Is Direct Mail Cost Worth It? Yes

BY Rachel Cagle
Featured image for “Is Direct Mail Cost Worth It? Yes”

74% of marketers say that direct mail offers the best ROI, response rates AND conversions than any other ad channel they use, reports Lob. That’s right; even email. Trying to get your client off the fence about adding direct mail to their marketing mix? Here’s how to show them that direct mail cost is well worth it.

Is Direct Mail Cost Worth It? Yes

Return on Investment

Not only is 74% a HUGE amount of marketers who agree that direct mail delivers the best ROI, that’s a 7% increase from 2021, says Lob. Yup, it’s just getting better with time. What determines that success (and is consequently what marketers who lack confidence in direct mail are also missing)? The inclusion of software and technology in campaign execution.

Software and Technology

Marketers who use a software platform for direct mail are 11% more likely to agree that direct mail’s ROI is the best in the business, reports Lob. Software not only helps brands track how well direct mail is working for them, it also can help them create more targeted and personalized campaigns. Basically, incorporating software and technology into your direct mail efforts help your client not only track the responses to each piece, but also the content of the pieces that do particularly well. The more research you perform, the better your client’s messaging will be. Weigh digital mail cost against revenue regularly as your client improves messaging and you’ll see that ROI rise.

Measurement Tactics

The best ways marketers have found to measure direct mail conversion rates are:

  • Tracking individual customer activity within a specific time period around when the mail was sent: 46% of marketers do this
  • QR codes: 41%
  • Personalized URLs: 37%
  • Tracking orders for products and services featured in direct mail ads: 36%
  • Coupon codes: 34%

Along with paying attention to customer and product trends related to direct mail ads, one of the most effective measurement tactics is to add an actionable item into the ad that is specific to that ad. That’s what the QR codes, personalized URLs and coupons codes all have in common. Adding those to your direct mail ads give you an easy way to track the effectiveness of each direct mail ad piece. Each of these methods can also be used to compare direct mail cost to the income it generates.

Creating an Omnichannel Campaign

Just like with any other type of ad media, you shouldn’t put all your eggs in one basket. The best way to generate ROI with any campaign is to add in multiple ad formats. According to Lob, some of the most popular ad types to incorporate into a direct mail marketing campaign are:

  • Email: 72% of marketers use email and direct mail together
  • Paid Social: 46%
  • SMS/​MMS: 45%
  • National TV: 34%
  • Newspaper and Magazine Ads: 31%

Again, no matter which ad types your client decides to include in their direct mail marketing campaign, make sure you include different calls to action in each media format to best determine ROI. You can only support that direct mail cost is worth it if you have evidence specific to direct mail ads.

Now, not all ad media types work for all consumer audiences. If you want to learn which ad media types will work best with your client’s target audience, look up their profile on AdMall by SalesFuel. There, you’ll see which ad types influenced what percentages of the audience to take action within the last year.

Overall, direct mail ads have worked so well for marketers that 58% have increased their direct mail budgets in 2023. Now is the time to convince your client that direct mail cost is worth it. Don’t let them miss out on this opportunity that their competition may already be taking advantage of.

Photo by Rinck Content Studio