Direct mail marketing campaigns have proven to be as relevant as ever. As of 2020, over 96% of people engage with direct mail, according to data from DNA, compared to 20-30% opening emails. With many brands using direct mail as one of their primary channels, standing out from the crowd with direct mail has become more important than ever.
Regarding design, we've previously shared some tips to make your direct mail look great and perform better, but there's more to running a direct mail campaign than simply design.
Our guide covers what direct mail advertising is, why they still work, and the do's and don'ts when running a campaign.
Direct mail advertising is a type of marketing that involves sending physical mailers to potential customers. Direct mail includes postcards, flyers, coupons, or catalogues. Direct mail offers several advantages over other forms of marketing, such as targeting a specific audience and tracking results. Additionally, direct mail pieces are often more personalized than other types of advertising, which can help to increase response rates.
Major brands use direct mail as a successful channel in their overall marketing efforts. They send existing and potential new customers ads through the mail that are enticing enough to convert. From discount codes, preview offers, and more.
42.2% of people who get direct mail say they read or scan the mail they receive, according to the Data and Marketing Association which is far higher than any data from email campaigns. With nearly half of your participants reading or scan-reading your direct mail, direct mail marketing is pretty compelling.
According to DMA, 92% of people who receive direct mail are driven online to complete a digital activity, and 87% are influenced to make an online purchase; the stats still support the notion that direct mail marketing is highly effective.
It is essential to note direct mail suits some industries more than others.
Direct mail marketing is only as effective as the offer and the audience they're reaching. The campaign will definitely succeed if the data is more accurate and the offer is strong.
So, why do direct mail campaigns still work despite the explosion of digital marketing and consumers spending more time online than ever before?
First, you'll need to work out what your campaign will be and who your audience is. Research your audience- are you approaching the audience from a geolocation angle? Is the offer universal, or will you attract a broad audience?
Considering who will receive the direct mail first is essential for measuring the overall campaign's success.
After carefully planning a message and deciding on the best audience, brands must prepare their mailing list or the area they're handing out flyers. There are a few options at this point, working with a flyer distribution company that will work on behalf of the brand, either offering an H2H service or a direct postal mail service.
Now comes design! Create some engaging and fun copy to go with great imagery. Some brands let the direct mail distribution company design their ads, whereas others like the creative process. Don't forget to allow for white space too.
Lastly, after choosing the right size for the mail campaign and having it proofed, it will be printed and distributed.
As with any marketing campaign, the cost depends on a few factors. How much design and copy do companies do in-house vs working with a third-party agency? Design work for direct mail marketing campaigns can cost between $100- $300 alone, so keeping marketing activities in-house can save on those extra costs.
What size mailer to choose, what is the quality of the finish (matte, gloss, etc.), and how many they'll need? Printing costs can be anywhere between 1-5p per A6 flyer, depending on whether they're double-sided too. Then, factor in the postal service of choice or the distribution costs if your campaign is H2H. As with the printing services, the more distributed flyers, the better the campaign's value for money.
It's also essential to understand the industry's average CPA (cost per acquisition), as these can vary. For example, our data shows an average CPA for ride-hailing companies is between $5-$10, but for meal kit companies, it's much higher at $35-$45 per leaflet.
According to data from Marketing Charts, direct mail has an ROI of 29% amongst US consumers as of 2021.
Don't send unless it's personal- Make it personal by addressing each person by name, referring to local features/ geographical features.
Connect the offline campaign with online channels via a website, discount code, or QR code. This will maximize the ROI and create a closed-loop marketing campaign.
Don't spend too much time worrying about area codes- If you're choosing to target people via geolocation, area codes aren't the be-all and end-all. This is particularly key if a business decides on an H2H service. Instead, choose to target the area address.
Do spend time on the design- As we've mentioned, most consumers remember direct mail campaigns for up to 3 days compared to other campaigns like email, so make the direct mailer attractive and memorable!
Want to learn more about how our experienced team could help your business outperform offline campaigns? Request a demo with the Oppizi team today and learn more about how your business could fly.