Direct Mail Still Delivers for Financial Services: Key Takeaways from the Lob 2025 State of Direct Mail Report
Direct Mail Still Delivers for Financial Services: Key Takeaways from the Lob 2025 State of Direct Mail Report
As we’ve shared in other FS Insights posts, direct mail is holding strong, especially in the financial services industry. The Lob 2025 State of Direct Mail report provides compelling insights into how direct mail remains a key player, not only as a stand-alone channel but as a powerful tool integrated within an omnichannel strategy.
Key Findings from the 2025 Report
- Direct Mail Continues to Lead in ROI for Financial Services The report reveals that 79% of executives rank direct mail as their best-performing marketing channel, even as the cost of direct mail rises. This is partly attributed to the channel’s superior return on investment (ROI), with direct mail outperforming digital channels by 55% for customer advocacy, retention, and reactivation efforts.
It’s no surprise then that direct mail volume is expected to increase over 2025, especially in the financial services industry, where companies are expected to increase direct mail volumes from 48.3 million pieces in 2024 to 69 million in 2025.
CALLOUT STAT:
Direct mail is more effective than digital for acquisition, retention, and reactivation.
2. The Power of Personalization and Automation Personalization has become a cornerstone of direct mail campaigns, with 88% of marketers acknowledging that personalized direct mail improves response rates. In financial services, leveraging data and automation technology has allowed for more targeted and relevant messaging.
By utilizing loyalty data, customer preferences, and past behaviors, financial services companies are not just addressing a customer by name—they are crafting a personalized experience that resonates more deeply.
3. Integration with Digital Channels Enhances Engagement Direct mail is not just a solitary player; it’s a vital part of an integrated marketing strategy. The report also states that 90% of executives agree that direct mail boosts engagement and conversions across digital channels, such as email, social media, and online ads.
Financial services marketers are using direct mail to enhance the impact of their digital campaigns, integrating it with tools like QR codes and personalized URLs (PURLs) to bridge the gap between the physical and digital experiences.
4. The Continued Preference for Letter Packages Among various formats of direct mail, letter packages remain the top choice in the financial services industry, accounting for 72% of direct mail campaigns. This is chiefly because letter packages remain an especially effective medium for personalized, one-to-one communication, which is a cornerstone of financial services marketing.
5. Rising Costs and Efficiency Challenges As postage and regulatory costs continue to rise, the challenge for marketers is to find ways to optimize spend without sacrificing the impact of their direct mail campaigns. According to the report, financial services companies are increasingly turning to automation partners, advanced data analytics, and multi-touch attribution models to track the effectiveness of their campaigns. The companies seeing the best results are those that integrate these technologies to refine their targeting and improve campaign performance.
Conclusion: Direct Mail is Stronger Than Ever
Despite the rise of digital marketing, direct mail — when executed properly — has proven it can still hold its own when done right. For financial services companies, direct mail isn’t just a traditional approach; it’s a strategic, data-driven channel that continues to adapt to modern needs and demands. By embracing new technologies, refining targeting efforts, and personalizing communications, financial services marketers can continue to see robust results from direct mail well into the future.
For more insights, read the full Lob State of Direct Mail 2025 report.
