DIRECT MAIL MARKETING COMPLETE GUIDE Connected Marketing Solutions
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The use of direct mail as a marketing strategy for companies large and small is growing. Digital fatigue, coupled with increased media fragmentation, has increased the appeal of direct mail. That’s because direct mail doesn’t overwhelm, but creates an experience that allows both businesses and consumers to engage with the advertising or promotion on their own terms in their homes or place of business. Innovations in AI data optimization, variable data printing, and multichannel marketing platforms are adding elements to make targeting the ideal customer easier and more affordable.
The purpose of the guide is to provide marketers, B2B, B2C, ecommerce, and small businesses with comprehensive knowledge on what direct mail is, how to structure direct mail campaigns, and the importance of integrating direct mail with all your digital and social media channels. It reveals the high ROI, response rates, and increased engagements you can expect and covers how to create an appealing direct mail piece, budget your campaign, and when to turn to direct mail companies like Marketing.com to streamline your direct mail campaigns for maximum efficiency.
If you have questions about direct mail, this guide can help you maximize the effectiveness of your direct mail campaigns.
WHAT IS DIRECT MAIL?
Direct mail could more accurately be called advertising mail or promotional mail. Businesses and organizations send printed marketing collateral to households and other businesses. Usually (but not always) unsolicited, direct mail serves the purpose of offering something of value to the recipient, creating wide brand appeal within highly targeted markets, and attracting customers with compelling offers, discounts, and coupons.
This marketing material takes the form of post cards, brochures, letters, flyers, newsletters, catalogs, postcards, coupon mailers, and packages. Every form of direct mail should include the brand logo or business name, contact information (including maps and website) and a prominent, motivating call-to action.
This last element of direct mail, a strong call-to-action, is the most important component in the collateral’s design and what makes it one the most effective and traditionally relied upon marketing channels for both B2B and B2C to increase awareness and drive revenue. According to the United States Postal Service (USPS), direct mail drives customers to spend 28% more than those who did not receive mail from a business.
WHY IS DIRECT MAIL EFFECTIVE?
Despite dire predictions of its demise in the face of an onslaught of digital and social media marketing platforms, direct mail endures. This despite the changing ways that consumers communicate, shop, and make purchases. In fact, as a means to use collected customer data and create campaigns that reach into targeted households, direct mail is more popular than ever with marketers. According to a Winterbury Group 2022 Report, on average they spend between $100-$550/person on direct mail. Here are nine reasons businesses and organizations find direct mail so effective.
In a world of consumer complaints of cluttered email inboxes, intrusive popup adds, and impersonal TV commercials, the fact that people actually look forward to receiving direct mail makes it a must-use marketing channel, especially when targeting local households. According to Statista, Americans feel more comfortable receiving direct mail in their homes than any other advertising channel, including TV and social media advertising. Direct mail’s popularity with consumers and households reaches across demographics. Statista also found that 65% of Gen Y and 57% of Gen Z respondents are excited to receive direct mail.
Of the seven most deployed marketing channels – email, social, paid search, digital display, SMS, OTT advertising, and direct mail – according to the Association of National Advertisers (ANA) direct mail outdid them all, with a reported ROI of 112%. This shows that although direct mail may have higher initial costs for getting a direct mail up and running, in the long term it can be a key driver of revenue. A survey from Marketing Charts found that 59% of marketers reported good or very good ROI from direct mail marketing campaigns.
Businesses can select and segment audiences so each mailer reaches the people who are most likely to see value in the direct mail post card, brochure, or marketing collateral they get. One benefit from highly targeted direct mail campaigns, in addition to lowering print and postage costs, is that even if the result isn’t immediate, 48% of people retain direct mail for future reference. In addition, multi-channel marketing platforms, innovations in AI data optimization, and improved analytic and reporting capabilities are making it easier for businesses to shape messaging based on consumers’ needs, behaviors, and purchasing habits.
Direct mail marketing provides countless opportunities to build trust, credibility, and relevance by establishing a personal connection with recipients using the data they share. According to a recent Salesforce.com study 63% of Millennial and 58% of Generation X consumers are willing to share data with companies in exchange for personalized offers and discounts. Personalizing direct mail pieces with variable data printing also shows customers that you’re paying attention when your mailer contains offers and promotions built around the things they like and the reasons they choose you over the competition.
Direct mail is physical. The ability for the people who receive direct mail to touch and hold a direct mail piece that is made from high-quality paper, finishes, inks, and other materials influences the impact of the piece. The sense of touch creates an emotional connection that other marketing channels cannot equal and leads to more lasting, deeper connections. According to a survey by Royal Mail, 63% of respondents said direct mail created an emotional impact, 57% reported it made them feel valued, and, because of the direct mail piece they received, 55% said they formed a better impression of the company
Direct mail gets people to take action more than any other marketing channel. The ANA also reports that direct mail gets a response rate as high as 9%. It starts with the fact that direct mail gets looked at. Direct mail has an impressive open rate of 42.2% according to the Print & Mail Communications Association. This makes direct mail especially effective for engaging with new prospects. The DMA shares that direct mail is responsible for getting 39% of customers to try a brand for the first time.
The most recent U.S. census reports that 72% of U.S. households have two or more people living together. This include parents, and in many cases adult children who live with them, so one direct mail piece can reach across generations. Also, because of the physical element of direct mail, people keep printed menus, coupons, and other mail around the house longer and notice it more often than an email or digital ad. According to the Guardian, the average lifespan of direct mail is 17 days, compared to the average lifespan of an email is only 17 seconds.
According to Statista, the average U.S. household in 2021 received 361 pieces of direct mail marketing. That’s just a little over one postcard, brochure, catalog, or other mailer per day. People can receive hundreds of emails a day, and many end up in promotion in-boxes or treated as spam where they never get seen. With direct mail, marketers have a captive audience, and according to Gallup, 41% of Americans of all ages look forward to checking their mailbox every day.
Coordinating the timing and reach of a direct mail campaign with promotions on other marketing channels makes them all see better results. In a Harvard Business Review case study, a company that added direct mail to its email campaign experienced a 49% lift in sales and 125% lift in inquiries, with 90% of customers surveyed browsing the catalog and keeping it for an average of seven days. A USPS survey found that digital and direct mail increased overall response rate by 63%, website visits by 68%, and increased generated leads by 53%.
HOW TO USE DIRECT MAIL
Acquisition
Businesses and organizations find success using direct mail to convert prospects into customers. With a solid understanding of their buyer’s persona, both B2B and B2C use actionable consumer data to identify and segment local audiences and potential customers to create a mailer that offers value. With a strong call-to-action, acquisition direct mail entices and influences prospects to take the first step in what will hopefully will be a long and lasting relationship. Small Business Trends discovered that 62% of people who responded to direct mail also made a purchase.
Remarketing
High shopping cart abandonment rates dramatically affect e-commerce retailers, and direct mail provides a streamlined way to retarget and reengage with shoppers who have left a site before a sale is completed. Direct mail can offer reminders and incentives to bring shoppers back to finish their purchases. Businesses can automate their direct mail to trigger reminder direct mail pieces with scalable SaaS multi-channel marketing platforms like Dot ™ while the memory of the experience is still fresh. In a USPS commissioned study, retargeted direct mail delivered a 14% decrease in abandoned shopping carts and an 8% increase in average order size.
Loyalty
Direct mail has been a proven method to develop customer trust, and in turn build large and loyal communities of repeat customers. It establishes brand familiarity, and with interactive print innovations like the use of QR codes, can deliver incentives and offers based on a repeat customers habits and experiences. According to research from Accenture, 73% of consumers are willing to share their personal information if it leads to a personalized shopping experience. Well-timed mailings encourage e-commerce shoppers to visit websites to reclaim rewards and enjoy the perks of e-commerce loyalty program membership.
Expanded Audiences
When a business has a clear understanding of their target customer, machine learning-enabled analysis and optimization of customer data through GoogleAds, Facebook Advertising, or other social platforms can extend reach by creating similar or lookalike audiences. These new potential customers share the traits and behavior of existing ones, increasing the likelihood that the ads they see on these platforms are more relevant, effectively targeted and customized to generate a response. The result can be a greater ROI, improved cost-per-click (CPC), and more customers.
HOW TO BUILD A DIRECT MAIL CAMPAIGN
At some point in your direct mail campaign, you’ll want to turn to professionals to help you save money and avoid disruptions that can easily sabotage the campaign at any stage. However, the more informed you are about what it takes to plan, construct, and carry out a successful campaign, the better prepared you’ll be from start to finish and the odds for success increase. You know your audience, goals, and expected outcomes better than anyone else. The better you can identify the customers you want to attract and offer something you know they will value, the greater is the opportunity to grow your business through direct mail.
The versatility of direct mail gives businesses the opportunity to engage with prospects and current customers for a variety of purposes and in an assortment of ways.
Are you a B2C marketer seeking to sell products or services directly to customers or increase website visits? Perhaps your B2B business is looking to acquire new clients or introduce existing ones to new products or services.
Is your ecommerce business plagued by high cart abandonment numbers? Perhaps you’re looking to build retail or ecommerce loyalty programs. As a small business or franchise owner, is your intention to create greater brand awareness across local or new communities or establish greater loyalty with personalized offers and promotions?
Direct mail can help you achieve these or any objectives. Creating a clear picture of what success looks like is the first step to take.
The more specific you can be about the characteristics, behaviors, and purchasing habits of the person you are mailing to, the greater likelihood you have that your direct mail piece will end up in the hands of someone who will find it valuable.
If you’re sending direct mail to existing customers, your task is a little easier. You should already have important data available to customize your messaging around their experiences with you. If you’re after new business, you can model the perfect prospect based on the features of your existing customers. If data isn’t available because you’re just starting out, gather information about who your prospect is by studying the customers of your competitors.
Direct mail gives businesses the opportunity to build a personal connection. When you can picture the people you want to reach clearly, your direct mail piece will speak to them as if they were standing in front of you.
Up to this point, you really haven’t had to make any decisions based on cost. It’s all been planning. Now, with an understanding of your objective and who you’re going to be sending to, it’s time to explore how to make your direct mail campaign run flawlessly and affordably.
Direct mail doesn’t have to be expensive. It does require investment in mailing list optimization, design, materials, print runs, postage, and analytic capabilities to measure results. Some of these will be one-time costs, like design and mail list procurement, but others, like print services that include folding, inserting, and mailing will vary depending on number of pieces sent and frequency. This is one area where working with experienced professionals can help you streamline the process from design to delivery and tracking so that you find savings at every stage.
The focus of the design of your direct mail piece is the call-to-action. Every choice regarding colors, shapes, graphics, and text must draw attention to it and your call-to-action must be compelling enough to get the recipient to respond. Keep your design uncluttered so it’s easy to find and read.
Even with budget constraints, there are still lots of ways to be creative and stand out from the other mail that arrives in the mailbox using colors, different mailing piece sizes, and special offers. Variable data printing can aid in personalizing the content, and including QR codes and PURLs opens opportunities for seamless connections to landing pages and websites.
An effective direct mail piece relies on more than size and graphics. The look and feel of the paper makes an impact on how the recipient judges your business. Color choices can influence decision making in subtle, yet powerful ways.
Read our guide to direct mail creative best practices with tips and examples on how creative can improve direct mail response rates.
You can get everything right, but if the mailing list you’re depending on isn’t up to date or accurate, you’re going to be wasting money sending your direct mail to uninterested households or businesses. Mailing lists have become much more than a collection of names and addresses and customer profiles can be built using direct mail automation and AI capabilities. It’s becoming easier than ever to create powerful mailing lists that increase engagement and response rates.
You have choices when it comes to mailing lists. In-house lists are constructed from names, addresses, and data collected from people already doing business with you. If you haven’t been gathering information from your customer at every interaction, now is the time to start through point-of-sale data collection, surveys, and social media channels.
You can also purchase lists from mail list brokers who build lists of individuals with a history of direct mail response or compiled from census and other sources of data. They can create lists based on your specifications, and can help you find customers you might not have discovered otherwise. Do your research to make sure the list has been updated in the last 12 months. Find out if the broker will create a custom-made list or provide a less-expensive ready-made one.
For small businesses or those branching out into new neighborhoods, there are other very affordable options. Every Door Direct Mail (EDDM) is a targeted advertising program that lets businesses map the relevant ZIP codes of their marketing mail audience by age, income, or household size. EDDM Retail is ideal for businesses like restaurants, realtors, and non-profits that send at least 200 and up to 5,000 mailings per day per ZIP code.
You’ve finally reached the stage when you’re ready to start sending out your direct mail. Depending on the size of your mailing, it’s a good idea to test if the creative aspect of the piece is meeting its objectives. This is simply a matter of setting up A/B tests on the effectiveness of your call-to-action, headlines, images, or font sizes.
Lining everything up for a successful direct mail campaign can be challenging, which is why this is another stage where most businesses rely on an experienced direct mail companies like Marketing.com.
Innovations in direct mail automation are making it possible to coordinate direct mailings with digital and social media marketing campaigns through multichannel marketing platforms. These platforms add efficiencies and increase results across every channel. Customers are more likely to take action when they encounter consistent messaging across different media.
Direct mail doesn’t only increase the impact of email, digital, and social media marketing, it also reinforces commercial signage, which makes it a powerful way to market businesses in local markets. Consistency across all channels is what matters, so that everywhere your customer goes to shop and make purchases the message and offer is the same.
The ability to deploy variable data printing for increased data optimization and personalization will ensure every mailer a customer receives is relevant to their needs. Variable data printing also lets businesses meet the customer at the ideal point along their purchasing journey, and use personalized QR codes to see and track how customers interact with the content. This data can improve messaging, strengthen retargeting, monitor direct mail effectiveness, and inform future strategies.
In addition, multi-channel marketing platforms provide capabilities to send direct mail that is triggered by a customer’s first purchase, a visit to your company’s website, or even to nudge shoppers back to abandoned online e-commerce shopping carts with added incentives to complete the purchase.
Direct mail reporting provides insights that help improve its effectiveness and impact on sales and growth. Using trackable phone numbers, URLs, coupon codes, and QR codes you can record the results of direct mail campaigns and track performance.
Metrics like response rate, sales rate, cost to acquire a customer, ROI, and lifetime value of the customer are some of the ways to measure direct mail performance. Scalable SaaS multi-channel marketing platforms like Dot let you see direct mail results in real time and review detailed delivery and response data captured at each household or business. Reviewing these metrics can help shape future direct mail campaigns, building on what works and exploring ways to fix what doesn’t. With this understanding you can justify costs, determine how best to allocate resources, and improve the performance of subsequent campaigns.
In conclusion, direct mail has become a necessary component of the marketing tool box for every type of business. It consistently shows a proven track-record of delivering a high ROI, driving high customer response, and, when integrated into a multi-channel marketing campaign, it greatly improves the impact of digital and social media marketing channels.
Today, it’s easier than ever for businesses of all sizes to find affordable solutions to create engaging direct mail postcards, brochures, and other marketing material to attract new customers, build trust from the first engagement, nurture loyal customers, and increase revenue.
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