Direct mail can often be overlooked when forming a marketing strategy, but in fact, holds many advantages to businesses and organisations looking to deliver on brand objectives and KPIs. In an increasingly saturated digital landscape, physical mail provides a welcome change, allowing brands to cut through the noise and deliver a tangible message. When executed strategically, direct mail campaigns can deliver exceptional return on investment (ROI) by forging a deeper, more memorable connection with the recipient. In this article, we will explore effective strategies for maximising ROI with direct mail.
Why is ROI Important with Direct Mail?
A return on investment (ROI) is important for any marketing activity. ROI is a key metric that’s measured when evaluating the success of a campaign and will help determine whether a campaign was cost-efficient and effective in achieving its objectives, such as an increase in sales or store visits. If ROI is low, then businesses could find it hard to justify putting budget towards certain marketing activities. Therefore maximising ROI is at the forefront for businesses and their marketing activity, including direct mail, which can be used in itself to maximise ROI. The good news is that when comparing direct mail vs. email, direct mail continues to outperform digital channels in critical response rate metrics, making it a reliable driver of positive ROI.
The Advantages of Direct Mail
Thought of as a more traditional marketing channel, direct mail is often overlooked in the current digital age. However, research shows it to be a highly effective marketing method that delivers great results, even bettering some digital channels in terms of response rates and brand awareness. Due to allowing recipients to physically engage with the mailer, more of an emotional connection is formed with the conveyed message which has a positive impact on brand loyalty and recall. A recent JICMAIL report shows that a piece of direct mail is interacted with an average of 4.4 times and has an average lifespan of 7.0 days in the home, ensuring the message has sustained visibility. Furthermore, the Royal Mail found that 80% of people remember seeing or reading some mail sent to them in the last four weeks, and 86% were driven to connect with the business online after receiving a mailer. This strong offline-to-online conversion power is a critical factor in maximising ROI in an omni-channel strategy.
Why Physicality Matters for ROI
The tangible nature of mail is its superpower. Research highlights that physical mail requires 21% less cognitive load to process compared with digital ads, leading to better recall and a stronger desire to acquire the advertised product. This neuroscientific backing helps explain why mail is so effective at generating tangible actions and increasing the average order value (AOV), significantly contributing to a higher ROI.
Strategies that Maximise ROI with Direct Mail
There are various ways in which a business can maximise ROI with direct mail. This is done by having a well-thought-out strategy in place that clearly defines the campaign objectives, whether it is brand awareness or revenue. Effective strategies for maximising ROI include:
Define Your Target Audience
A successful direct mail campaign will have a clearly identified target audience to ensure its message is in front of the right people, thus resulting in strong engagement and ROI. The more targeted a direct mail is, the better. Things to consider are demographics, interests, and buying behaviours of ideal customers. Focusing on highly refined customer segments allows you to move beyond generic mailshots and deploy high-impact, relevant mailers. Investing in quality data processing and list cleaning is the first, most fundamental step to ensuring your postage spend is directed only towards those most likely to convert.
Use Personalisation
One of the key advantages of direct mail is its ability to offer a personal touch, which in turn will lead to a sense of connection making recipients more likely to engage, consider the offer and drive ROI. Variable data printing technology can be used to personalise each piece of direct mail with the recipient's name, address, or even past purchasing history. This level of data-driven personalisation dramatically increases relevance. For example, a retail customer is more likely to engage with a postcard marketing campaign if it features products they have browsed online but not yet purchased.
Create Compelling & Relevant Content
Capturing the attention of recipients is key when looking for a good ROI. A direct mail piece must be visually appealing and contain compelling content that clearly communicates the value proposition of the product or service. Persuasive language, captivating headlines, and eye-catching visuals will draw the reader in and create a lasting impression that leads to a successful direct mail campaign. To boost ROI, consider experimenting with creative mailer formats, like one-piece mailers or self-mailers, to maximise impact while controlling production costs.
Include a Call to Action
A key strategy for maximising ROI with direct mail is including a clear and concise call to action (CTA). Whether it's visiting the website, visiting a store, signing up for a newsletter, or redeeming a voucher, it needs to be easy for recipients to take the next step. Offering an exclusive promotion or limited-time offer to create a sense of urgency and motivate immediate action is a great strategy for maximising ROI. For complex or high-value offers, ensure your mailer—whether it's a brochure or a flyer—is professionally produced using our high-quality digital printing services to reflect the value of your brand.
Track & Measure Results
To maximise ROI, it's essential to track and measure the effectiveness of the direct mail campaign. Assign unique codes or URLs to different mailings to determine which ones generate the most responses. Use trackable phone numbers or custom landing pages to capture data and analyse the conversion rates. This data will provide valuable insights for refining future campaigns and optimising marketing efforts. The use of unique tracking mechanisms is also vital for securing future budget, as you can directly attribute revenue to the mail piece.
Integrate with Online Activity
Omni-channel and 360 degrees marketing strategies that include direct mail are a great way to maximise ROI, especially when interlinking the online and offline worlds. Include website URLs, social media handles, or QR codes in your mailings to encourage recipients to engage with a business’s online platforms. Retargeting techniques can also be implemented to display online ads to those who have interacted with your direct mail, reinforcing your message and driving conversions.
Direct mail can also significantly boost web traffic; one study by the ANA (Association of National Advertisers) found that direct mail response rates are 5 to 9 times higher than any other advertising channel, proving its power in driving online actions.
Test & Define
Successful direct mail campaigns often involve continuous testing and refinement, to continuously drive an increased ROI. Experiment with different formats, offers, messaging, or targeting strategies to identify what works best for the audience. A/B testing can help compare the effectiveness of different elements and optimise direct mail accordingly. This testing should not stop at the creative, but also include testing different fulfilment options, such as using poly wrapping for weather protection versus standard envelope enclosing.
Maximising ROI with Direct Mail Systems
Print marketing should not be overlooked, despite digital marketing taking the forefront. A combination of the two can prove to drive ROI for many businesses, especially when executed strategically.
At Direct Mail Systems, we make it easy for you to make your direct mail campaign a reality. With creative and printing services with fast turnaround times, we can accommodate your every need for a range of direct mail assets, including leaflets & flyers, brochures & catalogues and much more. Our comprehensive approach, from securing postal discounts to specialist fulfilment, is designed entirely around maximising your return.
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