Will it work? Is it still a viable medium? Is it cost effective?
It is common to question the effectiveness of direct mail pieces in today’s digital world. Surprisingly, the answer to these questions is a resounding, “yes!” and for many reasons.
First and foremost, any direct marketing endeavor that you invest in needs to have a positive and quantifiable return on your investments. The “will it work?” question is most important. In survey after survey, study after study, from those commissioned by the US Postal Service to those commissioned by the Direct Marketing Association, the efficiency and cost effectiveness of direct mail is validated and affirmed. In fact, the acquisition cost of a new customer via direct mail is actually lower than that from email, and other forms of electronic media.
But you know Spectrum is in the direct mail business, so you can assume that we wouldn’t put an article in our newsletter that says anything negative about what we do for thousands of clients locally and nationally. Direct mail works for businesses large and small for many reasons.
Return-on-investment: Direct mail, when accompanied with a viable and trackable offer, allows you to know how much revenue you generated from it and how many new customers you earned. You can then compare that to the lifetime value of a customer, or the annual value of a customer, and come up with a very sophisticated analysis. Unlike display ads and most digital ads, direct mail success or failure is easy to track. The math is easy to do. In many cases, customer acquisition mail yields a 10X or greater ROI, and when sent to your customer base can yield 20X or better. This means that an investment of $4000 should yield you $40,000 or more in business that you otherwise would not have earned.
The US postal service reaches every home in America six days a week. One offshoot of the electronic age is that the companies who provide mailing lists know so much about every home in America, that direct mail is the most targeted marketing available today. A message can be sent to only those people whom you want to receive your message. Whether it is an entire street or neighborhood, or only households with children under twelve or homes with certain incomes, you can obtain a mailing list so that you can send mail with the right message to that audience.
Mail is tangible and has a shelf life or retention factor. Unlike a digital or electronic message that requires recall on the part of target audience and disappears from the ether instantly, a direct mail piece is tangible. It can be read and re-read. Coupons can be clipped off once or multiple times. It can be hung on the refrigerator or placed near the phone.
Your well designed mail piece can carry several offers that show value on multiple products or services that you offer. You can discount your best sellers or your worst sellers, or both, depending upon your marketing objectives.
Mail is intrusive. Every day, someone from every home in America has an opportunity to get the mail and interact with it. Unsolicited mail pieces are expected, and even sought by the majority of mail recipients. For reaching and sending a message to your own customers, direct mail is expected and frequently received. While email fatigue is a real trend and people delete advertising messages at the push of a button, tangible direct mail pieces are read and often evoke an immediate desire to respond or save the piece for future use.
Young people like to get mail as much as anyone. This is a statistical reality in today’s environment.
How will you know if mail will work for you? Ask us to help you develop a plan, and we can help make your mail exceed your expectations!