays off.