This is not to say direct mail is ineffective for startups far from it! However, the drip effect marketing principle discussed below is even more essential for businesses yet to build a strong brand within their target audience's minds. Why? They have already built a trustworthy brand, which reduces risk in your mind. From which garage would you buy? You would probably still buy from Stratstone even if their price was a little higher. They send a letter and flyer to a data set of previous BMW owners local to their showroom, both offering a brand new 3 series 320i Msport for £399 deposit and £399 p/m for 36 months PCP (identical offers). Sticking with the car dealership analogy - startup, 'Flow Cars' and the established dealership 'Stratstone BMW' both send out a 5k direct mail campaign. Here are some sectors which particularly benefit from direct mail marketing:ĭo established brands achieve better results? However, some of our most successful and long-standing customers are B2C, including an estate agent and an education provider. Therefore, I strongly recommend you don't use the above statistics as your only decision-making factor - instead, concentrate on potential conversion value and how to increase that conversion (which I will go on to discuss).ĭirect mail is often most common for business to business (B2B) marketing. Yet, just one car purchase may provide a healthy ROI for the BMW dealership. However, think how many beer subscriptions the company will need to break even from sending out so much free beer, never mind seeing a return. The number of respondees for a FREE Beer direct mail (which I incidentally received just yesterday!) will have a greater response rate than my local BMW dealership direct mail offering three years of free servicing with a new car purchase. Is it better to have a 10% response rate where the margin per new customer is £100, or to have a 5% response rate where the margin per new customer is £500? Often in marketing, we get obsessed with the response rate metric and overlook the conversion value - the overall return. "Ĭlearly then, not only is direct mail a very effective medium to build your business, it is one that is growing in effectiveness, particularly in the younger generation, and is excellent at driving traffic to your website resulting in paying customers.ĭirect Mail Response VS Direct Mail Return Traffic to the Corolla website increased by 257%, resulting in a 900% increase in test drives and adding 8,000 people onto the waiting list. Using mail, a microchip and a timer, Toyota created a race for recipients to view the car online as it was unveiled for the first time. MarketReach reported that "Toyota leveraged mail's ability to create a buzz and drive traffic online when promoting its latest Corolla. This likely links to JICMAIL identifying that direct mail is one of the most effective ways to reach the Gen Z audience – "this audience is 40% more likely to claim that mail can change their mind about a brand than the average GB adult." Therefore, not only does direct mail provide direct responses, it opens the door for further engagement online, which can lead to a conversion.
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