Direct Mail Lead Gen Doesn’t Have to Bust the Budget

Many direct marketing articles tout digital tactics for generating sales leads. But at AccuList USA, we can attest to the continued lead-gen effectiveness of traditional direct mail for a range of our clients, including online retail and publications. Direct mail has higher response rates while avoiding some of the challenges of SEO, social media and e-mail, such as rapidly changing rules, deliverability/visibility issues and a crowded competitive space. But what about the cost of direct mail?  As a recent MarketingProfs post highlighted, there are direct mail options that can effectively deliver leads without busting the marketing budget!

Sales Letters Are Proven Workhorses

A No. 10 envelope that includes a one- or two-page letter and a reply card is an expensive, simple and effective way to reach prospects with something likely to be opened and read (unlike many e-mails). Of course, response depends on the proper targeting of the prospect lists and the personalized content of the letter. The letter should identify a problem, present a solution and offer a “freebie” of value, such as a brochure, sample, demo, evaluation, information kit or anything else that will get a response so that salespeople can follow up with qualified prospects.

Postcards and Flyers Are Lower Cost Options

A postcard is an inexpensive alternative to a letter, with low print costs and lower postage rates, as long as you stay within the minimum size of 3.5″ x 5″ and the maximum of 4.25″ x 6″. Because there is less room for the sales message, offer copy needs to be simple with a clear call to action. And because there is no additional response device, postcards need to stress a website address or a phone number. To drive traffic to a retail store, make room for directions or a map. Similarly, flyers are cheap and great options for local small businesses or businesses that want to appear small (read less expensive). Printed on ordinary paper, folded in thirds with a tab to hold it closed, and addressed with a mailing label and stamp, the result doesn’t have to be beautiful to be effective. Put the main message on the inside and teasers and mailing information on the outside so that, when you read the address, the folded side is on the bottom and the tab is on the top.

Court Attention With Invitations and Special Delivery

An invitation doesn’t have to be printed in formal lettering on cream card stock in a fancy hand-addressed envelope. You can draw people to an event or offer in a way that seems more personal and important just by using the words “You are invited…” An invitation can use a letter, a postcard or a flyer for an open house, special sale, product demonstration, etc. The key is to make the event seem exclusive and the invitees special in some way. Another way to make a mailing seem special is to use FedEx or other quick delivery service. The package content can range from a simple personal letter to a video or product sample. A special delivery package is a guaranteed open, but, because the delivery method is more expensive, it is usually limited to a smaller group of select targets.

For the complete article, see http://www.marketingprofs.com/8/cheap-direct-mail-tools-generate-sales-leads-fast-rieck.asp

Learn How to Integrate Direct Mail & E-mail for Max Results

Even though omnichannel has gone from marketing buzzword to marketing given, AccuList USA’s retail, catalog and e-commerce clients can still face challenges in getting the most ROI from direct mail and e-mail integration. A recent MarketingProfs post offered a collection of stats and tips that can help.

Direct Mail Adds Important Punch to Campaigns

For those who doubt the power that traditional mail can add to a digitally focused effort, the article cites a few important facts about snail mail’s bottom line punch.  For example, campaigns that use two channels together, such as direct mail and e-mail, have been shown to get up to a 35% lift over those using a single channel, per IWCO Direct data. The younger generation may be very digitally savvy, even addicted when it comes to social and mobile, but recent studies from the U.S. Postal Service prove mail’s sales power: A whopping 57% of Millennials make purchases based on direct mail offers! Other USPS studies show why mail works so well regardless of age: People spend more time with physical advertising, have a stronger emotional response and remember the physical promotion better than digital efforts. Plus, beyond the ability to use direct mail’s sizes, formats and tactile designs to grab attention, today’s print technology makes it easy to link a printed piece to digital channels via QR codes, near-field communication (NFC), and augmented reality (AR).

How to Improve Integration of Direct Mail & E-mail

So how do you get the most out of a direct mail-e-mail marriage? Here are some ideas from the MarketingProfs post’s authors, Dennis Kelly, CEO of direct mail automation tool Postalytics, and Nancy Harhut, a creative director who has worked with leading brands such as Google, Adobe, McGraw-Hill, and Nationwide Insurance:

  1. Consider delivering critical information in both channels to reinforce the message.
  2. Have each communication build on the previous one.
  3. Use direct mail to emphasize a key message or break up the expected routine.
  4. Ensure both e-mail and direct mail adhere to the same graphic standards and reflect the same voice so each piece reinforces and extends your brand promise.
  5. Use direct mail to initiate a conversation with people whose email addresses you do not yet have, or with those who have repeatedly not responded to your email

For more on workflows integrating direct mail and e-mail, see https://www.marketingprofs.com/articles/2018/34741/best-practices-and-tips-for-integrating-direct-mail-into-email-marketing-campaigns

 

Smart List, Mail Design Choices Help Save on Postage

Direct mail has higher average response rates than digital choices, but maximizing mail ROI requires cost efficiency, especially in the postage realm. Good list selection and hygiene are key to avoiding mailing waste, and this is one area where AccuList USA’s expertise in targeted mailing lists selection and data services can certainly aid clients. Another important factor in controlling postage costs is mail package design. An article by Target Marketing magazine’s Summer Gould offers a great summary of how smart choices in lists and design can add up to savings.

Targeted, Clean Lists Cut Postage Waste

If you are sending mailings to the wrong people, people unlikely to be interested in your offer, lower response rate and cost inefficiency will be reflected in poor ROI. Using tools from predictive modeling to customer profiling to segmentation can improve list choices and targeting parameters. Plus, AccuList USA’s proprietary list research can help clients find the top-performing lists for their specific vertical market. But no matter how data is targeted, dirty data with duplicates, errors, invalid addresses, and old demographic or purchase history information will create costly delivery failures and misdirected waste. That’s why AccuList USA goes beyond list brokerage to provide expert merge-purge services that combine and standardize data in order to eliminate duplicates, identify and correct old or undeliverable addresses, verify zip codes, and maximize postal discounts. In fact, by comparing names and addresses to real-time information on multiple public and private databases, AccuList USA offers an advanced hygiene regimen that is able to identify and correct twice as many addresses as standard USPS FASTforward and NCOALink use, which only represent a portion of U.S. movers and undeliverables.

Careful Design Wins Postage Discounts

USPS offers postage discounts to mail pieces that are not only addressed correctly but also designed for processing on automated equipment. For mail to qualify for the lowest postage rates, the mail piece needs to be at a letter size, which is a minimum of 3 ½” high by 5″ long and a maximum of 6″ high by 10½” long. Larger mail pieces fall into the flat category, which can cost more than twice as much per piece as a letter. Plus, to take advantage of automation, the piece must by rectangular, with an aspect ratio (length divided by height) of 1.3 to 2.5. Mail pieces outside those ratios could cost twice as much in postage. Then the addressing and barcode block on letter size mail must fit into the USPS OCR read area to avoid additional postage. For tri-folded self-mailers, the address must be on the center panel to qualify for discounted automation postage. Naturally, weight matters.  Keep the weight of a folded self-mailer under 1 ounce; if the piece weighs over 3 ounces, it must go in an envelope. Thickness counts, too  If a mail piece is less than 0.009″ thick, it costs more in postage. On the other hand, the  maximum thickness for letter size mail is ¼” and for flat size is ¾”. The best advice is to consult with your mailing service provider about any new design in advance. For more, see https://www.targetmarketingmag.com/post/save-money-postage/

 

Format Drives Differences in Direct Mail Results

In planning direct mail campaigns, marketers often turn to standard industry benchmarks courtesy of the annual “Response Rate Report” from the Data & Marketing Association (DMA), soon to be a division of the Association of National Advertisers (ANA). However, while general direct mail response rates for house lists (5.1%) and for prospect lists (2.9%) far outpace those of digital media, the mailing piece format selected can make a key difference in expected results.

Mailer Format Shifts Response Metrics

For example, an oversized flat envelope package tends to deliver the highest response rate: 6.6 % for a house file and 4.9% for a prospect list. Next most effective in terms of response are postcards, with a house file response rate of 5.7% and and a prospect names’ response of 3.4%. At the tail end, but still far above digital efforts, comes the standard letter format, with a 4.37% response rate for house names and a 2.5% response for prospecting.

Balancing CPM & ROI in Format Selection

Some marketers hesitate over the more expensive oversized flats, which have the highest cost per thousand (CPM) among formats at $481 for house files and $467 for prospect files. Which is why postcards continue to win fans among B2C and B2B marketers, with the lowest CPM among direct mail formats benchmarked. However, despite their higher CPMs, the solid response rates of flats mean they can deliver the highest ROI (37% and 30% for house and prospect names, respectively). Postcards and letter packages, meanwhile, are tied in terms of ROI, with house mailings garnering a 29% ROI and prospecting turning in 23% ROI.

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