In a world heavily reliant on online communications and digital marketing, it is easy to forget the impact and importance of direct mail. In fact, recent data suggests it’s still very much a powerful tool to reach your target audience with.
A recent survey from PFL showed 83% of marketers reported a ‘very good’ ROI when Direct Mail was integrated into their multichannel campaign mix. Interestingly, over half of the PFL respondents reported that ROI delivered a ‘moderate to major’ improvement in overall campaign performance. When the direct mail content is personalised, the figure rises to 89%.
As impressive are the response rates direct mail garners. Looking at prospects alone, the response rate for direct mail was 2.9%, with direct mail sent to houses achieving a 5.3% response rate. By comparison, the average response rate for email campaigns sits somewhere around the 0.6% mark. A significant difference.
Looking at how Direct Mail performs against social media and email in boosting terms, perhaps surprisingly online display and paid search lag behind direct mail for median ROI. For median ROI, direct mail is at around 29% which puts it a respectable 3rd behind Email (124%) and Social Media (30%). Taking into consideration the fact that median ROI for paid search is 23% and even lower at 16% for online display, maybe direct mail isn’t as archaic as some may be led to believe.
Scrutinising direct mail even further, it’s interesting to analyse the specific types of direct mail pieces that are being favoured by marketers. Postcards are the most popular format at 55% with letters trailing just slightly behind at 52%. These forms are great for communicating with your target audience but in terms of demonstrating brand value, dimensional mail is by far the most successful tactic. Why? Because a dimensional direct mail piece, or indeed any direct mail piece, is more tangible and interactive than an online campaign. In terms of an emotional response, it’s certainly more memorable for the recipient.
But perhaps Direct Mails biggest advantage over online channels is it’s lack of competition in the recipients mailbox. The findings from the PFL study demonstrated that only 56% of marketers use direct mail in a multichannel campaign. In spite of this, 78% of them listed personalised direct mail as the second most effective channel for engaging their target demographic.
So whilst it’s clear Direct Mail still has so much to offer, why the increasing perception online channels are superior? The response rates tell a different story, a story that we’re only to happy to bang the drum about.
Thanks for taking the time to read this piece on Direct Mail. If you need any further info or would like to talk to us about your mailing campaigns, feel free to contact us on our office number: 01189 474 888 or alternatively, email us at enquiries@heraldchase.com
