Why Direct Mail Marketing Strategy Matters
Direct Mail is Effective
It can’t be said often enough: direct mail works.
How do we know? Check out these direct mail statistics:
- According to the ANA/DMA Response Report, house lists produced a 9% response with direct mail, while prospect lists achieved a 5% return.
- Direct mail requires 21% less cognitive effort to process than digital media, says a study by market research firm True Impact. Therefore, it’s easier to understand and more memorable.
- In 2020, only 12.9% of fundraising came from online donations in 2020, according to data in the most recent Blackbaud Institute Charitable Giving Report. This means that 87% of giving comes from offline sources – like mail.
How to Build a Direct Mail Marketing Strategy That Works
Let’s face it: you just can’t jump in without knowing many (or all) of the most important details that will ensure that your resources (people, money, time) aren’t going to be wasted.
To use direct mail in your campaign, you must come up with a plan and then put it into practice. Every part of your plan should demonstrate a complete understanding of your intended audience, the product or service being promoted, and the specific message of the campaign.
Establish Your Objectives
What is the goal of your campaign? Sometimes there may be more than one answer. But your basic choices are:
- Acquire new customers
- Generate or convert leads
- Sell to existing or past customers
- Cross-sell to customers
Depending on your objective, you may have different audiences. Or you may opt for a mass or saturation mailing that targets everyone.
But it’s more likely that you’ll want to target specific groups of people who have something in common, like geography, demographics, behavior, and lifestyle. With a segmentation strategy, you improve your direct mail response by tailoring your offers, copy, and more for better engagement.
Prepare Your Data
What mailing list will you use? Along with the offer, that’s the most crucial factor in the success of your direct mail marketing strategy.
The direct mail data you use is vital in targeting segments or customers on a 1-to-1 basis. So you need to ensure that it:
- Has been de-duped
- Was recently updated through USPS NCOA (National Change of Address) in the last 90 days
- Is CASS (Coding Accuracy Support System)-certified to include only correct addresses
Find the Right Direct Mail Service Provider
Can just any company out there take care of everything you need in the production process? No, not really.
You have questions – hopefully lots of them – so consult a checklist of what to look for in direct mail services to find the right fit. Getting these crucial details settled frees up your time to focus on strategy and tactics.
After you have firmed up a campaign plan for your direct mail marketing strategy, it’s time to make some big decisions that put it in action.
Create Your Offer
Do you have a strong offer? It’s a really important question. Because even a beautiful mail piece sent to the perfect audience will fail unless the offer is right.
The basic requirement of a direct mail offer is to successfully answer “What’s in it for me?” There are dozens, if not hundreds, of proven offers, such as:
- Free trial
- Money-back guarantee
- Free gift
- Introductory price
- Early-bird discount
- Mystery discount
- Free sample
- Limited-time offer
- Buy one, get one free
- Free shipping
Choose the Right Format
Is the design of your mail piece easy for your prospects to understand and act on? Each of the three main direct mail formats brings unique strengths to any discussion when planning.
- Postcards – Economical, focus recipient on simple message
- Folded Self-Mailers – Versatile and visually-engaging with more room for offers and information
- Envelopes – Hold several components to support the offer; can be more personal as well as protect data and offer confidentiality
Maximize Your Reach
Are you doing everything you can to reach your right audience? Under perfect conditions, such as a generous marketing budget, you’d be able to mail to whatever segments or individuals you wish.
In the real world, however, you need to think about tradeoffs among factors that may expand your campaign’s reach. For example:
- Postage – Moving from First Class to Marketing Mail saves money, allowing you to expand your target audience
- Frequency – Segmenting your audience using RFM analysis helps you mail more often to profitable customers
- Channels – Increasing your impact by using QR codes, PURLs, Facebook, and other digital media to be visible to your targets wherever they are
After your campaign has rolled out, you should start to see results. If your campaign generates incredible ROI and success beyond your wildest expectations – that’s great!
Otherwise, consider all of the factors that went into it. Use them as models and tweak them until you get them operating at optimum profitability.
Invest in Automation
At a basic level, automation improves on the usual manual process to send direct mail campaigns. You simply make any changes to an existing template or upload a new mailer to a completely automated CRM system, just as you would with an email campaign.
However, at a more advanced level, automation operates across channels by sending direct mail based on event- or behavior-based triggers. Data flows from point-of-capture (e.g., website visits, abandoned carts) into your CRM for printing and entry into the USPS mailstream.
With automation, your mail can be more economical, targeted, faster, and relevant.
Improve Your Data
Getting the most from your data is an ongoing challenge and process. Besides the steps mentioned above, additional steps can be taken that improve efficiency, increase accuracy, and drive down your postage and printing costs.
- Examine your direct mail campaign response – Who is responding and where?
- Pre-sort your mail – This saves the post office (and you) time and money
- Personalize addressee names, images, and offers with VDP to make the more relevant and improve response
Lower Your Direct Mail Costs
To make sure your direct mail campaign is in top form, add up all of the expenses, such as:
- creative (writing and design)
- list rentals
This gives you a starting point for deciding what options you have. Depending on the complexity of the piece, the audience, the USPS mail class, and many other factors, your results can vary widely. And by the way, testing many of these factors may reveal a way to reduce costs while not harming either response or ROI.