Direct Mail has always used coupons effectively to drive action. But in the current market, it’s more critical than ever to get them in hands of deal-hungry consumers who are demanding better deals, special savings offers, and incentives.
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The Association of National Advertisers (ANA) has released its long awaited 2021 Response Rate Report (membership required) that once again reinforces direct mail ROI as the highest of all channels they studied. Once again proving direct mail is the most effective marketing solution.
As has been reported over and over, all marketing channels (email, social media, paid search, digital display, sms, and direct mail) have seen independent success as standalone efforts, depending on how they are focused.
Leveraging a multi-format offering across multiple production platforms, direct mail ROI topped the list at 112% ―a stronger return than from any other channel!
That may explain why nearly half (46%) of study participants said they planned to increase their use of direct mail in the next twelve months.
The partnering of direct mail with other channels continues to prove to be the catalyst of increase response.
Looking to increase your direct mail marketing campaign response by 23-46%? Learn more >
Study participants who sent letter-sized envelopes to prospect lists through direct mail reported the highest ROI of all media in 2020 (112%), followed closely by SMS (102%) and email to prospect lists (93%).
Based on the DMA’s “Direct Mail Response Rates 2003-2018”, House List response rose 125% from its 2015 levels and Prospect Lists (acquisition) rose 400% for the same period.
Average direct mail ROI ranges from of 85% to 112% depending on direct mail formats and list usage.
Preferred by more than half of marketers, the letter-sized envelope is the most used direct mail format for both house and prospect mailings. Postcards are a close second, with 49% of marketers using the compact format when mailing to house lists and 51% when mailing to prospects. House lists receive oversized envelopes 21% of the time and dimensional packages 19%. When mailing to prospects, dimensional packages (29% of direct mail mailings) are 3% more likely to be used over oversized envelopes (used with 27% frequency).
Speak with a Spectrum marketing expert to discover which mail formats, lists, and mailing programs will deliver the highest predicted ROI for your specific business and industry. Contact Us >
Response Rate Report participants reported average email open rates of 32% when sent to prospect lists and 37% when sent to house lists.
While both of these figures are up compared to results reported in 2020, it is notable that they significantly lag the open rates for Informed Delivery emails that are consistently north of 60%.
The open rate for Informed Delivery email is impressive — 64% to 80%.
Spectrum can easily add Informed Delivery to your next direct mail campaign. Learn more >
The study revealed that email was the most used medium in all campaign types (B2B, B2C, and split B2B/B2C), averaging an 82 percent usage rate among respondents. Social media came in second at 74 percent. Beyond email and social media, the report included overall findings for paid search (51 percent), digital display advertising (42 percent), direct mail (38 percent), and SMS (18 percent).
At least half of those surveyed plan to increase their use of email, paid search, social media advertising, and SMS over the next year. Social media advertising usage is the least likely to decrease. In the future, DTC participants are most interested in learning more about QR codes, organic search, and live chat technologies for direct marketing use.
Among DTC marketers, the intent of a direct mail campaign is equally divided amongst making a direct sale (17%), engaging prospects (17%), engaging customers (17%), and driving traffic to retail locations (17%).
Customer communication (12%), lead generation (8%), and brand awareness (4%) are also among top priorities for DTC mailers.
Most DTC direct mail campaigns include a combination of prospect and house lists.
75% of DTC marketers prefer postcards when mailing to prospects.
When mailing to house lists, letter-sized envelopes (61%) are used most frequently.
Automotive is the number one industry using direct mail (70%), followed by travel and hospitality (53%), financial services (51%), and retail (48%). Nearly half of marketers use the offline channel for B2B products and services (42%), financial services/insurance (41%), and health care (40). Consumer products and services (36%), technology and communications (31%), and publishing/media/entertainment (29%) complete the top ten mailers.
Online tracking, such as Personalized URLs (PURLs), is the preferred response rate tracking method by 59% of respondents. Codes or coupons (29%), call center or telephone (25%), match back (25%), and linked sales transactions (20%) follow. Derived or calculated (13%) and list coding (8%) are the least used response metrics. Learn more about how to track your mail campaigns here >
Digital advertising fatigue can also contribute to increase interest in direct mail marketing. According to a study by Sappi, 65% of consumers agree that mail lifts their spirits. Households receive on average just two pieces of mail per day, versus 157 email messages. Plus, with 7 in 10 white collar workers in the U.S. still working from home, mail is a welcome distraction. It’s part of the reason the USPS is consistently ranked as the most popular entity in government.
The pandemic has affected shopping behaviors, notably retail shopping which means the mail is a new source of information and inspiration.
There’s a 28% increase in conversion rate for marketing when direct mail and digital ads are used together as a one-two punch. And consumers say they prefer to receive direct mail and digital over any other media, including social media.
Those facts suggest that if your retail marketing strategy has defaulted to digital only, you’re missing an opportunity. Don’t miss out >
You have five seconds to get your mail opened or ditched. Let your design team bring you more impactful ideas that are right for your specific audience.
*All relevant data has been pulled from this year’s ANA Response Rate Report 2021. (Source: ANA Response Rate Report 2021)
Measuring the return on investment (ROI) for direct mail marketing helps you to evaluate the success of the campaign.
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A penetration report gives you the ability to target direct mailing efforts further than zip code mailing. Targeting areas where your products and services are more likely used, ensuring your marketing budget is used effectively. Penetration reports allow us to target the neighbors of your customers, those that are more likely to be interested after hearing about you.
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With almost infinite choices ranging from traditional methods to digital and limitless channels and strategies, we can easily lose sight of the fact that there are only three ways to grow any business and its related revenue.
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Believe it or not, Spring is right around the corner! And with it comes a host of exciting Spring marketing strategies that your business can capitalize on. Here’s some fun ideas and tips we’ve compiled to help you plan.
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Retargeting reimagined with direct mail. Turn your anonymous website visitors into the most qualified mailing list using Spectrum MailPlus LEADMatch.
We identify postal addresses of visitors and send them a physical mail piece based on what actions they took while on your website.
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Retargeting reimagined with direct mail. Turn your anonymous website visitors into the most qualified mailing list using Spectrum MailPlus LEADMatch.
We identify postal addresses of visitors and send them a physical mail piece based on what actions they took while on your website.
Continue reading
Business NH compiled the fastest growing top 100 companies in New Hampshire and in 2021 Spectrum Marketing Companies was ranked #42 among the top 100.
If you’re not capitalizing on new movers then you’re missing out on reaching new customers in your area. The Census Bureau states, 17% -20% of all Americans will move each year. New movers are a high-value audience who establish new loyalties to businesses in their area.
This is followed closely by other home improvement services like lawn care, home security, and flooring. The biggest factor to all of this, however, is that up to 90% of homeowners make their purchase decision before moving. To reach those customers you need to start marketing to them as soon as possible. Plus, consider the following:
New movers are in there new homes, on the internet, and on social media channels like Facebook, Twitter, and Instagram. Try leveraging an omni-channel marketing approach to target and reach new movers. Send a personalized direct mail piece to their home welcoming them to your area and business with a strong message and offer. Remarketing to them on the web and social media. When your prospect sees your message 8-16 times, they are much more likely to convert.
Instead of just sending out a traditional solo direct mailing, Spectrum Mail Plus seamlessly combines your direct mailer with seven digital technologies to maximize your campaign’s impact. Increase your ROI by reaching your target audience on multiple channels simultaneously.
Getting to new movers before your competition does is paramount to increasing your bottom line. Start with Spectrum’s omni-channel marketing solution to capitalize on a marketing segment that’s already in the purchase phase.