Why Include Direct Mail In Optichannel Marketing?

Direct mail is highly effective on its own; however, when you combine it with other marketing channels, it gets even better. Demand Metric, in partnership with PFL, conducted a benchmark study. The optichannel marketing research is meant to understand the importance of multichannel marketing.

Direct mail is highly effective on its own; however, when you combine it with other marketing channels, it gets even better. Demand Metric, in partnership with PFL, conducted a benchmark study, “Multichannel Marketing Maximizing Program Engagement and ROI”. The optichannel marketing research is meant to understand the importance of multichannel marketing and the power of intentional, coordinated marketing efforts.

The goal of the study was to collect data to identify best practices and help marketers know how to reach specific audiences, and when to use particular tactics within their multichannel campaigns. The results indicate that direct mail needs to be a part of your optichannel marketing strategy.

Key findings:

  • When direct mail is personalized and tightly integrated into the channel mix and campaign technology: Average response rates improve significantly, with a 62% increase in those reporting good or very good response rates. The ROI of multichannel campaigns improves significantly, with an 80% increase in those reporting good or very good ROI.
  • Just over half of this study’s participants include direct mail in their multichannel campaigns, and 80% of them report that direct mail improves multichannel campaign performance.
  • The executive, or C-Suite, audience is the most sought after by study participants. Events and direct mail are the most effective channels to reach them.
  • While postcards are the most frequently used direct mail format, the dimensional format does the best job of representing the brand.
  • More channels produce higher response. Respondents using seven or more channels in their mix are 26% more likely to indicate their multichannel programs produce good or very good response.

Respondents use a multitude of channels that include:

  1. Email: 91% usage
  2. Social Media: 81% usage
  3. Events: 73% usage
  4. Display Ads/Remarketing: 60% usage
  5. Direct Mail: 56% usage
  6. Search/PPC: 51% usage
  7. Outbound Business Development/Sales Development: 47% usage
  8. Content Syndication: 35% usage
  9. Other: 5% usage

Most marketers are using between three and five channels on any given campaign, but results show that you should consider adding more channels. When marketers use seven or more channels, they report a 77% “very good” or “good” response rate. The report also found that marketers are not consistently using the most effective channels. The top three most effective channels are: events at 83%, integrated and personalized direct mail at 78%, and Search/PPC at 73%. What are you using?

Direct Mail Needs More Attention From Marketers

The report shows that marketers are most familiar with postcard and letter formats, and report that they use those formats most. Postcards are the least expensive direct mail format. Many marketers favor postcards because there is nothing to open: the message is easily visible. Dimensional mail formats are a close third in usage. This format includes pieces that are not flat, like the other types, but have an element of depth to them. A dimensional mail piece is often sent in boxes or tubes, and its very form invites opening it. These pieces evoke natural curiosity and tend to drive higher response rates. Have you tried dimensional mail?

According to study participants, direct mail clearly enhances multichannel campaign performance. In this study, 52% report a moderate to major improvement in campaign performance when direct mail is one of the channels. When direct mail is part of the channel mix, campaigns have slightly better response rates. Personalized direct mail generates significantly better response rates to multichannel campaigns. Are you using direct mail enough?

As you can see, adding direct mail to your optichannel marketing campaigns is significant. The more personalized and integrated it is, the better your response rate is going to be. Are you ready to get started with more personalized direct mail?

Why Personalization Matters in Direct Mail

Many times, companies shy away from complex personalization because they are worried about getting it wrong. Don’t let your fear stop you. Check out these stats from an InfoTrends 2016 study.

personasBefore we really get started, let’s define what personalization in direct mail is. It’s more than just putting the name and address on the piece.

In 2016, even just adding “Dear name” or just a name is no longer the best way to personalize your direct mail. Don’t get me wrong, you still need to have the name, but you can get so much more creative than that. So don’t just stop there, get more personal with offers, images, landing pages and more. Here are three reasons to get personal:

1. Recipients Like It

With all the technology out now, there’s no reason why you can’t personalize your direct mail, so just do it. Recipients have stated in multiple studies that they pay more attention to mail pieces that are personalized. It makes them feel special.

2. Better Targeting

With personalization, you are better able to target your message to each person. Using the information you have collected in your data base, you can create custom offers that appeal to the right people based on purchase history.

3. Better Response

Since your recipients like it and you can better target them, you are going to get a better response rate with personalization.

Many times companies shy away from complex personalization because they are worried about getting it wrong. Don’t let your fear stop you. Check out these stats from an InfoTrends 2016 study.

Survey Question: Does the customization or personalization of a direct mail piece make you more likely to open/read it? 29.2 percent said “Yes, Much more likely” and 55 percent said “Yes, a little more likely.” With numbers like that, you need to be personalizing.

Personalization in 2016 isn’t hard. There’s great software out there to help control the variable data and ensure that the correct information is on each piece. The key component is what you have in your data base. The more information you have, the better the personalization will be.

Top 3 Ways to Personalize Direct Mail

1. Images: The visual component of your direct mail sets the mood and draws the recipient into your message. Getting the images that will appeal most to each person is very important.

2. Offer: Using the data you have about each person to tailor the offer to their needs is very powerful. The right offer will get the response, the wrong one will not.

3. Copy: The copy is the obvious personalization to the recipient. It uses their name and other information from your data. Use the copy wisely to draw interest. Even though they like personalization, too much copy is a problem and they will not read it.

Are you convinced that personalization is the key to better ROI? I am. If you want to start smaller to take some of the fear out of it, you can do that. Just make sure you don’t get stuck in the mode of just using a name and calling that personalization. Build up your personalization with each mailing by incorporating more data and more complex variables. This gradual build up will give you the confidence to keep getting more personal. What ways have you used personalization?