Why Direct Mail Remains Buoyant in Digital Flood

In the tidal wave of digital marketing options, prospects for our direct mail lists and support services sometimes worry about investing in an “old-fashioned” mail channel soon to be washed away by changing preferences and digital efficiency. So we like to keep providing data to show that direct mail is actually riding atop the digital crest.

Businesses Have Solid Reasons to Direct Mail Today

For example, a recent business.com post by entrepreneur Brian Roberts cites five basic reasons businesses should use “snail mail.” No. 1, thanks to a drop in mail volumes, mailers today enjoy much less competition for audience attention in physical mailboxes compared with spam-jammed e-mail inboxes or ad-laden web platforms. Plus, No. 2, those mailed communications aren’t going to be culled out by high-tech spam filters as is so much of today’s e-mail. No. 3, once delivered, a physical mail piece is a lot likelier to be opened than an e-mail message. As data firm Experian recently reported, 70% to 80% of direct mail recipients say they open their mail, and, per InfoTrends’ most recent data, a third of U.S. consumers report they read direct mail marketing more than e-mail marketing, and another 34% read both with equal frequency.  No. 4, direct mail allows a lot more creative freedom, unlimited by file size, spam filter triggers or flat visuals. Mail can be dimensional, digitally interactive, multi-sensory, immediately gratifying with promotional rewards, and more. Now that personalization is key, direct mail also outdoes digital, with 70% of Americans saying physical mail is “more personal” than e-mail, per Experian. Finally, at  No. 5, mail is great for geo-targeting and driving traffic to physical locations, with in-store-only promotions at retail stores as an example. Plus, it can drive digital traffic; 60% of direct mail recipients visit a website mentioned in direct mail, Experian reports.

Trends Prove Direct Mail’s Continued Business Appeal

A study by the Boston Consulting Group confirms that total spending on direct mail is expected to rise from 11% to 12% by 2020. The simple reason for snail mail’s survival is its continued marketing power. U.S. Postal Service surveys have found that consumers who receive direct mail spend 28% more than those who don’t, for example. As we’ve noted before, the Data & Marketing Association’s 2016 “Response Rate Report” put direct mail response rates at 5.3% for house lists and 2.9% for prospect lists, the highest DMA-tracked response rates since 2003, and far higher than the less than 1% of various digital channels. That is what sustains mail’s strong ROI. For a great summary of direct mail trends and stats, see the Experian infographic at https://www.edq.com/resources/data-quality-infographics/how-direct-mail-is-winning-in-the-age-of-the-internet/.

 

 

 

 

 

 

 

 

 

 

2017 Marketing Budgets Set to Shift More Dollars to Acquisition

Balancing marketing budget between acquisition and retention growth is a perennial conundrum. But if you take your cue from respondents to Target Marketing magazine’s annual “Media Usage Survey,” you’ll be more bullish on acquisition efforts this year. Half of the 725 respondents (42% B-to-B, 22% B-to-C and 36% claiming both business and consumer targets) said they would be boosting acquisition spending in 2017. That’s compared with only a third planning to add to retention dollars. Regardless of the choice of “finders vs. keepers,” optimism rules the year ahead; only 5% of respondents foresaw decreased acquisition or retention spending.

Direct Mail & E-mail Lead ROI Expectations

For the second year in a row, the survey found marketers giving direct mail and e-mail top marks for ROI in both acquisition and retention, which means more success stories from AccuList USA’s direct mail and e-mail list brokerage clients. In acquisition, 25% of marketers said e-mail is the method delivering best ROI and 15% cited direct mail, with third place going to search engine optimization. In retention, 46% gave e-mail top place for ROI and 14% chose direct mail, with 10% selecting social media engagement as best for retention ROI. Those 2017 percentage rankings by channel were pretty close to the 2016 survey results, but there were some shifts below the top ROI performers. For example, telemarketing was the top answer for more firms in 2017 than in 2016, especially as an acquisition vehicle (chosen by 8%), while webcasts and webinars, which were rated among the top five for acquisition and retention ROI in 2016, dropped below 5% this year.

More Channels in the Mix

If an expanded channel mix is part of your planning this year, join the crowd. Surveyed marketers embraced more channels for both acquisition and retention in 2017 than in 2016. Of note, some channels traditionally thought better suited to retention (such as e-mail and social media engagement) are now used by a majority of marketers to drive acquisition, with 87% planning to use e-mail and 69% opting for social media engagement. Although retention efforts can’t claim a marked channel preference, some channels are definitely more popular for acquisition than retention in 2017, notably online advertising, social media advertising and SEO, per the survey.

To see details of the survey, go to http://www.targetmarketingmag.com/article/finders-keepers-2017-acquisition-retention-trends/