Does Anyone Still Do Direct Marketing in 2019?

Direct marketing is still very much a vibrant and effective form of communication, despite the global shift towards digital channels. While the volume of traditional mail continues to decline, direct marketing is far from being in decline. In fact, its effectiveness in driving results makes it a compelling choice for businesses looking to connect with their audience.

Declining Mail Volume, Rising Response Rates

According to the United States Postal Service (USPS), total mail volume has decreased by 29.85% since 2006. This significant drop is often attributed to factors such as online bill pay and more sophisticated targeting techniques. However, the reality of fewer pieces in mailboxes presents a valuable opportunity for marketers. Less clutter means there are fewer competing messages, allowing direct marketing campaigns to stand out more effectively.

The rise in direct mail response rates further solidifies its value. In the United States, house lists now achieve an average response rate of 9%, while prospect lists see an average response of 5%. These figures represent a 173% and 194% increase, respectively, since 2006. To put this into perspective, digital channels such as email, paid search, and social media typically yield a 1% response rate, while display ads average only 0.3%. Clearly, direct mail excels when it comes to generating new and repeat business.

Connecting with Your Audience: Going Beyond Digital

Direct marketing isn't just about delivering messages; it's about building meaningful connections with your audience. Here are several ways direct mail stands out:

1. Personalization

Direct mail allows for tailored messaging that appeals to specific customers. Introducing personalization into your direct mail pieces can significantly increase response rates. A 2017 study found that adding names to direct mail increased response by 135%. Additionally, the Data Management Association (DMA) reported that 1:1 targeting can boost response rates by at least 50%.

2. Engagement

Studies show that people interact more with printed materials than digital content, triggering stronger motivational responses. A 2017 USPS study revealed that the parts of our brains controlling motivational response are 20% more engaged when viewing print ads. Direct mail is also highly memorable, according to research showing that brands that advertise via direct mail have a 70% higher brand recall rate compared to those that use digital channels.

3. Trustworthiness

Consumers tend to view direct mail as more trustworthy than digital formats. In one study, 56% of people felt that print advertising was the most trustworthy form of marketing. This heightened trust is due to the lack of intrusive nature of direct mail, which allows for leisurely opening and isn't as forceful as other forms of digital advertising.

4. Timing and Mood

Timing plays a crucial role in the success of direct marketing campaigns. Research from the USPS indicates that 55% of individuals look forward to what arrives in their mailboxes, and 56% find the act of reading mail pleasurable. This positive mood can enhance the impact of your direct mail pieces.

Conclusion

While the digital landscape has transformed marketing strategies, direct marketing remains a powerful tool for achieving marketing goals. The increasingly personal, engaging, and trustworthy nature of direct mail makes it a valuable asset for businesses seeking to connect with their audiences. As the global trend towards digital continues, the effectiveness of direct marketing underlines the importance of a well-rounded marketing strategy that leverages both traditional and modern approaches.

So, whether you're acquiring new customers or retaining existing ones, direct marketing offers unique advantages that digital channels may not match. It's time to reassess your marketing strategy to incorporate the strengths of direct mail and see the results for yourself.