As you sell media space to your SMB accounts, do you have a solid understanding of their business issues? A new Valpak study, done with PureSpectrum, uncovers the challenges these accounts are facing. Despite challenges, you can help your accounts bring in more direct mail leads.

Business Challenges

Inflation impacts these operators, and often they have no choice but to pass on higher costs to the customers. With consumers being hyper-​focused on price, your accounts need your best creative strategies.

They might understand the need to advertise. But the Valpak research reveals that business owners fear the cost of advertising will outweigh the benefits. A lack of resources plays a big role. These SMB owners don’t have time to study the market and their competitors. If they do advertise, they aren’t sure of how to measure performance.

The Cost of Direct Mail Leads

That’s where you, the media seller, can make a difference. Your accounts need to know, for example, that the direct mail ROI amounts to 161%. For every dollar they spend on the format, they get back $1.61 in revenue.

According to ValPak analysts, SMB owners tend to select their advertising strategy based on:

• Cost 41%
• Past experience 35%
• Ease of use 34%

Because these accounts fixate on cost, you’ll need to change their focus. To sell them on your proposal, you’ll need to emphasize value.

Budget and Timing

44% of SMBs have at least $25,000 in ad money available to spend. To convince them to spend it on your media, you’ll need to understand their seasonality. Timing is important for these businesses with around 21% planning to spend most of their budget in the second quarter.

Many businesses, such as landscapers, aim to attract new customers at this point in the year. Other big advertisers in the second quarter include nail salons, motor speedways and farm supply stores.

To get a full list of business verticals and their busiest season, check out the prospecting tools in AdMall from SalesFuel.

Format

Why not sell your accounts on a different form of direct mail this year? Consumers appreciate receiving promotions in their mailboxes, especially when these pieces are dimensional, creative and well targeted.

Businesses have used the following formats:

• Coupon envelopes or magazines 55%
• Brochures, circulars, flyers 50%
• Postcards 45%

Your accounts can attract attention and more direct mail leads in 2025 regardless of the format they use. Why? Because the volume of mail has dropped in recent years.

Audience Targeting

51% of SMBs use a targeted direct mail approach for “high-​ticket, low-​frequency” purchases. If your account is selling high-​end home painting services, they can use the datasets in AdMall to target homeowners in specific zip codes. For example, you can help them send their mailing to the homeowners in zip codes with the highest number of properties valued at $1 million or more.

The target audience may not purchase frequently from your account. But they will likely not make a purchase decision as the result of infrequent advertising. Valpak is not the first organization to report that a seller may need to appear seven or eight times before a prospect.

Buyers contend with an overwhelming amount of information coming at them. They take in and review the information in varying states of attention. To really make an impression, your accounts will need to do more than one mailing.

To generate direct mail leads, they should also appear on social media and in online searches to generate additional consideration. Deep Sync research indicates that combining direct mail with digital formats will boost conversion rates to 40%.

Advertising Tracking

Business owners may be busy, but once they’ve spent money on an ad campaign, they track results with a variety of tools. In your presentations, offer to work with them on measuring sales increases. That method is already in place at over 40% over advertisers. They also use surveys and Google analytics.

Metrics

Part of calculating the all-​important ROI is to measure and understand campaign-​related metrics. SMBs often focus on the following metrics.

• New customers – Identified through surveys, QR code use or unique URLs
• Website traffic – Measured with tools such as Google analytics
• Conversion rates – This might include a second click or a brochure download

According to AudienceSCAN data, 52% of direct mail respondents have done an online search after seeing a product ad or other information. And 27% have purchased the product.

To generate more direct mail leads for your accounts, help them understand the value of the format.

Photo by RDNE Stock Project on Pexels.