Direct Mail Response Rates
Outperforms all digital channels
One critical distinction direct mail continues to hold is its ability to generate a large volume of response in a localized market. While close in cost-per-acquisition to social and other digital channels, direct mail maintains the ability to cost-effectively generate a higher volume of response in a defined geography which is a critical distinction for local marketers.
For example, a local fitness center may be able to generate 50 new members through a PPC or social media campaign but needs to drive 350 new members each month to meet their operating objectives. This is where direct mail shines! The 50 members generated through various digital channels are often the low hanging fruit that has already entered the market on their own and finds the business through their own proactive efforts.
Direct mail takes a more intrusive approach by presenting offers to consumers that would not otherwise have been planning on making a buying decision and pulling them into the market to take advantage of a strong offer.
With so much attention being placed on emerging technologies and digital media trends, direct mail often gets overshadowed. However, successful marketers are driven by RESULTS and ROI which direct mail continues to deliver.
The 2017 Direct Marketing Association response rate report published the following key facts regarding direct mail relative to digital channels.
Direct mail achieves a 5.1% response rate with a house list and a 2.9% response rate with a prospect list.
All Digital Channels Combined
Combined response rate of only 2%
(Email 0.2% for a Prospect list and 0.6% for House/Total list; Social Media 0.4%; Paid Search 0.6%; Display Advertising 0.2%)
35% of respondents expect to increase the amount of direct mail in the coming year. 46% expect to use the same amount.
Stick With What Works
Marketers continue to embrace multichannel marketing, with 52% of the respondents using three or more channels for their marketing efforts. In these instances, the most popular channels tend to be direct mail, email and social media.