All things digital may be what’s sexy today, but the longstanding channel of direct mail is still a highly effective one. In fact, according to Winterberry Group, direct mail spending is projected to increase 1.1% to $44.5 billion in 2014.
When done well (think: personalized, distinctive, persuasive), direct mail captivates customers and compels them to action. In some cases, as with the IKEA catalog, customers even keep direct mail pieces around to peruse at their leisure. Even so, it’s not uncommon for digital enthusiasts to declare the death of direct mail. So, Direct Marketing News asked several industry insiders, What’s one common misconception about direct mail marketing, and what’s the reality? Here, they share their views on direct marketing myths and truths.
GARY REBLIN, VP, new products and innovation, USPS
The misconception is that direct mail is old-school, too expensive, and ignored. The reality is quite the opposite. Mail is evolving and can drive purchasing using new technology. By using new mobile and digital technologies to enhance the experience of sending and receiving hardcopy mail, marketers can create an experience that no other advertising method can deliver. Currently, more than half of catalogers use QR codes to drive consumer purchases. Technology can combine the immediacy of digital media with the powerful personal touch that only mail provides. When comparing upfront costs, search and social campaigns may be appealing, but it’s the ROI that counts—and that’s the true value of using direct mail, especially for small and local businesses with targeted audiences to reach. Not everyone wants to use the Internet for everything. And, it’s hard to ignore something tangible that’s held in your hand.
STEPHANIE MILLER, VP, member relations, and chief listening officer, Direct Marketing Association
Myth: Direct mail is unnecessary, outmoded, and old-fashioned.
Reality: Wrong on all three counts.
1. Direct mail works. People read postal mail and catalogs at rates higher than email. Social media and digital technology may be in the spotlight, but DMA research shows that ROI from direct mail outpaces the success of its digital and social cousins.
2. Direct mail is relevant. Direct mail is the mother of all data-driven marketing. All the great things we do in digital to segment, target, customize, time, and measure our media, messaging, and more, we learned from our direct mail experience.
3. Direct mail is “today.” With modern data management and automation tools, we can now integrate Web (pURLS), mobile (QR codes, app alerts), and email to earn an integrated marketing ROI boost in all channels.
MIKE ERTEL, EVP, Sales and marketing, IWCO Direct
A misconception remains in some circles that direct mail costs too much. In reality it’s one of the most strategic investments you can make. Although direct mail may not be able to compete with digital channels from a per-unit cost perspective, the conventional wisdom that you get what you pay for certainly applies. When you focus on what truly matters—response rates and the ROI of your marketing spend—direct mail remains the most effective channel available. Savvy marketers who are taking advantage of four-color digital inkjet technology, complex data segmentation, and innovative formats are achieving significant, measureable results. What’s more, multivariate testing allows marketers to continually improve their offers by identifying what elements drive the best response among key customer segments. Whether you’re measuring gross response rates, cost-per-lead, conversion rates, or lifetime value, direct mail is one of the most cost-effective marketing investments available.
RAYMOND CHIN, VP, Product management and marketing, GrayHair Software Inc.
We routinely work with experienced direct marketing professionals on campaign response analysis, including test cells. What we find is that seasoned professionals understand the impact of copy, targeted A/B splits, managing colors or artwork, and demographic and geographic segments, but rarely do they fully understand the impact of their deliverability intelligence factors.
Undeliverable mail plagues all mail lists and marketing campaigns, but marketers rarely request the optional services in the Intelligent Mail barcode (IMb) to track the deliverability of their mail pieces. This tracking information, coupled with normal marketing methods, is one of the most powerful insights into the effectiveness of direct mail campaigns. Knowing if mail pieces are destroyed, mishandled, returned, forwarded, or undelivered are key metrics available today.
The best mail piece with the best tagline using the most colorful elements is of no value if the mail piece is not delivered or is delivered outside of a targeted In-Home window.
KIM MAUCH, Postal Product Specialist, Satori Software
Younger generations (generation Y, millennials) have a reputation for immersion in digital technology that fosters the misconception they don’t value or respond to direct mail marketing. However, many marketing tests show that these generations are actually more likely to respond to direct mail marketing than online forms of advertising. A well-designed mail piece that targets their interests, has a compelling offer, and a strong call-to-action will be more effective than an email, which can easily be deleted or caught by an email filter. Because these consumers are more sophisticated, using advanced mail piece design like print-to-mobile technology, modern colors and layout, and innovative folds will attract more attention.
CLIF MCDOUGALL, VP, marketing and business development, Com-Pak Services
There’s a common misconception that email and social media work better than direct mail to acquire new customers.
A Direct Marketing Association study reports that direct mail is 10 to 30 times more effective than email. The study noted that 34 out of 1,000 customers responded to direct mail, while just one out of 1,000 customers responded to email.
When done right, direct mail is one of the most effective channels through which marketers acquire new customers. You can send targeted, relevant direct mail to anyone with a mailing address. People generally trust direct mail, know how to respond to a direct mail offer, and don’t need the technological savvy required by email or social media platforms. These are the major reasons direct mail works.
DEBBIE PFEIFFER, President, Pitney Bowes Presort Services
Today, the combination of channel complexity, information overload, and newfound competition has made it challenging for marketers to engage customers in effective, cost-efficient ways. Successful marketers have found that direct mail continues to achieve significantly high response rates and has emerged as a trusted and proven communication channel. As part of a broader campaign, direct mail can create impact, deliver relevancy, boost response rates, and drive solid business results.
A big misconception is that with the declining volume of First-Class Mail, direct mail marketing is also declining and is being replaced by email and other digital marketing. In reality, delivering marketing messages via multiple channels, including direct mail marketing will increase the return on an organization’s marketing investment.
Because successful marketing teams understand this, Standard Mail volumes—the class primarily used for direct mail—hasn’t declined at the same pace as First-Class Mail. New technology and process innovation in presort services and logistics management make Standard Mail a proven, results-oriented channel built to optimize your marketing strategy.
PATRICK BEDDOR, National Sales Manager, Japs-Olson Company
A big misconception is that direct mail marketing is no longer relevant. But a quick look in your mailbox will prove that direct mail is alive and well. In fact, it’s still the foundation of direct marketing campaigns and it supports other direct marketing channels. As a result, direct mail has surged in many business sectors.
Market research expert Mintel Comperemedia’s data shows that traditionally high mailing sectors like auto and telecom both saw 8% growth in direct mail volume over the past year, with more compelling big jumps in mortgage and loan (45%) and credit cards (22%). The USPS also reports a 3% growth in business mail (i.e. Standard Mail).
Innovation with direct mail continues. With new technology like the tactile interaction of different coatings (gloss, velvet, and leather), the impact on purchases is quantifiable. Today’s direct marketing communication channels have become more diverse, but statistics show that direct mail is as relevant as ever.
GREG BROWN, VP, marketing, Melissa Data Corp.
One common misconception about direct mail marketing is that it’s all about driving immediate sales. Of course direct mail is a sales medium, but it also helps in building a brand, acquiring leads, and strengthening existing relationships. We use direct mail for all these reasons; it’s a perfect complement to our online efforts. Online, we’re looking to reach active shoppers, whereas with direct mail we’re trying to leverage its full potential to create awareness about our products, initiate a deeper engagement with our company, and, of course, guide consumers along the path to a sale.
VIN GUPTA, Founder and CEO, DatabaseUSA
Most people think direct mail is too expensive and ineffective. However, our experience has been that direct mail is still more effective than email. People are inundated daily with emails and are tired of them. Direct mail sits on people’s desks for a long time, becomes a reminder, and in turn, brings results for a long time. Obviously, email has its place—but don’t discontinue direct mail.
PAUL ERCOLINO, President, US Monitor
There are many myths that impact every facet of direct mail marketing, including the factors that impact deliverability. One major myth is that when you send out a direct mail campaign, all the mail is delivered to your anticipated recipients on time. The truth is: Not all your mail gets where it’s supposed to go. Even when it does, sometimes it gets there too late to do you any good. Mailers who have a clear view of how their mail deliveries behave, such as the time they reach different parts of the country, can anticipate what delays are going to do to their campaigns. Today, direct mail doesn’t have to be a send-it-and-forget-it proposition. Between the IMb, mail seeds, and a strong mail monitoring strategy, mailers have the power to follow their mail’s journey through the mail stream from drop off to delivery.
