- Direct mailing strategy can be beneficial if used correctly.
- By using this strategy, Metropolitan funded the construction of the Empire State Building.
Direct mailing or mailshots are considered the most unpopular marketing tool, but they can bring beautiful results if used intelligently. Nobody wants to be bothered by direct mail; most characterize them as junk mail and don’t read them. Some have a cursory glance at them to find if it’s real mail, and they either don’t read them or delete them or throw them away if it’s a physical mail.
It becomes evident that getting people to read the mailings is the first hurdle to cross. Many experts advise that the envelope looks enticing or that the subject must be intriguing. But it can be counterproductive because it indicates that it can be a promotional or advertising mail or a sales pitch inside. It further pushes them to refrain from reading the mail, defeating the whole purpose of the direct mailing campaign.
How did Direct Mailing lead?
It was the 1920s, & the American insurance giant Metropolitan Life successfully incorporated the direct mailing tactic. The company mailed promotional retirement plans and glued a genuine one-cent piece to the letter. Interestingly, this glued cent made the weight of the envelope feel strange, encouraging them to open it.
The letter inside them explained how a saving of one cent per day and saved at compound interest would produce $500 after 25 years. Although this amount seems small today, it was a massive deal in the 1920s. The letter further explained how better it would be if the person could save two cents, five cents, or a dollar a day.
The style of writing was sober; it focused on an existing customer, not focusing on any sales pitch or any advertising gimmick. The key was that one-cent piece, not any eye-catching or designer envelope. It’s just a genuine small gift to the recipient. This inclined them to do business with the firm.
If that one cent piece is adjusted for inflation, it would be around 50P today. It’s a small amount. As per today’s standard, the average mailing cost, sticking to a relatively higher denomination, could bring a better response. Back in the day, the direct mailing tactic allowed Metropolitan Life to fund the construction of the Empire State Building. Later, it became the largest investor in war bonds to finance World War II.
Understanding Direct Mail Marketing?
Direct mail marketing involves sending physical marketing materials directly to the potential customer’s mailbox. However, this is an age-old traditional tactic that still remains effective for many businesses. It sometimes lets the companies stand out from the competition and outsmart them in the barrage of digital marketing messages.
Some standard direct mail formats include postcards, letters, brochures or catalogs, dimensional mailers, samples, etc. Postcards are simple, eye-catching, and great for sending quick messages or announcements. Letters are more personal and customizable, allowing the recipient exposure to extended content and detailed offers.
Brochures and catalogs provide in-depth information about the product or service. It is suitable for businesses with a wide range of offerings. Dimensional mailers are unique shapes and packages that offer a memorable unboxing experience. Moreover, sending free samples or small product versions allows consumers to experience the product first-hand.
How Brands Successfully Used Direct Mailing Tactic?
Multiple brands and businesses have successfully used the direct mailing marketing tactic. Some of the case studies are discussed below.
Specsavers (Optical Care): According to Australia Post, an Australian company in an attempt to fight back against the rising online competition using the direct mailing strategy. They strategically segmented their audience and sent personalized emails to different groups. The main focus here was on hearing aids for the relatively older demographics.
Another one was aimed at the younger audience for trendy frames. The direct mailing strategy benefited them and increased customer acquisition by nearly 35% compared to relying solely on digital marketing.
Cunard (Cruise Line): According to International Post Corporation, in 2023, the cruise industry giant Cunard used this direct mailing strategy to reignite the interest in cruising after the Covid-19 pandemic. They mailed potential customers with powerful and expressive visuals and special offers tailored to specific customer segments.
It allowed the cruise line to achieve a 25:1 return on investment (ROI). Another classic example showcases how an age-old direct mailing practice is still effective.
Denplan (Dental Healthcare): According to the International Post Corporation, the United Kingdom-based company wanted to reduce the load on call centers and encourage the options for self-service. Hence, they sent informative, direct emails to patients, educating them about online booking and other digital tools.
This strategy allowed Denplan to reduce the load on call centers significantly. It can be counted as a great example showcasing how direct mailing can be reduced to increase the functioning of a business.
Sky (Telecom): According to Marketreach, Sky created an interestingly interactive direct mail piece to promote their Formula 1 coverage. The direct mail included a physical track with an NFC chip embedded into it. Receivers can tap the chip with a smartphone to unlock the exclusive F1 content.
This highly innovative campaign achieved a significantly high engagement rate and positive brand association. Receivers were intrigued by the blend of physical and digital marketing strategies.
Bierothek (Beverage Retailer): According to SG360° Direct Marketing Solutions, a German company aimed to increase brand awareness and boost sales. They launched a targeted direct mail campaign featuring products, recommendations, and special offers.
This strategy scaled the conversion rates to 9.5%, further highlighting the effectiveness of direct mail campaigns. It also highlights the scope of this strategy in the competitive landscape.
The case studies above showcase how direct mail campaigns can be successfully used in multiple ways. Before incorporating the strategy, it must be noted that the attached gift must be worthwhile; nobody would appreciate another cheap ballpoint pen.
The tonality of the message must be clear and straightforward, as you already have their attention. It should be accepted that not everybody would respond, but even if you get a 15% response, it is still higher than other methodologies. Experts advocate using the strategy intelligently.