Direct mail meets consumer coupon demand
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.
Inflation is up over 8% and is hitting consumers wallets hard. For general retailers, small business, and businesses like restaurants, housewares, home improvement, personal goods, and food and grocery stores, costs have gone up and consumers are going to be more cautious about how to spend their money. However, there is a powerful tool marketers and business owners can leverage during inflationary periods: COUPONS, DEALS, AND INCENTIVES.
They can be particularly effective when people are looking hard to save. Companies offering more deals and stronger offers will increase consumer spending and loyalty too. People are willing to purchase if the coupons offset higher prices. And putting those offers directly in homes at the mailbox will ensure your business is visible and a savings option on their favorite products and services.
According to industry research, companies using direct mail to promote their business enjoyed a increase in ROI (return on investment). That may be a surprise during difficult financial times, but that’s what we’re seeing in recent months. When some are shying away from advertising, those reaching out to customers with special offers in their homes are winning more customers!
Here's the Takeaway
The Impact on Businesses
With inflation rising to a four-decade high in March and the consumer price index in the US increasing 8.6 percent over the last 12 months, businesses have had little choice but to raise their prices. People need to save money as it has become more expensive for them to buy almost anything, including necessary items like food and housewares. They are going to be looking for cheaper options, eating out less or buying more affordable general brands.
The impact on businesses and consumers is going to be a significant challenge for marketers for the near future. One thing we learned during the pandemic is that simply cutting your marketing spend can backfire. You risk losing your long fought for visibility and consumer confidence in your products or services while making your competition more visible with you out of the market. So, don’t cut your advertising, get creative with your promotions and offer cost-saving options to entice people to shop with you! Speak with your Spectrum marketing expert to learn about our latest strategies for keeping your business successful with creative marketing.
When consumers are buying less, get in front of them more.
Naturally, during difficult financial times, marketers are asked to consider cutting costs to provide short term success relative to their marketing budgets. But, when businesses stop advertising, sales plummet and smaller companies typically suffer even more. Consider this, if a brand stops marketing for a year, sales can drop 12-18%. And after two years, sales fall by over 25%! After five years, sales will fall 58%.
To make matters worse, getting back to normal will require much more time and effort as you try and regain momentum and brand awareness. It can take years of consistent brand-building marketing campaigns to recover after slowing or stopping your advertising.
We recommended maintaining or even increasing your targeting marketing during the next year. One of the most cited research studies on marketing during recessions (The Laboratory of Advertising Performance Report from McGraw-Hill Research) show that those that continued to market had great success! They analyzed 600 companies and discovered that those that continued to advertise aggressively during the 1981–1982 recession enjoyed a 256% growth by 1985 over their competitors that cut their spending. Subsequent studies have also found similar results.
Businesses grow when their share of marketing content is larger than their share of market. That’s why you can take advantage of short-term reactionery businesses by marketing now and increasing your presence in the market and in the thoughts of consumers. Your investment will pay off by keeping your company top of mind, contributing to long-term growth and loyalty.
Here's what to do
Maintain engagement by meeting consumer demand for deals
Consumers are going to be even more cost-conscious while seeking out special deals and coupons to offset higher prices on goods and services. Research tells us that shoppers feel more positive about a brand or start that offers coupons or discounts, so make sure you are leveraging them. People also feel excited about getting deals and many times purchase even more because of it!
This happens all the time with impulse buying, like ordering pizza or going out to dinner. Research also says that 45% of consumers feel more positive towards restaurants that offer coupons or discounts. So, promote your products or services with deals they can’t get from the competition. And when things calm down in the market, your customer loyalty will still be solid.
An omni-channel marketing campaign to deliver deals can increase ROI
Many consumers use both digital and print coupons for saving. You may assume that consumers prefer getting coupons and deals on their phones, but while that can be true for some people, many shoppers also use print coupons from direct mail and other printed sources like inserts.
As such, you should meet the consumers’ need to get a good deal using an omnichannel approach. This allows you to connect with your customers whenever they’re ready and wherever they are – and give them an option to redeem the offer both digitally and physically. An omnichannel approach surrounds them with your message, breaks through the noise, and helps your brand stand out in an environment where they will be more likely to hear and respond – and it’s proven to increase your return on investment!
Therefore, marketers should work to meet consumers need to get a great deals by using an omnichannel approach like Spectrum Mail Plus. This direct to digital marketing option allows you to connect with your customers in their home, browsing the web, and on their favorite social media channel feed. Increase visibility to your message, break through the noise and increase those impressions that keep your product and services on their mind while giving them multiple options for engagement and response.
The value of direct mail and print advertising
We all know that print advertising should be part of your omni-channel strategy, regardless of economic conditions. This includes advertisements, coupons, inserts, and special offers delivered to customer and prospect mailboxes. Print advertising comes in various forms, such as postcards, coupon books like Spectrum Monthly, and free-standing inserts (if your business is in NH or MA, check these options in Spectrum Monthly) that can be mailed, coupon books and booklets, checkout coupons, letter mail, postcards, solo mail, and also shared mail.
It is easy to dismiss direct mail and other methods of print marketing as expensive, old school, difficult to implement and manage or appeals only to older demographics. However, those who understand how effective direct mail can be in terms of brand awareness, guaranteed impressions, great ROI, and it’s ability to deliver special offers – especially when combined with other channels and digital, will have increased success!
For one, the mailbox is not saturated compared to your email inbox or social media feed. People are more open to receiving mail, with almost a third expressing excitement over daily mail. More than three-fourths check printed circulars to compare prices. Spectrum has a wide array of marketing services to fit a range of business needs. Reach out to us and we’ll find a marketing solution that will help you manage costs better, personalize your messages, target the right audience at the right time and achieve better ROI faster.
Spectrum direct to digital omnichannel marketing option, Spectrum MailPlus has been particularly powerful during these times. Adding coordinated online remarketing, social match and followup ads to the same targeted audience used for the direct mail, increases impressions 12-18 times while increasing response by 23-46%! Why involved high priced digital and social advertisers to your bottom line when you can streamline the process and save by bundling these services with Spectrum MailPlus. Speak with a marketing expert today >