Direct Mail Tops in Response; E-mail Wins in ROI

Direct-mail response rates significantly outperform digital programs, according to a recent report from the Direct Marketing Association (DMA). But lower costs allow digital to catch up in marketing efficiency. According to the DMA's “2012 Response Rate Report,” response rates for direct mail to existing customers average 3.40%, compared with just 0.12% for e-mail. However, costs level the playing field. Given higher direct-mail costs, it turns out that the cost per sale and cost per lead for direct mail, e-mail and paid search are roughly equivalent. Thanks to the very low costs of e-mail blasts, e-mail can claim highest return on investment at 28.5 times cost, versus 7.0 for direct mail. For more, see http://www.btobonline.com/article/20120614/DIRECT10/306149993/dma-finds-direct-mail-response-rates-outperform-digital