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The term direct mail sounds familiar to you, but you can’t quite place it yet? In this blog post, you’ll learn what direct mail and direct mail automation are and why you can still benefit from this performance channel in 2024. Additionally, we share important figures and strategic tips with you and explain how the direct mail potential analysis works.
What is Direct Mail?
Direct mail is a form of direct marketing where promotional materials such as postcards, self-mailers, or letters are sent to potential and existing customers via postal mail. Similar to email marketing (the digital counterpart to direct mail automation), you can hyper-personalise your direct advertising to the needs of segmented target groups. The goal is to motivate customers to take an action, such as visiting the company’s website, redeeming a coupon code, or purchasing a specific product. You can also congratulate someone on their birthday, Christmas, Hanukkah, etc., thereby strengthening customer loyalty!
That’s why Direct Mail still works in year 2024
Advertising by post is out? Not at all! Programmatic print, as direct mail automation is also known, has numerous advantages that your company can benefit from both today and in the future, especially if you conduct a direct mail potential analysis. Here are a few examples:”
1. Advantage: Creativity
Whether online or offline, creative and personalised marketing strategies are indispensable nowadays. Your customers want advertising that is tailored to them, tells a story, and looks good, no question! With direct mail, you have countless formats, designs, and paper textures at your disposal that match your corporate identity.
These can be, for example, elegant brochures for a women’s fashion online shop, postcards in your unique brand colour, or entire campaigns with a specific design and goal. There are no limits to your creativity!
2. Advantage: Interactivity
Advertising by post is much more interactive than one of the countless emails that get lost in the recipient’s inbox or are immediately deleted. We are familiar with emails; they are not as exciting as they used to be. A well-made flyer, on the other hand, engages multiple senses and can be held in hand or pinned to the fridge for later use.
In fact, a study found that 77% of people look at direct mails immediately when they find them in their letterbox. You can make your direct mails even more interactive by, for example, integrating a QR code that allows customers to redeem an exclusive discount online. This way, you create valuable omnichannel incentives and can cleverly engage customers at various stages of the customer journey.”
3. Advantage: Less competition
While other companies continue to proclaim that advertising by post is outdated and that online marketing is the only true strategy, you can stay one step ahead of your competition with a good programmatic print strategy.
Why? Well, the more strategically your customers receive direct advertising such as letters, postcards, or self-mailers, the more likely it is that your direct mails will stand out among the mass of digital advertising messages from other companies. This not only gives you a clear competitive advantage but also strengthens your brand awareness.
Important KPIs for Direct Mail Automation
Advertising by post continues to be very worthwhile for the sales of online shops – this has been shown by a print mailing study by the Collaborative Marketing Club (CMC) for 2024. We have summarised the most important data from this study for you.
1. Higher Conversion Rate (CVR)
Especially vouchers with limitations are considered particularly effective this year and can increase the CVR by up to 80% compared to the regular version. It’s no wonder—after all, urgency is created when the discount or voucher is valid for only a limited time.
However, the conversion rate for existing customers of various online shops remains high, even though overall consumer spending has decreased. It averages 4.3% across all test variants. Additionally, analyses of QR code scans show that 14% of these customers visited the advertised online shop.
2. Higher Order Values
Customers who receive direct mails by post spend, on average, 10% more on their subsequent order compared to their previous one. Direct mail indirectly motivates your customers to make repeat purchases and spend more money.
3. Significant Return on Advertising Spend (ROAS)
According to the study, the ROAS is a remarkable 872%! This means that for every euro you spend on direct mail (with an average basket value of €94), you generate €8.72 in revenue.
Direct Mail and customer loyalty
With increasing competition, it’s becoming ever more important to retain existing customers and continually encourage them to make purchases. But how can you strengthen customer loyalty and show that you care about their needs? Regularity is key to keeping your company top of mind.
By addressing your target audience personally and directly with direct mail and responding to their wishes, they will feel valued and acknowledged. In contrast, emails can come across as anonymous, even if you use a personalised greeting. For example, a beautifully designed postcard or self-mailer leaves a lasting impression.
After all, who doesn’t appreciate a thank-you note with a personal message, a small birthday greeting with a discount code, or the opportunity to join a loyalty program? All of this can be achieved with direct mail, helping to strengthen customer loyalty.
3 Tips for Direct Mail
Tip 1: Define your Target Audience
To make direct mail campaigns as personal as possible, you need to understand your potential customers thoroughly. Only then can you tailor your content for hyperpersonalisation. Is your offer aimed at B2B customers?
Then gather as many firmographic details as possible, such as company name, number of employees, industry, or location. If you’re targeting B2C customers, demographic information like age, gender, residence, or occupation is crucial. From this data, you can create an ideal customer profile (ICP) and optimally segment your target audience.
Tip 2: Use Standard Formats instead of Custom Formats
Many companies think that “the more unusual, the better” is the best approach to capturing customer attention. However, you should actually opt for personalised standard formats rather than elaborate custom formats for direct mail.
Here’s why:
1. Shorter Lead Time for Standard Formats: Simpler formats can be implemented with less advance planning, as printers typically keep these formats in stock. This is especially beneficial for promotional periods like Black Friday, Christmas, or Easter.
2. Cost-Effective: Compared to standard formats, the paper and production costs of elaborate custom formats can quickly become exorbitant.
3. Content is King and Queen: Relevant content is more important than design. If your target audience can’t relate to your message or offer, even the most impressive pop-up card won’t be effective.
Tip 3: Always include a call to action
Whether it’s flyers, self-mailers, or postcards, direct mail must serve a specific purpose to be worthwhile. Here are a few popular approaches:
1. Celebrate a Customer’s Birthday: Strengthen the customer relationship by sending birthday greetings and encouraging them to redeem a birthday discount.
2. Enhance Brand Awareness: Communicate a key message about your company’s vision, goals, or unique features to build brand recognition.
3. Add a QR Code: Track digitally how many people redeem a discount code or participate in a competition via direct mail.
4. Encourage App Downloads: Prompt customers to download an app, enabling you to engage them across multiple channels.
Example from Practice: Our client, the hardware store OBI, combined personalised birthday mailings with a reactivation campaign and saw a 218% increase in revenue per customer compared to the control group!
Potential Analysis for Direct Mail Automation
How Much Potential Could Direct Mail Automation Have for Your Business? In this section, we’ll show you how to conduct a direct mail potential analysis.
The optilyz Potential Calculator
With our calculator, you can easily estimate the potential revenue that direct mail automation could realistically generate for your business. All you need to do is enter a few data points.
Important: This is only a rough estimate based on our performance database. The figures are derived from benchmarks gathered through our work with over 300 companies.
Actual values may vary depending on your industry, location, and target audience compared to the results of our direct mail potential analysis. We are happy to provide further advice on this. If you want to learn more about the optilyz software and your options with direct mail automation, request your free demo today!
