Direct mail marketing

Direct mail marketing is a type of direct marketing that involves physically delivering promotional materials to a prospect's mailbox. These materials can take various forms, including postcards, flyers, brochures, newsletters, catalogs, and coupon envelopes. The aim is to encourage the recipient to patronize your business. The materials typically contain something identifying your business, a call to action (CTA), and a way for customers to contact you.

Direct mail marketing is not just about sending out materials; it's about creating a connection with the recipient. It appeals to people’s emotions, boosts brand recognition, drives purchases, and fosters relationships. Despite the rise of digital marketing, direct mail marketing is still effective. It can work in conjunction with other channels to make your business stand out and help build customer relationships.

Research shows that direct mail campaigns can have a higher return on investment (ROI) than both paid search and online display ads. Direct mail's response rate of 5.3% is higher than the 0.6% response rate for email. This is because customers physically handle mail and usually look at it before deciding whether to keep it, making direct mail a memorable and interactive marketing strategy.

Moreover, direct mail can reach a wider demographic than electronic advertising, especially if your target audience is less likely to use social media or email. It also offers a lot of ways to get creative, and because not as many companies are operating in the direct mail space these days, it's easier to get noticed.

Why does direct mail marketing still work?

Direct mail marketing continues to be effective for several reasons:

1. Interactivity: Direct mail is a physical medium that customers can touch and feel. This tactile nature can make the marketing message more memorable. If the mailer includes a promotional offer or a call to action that requires interaction, such as bringing it to a store, customers are more likely to keep it.
2. Memorability: Receiving physical mail can evoke a sense of nostalgia and create a more emotional response in the recipient. Adding personalized touches, like a handwritten note or signature, can make the marketing message more memorable.
3. Reach: Direct mail can reach a wider demographic than electronic advertising, especially if your target audience is less likely to use social media or email. It can turn people into potential customers who might have been missed by all-electronic ads.
4. Creativity: Direct mail offers a lot of ways to get creative. It can be paired with social media and digital content marketing for a seamless customer journey. The tactile nature of direct mail gives you the chance to engage more of your recipients’ senses than digital marketing.
5. Less Competition: As many companies are scaling back their physical marketing efforts in favor of digital marketing, there is less competition in the direct mail space, making it easier to get noticed. Most people will at least skim through their mail before throwing it away, and a colorful, creative piece of mail has a much better chance of standing out in someone’s mailbox than your website does on Google.
6. Longevity: Even if someone doesn’t use your coupon or special offer right away, they might keep it, especially if it’s something they need. They’ll stick it on their fridge or a board and let it hang out. Then when they’re looking for a new pair of pants or a deal on power tools, your company will be more likely to come to mind.

In conclusion, direct mail marketing still works because it is interactive, memorable, has a wide reach, allows for creativity, faces less competition, and has longevity. It's a marketing strategy that can effectively complement digital marketing efforts.

How to create a direct mail marketing campaign?

Creating a direct mail marketing campaign involves several key steps:

Create a Target Mailing List: Begin by segmenting your customer base into groups that share common characteristics. You can use your own customer database or purchase lists from brokers that create custom lists based on interest or activity. If you are using an existing mailing list, ensure it's accurate and up-to-date.

Design an Effective Marketing Campaign: Your campaign should have a clear goal. Whether you want to announce a sale, provide coupons, or drive customers to your website, your intention should be clear. Create a prominent headline and a clear call to action (CTA) that prompts customers to act. Your design should be simple, impactful, and consistent with your brand's other marketing materials.

Consider a Test Drive: For a first campaign, consider starting with a small list and a limited run of mailings to determine average response rates. This can help you decide the volume you want to work with in the future.

Streamline Your Mailing Process: Depending on the size of your mailing, you might want to consider using a direct-mail marketing company. They can handle printing, cleaning and reformatting your mailing list, and mailing your campaign for you. If you're doing it yourself, consult USPS for minimum numbers of pieces and consider using their discounted bulk rates for presorted mail.

Track Your Campaign: To track your results, you can share a unique promo code with responders or a unique email address for inquiries about your product. You might also include QR codes or short, simple links that will take customers directly to your site. This not only directs them straight to a specific landing page but also allows you to track the engagement of your marketing campaign.

By following these steps, you can reach your target audience, track your campaign’s effectiveness, and set yourself up for successful direct-mail campaigns.

How much does direct mail advertising cost?

Direct mail marketing involves various costs, depending on the complexity of your campaign. Here are some of the key expenses:

1. Setup Cost: If you don't already have a database of customer and potential customer mailing addresses, you may need to buy a mailing list. At Mail Pros, we offer mailing list services. The cost can exceed $250 per 1,000 names and addresses, depending on whether you pay for a one- or two-time use, or a flat fee for unlimited uses.
2. Media Cost: This is the cost of the actual materials like paper, ink, stamps, and envelopes.
3. Creative Cost: If you employ a designer, copywriter, and printer, these fees will add to your overall direct-mail costs. We also cover design services in Mail Pros.
4. Postage Cost: USPS offers bulk direct marketing mail prices for a minimum quantity of 200 pieces.
5. Cost to Continue: Direct-mail marketing services may charge a subscription fee, which covers redesigns, reprints, and discretionary costs.

As an example, USPS has a direct-mail cost estimator tool. For creating, printing, and mailing 500 letters in envelopes using USPS Marketing Mail rates, it estimates about $800. This estimate is based on purchasing a list for 15¢ per address; $484 for design; printing costs of 21¢ per piece, and mailing at 29¢ per piece.

However, these costs can vary based on the materials you use, whether you purchase a list or use your own, and whether you hire creative talent.

How to create a successful direct mail marketing campaign?

Creating a direct mail marketing campaign involves several key steps:

• Create a Target Mailing List: Begin by segmenting your customer base into groups that share common characteristics. You can use your own customer database or purchase lists from brokers that create custom lists based on interest or activity. If you're using an existing mailing list, ensure it's accurate and up-to-date.
• ‍Design an Effective Marketing Campaign: Your campaign should have a clear goal. Whether you want to announce a sale, provide coupons, or drive customers to your website, your intention should be clear. Create a prominent headline and a clear call to action (CTA) that prompts customers to act. Your design should be simple, impactful, and consistent with your brand's other marketing materials.

• Consider a Test Drive: For a first campaign, consider starting with a small list and a limited run of mailings to determine average response rates. This can help you decide the volume you want to work with in the future.
• Streamline Your Mailing Process: Depending on the size of your mailing, you might want to consider using a direct-mail marketing company. They can handle printing, cleaning and reformatting your mailing list, and mailing your campaign for you. If you're doing it yourself, consult USPS for minimum numbers of pieces and consider using their discounted bulk rates for presorted mail.
• Track Your Campaign: To track your results, you can share a unique promo code with responders or a unique email address for inquiries about your product. You might also include QR codes or short, simple links that will take customers directly to your site. This not only directs them straight to a specific landing page but also allows you to track the engagement of your marketing campaign.

By following these steps, you can reach your target audience, track your campaign’s effectiveness, and set yourself up for successful direct-mail campaigns.

What are different components of a direct mail marketing campaign?

Here are some best practices for direct mail marketing:

1. Database Development: This involves collecting relevant and actionable data about your customers or potential customers. This data can include names, email addresses, social handles, mailing addresses, purchase history, demographic data, and more. It's important to keep this database updated and clean, as people's information and circumstances can change over time.
2. Mail Lists: The mailing list is a critical part of a direct mail marketing campaign. There are two main types of lists: compiled lists (from directories, magazine subscriptions, etc.) and direct response lists (of people who have responded to direct marketing). It's important to spend time selecting the right list for your campaign, as it can greatly influence the response rate.
3. Offer Importance: The offer can significantly impact the success of a direct marketing campaign. It should be clear, concise, and fulfill a perceived need. It should also have a good perceived value, be practical, unique, and appropriate for the customer and the brand.
4. Creative Brief: Before developing your direct mail campaign, it's important to write a creative brief. This document should inform and inspire the creative team, giving them a clear understanding of what the direct mail needs to achieve and who it needs to address.
5. Anatomy of a Direct Mail Communication: A direct mail letter should include a headline, an opening, an offer preview, sell copy, and subheads. Each part plays a crucial role in engaging the reader and conveying the message effectively.

Remember, these are general best practices and may need to be adjusted based on your specific audience and campaign goals.

Is direct mail a CRM

Direct mail is not CRM (Customer Relationship Management), but it can be a part of a CRM strategy. CRM is a system for managing a company's interactions with current and potential customers. It involves using data analysis about a customer's history with a company to improve business relationships with customers, specifically focusing on customer retention and driving sales growth.

Direct mail, on the other hand, is a marketing strategy that involves sending a physical letter, package, mailer, brochure, postcard, etc. to your prospects and/or current customers. It's a way to engage customers through a different channel that can be very personal and engaging.

However, direct mail can be integrated into a CRM system. For instance, a CRM system can keep track of who has received direct mail, who has responded, and what kind of response was received. This information can then be used to refine future direct mail campaigns and to better understand customer behavior and preferences.

In essence, while direct mail is a marketing tactic, CRM is a broader strategy for managing customer relationships, and the two can work together effectively.

What are the types of direct mail

There are several types of direct mail marketing, each with its unique advantages and uses:

Catalogs: These are effective for showcasing a wide range of products or services. They allow for vivid images, detailed product/service information, and ample space for promotions and special offers. They are particularly effective for reaching consumers and businesses with detailed product catalogs.

Postcards: Postcards are ideal for communicating short messages, promo codes, sales, or special events. They are cost-effective and can generate sales and build brand awareness with consumers in all stages of the marketing funnel.

Letters & Envelopes: When mailing sensitive or private information, letters and envelopes are the go-to option. They generate leads, build brand recognition, and demonstrate professionalism. They are traditionally used for text-heavy content such as newsletters.

Self-Mailers: These are similar to postcards but larger. They don't require an envelope, and variable data (personalized mailing information) is printed directly on the mailer. They provide more space for detailed information about your products, services, announcements, and offers.

Dimensional Mailers: These are unique types of direct mail that include 3D and pop-up mail. They can share samples, gifts, QR codes, or information on products and services. They are interactive and can't get lost in the mail pile, making them highly engaging.

Remember, the type of direct mail you choose should align with your marketing goals, budget, and the preferences of your target audience.