With more digital marketing channels than ever, why do some companies insist on sending expensive snail mail catalogs and postcards? Because they work. But they don’t often work alone.
The high cost of mailing printed materials quickly eats up margins. For many marketers, a healthy Direct Mail Marketing program isn’t one that sees huge returns. It’s about getting customers back into the funnel of cheaper digital marketing channels.
Here are some ways to use this costly tactic in tandem to turn a profit.
Reach the Unreachable.
How do you talk to someone who unsubscribed from your email list? Send them a postcard.
Direct Mail isn’t subject to stringent email GDPR standards that require explicit opt-in permission from a customer. If someone hasn’t contacted you asking to be removed from direct mail, you are still okay to say Hey.
In the occasion-based gifting space, I sent physical postcards with discounts to email opt-outs who purchased in the previous year for the same holiday. In every test, I recouped our mailing costs. Now those people are reengaged, with many opted back in to email marketing.
Stay Top of Mind.
Even if you’re regularly sending a customer emails and SMS messages, they benefit from some physical contact. I sent postcards with an offer to current email subscribers a month in advance of the holiday. People who received both email and direct mail messages had a higher conversion rate.
According to Postgrid, “…combined direct and digital marketing can increase the response rate by 63%, with a massive 60% increase in the return on the investment.”
Send a Reminder.
It’s easy for customers to ignore automated emails reminding someone about an upcoming purchase anniversary, or even an email reminder they requested 11 months ago. It’s hard to ignore something in their hand.
Direct Mail is also less obtrusive than an SMS. Instead of receiving a reminder at a random time when they might not be ready to commit to making a purchase, looking through the mail is a deliberate activity. They’re open to the idea there might be offers when they walk to the mailbox.
Educate & Curate.
Catalogs provide an opportunity to educate current and potential customers on your company’s collection and provide an opportunity to curate their brand experience. They also spend more time with the brand.
According to Harvard Business Review, “…over 90% of the customers [in their surveys] have browsed through the catalogs and kept them for an average of seven days.” That’s a big step up from the average 13.4 seconds reading an email.
Test Early & Often.
Start small and run tests to see whether Direct Mail will work for your business.
- Pit people who purchased in the past but are unsubscribed against people who purchased during the same period of time but are still on your email list.
- Test opted-in subscribers who received both email and direct mail against people who only received email or only received direct mail.
- Develop propensity models to determine likelihood to buy; send direct mail to a portion of each group with a control of people who did not receive direct mail to see how much conversion increases.
Let me know how your tests go, and reach out with any questions. Good luck!
