Is Direct Mail Marketing Dead?
By Mike Schultz and John Doerr
Mom says sometimes it's best not to follow the crowd...
Remember
Mom's admonition when as kids we asked to go on those risky little
adventures because all our friends were doing it. “If everyone jumped
off a bridge, would you?” she'd ask.
We knew she had a point.
Over time many of us took her advice to heart. Well, if we did, why do
we continually jump off the proverbial bridge of business fads just
because everyone else is doing it?
The latest follow-the-crowd
quest is to save thousands of dollars in marketing by using email
marketing in place of the old stand-bys of direct mail and direct
selling. And why not switch everything over to email blasts - it's
cheaper, it's easier to coordinate, and we don't irritate our prospects
and clients by sending out all that junk mail and making constant phone
calls. It costs 50 or more cents to reach buyers by snail mail and only
2-3 cents by email. But maybe, just maybe, email campaigns aren't
always all they're cracked up to be.
Let's start with finding
good names to email. After all, we know the three keys to effective
direct mail are list, list and list. If you haven't been collecting
your own emails you have to go find someone who will rent you good
prospects with deliverable addresses. Anyone who has tried to use
rented lists for email campaigns has experienced, at least once, the
frustration and anger of renting what they thought were good names -
only to get zero positive responses.
Direct mail can look pretty good in comparison:
Cost: Emails lists are getting more and more expensive ranging in price from $300 to $500 and higher per thousand addresses. Standard direct mail lists still average $90 to $150 per thousand.
Deliverability: Undeliverable email addresses or bounce backs are on the rise – in many cases 20% or higher, due to anti-spam software and frequent email address changes. Most snail mail list owners will guarantee a deliverability rate of 95%.
Pass-through: Undelivered e-mail doesn't reach anyone. If you send paper mail to a company and the person has moved on you usually get the replacement.
Spam trend: 75% of Americans are in favor of making unsolicited emails (spam) illegal. This is up from 49% just two years ago according to a recent Harris poll. Direct mail is still called junk mail, but when was the last time you heard public outcry?
Stickiness: If a prospect doesn't want your message, she just clicks it away. And even if she does read it, she is the only one. Direct mail, especially catalogs, can hang around and around and around. Lots of people will see it.
Brand: Email is easy to send - so easy everyone in the company seems to have their own marketing campaign with poorly written copy, unclear or nonexistent offers, and no coordination of who gets what. Our brands are getting killed. Direct mail pieces take time and thought to produce because they cost so much and they often enhance our brand image.
Volume: Everyone is doing email marketing, and the trend is rising quickly. It's hard to get through the clutter. Direct mail volume is down 25% from two years ago. There is a lot more room to get your prospects' attention.
Attention:
You get two seconds (or less) and one line to appeal to the email
recipient. At least with direct mail you get 5 seconds and an entire
page to catch your prospects attention.
Now we should not all
abandon email marketing - that would have us all jumping off another
bridge together. Many email marketers will, however, benefit from the
realization that the basic principles of good direct marketing apply
whether it is electronic or paper. You need the right list, offer,
appeal, timing, and brand communication. In this regard, many
company-wide email marketing strategies need a hard look.
On the
other hand, multitudes of “forward-looking” companies still have
old-fashioned direct mail as a key ingredient in their marketing mix.
Why? It still works. The principle behind any marketing campaign is to
get Attention, to elicit Interest, generate Desire, and to move a
prospect to Action (AIDA). Direct marketing catalogues, brochures,
letters, and postcards, when employed correctly, can and usually will
produce all four responses predictably and cost-effectively.
So
out with the new and in with the old. And as long as the old guy still
has something left to offer, the paper trail of direct mail still
belongs in your marketing arsenal. Oh, and tell your mother she was
right.

