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Top 7 Statistics For Direct Mail in 2017

Top 7 Statistics For Direct Mail in 2017

With the business world about to enter into the last quarter of the year, it is a good time to take stock of direct mail’s effectiveness in 2017 so far. Although the volume of direct mail went down last year, direct mail garnered a larger percentage of all mail. With technology and other tools to improve the timing of direct mail, this year’s statistics have shown that direct mail is not only still relevant in the marketing world, but that it is, in fact, one of the most successful channels available to marketers. Here are the top seven statistics for this year so far.

Household Response Rates Are at 5.1%

Yes, that decimal is in the right spot. According to compu-mail, direct mail has earned the highest response rate, with email and paid search at .6%, social media at .4%, and online display at .2%. Part of the reason why response rates are so high with direct mail is an increase in tools and information through technology that has enabled well-timed and personalized direct mail marketing campaigns.

77% of People Sort Through Their Mail

Many marketers are finding it difficult to get prospects to open emails. I personally usually delete without even looking any extraneous emails and promotions. It has just become routine, which is unfortunate for marketers, for I can only imagine how many other people are like me. Average open rates are typically below 20% in comparison to mail. I for one always sort through my mail, and when I see something that stands out, I usually take a few seconds to see what it is, which bodes well for direct mail.

Every $167 Spent On Direct Mail Resulted in $2,095 Of Sold Goods

I believe that ROI speaks for itself, but one must ask what industries reaped the most benefit from direct mail. The largest users of direct mail include companies that offer financial services and also consumer packaged goods. With print still playing such a large role in marketing, coupled with cost-effective green methods of print, one can only imagine that direct mail will still be a major component of marketing campaigns going forward.

98% of Consumers Bring Their Mail In The Day It’s Delivered

Many are concerned that after putting all of the effort to create a personalized direct mail piece that it will just end up in the trash with the rest of the junk mail. If it does, it is probably not due to a diminishing trend in the public’s responsiveness to direct mail, but rather the direct mail piece itself missing the mark. As the above statistics provided by the U.S. Postal Service exemplifies, whatever you send out will get eyes on it. Whatever happens after will, for the most part, be within your power to control.

Customer Response Rates Increased Year-Over-Year by 48%

Companies who have never thought of using direct mail would be smart to start considering using it as one of their marketing channels. Not only did customer response rates increased, but prospective response rates more than doubled with a reported 190% increase. As noted by the DMA, this is in part due to the “pairing of mailings with digital intelligence. “

Adding A Person’s Name and Color Can Boost Response Rates By 135%

We have discussed the importance of personalization time and time again, and if for some reason you didn’t believe it before, then perhaps this statistic can lend some credence to this idea. Personalization, particularly with the introduction of variable data printing, is now within reach of most budgets. And in turn, can improve your ROI, and make the money you spend go a greater distance.

Print Is 43% Less Annoying than the Internet

Bottomline, we all hate spam. I for one get irritated when advertising videos start on websites yet it is nearly impossible for me to find it to shut it off. Many of us have become blind and aggressively against online advertising in many ways. That is why direct mail is refreshing to most since it is usually personalized, relevant, and recognized as something that took a lot of effort on the part of the company sending it. This makes the consumer feel important and valued, which at the end of the day, is just good marketing.

How To Define The Best Target Market For Your Direct Mail Campaign

Defining the Best Target Market for Your Direct Mail Campaign

Whether you have identified a potentially lucrative part of the market you want to target, or you simply want to grow your customer base, doing the groundwork before you launch your direct mail campaign can be the difference between a positive and a negative ROI. One of the first things you should do is start with what you know.

 

Analyzing Your Current Customers  

 

Even if you are targeting a new target market, you should not disregard what you know about your current customers. These people have already purchased your product. To get more customers, you should compile details regarding past customers such as what area many of them are living in. If you can identify some key ZIP codes that stand apart, you can look up information through the Census Bureau to get other pieces of data such as average household income and age.  

 

Purchasing A Targeted List

 

To supplement any in-house research you do, you can then take it a step further and acquire a list compiled by a third-party company. These lists can usually be broken down by certain demographics so you only get the most relevant people to target. These lists can be targeted down to fathers with children under the age of 5 with a bachelor’s degree. You can get even deeper, such as if they own a home, and have a credit card.

 

Crafting Copy and Design That Is Successful

 

At first, you will probably be doing some guessing in regards to any new target markets. However, you can educate your guess with what you know about your current customers, and infer what will be attractive to this new market. Once you have a clear picture of this target market, you can do a smaller campaign to test the waters at a reasonable price. As you collect this new data, you can start to change the campaign so that you can improve your ROI.

 

However, not only do you need to be targeting the right people, but you need to take some time to determine what kind of copy and design will be the most successful. You want to not only make it eye catching so it stands out, but also have a concise message with a clear call-to-action. You will at most have 3 to 5 seconds to get your message across. So whatever you decide to go with, you need to make it count. To get an idea of what you can do with your budget, contact One Stop Mail to get a quote for your specific project.   

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Specialty Envelopes: Beyond Your Average #10

 

If you have ever had to send correspondence to someone or mail billing, then you are familiar with the #10 size envelope. To many, when someone says envelope, that is the first image that comes to mind. However, envelopes come in many different shapes and sizes. Each one has a specific purpose, allowing its shape and size to suggest its purpose. In this article, we will cover different envelope styles and how they can be put to use.

 

Outside of the #10 Envelope

So we already know everything about #10 envelopes, which is the most common used size of commercial envelopes. Businesses typically use these envelopes, and they range in size from #5, smallest, to #14, the largest. They are open sided, and may or may not contain a window on the front.

Then there is the A-Style. The “A” stands for “announcement.” They can come in two forms: either with a deep pointed flap or a shorter flat flap.They are usually used for special announcements, whether that be business related or more personal. They can also be used for photographs, small booklets, and greeting cards.

Another familiar envelope style is the catalog. It is the standard mailing envelope for important documents such as reports, folders, and contracts. If you are like me, when I hear Manila envelope, these are the kind of envelopes I think of. They are typically open on the short side of the envelope and may have a flexible piece of metal to hold the flap in place or a mount to tie it shut.

Similar to catalog but different in its own respects, the booklet style. These kinds of envelopes are typically used for magazines, catalogs, booklets, media kits, and other multi-page documents. They are open ended on the long side of the envelope and have some sort of sealant to close the flap.  

The final two envelope styles we will cover are remittance and donation. Remittance envelopes have large flats and are used to hold private information like credit card numbers or other private documents. Donation envelopes also referred to as offering, pew, or tithe envelopes, are a cheap way to collect donations. These are most prominently used by religious organizations and nonprofits and cannot be mailed.   

 

Direct Mail and Other Use Cases  

 

Marketers should carefully consider the envelope that will contain their marketing materials. After pouring over every detail of that document, you should not put it in something that is not equal in quality. As you can see, there are a lot of different options. Whether you want to attract attention by using a different style than the standard commercial envelope, or you want to spruce up a commercial envelope to stand out, One Stop Mail can put to use its own in-house envelope printer to fit your marketing needs.

The use of envelopes doesn’t stop there. Perhaps you are in real estate and need to send an important property notice that is time sensitive, or perhaps you own an auto care shop and want to make car drop offs more convenient for your customers. Envelopes have many other use cases outside of mail. With the ability to fully customize them to your needs, consider them as a solution to improve customer service, or increase the efficiency of how you handle day-to-day business.

 

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Branding or Marketing?

Branding or Marketing?

 

Anytime you’re creating a new marketing campaign you find yourself asking a sleuth of questions. Will the objective of your campaign be to increase brand’s reach, acquire new customers, monetize your existing customer base or if you’re like most– are you unsure of what to expect? Understanding the difference and setting the correct expectations will infinitely improve mediocre advertising tactics and allow you to make the most of any campaign.

 

What’s the Objective?

 

If your marketing department functions like most, you’ve got an annual budget and department expectations that were established by upper management during the latter end of the previous year. We’re past the halfway mark and now the pressure is on, we need results. One of the most frequent questions we get is, what’s the difference between branding and marketing?

 

Brand Awareness – Think billboards. You’re driving on the freeway and see a catchy ad with cows telling you to eat more chicken. Some drivers familiar with the brand will get a laugh out of the billboard while others unfamiliar with the brand may connect the logo with a restaurant they see occasionally. The goal of this marketing method is to increase awareness and be visible to as many people as possible. Strictly defined sales goals are not to be expected of this method and more often than not, you won’t see strict tracking methods implemented with brand awareness campaigns.

 

Marketing – If the name doesn’t say it loud enough, direct action result based campaigns strive to provide a trackable increase in conversions. Whether the conversion metric is more newsletter signups or an X increase in new customers that translates into a Y increase in revenue, your campaign has set expectations and goals. Examples of these campaigns include coupons, limited time offers and opt-in campaigns.

 

Branding 

 

Increasing brand awareness may nearly impossible to correlate with monetization. For branding, reaching new, existing and potential customers is the objective. An example of an awareness through conversion cycle for a brand awareness campaign can look start with a direct mail postcard or billboard ad designed to peak your interest.

 

Fictitious pizza chain Chewy’s Pizza has been experiencing a slump in sales for nearly a decade. A focus group has revealed the brand’s image is struggling due to its low-quality pizza’s and sub-par taste. The pizza chain has decided to revamp its entire operation and will now use high-quality ingredients and focus on an artisan pizza rather than provide a bottom dollar product. The general perception of the brand needs to improve. Chewy’s Pizza runs radio ads, tv commercials and send postcard mailers to all homes within a 4-mile radius of a franchise in each market.

 

The advertisements emphasize a brand revitalization and commitment to top quality ingredients and taste. The messaging directs people to pizzamatters.com, a website the Chewy’s Pizza created to build value and modify existing perception of the brand. The company is monitoring campaign impact by keeping a close tab on the amount of unique and return visitors to the website. A conversion will be counted anytime an individual watches a video about the company’s new image or signs up for the mailing list.

 

Marketing

 

For many SMB’s it is crucial to understand if a marketing effort is profitable, has the potential to become profitable or perhaps it’s a complete wash. Direct action result based campaigns strive to provide a short customer monetization cycle with a trackable value tied to each conversion. The ideal way to track campaign effectiveness is to use a variety of calls-to-action and tracking methods that will simplify the how the results can be segmented.

 

Fictitious company Lazer manufactures computers and computer peripherals. The company has 50,000 addresses of previous customers but is having a difficult time engaging its fan base through emails and social media. Robert, Lazers sales director, has been tasked with spearheading a sale in an effort move stagnant inventory and make room for upcoming new products. The company decides to mail a scratch to win postcard to all previous customers. The direct mail marketing postcard offers vary with incentives ranging from 5%-50% discounts and a select few postcards have online-store gift cards or free item redemption codes.

 

The offer codes needed to redeem the incentives will allow Lazer to track how many customers redeemed offers, the campaign participants’ average spend if individuals purchased additional products and additional data to determine lifetime customer value and the potential for future monetization. Data shows Lazer that the campaign was able to provide a significant increase in revenue and was able to re-engage previous customers who had not made purchases in a long period of time.

 

Which Do I Use?

 

Although branding and marketing can function in tandem, it is important to understand the difference in order to craft a successful advertising campaign. If your goal is to spread the word far and wide, branding could be the best solution to your advertising woes. Marketing campaigns have the benefit of being incentive based and allow time constraints to increase urgency. Next week we will discuss the difference between good offer and a fantastic one.

 

 

This article is part 1 of a 4 part series covering:

Branding or Marketing?

What Makes an Offer Irresistible?

Direct Mail Tracking Methods

Crafting a Successful Direct Mail Campaign

Every Door Direct Mail – New Expanded Features!

 

If your company currently uses direct mail, the US Postal Service has just introduced a great new tool to increase the effectiveness of your campaigns. Or if you’re not currently doing mail campaigns, this may give you an added incentive to give direct mail a try.

The new initiative is called Every Door Direct Mail (EDDM) and it adds significant ability to research and customize your mail delivery before even finalizing the mailer.  And the best part is, it’s totally free to use, aside from the standard postal fees, of course.

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