Direct Mail Has Explosive Response

Direct Mail Explosive Growth

Direct Mail Records the Highest Response Since Being Tracked!

Direct mail’s performance is the highest it’s been since the DMA / ANA (Data & Marketing Association / Association of National Advertisers) has been tracking it and here’s why so many marketers are finding a historic level of success.
Direct Mail Response Rates
The increased level of direct mail response in the last 3 years represents a remarkable reversal of the previous trend and underlines the fact that something truly amazing is happening in this traditional channel. Based on the DMA’s “Direct Mail Response Rates 2003-2018”, House List (customer) response rose 125% from its 2015 levels and Prospect Lists (acquisition) rose 400% for the same period.

The contributing factors to Direct Mail’s recent success:

It's More Trusted

Print-based media including publications, catalogs and promotional materials received in the mail are the MOST TRUSTED by consumers when making a purchasing decision (based on surveys conducted by MarketingSherpa*). This comes at a time when other major channels like digital are being viewed with increased skepticism due to data breaches, spam, questionable content and elevated privacy concerns.

Better Data & Lists

Companies have made it a priority to maintain their customer data to a higher standard than in previous years. They are now using this data more effectively than ever to influence the purchase behaviors of their existing customers (higher frequency of purchase / increased level of purchase) and model prospect data to more effectively find “look-alike” customers to acquire.
Direct Mail Explosive Growth

Better Pieces & Offers

With the implementation of improved testing methodologies, marketers are able to optimize their efforts by testing mail formats, offers and a range of other variables to achieve the best overall approach. With POS systems supporting features like scannable coupon codes and other tracking, marketers are able to use data captured by previous campaigns to improve results in the future.

84%

of Millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. In addition, this generation even believes paper mail is a more reliable and viable source of communication (USPS Mail Moments Review).

Mobile Shift

The shift to a “mobile first” mindset and consumers interacting on mobile devices at a higher rate than desktops has changed the impact various digital advertising formats have. What was previously viewed on large desktop screens is now either much smaller on a mobile device, limited in its “rich media nature” or requires drilling down further to see any of the content in the case of email.

Direct Mail Response Rate Continued From Blog

Response Rate by Selected Media
2018 Direct Mail Response Rates
Top 7 Reasons direct mail ins more customers
Top 7 Reasons Why Direct Mail Wins More Customers
*All relevant data has been pulled from this year’s 2018 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels. (Source: ANA/DMA Response Rate Report 2018)
*Reference to survey on “Which advertising channels consumers trust most and least when making purchases” (Source: Marketing Sherpa)
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Direct Mail Response Rates for 2018

Response Rate by Selected Media

Direct Mail Response Rates Rose Significantly In 2018!

Direct mail still remains one of the most effective ways to market to your consumers due to its ability to create a lasting impression on consumers and return a high value for businesses.

There was significant growth in direct mail response rates from 2017 to 2018! House rates rose to 9% (3.9% increase) while prospect response rates rose to 5% (2.1% increase). This is the highest number for house lists since the report started.

With email and social media marketing on the rise, consumers have become exposed to hundreds of advertisements on a daily basis, some more intrusive than others. In doing so, consumers have become numb to digital media advertising and have even taken measures to remove the ads from their reach. Coincidentally, even as email continues to be the most used tool for advertising, it is hardly the most effective with a 1% response rate by prospect list (a 0.8% increase from 2017).
The difference we’re seeing in email marketing compared to direct mail marketing is that the ROI numbers for email marketing are high, but, that’s only due to its incredibly low cost.
Quantitatively email marketing is great, however, quality engagements and customer acquisitions come from direct mail.
Response Rate by Selected Media

Ignoring direct mail is more difficult than ignoring email.

Direct mail shines among consumers as your physical mailbox now harbors unique and effective pieces that catch the eye. It is much easier to breeze through your email account, or ignore large numbers of emails in your cluttered inbox.  There is something special about holding a eye-catching creative mail piece in your hand and experiencing the special offer as it was meant to be.

Direct mail response rates are growing faster than other media.

Online display, email, and social media response rates have all rose as well though not as much, which, stands to reason that direct mail still has strong pulling power for business in attracting new customers while also keeping long-term customers coming back.

Looking to increase response rates for your company?

If your company is interested in increasing your campaign response rates, Spectrum has the proven strategies and solutions to get you there.  If you are interested in increased ROI, deliverable brand awareness, and most importantly better marketing RESULTS; consider direct mail from Spectrum as your one-way ticket to more successful advertising campaigns.
INCREASE YOUR RESPONSE!

Direct Mail Response Rate Continued From Blog

Direct Mail Response Rates
Direct Mail’s Explosive Growth
Top 7 Reasons direct mail ins more customers
Top 7 Reasons Why Direct Mail Wins More Customers
*All relevant data has been pulled from this year’s 2018 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels. (Source: ANA/DMA Response Rate Report 2018)
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Direct Mail Response Rates for 2017

2017 Direct Mail Response rates

Direct Mail Response Rates Held Strong In 2017

Direct mail still remains one of the most effective ways to market to your consumers due to its ability to create a lasting impression on consumers and return a high value for businesses.
With email and social media marketing on the rise, consumers have become exposed to hundreds of advertisements on a daily basis, some more intrusive than others. In doing so, consumers have become numb to digital media advertising and have even taken measures to remove the ads from their reach. Coincidentally, even as email continues to be the most used tool for advertising, it is hardly the most effective with only a 0.2% response rate by prospect list (a 0.1% drop from 2016). The difference we’re seeing in email marketing to direct mail marketing is that the numbers in ROI for email marketing are high, but, that’s only due to its incredibly low cost. Quantitatively email marketing is great, however, quality acquisitions come from direct mail.
2017 Direct Mail Response rates
Effectively, email has given direct mail a chance to shine among consumers as your physical mailbox now harbors unique and effective pieces that catch the eye. It is easy to breeze through your email inbox, but there is something special about holding a mail piece in your hand and experiencing the offer as it was meant to be.
While there hasn’t been significant growth in direct mail stats from 2016 we see that the response rate barely budged. House rates dropped only 0.2% while prospect response rates stayed right where they were, at 2.9%.
Online display, email, and social media response rates have all dropped since last year, which, stands to reason that direct mail still has strong pulling power for business in attracting new customers while also keeping long-term customers coming back.
If your company is interested in increased ROI, deliverable brand awareness and most importantly RESULTS; consider direct mail marketing as your one-way ticket to a successful advertising campaign.
Check out the response rates for 2018!
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*All relevant data has been pulled from this year’s 2017 Direct Marketing Association response rate report, publishing important data regarding direct mail relative to digital channels.

Get Measurable RESULTS with Direct Mail

Quantifiable results with unknown quote

Get Measurable Results with Direct Mail

Quantifiable results with unknown quote

Measure Your Marketing Effectiveness

The percentage of your mailing that responded is known as the response rate. Unless you’re mailing to people who have previously responded to the direct mail format, the typical response rate is 3.4%. The problem with measuring the response rate is when you are mailing two different direct mail campaigns with different mailing costs; or two different direct mail campaigns of the same cost, but with different offers. Rather than looking at raw numbers, you may want to find out your direct mail campaign value. Depending on the situation, you can measure the results of your direct mail campaign using advanced techniques called Key Performance Indicators, or KPIs, including:
  • Qualified Response Rate: Serious leads who have interest in buying now or in the near future.
  • Order Rate: What percentage of leads converted.
  • “Cost Per” Analysis: Accounts for the different costs of two direct mail campaigns.
  • Customer Acquisition Cost: A summary of all your costs for acquiring a new customer.
  • Revenue per Order: A summary of how much money, per order, the direct mail campaign produced.
  • Return on Investment: Did your campaign make money? Add up your revenue, then include all your costs.
  • Renewal Rate: The number of incentives you used to convert leads into customers.
  • Lifetime Value: Customers who—over a long period of time—continuously buy again and again.

Improve Your Direct Marketing Effectiveness by Adding Channels

Measurable results

Taking the time to measure your marketing effectiveness is worth the effort. You’ll never know how well your direct mail campaign is working unless you track them and measure your results. Once you take the time to see what your direct mail campaign value is, eventually you’ll be able to get maximum return on investment; you’ll know what changes to make to influence the campaign’s effectiveness.

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In Their Own Words The Motorcycle Company

Motorcycle Company Testimonial

In Their Own Words: The Motorcycle Company

Motorcycle Company Testimonial

Direct Mail Program Success Testimonial

“Our direct mail pieces are a key driver for our events. We use these to drive the traffic through the doors and to give the customers something to look forward to. Spectrum does a great job capturing our theme and displaying our promotions in a clean and attractive way.”

Kristen Kunzman,
Marketing Director
The Motorcycle Company

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The Need for Speed: Changing the Game with PMOD

Need for speed PMOD mail

THE NEED FOR SPEED: CHANGING THE GAME WITH PMOD

Need for speed PMOD mail

Drop Shipping Mail Results In Postage Discounts

Drop shipping direct mail typically involves the use of ground transportation to get the mail closer to the destination point (i.e., the postal facility that will be delivering the mail). Drop shipping mail results in postage discounts and is an effective tool to better control the in-home delivery date of mailings. Some mailings do not lend themselves to the more traditional methods of transporting drop shipped mail from the original entry point to the destination entry post offices. Smaller mailings make it tough to take advantage of drop shipping benefits without paying high minimum charges to logistics providers. In these instances, Priority Mail Open and Distribute can be a valuable resource.

Priority Mail Open and Distribute (PMOD)

Priority Mail Open and Distribute (PMOD) is a USPS service that provides an alternate method of transporting drop shipped mail. Rather than using traditional transport methods for drop shipping, this service allows Spectrum to use the expedited delivery service offered by Priority Mail to transport the mail to additional postal entry points. Mailers place their prepared mail into special PMOD containers and tag them with special PMOD tags. These tags indicate to the destination post office that the mail inside the containers is drop ship mail, and needs to be opened and distributed. Since Priority Mail has 2- to 3-day delivery service, PMOD can be a very quick way to transport the mail to the additional entry points.

TYPICAL USES OF PMOD INCLUDE:

  • Small volume mailings that do not have quantities to meet minimum shipment requirements associated with logistics providers
  • Time-sensitive mailings that do not have the budget for first class mail prices – this mail can be prepared and paid for at Standard Mail prices, but utilize PMOD to expedite the mail to the USPS destination post office
  • Mailings that experience delivery delays in certain parts of the country or at certain USPS facilities
  • Mailings to more remote areas, such as Alaska or Hawaii
  • Mailings using traditional drop ship methods that have residual quantities of mail that would normally remain at the origin post office
Speak to your Spectrum representative about PMOD today.
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Cover All of Your Bases

Cover All of Your Bases

Cover All of Your Bases

Cover All of Your Bases

Generate Better Results With Cross-Channel Marketing

Using the high response generated by direct mail and combining it with additional media formats provides a marketing approach with superior performance. A blended approach allows for the strengths of each media format to offset any potential weaknesses of others to drive better results.
We all know that direct mail is the cornerstone of any cross-channel marketing experience for B2C companies and remains a healthy channel to drive engagement, but how can you effectively distribute a consistent message to other channels and drive increased results?
Modern direct marketing can use sophisticated customer behavioral and demographic data and can be personalized based on purchases and other behaviors. To further enhance performance, direct mail campaigns can have additional digital components added to boost response rates and enhance various aspects of the program.

Super-Charge Your Direct Mail With:

  • IP Targeted Web Display Ads – We can serve web banner ads to the same recipients of your direct mail program before and during the promotional window to improve overall campaign lift. Learn more
  • Targeted Email Marketing – Target the same local market with saturation email or append your customer or acquisition files with email addresses to add frequency to the message you’re delivering. Learn more
  • Spectrum Mail Plus – Combine physical direct mail with omni-channel digital marketing. Utilize up to 11 technologies to reach the right prospects and crete multiple touches with your marketing message. Learn more
Media Format
Direct Mail
Email
IP Targeting
In-Store Signage
Multi-Channel
High Response Rate
X
X
Can Be Targeted
X
X
X
X
Not Easily Blocked
X
X
X
High Visual Impact
X
X
X
“Sticky”
X
X
High Household Penetration Level
X
X
Brand Reinforcement
X
X
X
X
X
Supports Variable Data
X
X
X
Consistent Experience by Recipient
X
X
X
Low Cost per Impression
X
X
X
Influence of Point-of-Purchase
X
X
Capable of Delivering Frequency
X
X
X
Linked Directly to Online
X
X
X
Can Time Delivery to the Day
X
X
Since consistency in messaging is really what makes cross-channel marketing a successful strategy, Spectrum has several technologies designed to make this possible from one source – keeping your effort of execution to a minimum while we control the deployment process.
Depending on the length and type of campaign, our award-winning design team will create a killer direct mailer and any additional digital assets you may need including responsive email design, web banner ads, landing pages, and social media post images. We also deliver campaign results for each channel to help you understand the overall response and to craft follow up or additional promotions.
Spectrum offers multiple ways to integrate your message into additional channels, effectively boosting your promotional marketing campaign before, during, and after your mailer hits home.
Speak to your Spectrum representative about developing a cross-channel experience to cover all the bases you can and make your next promotional campaign a home run!
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Direct Mail with IP Targeted Web Banner Ads Promotional Campaigns

Online Banner ad spec

Direct Mail + Web Banner Ads Promotional Campaigns

Online Banner ad spec

Boost Your Direct Mail Campaigns With IP Targeted Ads

Imagine being able to target an audience that’s interested in your message with one cross-media marketing campaign. Utilizing our direct mail + IP targeted web banner ads solution, Spectrum will help you advertise to highly-targeted customers and prospects with both physical direct mail marketing and digital online advertisements to lift campaigns with more impressions.

How It Works

You provide Spectrum Marketing with a list of names, addresses and zip codes your sending the direct mail piece to. Addresses are run through an IP mapping system where the IP addresses are matched with physical addresses at a rate of, typically, 50-70% of the list size. Once complete, web banner ads designed with coordinated creative are served online using the IP address as the entry and direct them to your website or landing page.
Web Display banner Ads

Cookie-Based Retargeting Or IP Address Targeting. Which Works Better?

While cookie-based retargeting can be timely, there are many downsides including visitors who may clear their browser history; the cookies are deleted, as well as all retargeting efforts on that particular person. Cookie files also help companies collect personal data, including keyboard behavior, site history, and current location.
Meanwhile, IP Targeting is less intrusive than traditional cookies. Using verified, offline data to reduce and/or eliminate non-human bot traffic, your company will get recognized and receive more quality leads. IP Targeting also meets HIPAA compliancy.
IP Targeting takes the approach of traditional direct mail and matches postal addresses of businesses and homes to IP addresses. It works much like a postal worker delivering personal messages to your laptop and allows businesses to enable one-to-one marketing with clear precision.
Cookie-Based Retargeting IP Targeting
Cookies are gone once deleted Static IPs, capturing new IPs
Cannot verify person Real people by name and address
Predictive data Verified data
Non-human Humans
Quantity Quality

The Future is One-to-One Marketing

With IP Targeting, you will find highly-targeted customers and prospects who will likely be receptive to your message. New and unique ways companies are applying IP Targeting are happening all the time; it makes marketing efforts more efficient.
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Who Can Benefit from Direct Mail Plus IP Targeted Advertising?

  • Furniture Retailers
  • Politicians
  • Non-Profit Companies
  • Auto Service Companies
  • Healthcare Facilities
  • Motorcycle Dealerships
  • Restaurants
  • Universities, Colleges, and Training Schools
  • Lawn Care Professionals
  • Hardware Stores
  • Jewelry Retailers
  • Hair Salons and Barber Shops
  • Realtors
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Living Large Why Bigger Mail is Better

Why bigger is better

The Next Big Thing is Large Format Direct Mail

Why bigger is better
Think of all of the best-case scenarios you hope to achieve with your direct mail: recipients notice your mail; spend time reading your mail; remember your brand; notice and consider your offers; and most importantly, they take action.
Now, if only there was some way to…oh, wait! There is: LARGE FORMAT MAIL!
The larger format itself isn’t what ‘makes the sale,’ that honor belongs to the fabulous offers you use. The large format, though is a major component in getting your audience to actually notice, spend time with, and remember your offer. So, whether you’re going with a large, flat piece to prospects, or you’re mailing your customers a large piece folded down to add bulk, interest, and interaction, you are making the smart choice to use at least one large format mail piece this year. Before you equate bigger formats with bigger costs, consider the facts.

How You Benefit With Large Format Mail

Get Noticed

Prospects are about 15% more likely to respond* to an oversized direct mail piece if they are unfamiliar with your brand. Spectrum designs your mail pieces for the 3, 10, and 30-second readers. Even fractions of a second added to the initial interaction with your mail means a better chance your audience will convert from a 3-second reader to a 10 and eventually a 30-second reader.

Get Your Message Across

More real estate means more understandable messaging. When your content has room to breathe, it is easier for readers to digest the content. And because they are using multiple senses with your mail piece, the recall is at 75% compared to only 44% with digital messages. In fact, the Canada Post 2015 report found that your mail takes 21% less cognitive effort to understand and recall than digital messaging. Large format mail is easier to understand, more memorable, and provides a more positive interaction.

Get Better Results

On a large, flat piece to prospects, your offers can be larger and more noticeable – if you’re using the right offers, this means you’re increasing the likelihood of response. If you’re mailing your customer list, large, flat pieces can be more expensive in postage, so you can overcome the added postage by folding your piece. Don’t worry, though. You can direct your audience to the offers “inside” your mail piece, and, like the milk at the grocery store, get your audience to go through your great products and services before they get to the coupons/gift cards as they unfold your piece.
There are inexpensive, small mailers out there which can seem attractive for those business owners like you, who care about the bottom line. Understandable. But, when you consider the effectiveness of your advertising campaigns, a little extra cost that amplifies your offers, engages your audience and enables larger response is easily offset. Call your Spectrum Representative today and ask about some of our larger, more engaging direct mail formats!

*DMA Statistical Fact Book.

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Impact of Coupons on Consumers

How Coupons Affect Consumers Purchasing Decisions

The Impact of Coupons on Consumers

How Coupons Affect Consumers Purchasing Decisions

Use Coupons While Developing Your Direct Mail Marketing Strategy

Coupons play a major role in helping consumers decide where they are going to purchase from. Coupons are a valuable tool for retaining existing customers and asking past customers to give your company another try. You can tailor your direct marketing offers to consumer behavior for the biggest impact. Look at the stats below from various sources to see how coupons affect purchasing behavior, how consumers are looking for coupons, where they’re getting their coupons from, and how much is spent on direct mail marketing.
how customers select the store they purchase from
Before purchasing customers search for coupons
Coupon usage across generations
impact of coupons on purchase behavior
united states direct mail marketing spending
Coupons are a great way to encourage new customers to give your company a try and to ask existing customers to return. Crafting the right offer so that you’re giving the customer something of value and also not putting yourself at a disadvantage is key to your marketing strategy. Creating eye-catching graphics and making your coupons easy to read and understand is also an important factor. Let Spectrum Marketing help you with your direct mail marketing offers and your graphic design.
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