Direct response marketing could be the most effective way to market your local business, if you’re doing it right.
Marketing-Communications is slowing fading into the background to terms like data-driven marketing and marketing-technology. The power of digital technology encompasses our lives- both professionally and personally making it hard to imagine life without the conveniences of our digital resources. The phenomenon quickly changed the way both corporations and local businesses market to their audiences with most businesses spending around 70% of their marketing budget on digital marketing in 2017.
Given the shift in budget allocations it might be surprising to learn that direct mail response rates were higher in 2017 than in the previous 15 years. Here at Welcomemat, a 15-year-old direct mail marketing company, we’ve seen growing response rates and higher ROI figures for our local business clients as well.
So why are businesses shying away from direct mail? Well, quite simply, because not all direct mail marketing is made equal. Direct mail marketing done right encompasses technological resources that help target, track, and emphasize the point. If you’re going to do direct mail, these are the details to be in tuned to:
Many marketers shy away from direct mail because of the cost per impression. Considering you can get Facebook impressions for less than one cent an impression it can be hard to see the ROI benefits of the channel. The key to ROI for direct mail marketing is targeting. Know who you want to reach and create a narrow but specific list of targets. When targeting is done correctly your ROI can be as high as thirty-four dollars for every dollar spent.
The average consumer receives close to 3,000 marketing messages a day making it difficult to create memorable brand moments with your audience, even if your marketing is excellent. Consumers are most likely to remember your brand if they experience it in different settings and in different ways. Every marketing channel has its own benefits, and when you combine all efforts together, including a physically tangible marketing piece through direct mail, consumers are most likely to take the time to connect with your brand.
Making your mailer feel intentional and personal is the best way to increase the ROI on your direct mail marketing campaign. By adding the recipient’s name onto a full color piece you will increase the response rate by 135%. Utilize the data from your list targeting to personalize each piece of mail and lengthen your audience’s attention span with full-color graphic visuals.
Many businesses look for quick ROI numbers or assume that because the investment for direct mail is larger than digital, that the ROI is lower. When in fact, in 2016, for every $167 spent of direct mail in the US, marketers sold $2095 in products and services. It’s important to track the value and avoid making assumptions based on investment or short-term ROI. Make your direct mail marketing materials purposeful and actionable to allow for tracking and long-term ROI reporting. If you are working with a vendor to deploy your direct response pieces, make sure they have systems in place to measure, track, and report on your campaign’s success.
While some might argue that direct mail is dead, we disagree. But there is no arguing that direct mail is different – it’s become more sophisticated as its integrated with the technology now available. When you’re considering your next local business marketing strategy, don’t shy away from more traditional tactics, just ensure that you are using them in tandem with the modern resources available.
At Welcomemat Services, we’ve been utilizing data-tracking technology in our direct mail marketing services for the over 15 years through our new mover marketing program. We help local businesses reach new customers and build long term customer relationships. Learn more about our marketing programs and data-tracking technology HERE.