Why Direct Mail Marketing Isn’t Dead
14-10-2024
While digital marketers are utilising chatbots, artificial intelligence and social media trends to enhance their online campaigns, the appeal towards a more traditional form of advertising is growing stronger.
In fact, advertising spending on direct mail marketing amounts to £2.85bn in 2024, and is expected to reach £3bn by 2029 at an annual growth rate of 1.01%.
Jon Beasley, Technical Director at Washington Direct Mail said: “What physical mail offers businesses is a more personalised, targeted and tangible approach to brand messaging which appeals to consumers and their purchasing appetites.
“It has not only stood the test of time but is also charting a new headway for businesses with creative solutions and implementations that go far beyond what we see on the screen.”
Here’s why direct mail should still form an essential part of your marketing mix.
Winning on personalisation
One of the biggest challenges for marketers is mastering personalisation. Since personalised brand messages became the norm in 2020, digital creatives are continuously upscaling their audience segmentation tactics. In fact, 71% of consumers expect personalised interactions from brands, according to McKinsey, and 76% get frustrated when they don’t receive them.
While both digital and direct mail advertising allow for accurate personalisation, the latter offers a wider scope for crafting truly individualised campaigns. Aside from delivering mail directly to one’s address, direct mail utilises the power of data to gather insights about customers’ purchasing behaviour, demographics and interests from all channels to create tailored messages and campaigns.
Combined with variable data printing, advertisers can align the message with customised designs tailored to each consumer’s preferences. The idea behind individualised campaigns is that customers feel as if they were made specifically for them, and direct mail service allows for that extra personalisation factor.
Tangibility meets creativity and innovative solutions
Another challenge online marketing campaigns face is oversaturation. Customers are constantly bombarded with brand messages across all digital platforms, each competing on the novelty factor. This causes recipients to feel overstimulated and immune to the online messages they receive, which oftentimes may end up in the bin. While email marketing receives a 35.63% open rate, direct mail boasts an average open rate of 57.5% – 85%.
Once the novelty factor wears off, consumers are left with an inbox full of unexciting brand adverts or social media posts disguised as content from friends, which only disturb their feed.
In order to grab consumers’ attention, brands need to offer them something that excites them about experiencing it. The youngest customer segment in a USPS survey, Gen Z, claims that they’re excited about opening their mail, and 72% would be disappointed if they stopped receiving it. Gen Z also prefers unique direct mail formats that boast creativity.
Receiving an innovative print-out with an interesting cut and premium paper, or a free sample of their favourite beauty cream, will not only intrigue consumers but also increase their engagement time with the mail or product.
Technology and innovation are also entering the physical mail world with the promise of making this marketing channel even more enticing. For example, in March 2021, R.R. Donnelley & Sons Company, a global provider of marketing and business communications, launched a portfolio of 3D direct mail solutions, enabling simulations and digital prototyping. These enriched user experiences are set to increase the current average open rate of 57.5% – 85% and result in higher ROI.
Easy integration with other marketing channels
Direct mail is not always a standalone marketing tactic but can also be implemented into your full marketing strategy.
By including a clear call to action, you can guide your customers on a journey across all your channels, utilising the entirety of your resources and building strong customer relations. On average, it takes eight touchpoints to convert a B2B sale with a new prospect. The main goal of a mixed marketing campaign is cohesive storytelling that keeps consumers present and engaged.
That said, direct mail can often serve as the foundation for your marketing campaign. A QR code, a URL, or a digital coupon can lead customers to a landing page, your YouTube Channel, or directly to your digital store, resulting in higher conversion rates and brand awareness.
According to JICMAIL’s study, 6% of mail resulted in a purchase in Q1 2024, 1.8% higher than in Q1 2023. Of those who visited the advertiser’s website as a result of the piece of mail, 38% converted into online purchases.
Personalised URLs and QR codes also allow marketers to track response and conversion rates and to create more detailed audience segments for retargeting purposes.
Conclusion
Direct mail has secured its spot as a valuable advertising channel in the marketing mix, and it’s only a matter of time until advertisers start utilising it more in their campaigns. Until then, those who are already on the direct mail bandwagon can reap its immense benefits and face less competition.
Article by Jon Beasley, Technical Director at Washington Direct Mail
Sources:
https://mailchimp.com/resources/email-marketing-benchmarks
https://www.uspsdelivers.com/2020-2021-generational-research-report
Top image by Lisa Fotios – pexels.com
