Ecommerce businesses have many ways to reach customers—through websites, online retailers, social media, and email marketing. With so many digital options, you might be surprised that sending physical mail is becoming more popular. Here’s how to use this traditional marketing method effectively.
What Is Direct Mail Marketing?
Direct mail marketing involves sending physical promotional materials to customers or potential buyers. Common types include:
- Brochures
- Letters
- Flyers
- Newsletters
- Catalogs
- Postcards
- Coupon envelopes
- Packages
People enjoy receiving mail, and this method helps businesses build relationships, improve brand recognition, and increase sales.
Is Direct Mail an Effective Marketing Strategy?
A 2021 report from the United States Postal Service found that some industries—like automotive, finance, and retail—invest more in direct mail than in digital channels such as email, social media, or search engine marketing. But does direct mail actually work? Several key points show that it does.
High Response Rates
Research from printing company American Litho shows that direct mail response rates are 10 to 30 times higher than email marketing response rates. While email campaigns average a 0.6% response rate, direct mail campaigns have a response rate between 2.7% and 4.4%.
According to the Association of National Advertisers (ANA), direct mail can even reach a 9% response rate. Another study by the Data & Marketing Association found that 96% of people engage with direct mail in some way.
Strong Emotional Impact and Brand Recall
A 2019 study measuring brain activity and emotions found that printed advertisements create stronger emotional responses and are easier to remember than digital ads. People also enjoy receiving mail—75% of respondents in a USPS survey said that getting mail makes them feel special, while 90% found online ads annoying.
Another study by TrueImpact found that direct mail requires 21% less mental effort to understand than digital ads, leading to a 70% increase in brand recall.
High Return on Investment (ROI)
According to the ANA, direct mail has a better return on investment than many digital marketing methods. While companies use email marketing more often (82%), email delivers a 93% ROI. Direct mail, though used less often, has a 112% ROI—the highest of all channels.
Works Well with Email Marketing
Combining email and direct mail marketing can boost sales. A Harvard Business Review case study showed that adding direct mail to an email campaign increased sales by 49% and inquiries by 125%. In the study, 90% of customers browsed the catalog they received and kept it for about a week.
How Much Does Direct Mail Marketing Cost?
Direct mail campaigns can be expensive, depending on the design and materials used. Costs include:
- Mailing List: If you don’t have a customer mailing list, you may need to buy one. A list from LeadsPlease costs around $250 per 1,000 addresses.
- Materials: Paper, ink, envelopes, and stamps add to the expense.
- Design and Production: Hiring a designer, writer, or printer will increase costs.
- Postage: USPS offers discounts for bulk mail, with a minimum of 200 pieces.
- Ongoing Costs: Some marketing services charge subscription fees for ongoing campaigns, redesigns, and reprints.
The USPS has a cost estimator tool, which suggests that printing and mailing 500 letters with Marketing Mail rates costs about $800. Factors like design, mailing list purchases, and hiring professionals affect final costs.
How to Create a Direct Mail Campaign in 5 Steps
Follow these steps to make your campaign successful:
1. Build a Targeted Mailing List
Segment your audience by interests, location, or other factors. You can use your own customer database or purchase a mailing list. Be sure to remove outdated addresses.
2. Design an Effective Campaign
Decide on your campaign goal—promoting a sale, offering a discount, or directing people to your website. Use a strong headline, a clear call to action (CTA), and a simple design that matches your brand.
3. Test with a Small Sample
Start with a small mailing list to measure response rates. This helps you adjust your campaign before sending larger mailings.
4. Optimize Your Mailing Process
Consider working with a direct mail company that can handle printing, mailing lists, and distribution. USPS offers bulk discounts for presorted mail.
5. Track Results
Use promo codes, unique email addresses, QR codes, or custom links to measure responses and customer engagement.
3 Tips for a Successful Direct Mail Campaign
Boost your results by following these best practices:
- Offer Discounts: Coupons and special offers encourage customers to take action. Brands like BOOM! by Cindy Joseph and Obvi achieved over 1,000% ROI by using discount codes to win back customers.
- Use Multichannel Marketing: Combine direct mail with email, social media, and digital ads for a greater impact. Tools like PostPilot and Poplar Mail help integrate direct mail into your marketing strategy.
- Keep It Simple: A clear message and clean design work best. In some cases, a simple postcard can be just as effective as a detailed brochure.
Final Thoughts
Direct mail marketing remains a powerful tool, even in the digital age. It helps businesses connect with customers, increase brand recognition, and boost sales. With thoughtful planning and smart design, direct mail can be an effective part of your overall marketing strategy.
