How to Knock Direct Mail Out of the Park
Is direct mail dying or doing better than ever? Depending on who you ask, you’re likely to get wildly different answers. The reason comes down to a problem that plagues economic analysis more broadly: what statistics do you look at; and how do you interpret them?
This article is about how to take your direct mail campaigns from good to great, but before we get there, I think it’s important to dig a little into this question on the popularity of direct mail because it puts the topic in context. And it sets the stage for the state of direct mail and its viability as a marketing strategy worthy of your time and attention.
So, let’s get into the numbers…
The Numbers
We’re interested in four numbers here. We want to know how much total mail volume has increased or decreased in the past decade or so, how much direct mail volume has increased or decreased in the same time, and how much each is set to increase or decrease in the near future. In trying to predict the future one might be inclined to simply extrapolate from the past but, once again, it’s not that simple.
From 2006 to 2017, the total volume of mail in the U.S. decreased steadily and consistently from 213.1 billion to 149.1 billion.1 That’s a 30% decrease. In other words, we’re looking at a strong trend away from snail mail in general. That would line up with the broadly shared general sentiment that we are moving away from analog means of communication.
Next number: Direct mail volume. Along with the decline of total mail volume, direct mail volume headed down starting in 2006. From 2006 to 2010, direct mail had a compound annual growth rate of -5.5%.2 But starting in 2012 direct mail started making a modest comeback, or at the very least a stabilization. Experts say the signs are good and we can expect direct mail volume to steadily increase. Some estimates spout numbers as high as an average annual growth of 4% to 5%.3
So what can we make of this incongruity between decreasing total mail volume but increasing direct mail volume? Well, there is one more number we should talk about, and that’s direct mail response rate. One source clocks the increase in response rates of direct mail between 2006 and 2018 at 173%-194%.3 There’s no overstating the significance of this stat, especially in conjunction with the fact that total mail volume decreased over this same time frame. In a time when less mail is going out, direct mail response rate is climbing.
Combine that fact with the optimistic outlook for direct mail volume in the next few years and you’ve got a strong case for the value of direct mail today.
The Reason
So, let’s assume that by this point I’ve convinced you that direct mail is on the rise and direct mail has been and continues to be a high-performing marketing strategy. The next question to ask is: why?
Why is it that in the 21st century, the Digital Age, people are increasingly responding favorably to humble little pieces of marketing that arrive by physical truckloads to their physical mailbox?
It’s a matter of perceived value. The more communication becomes digital, the more analog communication stands out. You see this phenomenon everywhere. Texting is commonplace, so calling has become more meaningful. An e-mail from a relative is normal; a hand-written letter from a relative feels substantial. We find Facebook invites acceptable for ordinary affairs, but monumental affairs like weddings require personalized physical invites.
This phenomenon extends to marketing communication. Hence, the power of direct mail in the 21st century. People find mail pieces more engaging, trustworthy, and memorable than their electronically delivered counterparts. There are studies to back this idea up. A 2017 study by USPS found the parts of our brains that control motivational response are 20% more engaged when we view physical advertising.4
Don’t think for a second that these effects are limited to the older generations. In fact, millennials, who are arguably the most plugged into digital communication methods, are perhaps even more swayed by analog advertising. That same USPS study found that 90% of millennials believe direct mail advertising to be reliable and 64% would rather scan mail for useful information than e-mail.
The facts are in, direct mail is worth paying attention to. But that doesn’t mean all direct mail strategies are created equal. Let’s look at how you can improve your direct mail campaigns to take advantage of this direct mail golden age.
The How
I want to touch on four actionable ideas for how you can make your direct mail campaigns pack a bigger punch.
- Practice Good Data Curation Habits: Your customer database is the cornerstone of your direct mail campaigns. Make it a priority. Keep it accurate, up to date, and organized. The more data points you can collect on your customers, the more options you have for deeper personalization. But, don’t think that you need the full gamut of customer data points for effective direct mail. With creative thinking, you can do so much with just an address and a name. For example, a bank with a new branch opening could send out mailers that include a personalized map showing the receiver the route from their home to the new location. That’s using a single data point to create a highly personalized and visceral experience.
- When in Doubt, Personalize: When designing your next direct mail campaign, the question is not whether to include personalization, but rather, how much. People expect personalization in the marketing messaging they receive online so marketing that arrives at their door better be personalized too, or it will come across as outdated and, well, impersonal. New technologies involving variable data and digital printing (more on digital print here) have opened a whole new world of possibilities for direct mail personalization. For example, a holiday mailer could be customized with gift ideas generated based on what the customer has previously purchased online.
- Integrate Your Channels: Single-channel marketing campaigns won’t cut it anymore. If you want to see real results, you’ve got to find ways to integrate your various marketing channels. When direct mail works in tandem with online marketing, they both deliver superior results. A simple example of this would be using customer activity online as a trigger for a direct mail campaign. Even simpler, try coordinating your email, social, and direct mail campaigns to deliver similar messages and offers within a specific time frame.
- Always Be Testing: Regardless of what your direct mail campaigns look like, you should always be testing alternative copy, imagery, timing, and so forth. How your campaigns are trackable and testable should be a central consideration. Unique promo codes, landing pages, and QR codes are all great tools for tracking the success of your campaigns.
The Conclusion
There are more ways to design a direct mail campaign today than ever before, thanks to variable data printing, improved methods of collecting and sifting customer data, and new possibilities for multi-channel integration. But don’t let all the options paralyze you. The most important thing to take away from this article is that direct mail isn’t going anywhere. In a world hyper-saturated with digital messaging, analog marketing stands out from the crowd in a good way. The market is there, and the possibilities are rich.
Sources:
1. https://www.themailshark.com/resources/articles/is-direct-mail-dead/
2. https://documentmedia.com/article-2555-The-Comeback-of-Direct-Mail.html
3. https://www.cmocouncil.org/data/files/npes/direct-mail-executive-synopsis.pdf
4. http://www.lendingsciencedm.com/how-millennials-respond-direct-mail/
