Nowadays, it’s easy to assume that traditional forms of marketing, like direct mail, are a thing of the past.
However, despite the rise of emails, social media, and online ads, direct mail remains a powerful tool in the marketer’s arsenal.
Let’s tackle some common misconceptions about direct mail and uncover why it’s not just relevant but thriving in today’s multi-channel landscape.
Myth 1: Direct Mail Has a Low Return on Investment (ROI)
Reality: Direct Mail Offers High ROI
Direct mail often gets a bad rap for delivering poor ROI, but research paints a different picture. According to a report that was published by the Association of National Advertisers (ANA), direct mail has an average ROI of 112%, which is higher than both SMS and email.
This impressive ROI can be attributed to direct mail’s ability to create a lasting impression on the consumer, which can be drawn back to its physical nature and not seen and read off of a screen.
Example:
To receive that high ROI, companies are becoming more creative in their direct mail efforts. A company called BillingTree, who deals in payment processing, was having trouble connecting with their customers. They decided to get creative in their efforts and mailed 100 cases that were locked from the outside.
Inside was a gift card that ranged from $25 to $100. The combination was not included in or on the package. With this new, creative direct mail idea, they ended up achieving an ROI of over 700%.
Myth 2: Direct Mail Is No Longer Read
Reality: Direct Mail Captures Attention
Many people believe that direct mail goes right in the trash after it gets to the consumer, however, direct mail stands out as a less cluttered option that captures consumers’ attention.
Unlike emails or online ads that can be easily overlooked and discarded or marked as spam, direct mail provides an experience that engages the recipient. They have a physical copy in their hands instead of just reading from a screen.
People are more likely to read physical mail because it lacks the distractions commonly found in digital formats.
Example:
The U.S. Postal Service recently conducted a survey about direct mail. The survey results said that across all generations, “56 percent of respondents say that receiving mail is “a real pleasure,” and 67 percent feel that mail is more personal than the internet.”
Myth 3: Direct Mail is Environmentally Unfriendly
Reality: Direct Mail Can Be Sustainable
This misconception that direct mail is environmentally unfriendly is a common mistake that most marketers and customers make.
The industry has been switching to much more sustainable practices that include partnering with reputable paper mills that generate their paper from sustainable forests.
As well as using water soluble or vegetable-based inks on the paper instead of the commonly used ink. Incorporating both environmentally friendly options, plus targeting only specific and relevant customers makes for direct mail that doesn’t negatively affect our environment.
Example:
Companies are committing to being more sustainable. Who’s Mailing What continually collects data on specific words and phrases that are being used in mail.
The phrases “printed on recycled paper” and “soy ink” used in direct mail has risen over 25% from the year 2004 to 2021. That’s only showing us the companies that are putting these phrases in their mail.
Myth 4: Direct Mail is Too Expensive
Reality: Direct Mail Can Be Cost-Effective
When you look at direct mail from strictly a price standpoint, it can seem expensive at first glance. However, when executed properly, direct mail can be a cost-effective way to reach your target audience. The key lies in consumer reach and personal connection.
Companies have specific targeted lists that use demographics like locations, interests, and age groups which guarantees that whoever is receiving mail is the right person.
The real effectiveness lies even deeper than that though, as customers feel a sense of importance and exclusivity as they hold the piece of mail. As humans, we all feel better when we are able to have a sense of touch.
Example:
Small businesses often find direct mail to be the best option for their money. Local restaurants or service providers can use direct mail to offer special promotions or discounts to a geographically targeted audience.
By focusing on specific neighborhoods or demographic segments, they can achieve high returns on their investment. Also, their customers feel a sense of importance after receiving a piece of mail from their local restaurant.
For example, if the piece of direct mail contains a menu, they may keep that menu in case they want to order from that restaurant down the road.
Conclusion
Direct mail is far from being an outdated or ineffective marketing tool. Direct mail can be environmentally friendly, cost effective, and give a high ROI.
By debunking these myths and recognizing the evolving capabilities of direct mail, businesses can leverage this powerful channel to complement their digital efforts and drive meaningful results.
There is still a place for direct mail, companies just need to know how to use it effectively and sustainably. As part of a well-rounded marketing strategy, direct mail remains a relevant and effective choice for reaching and engaging audiences in a tangible and impactful way.
For more information and ideas for your direct mail and digital campaigns, contact Welcome Wagon! Founded in 1928 to welcome new movers to their community, Welcome Wagon is committed to connecting with new homeowners through their mailboxes and online.
