In the past we have broadly discussed marketing materials beneficial to use via print methods. Today, we will drill-down the benefits of one such tactic, direct mail. For those unaware of precisely what direct mailing is, we will clear that up for you. entrepreneur.com defines direct mail as, “A marketing effort that uses a mail service to deliver a promotional printed piece to your target audience. Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters.” That being said, essentially any form of print that is designed and sent to potential customers in the mail, constitutes direct mailing. Many businesses have ceased utilizing this marketing tactic and opted for the digital version. However, direct mail marketing reaches a broader audience and should not be written-off by your company.
There is a plethora of information out there that points out the pros of direct mail marketing. While sifting through the data, we pulled out what we thought to be the 10 most prominent and jaw dropping statistics. These stats and more can be found at: https://www.datatargetingsolutions.com/blog/2018/11/16/20-direct-mail-statistics-for-2019. See below:
- Direct mail still pulls a higher response rate than any digital direct marketing medium. Its response rate ranges from about five to nine times greater than that of email, paid search, or social media.
- A letter-sized envelop for a lead generation campaign to a house file produced the best median response rate overall—15.1%
- The median cost per response when mailing to a prospect list is $49.20.
- 76% of consumers trust direct mail when they want to make a purchase decision. In fact, consumers trust traditional advertising channels more than digital channels when making a purchase.
- Direct mail requires 21% less cognitive effort to process than digital media and elicits a much higher brand recall. In other words, it’s easier to understand and more memorable.
- Direct mail “involves more emotional processing, which is important for memory and brand associations.”
- In a recent neuroscience study, U.S. Postal Service® in collaboration with Temple University found that postcards outperformed email in five out of nine tests.
- 36% of people under 30 look forward to checking the mail each day.
- 75% of households usually read, scan, or read some of their direct mail advertising materials.
- U.S. households received 121.2 billion pieces of mail in 2016.
It is evident after viewing this data that there is still plenty of room and use for direct mail marketing in the U.S. If you are able to understand the benefits of these statistics, you can then take the next step towards generating your mail towards your target audience. themailshark.com is an excellent site to use for direct mail needs. On the site, it lists 5 ways to segment your target audience. Segmentation, “Is the process of dividing a large group of people into smaller groups so you can tailor your messaging to their needs.” The 5 ways to do so are as follows:
Geographic Segmentation (Location-Specific)
Like the name suggests, geographic segmentation is based on the location of your prospects. Any business that markets with direct mail uses geographic segmentation. After all, your pieces can’t be mailed in the first place without a list of addresses, carrier routes, or zip codes.
Demographic Segmentation (People Stats)
Put simply, demographic segmentation is when you group people together using specific demographic data, like age, gender, and median income. Segmenting individuals based on common traits helps you connect with them on a more personal level because you can craft offers that are more relevant to their lives.
Firmographic Segmentation (Business Stats)
Firmographic segmentation is used with business-to-business (B2B) mailings. Put simply, firmographics are to businesses what demographics are to people. The “firm” in firmographics refers to corporations, LLCs, government agencies, non-profits, and many other business types. Understanding the needs of the business types you want to target helps you determine the messaging and offers they’re most likely to respond to.
Psychographic Segmentation (Hobbies & Traits)
Psychographic segmentation combines psychology with demographics to get a better understanding of your audience. This allows you to use far more specific messaging for groups of people (or individuals) with unique attitudes, personalities, and interests.
Sales Stage Segmentation (Customer Status)
Sales stage segmentation takes into account where prospects are in the sales pipeline. Put broadly from top to bottom, these stages are:
- Awareness – Prospect becomes aware they have a problem.
- Consideration – Prospect begins gathering information about possible solutions.
- Evaluation – Prospect begins evaluating different companies and their proposed solutions.
- Purchase – Prospect becomes a customer.
- Post-Purchase – Customer becomes a brand advocate.
This type of segmentation helps you stay aware of stages in the buyer’s journey where prospects might need a friendly push. Plus, you can use it to turn inactive customers into active ones if you notice past customers who haven’t ordered from you recently. Ultimately, sales stage segmentation makes it easier to keep tabs on what’s going on with your customers and prospects.
Again, for more information regarding the segmentation process and for direct mail services, give themailshark.com a visit.
Once you know how you are going to segment your target audience, your direct mail tactics can be reviewed. Tactics vary based on what you want to say or give to your potential customer. Some examples are brochure’s/newsletters, coupons/free offers, postcards, etc. Many of these things can be custom made at your local print shop.
As you can see, there is a ton of information out there in regards to direct mail marketing. The information above being just the tip of the ice berg. Whether you are looking to hone in on your strategies or simply trying to come up with another way to reach customers, direct mail tactics are proven to be an extremely effective way to get your name out there while increasing your bottom line.