Direct mail response is surprisingly stronger than ever. If you think direct mail is dead, or direct mail is a pre-digital relic that’s no longer effective, you couldn’t be more wrong.
Forbes reports that the surge in direct mail response is due, in part, to less competition — and digital fatigue.
Less competition in the physical mailbox
Compu-Mail reports the average American gets 2 pieces of mail every day, versus dozens of emails per day (and for B2B, those emails could be much higher per day). In the 1990s, the USPS reported that about 55% of direct mail was actually opened. Compu-Mail is now reporting 90% — which pales in comparison to most email open rates.
Because we’re getting fewer direct mail pieces each day, it’s getting noticed more. Recipients are spending more time with direct mail. And as a result, response rates are soaring. We used to say that 0.5% response was what to expect for an untested mailer with an untested offer to an untested mailing list. Compu-mail is reporting that over the last few years, direct mail response rates are as high as 37%!
Digital overload
It’s no secret that most consumers and businesses are overloaded with digital advertising — both in the email inbox, and as we’re using our phones and computers.
Consumers now are putting more trust in information they receive in direct mail and other print media, due to so much email spam or online ads that sell products of questionable quality.
Direct mail can actually boost overall response from digital campaigns
Marketreach found that direct mail is remembered more: “49% more than email and 35% more than social
media advertising.” Another study found that direct mail caused “75% brand recall” versus 44% for a digital ad.
All of this good news with direct mail seems to indicate one thing: your digital marketing efforts will be more effective when you add direct mail.
Ready to jump into direct mail? Here’s how to make your next direct mail marketing campaign work harder for you:
1. Design your package to have one clear objective
Decide whether you want your package to complete a sale, generate a lead, or generate retail or web traffic — and focus on one product (or service) at a time.
In general, asking your package to do more than one thing, or sell more than one product, will depress response. (Catalogs – pieces designed to sell multiple products – follow their own unique set of best practices.)
Decide what you want your responder to do and how the responses will be received — phone, coupon used at your retail location, web landing page, etc. Giving the responder some options for responding (for example, phone and web) will usually be more effective than one response option only.
2. Make a strong, compelling Offer
Be sure you design an attractive Offer to encourage your audience to respond — and include a deadline for that response.
“Request more information” is the most boring Offer you can make!
If you’re generating leads (and you actually DO want them to “request more information”), think about what you could include in a digital download that would benefit the responder – and really motivate them to respond to get it.
- For example, maybe you could include a free “10-Point Checklist on Choosing the Right . . .” to encourage response.
Make your Offer easy to understand, point out the benefits to the reader – and make them feel they can’t afford to miss out on whatever it is you’re offering!
3. Refine your mailing list as tightly as possible
If you’re looking for response rates substantially above the norm, try to more finely target your mailing list. Remove more questionable prospects and mail to a smaller group of high probability names. If you’re purchasing outside lists . . .
CONSUMER LISTS: use lists that allow you to select names based on actual individual or household- level information (as opposed to estimated information or census averages) whenever possible. Look for lists of purchasers of products similar or related to yours.
BUSINESS LISTS: Look for subscriber files, as they’re usually the most accurate – and the most targeted – B2B files available.
4. Make it easy for your audience to respond
Include an easy-to-type-in web URL to get your audience directly to your landing page. Be sure to set up a landing page specifically for your direct mail campaign so you can track visits (and find out exactly how much your direct mail helped your overall campaign results).
5. Write your copy from the audience’s point-of-view
Don’t make the mistake of “talking to yourself”; your mailer should talk directly to your audience. How do you accomplish this? Be heavy with the word “you”, and light on the words “we”, “our”, and your company’s name.
Write exactly the way you’d talk to someone face-to-face – and use the same sales process you’d use if selling face-to-face.
People respond to benefits — not product features. Benefits tell the recipient “what’s in it for me?” Be sure to emphasize the benefits of your products in your copy.
6. Design your program to learn from your investment
Be sure to carefully track results from every direct mail effort. Plan to set up a responder file of prospects, and note in each responder’s record the Offers each has received and which they’ve responded to. Keep track of how your customers are obtained (the Offer, positioning, and list used) for future marketing efforts.
Ideally, you should be testing something in each mailing (Offers, lists, headlines, “lead- ins”, emotional appeals, etc.). Careful testing will help you determine the most cost-effective components for your future efforts – and help your marketing dollars go further.
7. Run the numbers before proceeding
Make sure your direct mail program makes economic sense before you begin. Compute your breakeven sales quantity (BE quantity) – which tells you how many new customers you’d have to generate to cover your marketing costs.
BE quantity = $ marketing cost / $ profit per new customer
Then determine your breakeven response rate (BE response):
BE response = BE quantity / pieces mailed
If the project would have to achieve a very high response rate to breakeven, you may need to rethink your effort (by either increasing your price, reducing the cost of your marketing effort, or considering the lifetime value of each new customer) before proceeding. (Of course, with today’s higher response rates, you may find it’s easier to make direct mail pay for irself.)
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REFERENCES
https://www.forbes.com/sites/forbestechcouncil/2022/07/14/three-reasons-mailers-arent-dead-in-2022/
https://www.compu-mail.com/statistics/30-direct-mail-statistics-you-can-use-right-now
https://www.marketreach.co.uk/sites/default/files/insights/Mail-Cuts-Through-Report.pdf
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