How Personalized Direct Mail Can Drive Business
With the stay-at-home order gradually lifting in Minnesota, we can expect more and more businesses to re-open. We hope yours is one of them.
It’s one thing to get back to business. But how can you get back in business? Will your customers even know that you’re open for business? Now is the time to tell them. And the best way to reach them is through personalized direct mail, made possible by variable data.
Using variable data in your direct mail allows you to personalize your message to your customer. It’s similar to what Amazon does with digital advertising, and it’s something that consumers have come to expect from digital marketing. Now you can deliver the same personalized message, but in a much more effective format using direct mail.
Many businesses have backed off promotional mailings due to uncertainty in the pandemic. That means your mailing will stand out. A USPS study showed that physical advertisements were “proven to have more influence than digital ads in a number of ways.” First, the study’s participants spent more time with physical ads. Second, they also remembered the ads more quickly and confidently. That means physical ads, such as direct mail, are better at exposing consumers to information and helping them remember that information.
It’s a great way to communicate anything new about your business as you re-open. Online orders? Curbside pickup? A change of hours? New measures for customer and employee safety? They’re all great reminders to consumers that you’re here for them.
Personalized direct mail response rates are higher than digital advertising—and the rates have been climbing steadily over the past five years. A study from the Data & Marketing Association reported “Direct mail had an average response rate of 9% for house (customer) lists and 4.9% for prospect lists.” This is up significantly from the prior year when it was 5.1% for house lists (and 2.9% for prospect lists). A big part of the increase is that variable data allows for more personalization in direct mail pieces, thanks to better data analytics about the recipients. It allows your direct mail piece to be carefully targeted and use the most effective messaging.
Finally, direct mail offers a 29% return on investment (ROI).
Calculate how personalized direct mail can benefit your business.
According to the study noted above, there is an average response rate of 9% on direct mail – and a 29% close rate from those responses.
If you mail 10,000 pieces, at an average cost of $6,000* with postage, a 9% return produces 900 leads. At 29%, your close rate equals 261 new customers. If your business’ average invoice is $500, your average ROI is $124,500.
To calculate your own ROI, insert your business numbers into the underlined text above.
*Cost is based on the average cost to produce and mail 10,000, 5.5 x 8.5, 2-sided, full color postcards on 80# Gloss Cover (price per mailer equals $0.60).
2018 Data Source: Date & Marketing Association (DMA) / Demand Metric
*Receive 10% off your mailing when you mention this blog post.
Call SOULO at 612.334.5679 or fill out the contact form to learn more about how personalized direct mail can get your message to more people more effectively.
*Offer valid through July 31, 2020. Offer does not apply toward the cost of postage.