Many industries have realized the power of direct mail marketing to generate leads and crush their sales goals.
With competition growing among digital channels, direct mail marketing has helped marketers cut through the noise and reach their customers in a way they love. When done right, it feels personal and meaningful and drives customers to take the desired actions.
In this guide, we’ll discuss the benefits of direct mail marketing. We’ll also examine how different industries can use it to their advantage.
What We’ll Cover:
- The Power of Direct Mail Marketing
- The Benefits of Direct Mail Marketing for Any Industry
- Industries that Benefit Most with Direct Mail
- The Versatility and Success of Direct Mail Across Industries
The Power of Direct Mail Marketing
Many businesses assume direct marketing is here to kill email marketing and other digital channels. That’s the wrong notion. The reality is you can combine direct mail marketing with your other channels to create seamless campaigns and achieve synergy.
For example, once you send a direct mail catalog to your prospects, you can follow up with exciting deals via email to nudge them toward a purchase.
Many industries using direct mail now adopt creative strategies to pair direct marketing with other initiatives and create multi-touch campaigns for their prospects and clients.
The Benefits of Direct Mail Marketing for Any Industry
Whether it’s helping you add a different element to your marketing efforts or delivering a personal touch, direct mail works. Best of all, it can help businesses of all sizes hit their sales goals.
Here are seven crucial benefits of direct marketing.
#1 Highly Targeted Campaigns
Have you ever received a marketing email or direct mail that was relevant to you and instantly wanted to act on the CTA?
That’s the power of creating targeted campaigns. It helps you reach the right people with the right content, increasing the chance of conversions. The higher the conversions, the higher the ROI.
With direct mail tools like Postalytics, you can create laser-focused campaigns. With features like variable data and logic, you can create personalized mails in a few minutes instead of manually creating every design.
The result is campaigns that hit the right chords with your recipients.
Emails are a great form of communication when you want to send something quickly or repeatedly. But the physical nature of direct mail makes it memorable. It can also create a lasting impression on your recipients, contributing to increased engagement and brand recall.
According to research by the United States Postal Service, 72% of the youngest customers surveyed said they look forward to receiving direct mail.
This is because its tangible nature creates enthusiasm. It also gets noticed more, even if it’s just lying on your table at the office.
Direct mail personalization is no longer limited to adding the recipient’s name on the mail piece.
Now, tools allow you to customize the entire content of your mail piece depending on the logic you enter. For example, you can choose to show different copies to customers in Florida as opposed to customers in Texas. Or you can look at the past purchasing history of your customers and show different imagery based on these variables.
Personalization builds a bond with your recipients and encourages them to act on your CTAs.
#4 High Response Rates
Did you know that response rates for physical mail tend to be 10 to 30 times higher than digital mail? Recipients even note that receiving direct mail makes a longer-lasting mental impression.
Think about it. How many emails do you get in a day or a week? Compare that with the number of physical mail pieces you receive.
Digital mail gets easily forgotten or ignored. Physical mail gets higher response rates because of its tangible nature and lower competition than digital mail.
#5 Measurable Results
Companies used to ignore direct mail marketing because there was no way to track its effectiveness and measure the results.
However, with new tools, the scenario has completely changed how marketers create and track these campaigns.
You can head to this guide to see how you can use different metrics and KPIs – like response rate, conversion rate and cost per acquisition – to track the success of your direct mail campaigns.
Many businesses also use QR codes on their mail pieces. When recipients scan the code, you can then track their online activity.
#6 Multi-Channel Integration
To enhance the impact of your campaigns and create a cohesive brand image, you can combine your other marketing channels with direct mail marketing.
There are many campaigns where you can integrate different channels to achieve the same goal and boost your conversions.
For example, if you’re trying to spread awareness about a new product launch event, you can share posters and generate hype on social media. At the same time, you can send personalized direct mail to influencers to invite them to the event and benefit from their reach and audience.
#7 Complements Digital Efforts
There’s no competition between online and offline when trying to achieve the same goal with both these campaigns.
Direct mail can bring these two initiatives together. It can drive traffic to websites and social platforms and support online engagement and conversions.
For example, with QR codes on mail pieces, businesses try to bring their recipients online and nudge them towards a purchase or subscription. You can also share your website URL on your mail piece so the recipient can visit your website.
These benefits show that direct marketing is here to stay for the long run. Let’s find out how different industries can adopt it.
Industries that Benefit Most with Direct Mail
Whether in the automotive or insurance sectors, you can reap the benefits of direct mail.
Here’s a list of all the industries using direct mail for their marketing campaigns to great success.
The automotive industry’s media spend on direct mail is the highest at about 28.6%. Most companies use direct mail to engage with existing customers who purchase frequently.
The direct mail formats most used by the automotive segment are newsletters and postcards. For example, if you create a newsletter, instead of emailing your loyal customers, you can mail it to them. The motto is to drive website visits, purchases, program signups, store visits, and app downloads.
According to USPS, automotive companies use direct marketing to spread awareness, evoke interest, win back customers, drive loyalty, and encourage purchases.
According to USPS research, 25.8% of travel companies’ media spending goes on direct mail activities. They send these mails to customers who purchase packages from them or prospects likely to benefit from their services.
They typically send direct mail postcards and newsletters to their target audience. For example, many travel companies attract audiences to their website by creating content on different destinations and how to plan trips to these places. You can send postcards to them with pictures of scenic locations and attractive deals that draw them towards your business.
The kind of customer actions travel companies often target are:
#3 Financial Services
Building trust and credibility with your customers through informative and personalized mailers is essential in the financial services industry. Most companies in this industry choose postcards as their primary direct mail format (72%).
The interesting thing about this industry is that it uses direct mail to drive interest and awareness instead of purchases.
A primary reason is you first need to educate your customers on how your different financial services may help them and then drive them toward purchasing. With Postalytics, you can access readymade direct mail templates designed for the finance industry.
Insurance is one sector where trust is important while selecting an agent or a company. Direct marketing can build and reinforce that trust with potential and existing policyholders.
Like financial services, the insurance industry also uses postcards and newsletters extensively. For example, you may send a direct mail about the not popular yet crucial kinds of insurance that people usually miss out on.
Many of our insurance clients set up triggers in Postalytics and other integrated tools to activate a direct mail campaign that sends a unique piece of mail to the right lead at the right time.
#5 Retail and E-commerce
The retail and e-commerce sectors are evolving with fierce competition and changing customer trends and preferences. You can use direct mail to keep up with the changing times and attract and retain customers.
Unlike other industries, the two most targeted audiences for direct mail are existing customers who purchase frequently and those who don’t.
This is because many retail and e-commerce companies usually create retargeting campaigns to bring back customers who have not purchased in a while.
Postalytics offers direct mail services to connect with customers outside the shop by sending direct mail promotions like coupons and deals to promote purchases.
#6 Home Services
Whether you offer home cleaning services, floor polishing, or painting services, you need to grapple with this segment’s unique challenges. These include fierce competition, seasonal variations in demand, and the need to create trust with homeowners.
Postcards and other direct mail formats can be used to create triggered drip campaigns. For example, as soon as a reader subscribes to your blog, you can trigger a direct mail marketing campaign and send them a newsletter via mail or an introduction to the different services they can benefit from.
You can set up seasonal campaigns to create demand, like sending limited-time discount coupons as self-mailers for scheduling a cleaning drive for the upcoming season.
#7 Real Estate
It has become difficult for real estate agents and agencies to stand out in the hyper-competitive space. With the digitization of the industry, the online space has become more crowded, and it has become a struggle to capture the attention of potential clients.
Direct mail offers a great solution in this scenario. For example, you can attract prospects by telling them about the recent changes in property valuations in their area. You can then talk about your services and how you can help them.
Here’s a case study on how a real estate broker started generating more leads with personalized direct mail advertising.
Non-profit organizations face a lot of challenges while fundraising. These include limited budgets, cost-effective ways of reaching out to potential donors, donor fatigue, and the need to stand out in a competitive philanthropic landscape.
Direct mail offers non-profits a cost-efficient way of raising money. Donors also see direct mail as more trustworthy than other channels, with 56% of customers finding printed materials the most trustworthy marketing type.
Using direct mail in your marketing strategy also builds a personal connection with the donor, which helps increase conversions.
Effective communication is crucial when you’re running an educational institution. You need to reach out to parents and students, foster engagement, and address concerns or questions promptly.
You can also create automated direct marketing workflows to attract prospective students. For example, whenever a student/parent fills out a form on your website asking for more details on enrollment, you can send them a direct mail with your institution’s work and achievements and how they can apply.
You can combine direct marketing with other channels to increase conversions and improve engagement.
Whether adhering to HIPAA regulations for patient communication or finding effective patient acquisition and retention strategies, the healthcare industry needs to be on its toes in a competitive landscape.
By using direct marketing, you can spread awareness about your healthcare services. You can highlight how you help patients access world-class facilities and speed up recovery—for example, sharing a newsletter on the recent equipment you have brought in and how patients have benefited from it.
You can use the Postalytics platform to integrate your direct marketing with other tech and get detailed insights into your campaigns.
The Versatility and Success of Direct Mail Across Industries
Direct mail brings benefits to almost every industry. Its tangible nature and ability to reach a wider audience help you stand out from online noise and fierce competition.
You can adopt direct mailing services and use tools like Postalytics to create laser-focused campaigns. Best of all, these campaigns can integrate seamlessly with your other marketing channels.
If efficiency, affordability, and timing are what you are looking for, then Postalytics is an ideal solution for you. Postalytics is an all-rounder in the industry of direct mail marketing. Our platform has features and functionalities to help you crush your sales goals.
Register and try out the tool for yourself.