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In a hyper-digitalized world, where brochures, flyers, and similar formats are increasingly fading into the background, it might seem paradoxical to many companies that direct mail automation (the postal delivery of self-mailers, letters, and postcards) is gaining traction as a performance channel. However, despite the common belief that print is outdated, the postal channel remains an essential component of a successful marketing mix and is often considered the "hidden champion" among performance channels.
So, if you still think that direct mail automation is outdated and ineffective, you’re – to put it bluntly – “living under a rock.” Why? Because in 2024, direct mail has nothing to do with the impersonal mass mailing of brochures or flyers. On the contrary – hyperpersonalised direct mail campaigns stand out, captivate recipients, and reward businesses with conversion rates averaging between four and ten percent. Curious how that’s possible? Keep reading!
Definition: This is Direct Mail Automation
Before we dive into what direct mail automation (also known as programmatic print) is, let’s first clarify what direct mail campaigns are: Direct mail refers to the postal delivery of letters, postcards, or self-mailers to existing customers. However, this isn’t about impersonal mass mailings like brochures, flyers, or leaflets. Instead, it’s about segmented and hyperpersonalised marketing messages that do more than just advertise. In short: With direct mail, you surprise your customers and build lasting loyalty.
Example: Direct Mail Automation
Imagine you bought a pair of blue pants from a fashion brand. Three weeks later, a postcard arrives in your mailbox. It features three additional clothing items that perfectly match those pants. You realize the brand still remembers your purchase. That flatters you, so you immediately use the trackable ten percent discount code.
CRM & Direct Mail Automation
And where does the “automation” come into play? It’s simple: You can automate both direct mail and email campaigns in your marketing cloud and seamlessly integrate them into the customer journey. This allows you to save up to 70-80% of the manual effort. The process is driven by triggers, segmentation, and buyer personas.
For example, you can specify whether your direct mail campaign should be sent at a particular time: three days before a birthday or four weeks after the first purchase. Alternatively, mailings can be triggered only when certain conditions are met: Customer Schneider and customer Müller were always very active but haven’t made a purchase in a year. Now, both receive a direct mail piece aimed at reactivating them.
Good to know: Many CDPs like Emarsys, Salesforce, Braze, and others allow for seamless integration of optilyz. This means you can work within the same tool on a unified customer journey and easily incorporate your direct mail campaign! You can find an overview of our partners here.
Direct Mail is an Opt-out Channel
We often notice in our daily work with clients that there is confusion surrounding the topics of double opt-in and direct mail automation. What exactly is double opt-in? What is opt-out? How does the GDPR regulation impact direct mail automation?
Why Do We Need a Double Opt-in?
In many countries, particularly in the European Union, the double opt-in process is a requirement for compliance with the General Data Protection Regulation (GDPR). The GDPR stipulates that companies may only contact individuals via email if they have explicitly agreed twice (double opt-in).
You’re probably familiar with this: When you sign up for a newsletter or another service on a website, you first enter your email address. Then, you receive a confirmation email from the provider. In this email, you’ll find a link that you must click to confirm your double opt-in consent.
By clicking on this link, you confirm that you are indeed the owner of the provided email address and consent to receiving emails. From that point on, you will regularly receive emails or newsletters from the provider, but they must include an option to unsubscribe with a single click.
Do I Need a Double Opt-in for my direct mail campaigns?
The good news upfront: No! Even many marketers often don’t know that direct mail campaigns don’t require double opt-in. This means that with the opt-out process, customers can be contacted by mail without prior consent.
In fact, these two marketing channels are more similar than one might think! Programmatic print also relies on a data-driven omni-channel approach and requires many of the same skills that are crucial in email marketing. So, it’s a misconception to claim that direct mail is inherently more expensive and labor-intensive! In addition to planning, the software is key – and this is where optilyz comes into play.
With us, you and your company can design your campaigns efficiently. By automating your direct mail campaigns, you significantly reduce manual effort. Did you know?! You can easily integrate optilyz into your marketing cloud or CDP – without additional technical resources. This way, you can lower costs while simultaneously boosting performance. Among others, we partner with the following integration partners: Salesforce, Klaviyo… A win-win situation!
4 Prejudices about Direct Mail Automation
Maybe you and your team are hesitating to integrate direct mail automation into your marketing strategy right now. And perhaps one of the reasons is that the direct mail performance channel seems too complex and costly. Let us convince you otherwise: We’ve taken a closer look at the most common misconceptions and will show you why they don’t hold up.
1. Direct Mail is Outdated and ineffective
Many companies believe that direct mail is outdated and no longer relevant in a digitalized world. Most mistakenly think that consumers only respond to digital channels and ignore printed advertising. But here’s the truth: Direct mail is a high-performing marketing channel! Old-fashioned? What nonsense! Direct mail provides your customers with a unique tactile experience that digital media simply can’t offer.
You probably know it yourself: Relevant mail stays memorable, gets pinned to the bulletin board or the fridge, and is more likely to be opened compared to emails. Additionally, direct mail grabs attention and relevance through its personalized approach. Today, receiving and opening a tactile, personalized direct mail is a highlight – a bit of nostalgia by post, something digital channels can’t compete with. For this reason, businesses should definitely incorporate this performance channel.
2. Programmatic Print is Expensive and Labor-Intensive
Direct mail is often seen as more expensive and labor-intensive compared to digital channels, as the costs for printing, materials, and shipping can seem high and complex. The logistics also appear complicated. But is that really the case? In fact, programmatic print is a highly profitable performance channel. Although the planning may initially be more demanding than with digital campaigns, conversion rates range between 4 and 10 percent.
3. Nobody Reads Advertising Mail; It Just Ends Up in The Trash Anyway.
Many marketers assume that advertising letters and postcards end up unread in the trash. But that's not true! Postal direct mail creates relevance: Direct mail receives more attention compared to digital messages. Why? Because the competition is lower! Think about it.
A physical letter is usually taken out of the mailbox, opened, read, and kept if it contains something important (e.g., a discount coupon) – we call this the "fridge effect." This effect describes how relevant mail typically stays in the household for six to eight weeks on average and is regularly read by more than one person. This leads to more sustainable customer loyalty and increases the likelihood of a sale. Emails, on the other hand, are often deleted unread or end up in the spam folder. How unfortunate!
Case Study: Fressnapf’s Additional Revenue Through Second Purchase and Reactivation Campaigns
The path to turning customers into loyal ones is just as challenging as acquiring new customers. What motivates them to place another order after their first purchase?
DOWNLOAD CASE STUDY
4. Digital Channels are More Efficient and Environmentally Friendly
Print products are often automatically labeled as environmental sins because they ultimately create paper waste. But are their digital counterparts really the “greener” alternatives? In 2018, we sent around 848 billion emails in Germany. That averages to 28 emails per person per day. Each of these emails generates about 27g of CO2, which adds up to 756g of CO2 daily. On an annual basis, sending emails produces 275.94 kg of CO2 per person.
The German Environment Agency recommends that our annual CO2 consumption should be less than 1 ton in order to live carbon-neutral. So, just by sending emails, we already consume a quarter of our annual CO2 budget.Through the use of recyclable materials and responsible printing processes, we strive to make direct mail campaigns more environmentally friendly. Additionally, we collaborate with local printing and delivery networks to minimize the ecological footprint.
It’s important to note: Direct mail isn’t mass mailing; instead, we segment and hyperpersonalise with our clients in advance so that the letters, self-mailers, or postcards always address the individual needs of the customer. This commitment makes the difference – both in terms of ROI and reducing paper waste.
Through optilyz technology and consulting, we were able to reduce our cost-per-order for mailings by 75%. We now plan to continue along the path of stronger customer centering anf apply this approach to our mailings moving forward.
Steven Petter (Head of Marketing, Maciag)
Conclusion: Direct Mail Automation is the Future of Advertising
Contrary to many misconceptions, the direct mail automation channel offers numerous benefits that make it an essential component of omni-channel marketing. We would even argue that it's the performance channel of the future. Do you have any more questions about direct mail or want to know how to implement the opt-out channel in your company? Schedule your introductory call with us now:
