BY Kathy Crosett
Is B2B direct mail dead? Possibly not. As senior B2B decision-makers grapple with their growing inbox, an intriguing piece of direct mail might attract their attention. One study shows that a dimensional mailer can yield a 5% to 15% response rate. A post card, used as an event invitation or an awareness generator with a simple offer, can result in a 3% response. Around 25% of senior B2B decision-makers have responded to a direct mail promotion in the past month, according to our research.
What is B2B direct mail?
B2B direct mail, also called direct response, is an advertiser strategy to send out physical mail to a select list of recipients. They may purchase a list that aligns with their target audience, they may send mail to their in-house list or they may use another tactic such as mailing to businesses registered in a specific zip code.
Why marketers opt to use B2B direct mail?
Peter Geisheker, fractional CMO, brings a unique perspective to the consideration of B2B direct mail investment. He cites research indicating that direct mail produces a high response rate.
B2B decision-makers understand the impact. B2B BuyerSCAN data from AdMall indicates that around 23% will purchase mass media advertising. These purchases will include direct mail.
But the cost of acquiring a customer through direct mail is high. The bottom line is that B2B marketers are integrating direct mail and digital campaigns to generate the best yield.
What factors should marketers consider when designing a direct mail campaign?
When your accounts invest in B2B direct mail, they must:
- Target the right audience
- Understand the cost
- Measure the right outcomes
Who is the target audience?
Different audiences show different response rates. B2B marketers should plan accordingly and take cost into consideration. For example, a cold prospect list can yield a 4.4% response rate and works best for a multi-touch B2B campaign in which other media formats are also used.
More expensive dimensional mail excel when businesses are targeting their top accounts. They can anticipate nearly a 100% ROI. A broader campaign targeting the in-house list may generate up to a 9% response rate when the goal is reactivation, reports Geisheker.
In terms of measuring outcomes, your clients must know that outcomes are closely linked to the list quality.
The mailing should be one part of a concentrated campaign that includes digital touches. And the marketer’s reps should be poised to follow up with a call.
B2B direct mail is one tool to use as the sales cycle continues to lengthen and the cost of acquisition increases.
How much should marketers invest in B2B direct mail?
Marketers struggle with determining how much to invest in a B2B direct mail campaign. Geisheker suggests reviewing who is targeting the same audience and with which types of campaigns. One way to do that is to run a digital audit on AdMall. With the category analysis feature, accounts can see how they stack up against other competitors in the market when it comes to digital advertising.
Finally, calculating ROI properly is critical. Geisheker emphasizes that direct mail can be superior when there is “high deal value (>$25,000)", a small list of key accounts, and a decision-maker who can’t be reached through direct mail.
He also suggests spending up to 50% of a campaign budget when embarking on a product launch. But when a mid-market B2B SaaS company is seeking to generate leads, a 20% ad budget allocation to direct mail is reasonable.
Getting the attention of one senior decision-maker is a start. But marketing must also connect with other members of the purchase committee. B2B BuyerSCAN data reveals that around half of businesses use a team of between 2–5 employees for major and complex buying decisions.
How to measure outcomes
Because the initial expense of B2B direct mail is high, marketers need to understand outcomes up front. Media sellers can help marketers set up and measure KPIs. These details usually include response rate, conversion rates, cost per acquisition, and return on investment. The best campaigns deliver a high ROI.
Closing thoughts
Keep in mind that 16% of senior B2B decision-makers report being decision-fatigued. Advertising and promotional material, including direct mail, should seek to reduce the decision-making stress that these prospects report. Good creative content can help with that need.
