OPINION: Why direct mail remains a timeless marketing tool
While digital marketing dominates the advertising landscape, traditional marketing is still going strong. Despite the rise of digital channels, direct mail remains a powerful tool for businesses to connect with their target audience.
Direct mail marketing is continuing to be a significant investment for businesses. In 2024, advertising spending on direct mail reached £2.85 billion, and it’s projected to grow to £3 billion by 2029, with a steady annual growth rate of 1.01%.
With that in mind, Jon Beasley, Technical Director at Washington Direct Mail has shared his insight on the usage of direct mail saying, “physical mail offers businesses a more personalised, targeted and tangible approach to connect with their audience that aligns with their purchasing behaviours. Not only has direct mail stood against the test of time but it also charts a new advantage for businesses to come up with more creative solutions and implementations beyond what can be achieved by digital marketing.”
Here’s why direct mail remains a vital component of your marketing strategy…
Personalisation Powerhouse
One of the biggest challenges marketers face is mastering personalisation. Since personalised brand messages became the norm in 2020, digital creatives have been continually refining their audience segmentation tactics. In fact, 71% of consumers expect personalised interactions from brands, according to McKinsey, and 76% get frustrated when they don’t.
While both digital and direct mail advertising enable accurate personalisation, direct mail offers a wider scope for crafting truly individualized campaigns. Beyond physical delivery, direct mail leverages data to gather insights into customer purchasing behaviour, demographics, and interests across channels, enabling the creation of tailored messages and campaigns.
Combined with variable data printing, advertisers can align messages with customised designs tailored to each consumer’s preferences. The goal of individualised campaigns is to make customers feel valued and understood, and direct mail offers an effective way to achieve this.
Tangibility meets creativity and innovative solutions
Another challenge facing online marketing campaigns is oversaturation. Consumers are constantly bombarded with brand messages across all digital platforms, each competing for their attention. This overstimulation can lead to message fatigue, with recipients becoming immune to online ads and often discarding them. While email marketing has an average open rate of 35.63%, direct mail boasts a significantly higher open rate of 57.5% to 85%.
Once the initial excitement fades, consumers are left with an inbox filled with uninteresting brand advertisements or social media posts disguised as content from friends, which only disrupt their online experience.
To capture consumer attention, brands must offer something exciting. Gen Z, the youngest consumer segment surveyed by USPS, expresses enthusiasm for opening mail and 72% reported that they would be disappointed if it was stopped. Gen Z also favors unique and creative direct mail formats.
Receiving an innovative print piece with an interesting design and premium paper, or a free sample of a favourite beauty cream, will not only intrigue consumers but also increase their engagement with the mail or product.
Technology and innovation are also entering the physical mail world, promising to make this marketing channel even more enticing. For example, in March 2021, R.R. Donnelley & Sons Company launched a portfolio of 3D direct mail solutions, enabling simulations and digital prototyping. These enriched user experiences are expected to increase the current average open rate of 57.5% to 85% and result in higher ROI.
Leveraging in a Multi-Channel Strategy
Direct mail can be integrated into a broader marketing strategy, rather than being used as a standalone tactic.
By including a clear call to action, you can guide customers across multiple channels, optimising resources and building strong relationships. On average, it takes eight touchpoints to convert a B2B sale with a new prospect. The main goal of a mixed marketing campaign is cohesive storytelling that keeps consumers present and engaged.
According to JICMAIL, 6% of mail resulted in purchases in Q1 2024, a 1.8% increase from Q1 2023. Additionally, 38% of those who visited an advertiser’s website after receiving a direct mail piece made an online purchase.
Personalised URLs and QR codes enable marketers to track response and conversion rates and create more detailed audience segments for retargeting.
Conclusion
Direct mail has established itself as a valuable advertising channel, and it’s only a matter of time before more advertisers embrace it. Early adopters of direct mail can capitalize on its benefits and gain a competitive edge.
Photo by Kutan Ural on Unsplash