Is Direct Mail Marketing Still Beneficial?
For businesses interested in a strategic marketing plan to help reach their customers, there are many options to consider. One of the most constructive ways to reach your potential customers as well as grab their attention and engage on a personal level is through direct mail marketing. If you’re wondering does direct mail still work? The answer is yes. In fact, it has shown to be very effective. The Data and Marketing Association reports that direct mail has an average open rate of 43%.
Now, even with the advent of digital marketing, direct mail works. The reason why? Direct mail pieces identify your business, have a call to action and guide the customer about how to reach you. Brands use direct mail to increase brand awareness, connect with customers, promote their brand, and glean customer feedback. Examples include postcards, catalogs, magazines, coupons, free samples and solicitation letters from non-profits.
What makes direct mail marketing appealing is that it is a brand communication tool with less noise and less competition when compared to traditional media or digital advertising. Consumers touch, hold, and read a piece of mail, compared with clicking an email ad. They are a captive audience. According to the Postary (Postcard Marketing & Direct Mail Platform), the average response rate of the direct mail is around 2.7% – 4.4%, while email has around a 0.6% response rate which is comparatively very low.
The ”direct” in direct mail marketing comes from the targeted lists that companies either create through analytics or pay a fee through the USPS or professional list brokers to effectively identify customers fitting their demographics. This allows the brands to deliver their message to the correct recipient, improving their opportunity to convert. It means the right audience is receiving the right messaging.
Traditional direct mail services are not the only game in town though. Every Door Direct Mail or EDDM is a less expensive service provided by the USPS that targets every house in a chosen neighborhood. With EDDM, you can select neighborhoods (carrier routes) in which you would like USPS to deliver correspondence called a flat mailer to every address or delivery point within the selected routes.
EDDM mail does not include a mailing address or recipient name. This is often a postcard that contains no address information. The mail carriers will have enough postcards for each designated route.
There are two EDDM options and you must have an account with the USPS via their Business Customer Gateway to utilize EDDM. First is the retail EDDM. You do not need a mailing permit for this. There are restrictions, like you must use standard flat mail, and there is a 5,000 piece maximum. Second is the Business Mail Entry Unit EDDM. With this option, businesses must have a mailing permit. Mail pieces are limited to flats, irregular parcels, periodicals and bound printed matter flats, but there is no maximum. One of the benefits of BMEU is customers receive a deeper discount on their mailing rate.
The reason some businesses like using EDDM is the discounted postal rates and not needing to rent or buy a mailing list. It all depends on your end goal. If targeted demographics work better for your brand, this may not be a value to your business.
EDDM works well if your target audience is everyone in a given neighborhood. When using EDDM, it’s important to research the demographics in the neighborhoods where you are having deliveries made, to ensure that your mailing is reaching the audience most likely to find value in your product or service. You will need to define the delivery area by zip codes and carrier routes.
EDDM is good for companies with a limited marketing budget who are willing to work within the parameters, and for businesses who want to cast a wide net for brand awareness. One of the largest user bases of EDDM is realtors. It is a cost-effective way to reach potential clients and takes only 1-2 business days for delivery. The cost runs about $0.20 per piece and the postage savings is seven cents over standard letter mail.
Print marketing pieces like direct mail are just one of the many services provided by an Allegra-Marketing-Print-Mail. We are leaders in visual communications. As a Franchise Member, you can help grow other businesses in your community by assisting them with all their marketing needs.
Being a one-stop shop when it comes to direct mail marketing, you can help your customers with creative marketing design, print and mailing. If you’ve been looking for a lucrative franchise that helps other businesses grow, download our brochure to learn about becoming an Allegra Franchise Member. Our Franchise Development team is eager to answer any questions