2023 Report Details the Effectiveness of Direct Mail Marketing
Direct mail continues to deliver measurable results even in a digitally connected world, according to The 2023 Direct Mail Marketing Benchmark Report from SeQuel Response with ISG Research.
Although the findings mirror what we see in our work with top financial brands, some banks and credit unions exclude direct mail from their campaigns, favoring digital tactics instead. But that’s a mistake. Multi-channel, integrated campaigns typically work best, and direct mail makes considerable and reliable contributions to those efforts, even for fintechs built for digital environments.
For example, as noted by SeQuel, 70% of marketers say direct mail performance has improved, and 91% report that direct mail in an omnichannel strategy positively impacts campaign performance. Specifically, says SeQuel, “Direct mail and digital marketing integration is bridging the gap between physical and online experiences to drive higher response rates and create interactive and immersive consumer encounters – while allowing more brands to execute cost-effective mail programs that deliver impactful results.”
Here’s what consumers told SeQuel in its recent survey:
- Direct mail is engaging. / 69% of consumers engage with direct mail weekly, and one in three do so daily.
- Direct mail leads to action. / Many consumers save direct mail pieces that interest them, and 52% Google brands and visit websites based on direct mail they receive.
- Frequency matters. / Consumers say direct mail is “less overwhelming” than other marketing tactics. However, there is a limit to their receptivity: Over 80% say four or more mailings a year is “too much.”
- Format matters, too. / Consumers overwhelmingly prefer postcards, and over half say poor quality of paper and packaging leaves a negative impression.
And here’s what marketers said about direct mail’s ability to achieve campaign objectives, including budgetary-based needs to do more with less:
- Direct mail is marketers’ go-to tactic for customer retention campaigns, and 43% utilize it for customer acquisition where its use exceeds several other channels, like email, paid social, paid search and digital display.
- Marketers list the top advantages of direct mail as personalization, integration and volume/budget flexibility.
- 84% of marketers use direct mail automation for “streamlining processes, improving efficiency and enhancing personalization — while saving time and resources.”
The SeQuel data on the effectiveness of this channel shows that “direct mail isn’t what it used to be.” It’s better – and now capable of “quick turnaround to reach customers during critical decision-making time periods.”
Of course, as with any marketing tactic, there are challenges to address and room to grow. Half of marketers told SeQuel that they “worry about performance tracking across omnichannel strategies and reaching their audience due to data security regulations for offline/modeled data.”
Despite these areas of concern, SeQuel calls direct mail a powerhouse, and we agree, including when it says, “Advancements in targeting and modeling technology, data analytics and consumer expectations have allowed marketers to create highly targeted pieces that resonate on an individual level. Unlike digital advertisements, the physical action of touching a piece of mail excites the brain and kicks off a chain reaction of emotions that drive purchase behavior.”
Visit https://www.sequeldm.com/directmailreport/ to download the full report.
