Now that there is such a thing as digital marketing, many companies have decided to leave the days of direct mail in the past. Many make the argument that printing and sending money is a waste of money and materials. Why spend all that money when you can just create an email campaign?
Although it is true that on average, people spend four hours a day on their phones, there are still many advantages to using direct mail. Here are our top four!
- Improves trust in your brand.
When you get an email campaign from a company how often do you actually open it? A large majority of them just end up in spam anyways. When you send printed mail, it shows the potential customer that you are a real company with real products. You’re not just some spammy company looking to steal their credit card information. Being able to hold your brochure in their hands and see your logo and contact information builds trust in your company.
- Boosts recognition.
71% of consumers will buy a product or service just because they’ve seen the brand. Sending direct mail starts the process of making that brand recognition. Even if they don’t open it, they’ll notice your company name and logo. So, while you might not be reaching as many people as you could via email, the people you are reaching are spending a lot more time looking at your brand.
The next time they need your service or product, they’ll think of you. That’s what you want, isn’t it!?
- Makes it personal.
Most of us have email boxes that are busting at the seams. We get email campaigns for anything and everything. Even if those emails use your personal name or are written “specifically” for you, you know they were sent from a template. With direct marketing, you have infinitely more personalization options. You can narrow down your target audience, personally sign the cards, and make the receiver feel that much more special.
- Improves your chances of getting a response.
There are various studies that show direct mail getting more responses than emails. Yes, you heard that right! Emails generally have a response rate of 0.12% and direct mail has a response rate of 4.4%. Why is this? The exact reason half of us don’t check our emails… there are far too many spammy emails in there.
Is Direct Mail Effective?
Have you ever wondered what the average response rate is when sending out a direct mail piece? You may have heard that a 2% response rate is an expected average after sending a direct mail piece. Well, as we just learned, studies show that the average response rate is closer to 4%. But it’s important to understand the applications and situations before you try to predict your response rate.
A 2% response rate is a good approximation if:
- You are reaching out to an outside mailing list instead of your current customer base. The people on outside mailing lists have no relationship with you and therefore are considered a cold call list. You may have an uphill battle when it comes to generating a response.
- You are using a free offer that requires little commitment on the part of your audience. Free offers are central to all lead generation campaigns. The concept is simple: you create a free report or white paper on a topic closely related to what you sell. You then offer the report to your target audience – and the people who are interested in the topic will respond. These leads are then considered potential customers.
Because these offers are free, you can expect more people to respond.
Of course, even if these two factors are in place, remember 2% is just the average. You could see a response rate of 1% or lower, which is very likely. You could also see a response as 3-5% – which is very unlikely.
A 2% response rate isn’t as accurate of an approximation if:
- Instead of mailing to an outside list, mail to your house list of previous responders, and you can expect a higher response rate. You could possibly even see much higher than 2% return. This is due to the fact that the people on your house list already know you andhave already demonstrated some interest in your topic.
In direct marketing, they say, “the profit is in the list”. This is how catalog and other mail order businesses make their money, by repeat mailings to their house list.
- If instead of using a free offer, use a price offer. You can expect to see a lower response rate – often fractions of 1 per cent. This is the difference between order generation and lead generation. In order generation, you are expecting an actual order in the form of a payment or an agreement to pay.
Even if the price is low (or discounted or spread out in payments over time), price is a barrier to high response rates. It’s not unheard of to see response rates as low as 1/10 of 1% (.001).
So what does all this mean?
Consistency is key and continuing to communicate with good prospects as well as existing customers in different ways is always a good practice. It takes 9 to 11 times for a prospect to see your name to recall it or pay attention to you. Be diligent and stay committed and you will reap the benefits!
Looking for a local print shop in Greenfield, IN? You’re in the right place! Davant Indy can help with all of your printing, signage, or promotional product needs. Just give us a call at (317) 849-6565 or upload your file HERE. Happy mailing and happy selling!