This Direct Mail Lead Gen Is Budget-Friendly

Many direct marketing articles tout digital tactics for generating sales leads, but we can attest to the continued lead-gen effectiveness of traditional direct mail for a range of our clients, including online retail and publications. Direct mail has higher response rates while avoiding some of the challenges of SEO, social media and e-mail, such as rapidly changing rules, deliverability/visibility issues and a crowded competitive space. But what about the cost of direct mail? As a recent MarketingProfs post highlighted, there are direct mail options that can effectively deliver leads without busting the marketing budget! A No. 10 envelope that includes a one- or two-page letter and a reply card is an expensive, simple and effective way to reach prospects with something likely to be opened and read (unlike many e-mails). Of course, response depends on the proper targeting of the prospect lists and the personalized content of the letter. The letter should identify a problem, present a solution and offer a "freebie" of value, such as a brochure, sample, demo, evaluation, information kit or anything else that will get a response so that salespeople can follow up with qualified prospects. A postcard is an inexpensive alternative to a letter, with low print costs and lower postage rates than letters as long as you stay within USPS minimum and maximum sizes. Because there is less room for the sales message, offer copy needs to be simple with a clear call to action. And because there is no additional response device, postcards need to stress a website address or a phone number. To drive traffic to a retail store, make room for directions or a map. Similarly, flyers are cheap and great options for local small businesses. Printed on ordinary paper, folded in thirds with a tab to hold it closed, and addressed with a mailing label and stamp, the result doesn't have to be beautiful to be effective. An invitation also doesn't have to be printed in formal lettering on cream card stock in a fancy hand-addressed envelope. You can draw people to an event or offer in a way that seems more personal and important just by using the words "You are invited..." An invitation can use a letter, a postcard or a flyer for an open house, special sale, product demonstration, etc. The key is to make the event seem exclusive and the invitees special in some way. Another way to make a mailing seem special is to use FedEx or other quick delivery service. The package content can range from a simple personal letter to a video or product sample. A special delivery package is a guaranteed open, but, because the delivery method is more expensive, it is usually limited to a smaller group of select targets. For more, see http://www.acculistusa.com/direct-mail-lead-gen-doesnt-have-to-bust-the-budget/

Creative Format Shifts Key Direct Mail Metrics

In planning direct mail campaigns, marketers often turn to standard industry benchmarks courtesy of the annual "Response Rate Report" from the Data & Marketing Association (DMA), soon to be a division of the Association of National Advertisers (ANA). However, while general direct mail response rates for house lists (5.1%) and for prospect lists (2.9%) far outpace those of digital media, the mailing piece format selected can make a key difference in expected results. For example, an oversized flat envelope package tends to deliver the highest response rate: 6.6 % for a house file and 4.9% for a prospect list. Next most effective in terms of response are postcards, with a house file response rate of 5.7% and and a prospect names' response of 3.4%. At the tail end, but still far above digital efforts, comes the standard letter format, with a 4.37% response rate for house names and a 2.5% response for prospecting. Some marketers hesitate over the more expensive oversized flats, which have the highest cost per thousand (CPM) among formats at $481 for house files and $467 for prospect files. Which is why postcards continue to win fans among B2C and B2B marketers, with the lowest CPM among direct mail formats benchmarked. However, despite their higher CPMs, the solid response rates of flats mean they can deliver the highest ROI (37% and 30% for house and prospect names, respectively). Postcards and letter packages, meanwhile, are tied in terms of ROI, with house mailings garnering a 29% ROI and prospecting turning in 23% ROI. For links to more data, see our website blog post http://www.acculistusa.com/format-drives-differences-in-direct-mail-results/

Amid Digital Clutter, 'Simple' Mail Wins Notice

With multiple digital channels now used to communicate with customers--e-mail, online, mobile and social--businesses risk creating so much marketing clutter that they bury message and response. We've found that targeted direct mail is one way to cut through that marketing noise--and sometimes the simplest mail message speaks the loudest. Paul Bobnak, director of Who's Mailing What!, provides a good example in a recent Target Marketing magazine article. Independence Blue Cross, a healthcare insurer, wanted to contact members ahead of a deadline for renewal of 2016 health plan coverage. Since e-mails may be ignored in busy inboxes, the insurer decided to gather text opt-ins for renewal communications with members via a single, easy response channel--their ever-present mobile phones. And then Independent turned to a direct mail postcard as an outreach device that was sure to be delivered and "opened." The company mailed a two-sided 6-inch-by-11-inch postcard prompting mobile phone sign-ups for its text-messaging service. The front of the postcard simply announced "2016 health care coverage" and "Right from your phone," and drove home the point visually with a photo of a cell phone with a big "easy" text message bubble displayed. The reverse side of the postcard laid out the few steps, via a single call, to opt-in to insurer text alerts. For a look at the actual piece, go to http://www.targetmarketingmag.com/article/ibx-keeps-mail-simple/

Brain Science Finds Mail Bests Digital With Buyers

The latest brain science explains why direct mail maintains its role as a multichannel marketing linchpin. In fact, direct mail beats or ties digital advertising in almost all the ways marketers seek to woo buyers, per a recent Temple University neuromarketing study sponsored by the U.S. Postal Service Inspector General's office. As reported by Direct Marketing News, the study, which showed a mix of 40 e-mail ads and postcards to laboratory subjects, found that a digital approach bested snail mail in only one area: grabbing customer attention. However, postcards outperformed e-mail in five other areas: holding customer engagement longer, generating a greater emotional reaction, generating speedier recall, and creating subconscious desire and perceived value for a product or service. And the two methods tied in three categories: engagement in terms of the amount of information absorbed, memory accuracy, and willingness to purchase and pay. The Inspector General's office is hoping the findings will inspire marketers to make better use of mail's power to win customers. Among its suggestions are increased marketer testing of mail creative, sequencing, and digital print technology, such as augmented reality and QR codes. For more details, read http://www.dmnews.com/postal/direct-mail-has-a-greater-effect-on-purchase-than-digital-ads/article/423292/

Using Direct Mail to Rev E-Commerce Results

E-commerce marketers who are smart about planting direct mail in their marketing mix can reap healthier results, points out a recent post by Ernan Roman Direct Marketing on CustomerThink.com. Mail has a unique ability to enhance the B2B and B2C customer experience with a physical "shareability" that digital channels lack, for example. The article draws attention to the History Channel's arty photo postcard promotion of its History Asia programming as an example. The channel estimates the mail campaign generated $1.2 million in PR value via professional interest, social media and requests for the actual art pieces featured in the postcards. Catalogs are another example of physical mail's ability to enhance customer engagement. That's why a major national retailer like Anthropologie uses catalogs as their principal form of advertising "to inspire and engage"(and drive sales). Indeed, direct mail can directly guide the e-commerce customer's purchase journey. For example, online men's retailer Bonobos added print catalogs after a series of successful tests, and now 20% of first-time customers place orders after receiving a catalog and spend 1.5 times as much as other new buyers. Plus, direct mail can be used to lengthen and strengthen online brand engagement, the Ernan Roman article notes, citing the example of Homebase, an online UK home and gardening retailer frustrated by the sales limits of its short spring gardening rush. By targeting high-value gardening customers with a well-timed 500,000-piece mail campaign, Homebase hoped to get customers to shop earlier and spend more. The mailing succeeded in getting customers to visit the site 33% more often and spend 20% more. For more details, read http://customerthink.com/myth-busted-how-direct-mail-can-actually-enrich-the-digital-customer-journey/

Will Your Postcard Design Run Afoul of USPS Rules?

Your postcard campaign can have customer-winning copy, design, and offer and still flop because the U.S. Postal Service rejects it or makes it costly to reach target mailboxes. A recent Target Marketing magazine article reminded direct mailers of the sometimes complex postal regulations for postcard design. Some are pretty basic, such as size: To qualify for a postcard postage rate, dimensions can be 3.5 X 5 inches or 4.25 X 6 inches; that 6 X 9 postcard will stand out in the mail, but it will require the higher, letter rate. Paper stock must be at least .007 inch thick; anything flimsier will be devoured by postal machines. The aspect ratio, meaning mail panel length divided by height, must be between 1.3 and 2.5 to run through post office equipment. You also need to be careful with the placement, dimensions and treatment of the barcode addressing area, whether using an address block or a clear zone. For more details on this last point, and other tips for USPS automation and postal rate compliance, see the article at http://www.targetmarketingmag.com/blog/why-cant-i-mail-it-usps-regulations-postcards#