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5 Reasons to Use Direct Mail Advertising in Your Marketing Plan

Stuart Crawford

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Learn why direct mail advertising is still a powerful and affordable way to advertise your business. Need help from a creative marketing agency?

5 Reasons to Use Direct Mail Advertising in Your Marketing Plan

While your competitors fight for attention in overcrowded digital spaces, paying more each year for fewer results, the most innovative marketers are quietly making a fortune using a method most have abandoned.

Direct mail advertising isn't just “still working” – it's delivering ROI that would make your digital marketing team weep. After adding this single channel to their marketing mix, I've seen businesses 3X their customer acquisition.

Most business owners dismiss direct mail without understanding the unfair advantages it gives you in today's digital-obsessed world. They're leaving millions on the table because of outdated assumptions.

In this article, I'll share the five undeniable reasons direct mail needs to be in your marketing arsenal right now – including the psychological trigger that makes prospects 4X more likely to open your mail than your email.

By the end, you'll see precisely why the most innovative marketers are scaling direct mail while everyone else wastes their budget chasing diminishing digital returns.

Key takeaways
  • Direct mail advertising is an effective method yielding higher ROI than digital marketing, boosting customer acquisition significantly.
  • It offers a personal touch, successfully reaching small businesses and engaging potential customers more effectively.
  • High-quality direct mail can enhance brand awareness and create loyalty with existing customers through targeted communication.
  • The strategy can attract new customers through tailored mailings, creative packaging, and special offers, optimising response rates.

It's A Great Way To Reach Small Businesses

Direct Mail Advertising To Reach Small Businesses

Many small businesses use direct mail advertising, especially those with unique products requiring more personal contact.

These businesses include product manufacturers and service providers.

This is because these companies, due to their size, have little time or workforce to spend on traditional advertising media

That’s why creating compelling copy for postcards can make all the difference in capturing attention and driving results.

That is why direct mail advertising is often the best option for reaching potential customers.

However, the high cost is a problem when using direct mail advertising as a marketing method.

A business owner usually pays between $200-$1,000 to have their company's name, logo and contact information placed on envelopes. This does not include additional costs such as postage or design.

This can easily result in hundreds of thousands of advertising costs.

As a result, it is hard for the average small business owner to justify the expenditure. That is why the majority of small business owners turn to direct mail advertising as a means of reaching out to potential customers.

No other marketing medium can match the effectiveness of direct mail advertising.

According to a study by the Direct Marketing Association, approximately one-third of all consumers receive direct mail advertisements. The same study states that approximately 2/3 of consumers open direct mail letters.

The most common reason cited for this was the personal touch. This shows that direct mail advertising can successfully reach out to small business customers.

Another reason why direct mail advertising is highly effective is that it is one of the most cost-effective advertising methods.

Since the process is automated, producing an efficient amount of direct mail advertisements is easier.

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This translates to lower expenses and higher revenues for a small business owner.

Direct mail advertising can generate more leads than any other type of advertising.

You can also build credibility and establish relationships with potential customers. The fact that the ads are printed on letter-size paper allows the customer to open the letter and read it. This allows the recipient to determine whether they want to continue reading the advertisement.

As a result, many people are drawn to the mailboxes by the personal touch of the letters. This is a powerful method of advertising for a small business.

It's A Powerful Way To Create Brand Awareness

Direct Mail Brand Awareness

Direct mail advertising is a powerful way to create brand awareness.

As we are all well aware, direct mail advertising has been around for many years, and it is still a very effective way to reach our audience through pre-paid envelopes.

However, how can direct mail stand out with the rise of digital media such as email, social media and online marketing? What is it that makes it so unique and a powerful way to create brand awareness?

To answer these questions, I would like to take you back in time and discuss the evolution of direct mail.

The Evolution of Direct Mail Advertising

In the early 1900s, during the first part of the 20th century, advertising changed from a print-based form to a more visual one. This shift in advertising occurred because of changes in production techniques. 

The development of printing technology and improvements in photographic equipment led to the emergence of large-format advertising, which became popular in the late 1920s and 1930s.

During the Second World War, the focus on the mass media shifted away from print.

This was partly because the paper was rationed during this time. Most businesses could not access the money needed to invest in print advertisements. This led to massive growth in television advertising and radio broadcasting in the 1940s.

During this period, businesses realised that direct mail advertising was an extremely effective and cost-efficient way of reaching their audience. With the advent of the postcard, direct mail became more affordable.

As more and more people used this form of communication, it became the primary method of communication. By the end of the century, almost 90% of consumers received direct mail.

So, with direct mail becoming the norm, how does it differ from other forms of advertising?

Firstly, unlike most other forms of advertising, direct mail can be considered a ‘one-to-one' communication. That is to say, each piece of direct mail is a personalised message to one specific individual.

This means the company's message is specifically targeted toward a particular individual, so the chance of a response is much higher. For example, if a letter is sent to the whole household, it may be that the person most interested in the subject is not even home!

Direct mail is a significant benefit, as it allows you to target a specific group.

For example, if you wanted to market your business, you could do this with direct mail, as it allows you to target a group of people. You could do this by looking at factors such as income level, occupation, hobbies, age or interests, to name but a few.

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Direct mail allows you to communicate in a highly personalised way; therefore, it can be a compelling way of reaching out to your audience.

How Can Direct Mail Remain Relevant In A Digital World?

For a while now, we have all been aware of the rise of digital media and that this form of communication is becoming more popular. However, we are often moving away from the physical and more toward the digital.

Direct mail has had to adapt to emerging technologies with the move toward digital.

One of the reasons many businesses are investing in digital advertising is that it is a cheaper, easier and more accessible method of communication.

However, some businesses are still reluctant to fully embrace digital media's benefits, preferring to stick with traditional methods.

It Works Even Better If You Invest In Quality

Direct Mail Results

Looking around you, you'll see all kinds of print ads. They come in flyers, postcards, brochures, booklets and newsletters.

While there are many types of print, we're focusing on direct mail (DM) here because of its versatility, flexibility and effectiveness.

Direct mail works on three levels – in the eyes of the consumer, at the point of purchase, and as an overall promotional tool. The eye-level effect is the most powerful, usually within the first few seconds of looking at a DM item.

So, as soon as you send out a DM campaign, you can capture potential customers.

The visual appeal of a DM piece drives the eye-level effect. While a piece might use all the bells and whistles of traditional media, the real power is how it looks and is presented.

The second level is the point-of-purchase impact. You want to ensure your DM item is displayed so that a potential customer notices it. You can accomplish this through various means, such as showing your DM on a store rack or in a display window.

Finally, as part of a more extensive promotion, you can ensure a more vast audience sees your DM. For example, a newsletter is great for connecting with a list of subscribers. A postcard is an excellent, quick way to make an impression on someone you meet.

The power of direct mail – which works so well today – comes from its ability to speak directly to the consumer.

Direct mail pieces typically cost less than a TV ad yet are more effective because they speak directly to the consumer.

For example, if you send out an email marketing campaign that typically costs $2,000, a DM campaign might cost just $1,000. But, as part of that same campaign, you could create an eye-catching piece to be sent to your list.

These kinds of savings don't come from cutting corners. They come from investing in high-quality print that delivers a better customer experience.

There are many reasons to invest in quality print. Among them are:

  • The print looks better than the digital
  • Print is still the best way to reach people who read
  • The consumer doesn't have to see the total price of a print
  • The consumer can return the print if they don't like it
  • Print can be returned and re-used
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As you'll see below, thinking you must pay more for print is a mistake. It's quite the opposite. When you invest in quality print, you can save money.

It's A Great Way To Build Loyalty With Repeat Customers

Direct Mail Marketing Campaign

A direct mail campaign is an effective and low-cost way to build loyalty with repeat customers.

By sending out a promotional letter or postcard to existing customers, you can create more opportunities to develop relationships with them and encourage them to continue buying your products or services. You may even find new ways of doing business.

However, this is not to say you should send a mass mailing. This is one of the most expensive and time-consuming methods of promoting your company or product.

Your direct mail campaign should target customers you think will likely purchase from you again.

They should already be in your database and have some previous communication with you. By sending a promotional letter or postcard to your regular customers, you can make the relationship between you and them more personal and friendly.

A good direct mail campaign can go a long way to win back customers you may have been tempted to purchase elsewhere. Here are just a few examples of the many reasons why a direct mail campaign works well:

  • You're reminding people what you've got to offer. You can use this to tell your audience about the benefits of buying from you, but more importantly, you can remind them of the products or services you've already supplied them with.
  • You're creating brand awareness. This is an excellent way of building awareness of your company or product. You'll promote your business inexpensively by putting a logo or company name on your promotional item.
  • You're creating new sales leads. Not only will you be reminding customers of your product and services, but you will be offering them something special that's only available through you.

Direct mail campaigns are a great way to promote your business and create new sales leads. However, you must know the costs before investing in a direct mail campaign.

Spending a fortune on your promotional items is unnecessary, but if you're looking to build relationships with your customers, you will want to make sure you spend some money on them.

If you decide to go ahead with a direct mail campaign, you should ensure that you send your promotional letter or postcards to only those interested in purchasing your products and services. You shouldn't send them to every customer, so ensure your mailing list is as complete as possible.

You can send promotional letters and postcards by hand or using the postal service. For example, if you order your letter or postcard to be printed, you can use a large format printer or print it yourself.

You must pay for postage using the postal service and ensure the address is correct.

Except for bulk mailers, very few people will look at a direct mail campaign. So, it would help to focus on communicating your message to your target audience. This means you must ensure your promotional letter or postcard has a nice finish, and your letterhead and envelope should be clean and tidy.

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You'll also want to ensure your message is well-written and easily read. As a result, you should take a moment to review your content. If you're using images to illustrate your point, they should be relevant and representative of your business.

In addition to the above, you should ensure the envelope is not torn or damaged. If you're mailing your direct mail campaign by hand, including a stamp is a good idea so your letter looks more official.

When planning a direct mail campaign, you must consider many other considerations. For example, you will want to ensure that you choose the right size, quality and quantity of the promotional material. You will also want to ensure that the materials you use to suit your intended audience.

It Helps You Gain Access To New Customers

Direct Mail New Customers Marketing

The primary purpose of direct mail is to attract new customers. So, your goal should be to generate enough interest in your product or service to get your potential customers to contact you. Here are the key ways you can use direct mail to gain access to new customers:

1 – Send targeted mail.

You can increase the response rate of your direct mail by targeting your mailing to specific demographic groups. If you can identify the type of buyer you are after, you can use this information to tailor your mailing to this particular group. For example, if you sell pet supplies, you can mail a mailing to dog owners, cat owners, and breeders.

2 – Use a creative direct mail package.

One of the most critical components of a good direct mail package is its cover. It must grab the recipient's attention and get them to open it. If you have a good cover and a well-designed envelope, your customer is likelier to open it and take the time to read it.

3 – Create a unique mailing.

If you want to reach a specific target audience, create a mailing that stands out. The first thing you should do is determine what kind of people will receive your mailing. If you are mailing people with dogs, you might send an offer for dog treats. If your mailing goes to the people in your neighbourhood, you may want to send a flyer to help them save money on utility bills.

4 – Offer a discount.

Offering a discount is one of the easiest ways to encourage your customers to respond. But it is important to note that you should only offer a discount if you can justify it. Otherwise, your discount may turn off potential customers who disagree with the price.

5 – Rely on sound design.

A well-designed direct mail package is attractive and easy to read. A simple logo or slogan and a straightforward layout can help your package stand out in similar mailings.

6 – Add a special touch.

You can also add a special touch to your package to make it even more attractive. This can include a coupon, an offer for a gift, or any other incentive you think will get your customer to act.

7 – Receive feedback.

Once you have finished a mailing, you should wait a while before evaluating it. If you ask your customers to fill out a postcard or return a survey, you can get feedback on what worked and what didn't. This will help you improve your direct mail strategy.

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Conclusion

Direct mail advertising is still one of the best ways to reach your target audience. It's an inexpensive marketing channel with high returns.

You can get people to open your mail by writing something memorable and exciting, such as “How to Increase Your Email Open Rates by 50%.” Then, you can give them something valuable and practical, such as your best offer or product.

You can also use direct mail advertising to remind people about your company's special offers.

Are you ready to get started? Check out our guide to Direct Mail Advertising and start saving money today.

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Written By
Stuart Crawford
Stuart Crawford is an award-winning creative director and brand strategist with over 15 years of experience building memorable and influential brands. As Creative Director at Inkbot Design, a leading branding agency, Stuart oversees all creative projects and ensures each client receives a customised brand strategy and visual identity.

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