Direct Mail Marketing – Does the Value Justify the Expense?

Direct mail marketing is one of the most time-tested and well-known channels of marketing. However, in the digital age where online marketing is both easy and relatively cheap, direct mail is frequently viewed as too expensive. When making marketing decisions you should not only be looking at cost, but also what is going to bring you the most value.  And to know the true value of something, it’s best to look at both how effective as well as how efficient it is.

Effectiveness measures how valuable your campaign was by examining response rates. According to the Data and Marketing Association (DMA) in this article, direct mail achieves a 4.4% response rate, compared 0.12% for email. This means you would have to email 37 times more people, or 37,000 emails for every 1,000 direct mailers, to get the same number of responders as you would with a direct mail marketing campaign. While the upfront cost of email may be less expensive, you simply may not have enough emails to match the impact of even a small direct mail campaign. At ddk, we examine your post-campaign mailing results and let you know what areas gave you the highest response rates, allowing you to further maximize effectiveness on all future campaigns.

Everyone would love an extra $1,000 in sales, but what if you had to spend $2,000 in marketing dollars to get it? Efficiency determines the value of your marketing campaign by examining your return on investment. An efficient marketing campaign will generate more revenue than the marketing dollars required to drive traffic to your store. According to printisbig.com, US based direct mail programs can see returns of up to $2,095 in goods sold for every $167 spend on these marketing campaigns. ddk can help you evaluate your return on investment (ROI) after every direct mail campaign and continue to refine each future mailing for improved ROI.

Value can also be measured in the intangible. How does your marketing campaign make your customers feel about your business and what level of brand loyalty do they have? Physical marketing material leaves a deeper footprint on the brain. Doing the little things right, like adding a person’s name, full color, and more relevant information to a direct mail piece can increase the response rate by 500% according to this article written by Compu-Mail. When your customers receive direct mail from you, there is an emotional response that leaves a lasting impression and results in higher brand recall later. With every direct mail marketing campaign at ddk, you are able to send interactive mail pieces that can be individualized for each household, engaging your cutomers in your campaign while giving them a personal touch.

The next time you are deciding what marketing channels are best for your brand, remember to look at more than just the upfront cost. The proper balance of efficiency and effectiveness will bring you the most value for your marketing dollars. With direct mail you can engage your customers with unique marketing pieces that increase response rates and give you consistent, proven return on investment.