Direct Mail is Flourishing: Unveiling the Power of Tangible Advertising

Mail being put in mailbox

Contrary to popular belief, Americans still find joy in checking their mailboxes. Approximately 41% of Americans of all ages look forward to retrieving their mail daily. Even the younger generation, with 36% of Americans under 30, eagerly anticipate finding something addressed to them. The emotional connection and excitement associated with physical mail make it a valuable marketing tool.

Direct Mail Engagement

Direct mail grabs attention and holds it. A remarkable 42.2% of recipients either read or scan the mail they receive. Compared to email, direct mail requires 21% less cognitive effort to process. This ease of consumption translates into increased engagement and a higher likelihood of your message being absorbed. With cluttered digital marketing channels, direct mail offers a welcome respite for consumers seeking a tangible experience.

Driving Purchases and Return on Investment

Direct mail isn’t just about capturing attention; it also drives results. Direct mail recipients purchase 28% more items and spend 28% more money than those who don’t receive direct mail. This impressive return on investment is further validated by a 29% ROI offered by direct mail campaigns. The ability to generate higher sales and engagement makes it a cost-effective marketing strategy.

When it comes to cost-per-acquisition direct mail, the AcclaimMailer™ stands out as the pinnacle of success. With a track record of 15 years and ongoing success, the AcclaimMailer™ showcases extraordinary redemption rates that surpass industry standards. The SuperAcclaim has a 5 years and running Case Study that has showed an average ROI of 55%. A restaurant chain saw a 720% ROI with postage/costs adjusted for post-Covid (originally it had a 1,000%+ ROI) while an e-commerce Medical and Veterinary Supply company had a 3,000%+ ROI. Dollar for dollar, this powerful direct mail piece consistently outperforms its competition, establishing itself as a game-changer in the world of direct mail marketing.

Preferred Communication Method

In an era of intrusive digital advertising, consumers appreciate the personalized nature of direct mail. A staggering 73% of American consumers prefer being contacted by brands via direct mail because they can read it whenever they want. This autonomy over engagement fosters a stronger connection with the brand, leading to more positive responses and actions.

Open Rates and Recall

Direct mail outshines email when it comes to capturing attention. While only 20-30% of emails are opened, up to 90% of direct mail pieces are opened by recipients. Additionally, 75% of people can recall a brand after receiving direct mail, compared to a mere 44% who recall a brand after seeing a digital ad. Direct mail’s tangibility and ability to leave a lasting impression contribute to higher brand recall and recognition.

Response Rate

When it comes to direct mail, the choice of packaging can significantly impact response rates. According to the Data & Marketing Association, oversized envelopes stand out with the highest average response rate of 5%. This emphasizes the importance of considering packaging as part of your direct mail strategy. Other formats also showcase varying response rates: standard postcards achieve a fairly high response rate of 4.25%, followed by dimensional mailers at 4% and catalogs at 3.9%. On the other hand, letter-sized envelopes have the lowest average response rate, coming in at only 3.5%.

SSI Cards has manufactured countless variations of standard and eco-postcard mailers, with and without envelopes and inserts, over the years. However, the Acclaim laminated plastic postcard mailer gets the most consistent results across the board.  In fact, it loses no effectiveness with its recycled paper + biodegradable laminate solutions found in its NVIO™ line of eco-friendly postcards and mailers.  Biodegradable Teslin and biodegradable magstripe are also available. Letter envelopes are many times much more expensive (they weigh more and can cost more to produce when factoring in folding and inserting) and have far from the certainty of their contents being read in comparison to the AcclaimMailer™. By default, postcards don’t have an “open rate” because they’re already open. With their susceptibility to damage in the mail stream, quality should take precedence over quantity. Quality will also generate a better ROI.

(Micro)-Targeting the Right Audience

Understanding your target audience is crucial for successful marketing campaigns. Direct mail proves effective with not just standard demographics, but micro-targeting consumer data, buying habits, and in-depth demographics. There is no shortage of valuable information that can be learned, and should be used, with each additional targeted mailing. For example, individuals ages 45-54 have the highest direct mail response rate at 14.1%. Additionally, millennials, often associated with digital preferences, find direct mail marketing reliable and are likely to take action based on the direct mail they receive. That shouldn’t be surprising when you consider the booming industries of online privacy, ad blockers, spam filters, and Millennials’ general savviness when it comes to tech!

Direct Mail vs. Email

While email marketing has its merits, direct mail surpasses it in various aspects. According to USPS, in 7 out of 9 tests, direct mail had outperformed email marketing. Direct mail has response rates between 5% and 9%, compared to email’s average 1% response rate. It requires less cognitive effort to process, offers better brand recall, and outperforms email in terms of customer engagement and action. Although email may appear to be more cost-effective, direct mail’s effectiveness justifies the investment.

The direct mail revival is evident from the compelling statistics we’ve explored. Its tangible nature, higher engagement rates, increased purchases, and strong return on investment make it a formidable marketing tool. By combining traditional direct mail methods with innovative technology, marketers can amplify its impact even further. Don’t underestimate the power of physical mail in a digital world—don’t underestimate the power of the AcclaimMailer™.

Sources:

Gallup

Data & Marketing Association

HubSpot

United States Postal Service

Marketing Charts

HBR

Postal Regulatory Commission

Epsilon

Mailmen

DMA

Marketing Profs

Valassis