Direct mail marketing is a wise investment

The information below is designed to help you convince your customers that marketing through direct mail, including making direct mail a part of a multi-channel marketing campaign, is a good idea for increasing revenue.

Direct mail takes up nearly a quarter of overall media budget

• 23% of overall media budget allocated to direct mail
• 35% spent on loyal customers
• 26% spent on prospects

CASE STUDIES

PostcardMania:

• Client: A dental practice.
• Campaign: The dental practice used targeted postcards to attract new patients.
• Results: They sent out 5,000 postcards and received 170 responses, resulting in 85 new patients. The campaign generated $76,000 in revenue, a significant return on their investment.

Valpak:

• Client: A local restaurant.
• Campaign: The restaurant used Valpak's direct mail coupons to drive foot traffic.
• Results: The campaign led to a 10% increase in customers and a notable rise in revenue. The ROI was measured at 200%, demonstrating the effectiveness of the coupon strategy.

Plow & Hearth:

• Campaign: A home and garden retailer used catalog mailings to reach both existing customers and new prospects.
• Results: By personalizing the catalogs based on customer data, the company saw a 15% increase in response rates and a 20% increase in sales compared to their previous campaigns.

Adobe:

• Client: Adobe Creative Cloud.
• Campaign: Adobe used direct mail to re-engage lapsed subscribers.

Results: The campaign achieved a 30% conversion rate, significantly higher than their previous digital-only efforts. The tactile experience of direct mail helped capture the attention of their audience.

DIRECT MAIL EFFECTIVENESS

10 IMPORTANT DIRECT MAIL STATISTICS

1. 42.2% of direct mail recipients either read or scan the mail they get. (source: DMA)
2. Advertising mail is kept in a household for 17 days on average. (source: Mailmen)
3. 60% of catalog recipients visit the website of the company that mailed them the catalog. (source: USPS)
4. Direct mail recipients purchased 28% more items and spent 28% more money than people who didn’t get that piece of direct mail. (source: USPS)
5. 73% of American consumers say they prefer being contacted by brands via direct mail because they can read it whenever they want. (source: Epsilon)
6. Direct mail offers a 29% return on investment. (source: Marketing Charts)
7. 50.9% of recipients say they find postcards useful. (source: DMA)
8. 75% of business mail stays in the home for over four weeks and is revisited an average of 5 times (source: Marketreach)
9. Only 44% of people can recall a brand immediately after seeing a digital ad compared to 75% of people who receive direct mail. (source: Marketing Profs)
10. 90% of millennials believe that direct mail marketing is more reliable than email and 24% are likely to share it with other people. (source: USPS)

MAIL FREQUENCY

Mailing marketing material multiple times to the same address can significantly increase open rates and overall engagement compared to a single mailing. Repetition reinforces the message and increases the likelihood that the recipient will notice and respond. Here's how multiple mailings typically impact open rates:

Impact of Repeated Mailings on Open Rates:

1. Reinforcement and Recall:
   • Single Mailing: The recipient might overlook or discard the mail due to various reasons like timing, lack of immediate relevance, or being mixed with other mail.
   • Multiple Mailings: Repeated exposure increases familiarity and recall. Recipients are more likely to notice and remember the message, which can lead to higher open rates over time.
2. Trust and Credibility:
   • Single Mailing: A one-time mail piece might not build enough trust or credibility, especially if the recipient is unfamiliar with the sender.
   • Multiple Mailings: Consistent communication helps establish trust and credibility, making recipients more likely to open subsequent mailings.
3. Response Rates:
   • Studies and industry data suggest that repeated mailings can significantly boost response rates. For instance, mailing to the same list three times can increase response rates by 50-100% compared to a single mailing.

Statistical Insights:

1. Direct Marketing Association (DMA) Findings:
   • The DMA has found that response rates for direct mail can increase substantially with multiple mailings. For example, a campaign with three mailings might see an average response rate of 1.2-2% per mailing, compared to 0.5-1% for a single mailing.
2. Case Study Examples:
   • Financial Services: A financial services company that conducted a three-wave direct mail campaign saw a response rate increase from 0.5% (single mailing) to 1.5% (after three mailings).
   • Retail Sector: A retail chain experienced a 30% higher response rate when mailing promotional materials three times over a few months compared to a single mailing.

Best Practices for Multiple Mailings:

1. Timing and Spacing:
   • Space the mailings appropriately to avoid overwhelming the recipient. A common approach is to send mailings every 2-4 weeks.
2. Consistency and Variation:
   • Maintain a consistent message but vary the design or offer slightly in each mailing to keep the content fresh and engaging.
3. Track and Measure:
   • Monitor open and response rates for each mailing to assess effectiveness and adjust the strategy as needed.
4. Personalization and Relevance:
   • Personalize each mailing to increase relevance and engagement. Use data to tailor the content to the recipient's interests and needs.

Conclusion:

While precise increases in open rates can vary depending on the industry, audience, and campaign specifics, it is clear that repeated mailings significantly improve overall engagement. The practice of mailing marketing materials three times to the same address can lead to a marked increase in open rates and response rates, thereby enhancing the effectiveness of direct mail campaigns.

Learn more about AccuZIP’s role in the direct mail service you offer.