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Direct Mail Advertising

Is direct mail advertising right for your business?

Direct mail advertising – via brochures, letters, postcards, and other mailers – can be an effective way to generate leads, obtain new customers, and retain existing customers. This form of advertising can be costly and take a long time to yield results. As such, businesses should carefully weigh the pros and cons of this advertising method before undertaking it.

Listed below are some of the advantages and disadvantages of direct mail advertising.

Advantages

• Direct mail can be targeted to specific groups. Letters and other direct mail can be catered to particular groups based on demographic and/or psychographic information. Demographic information includes social and economic characteristics such as age, educational level, employment status, family size, gender, geographic location, income level, marital status, and race/ethnicity. Psychographic information pertains to people's activities, attitudes, behaviors, beliefs, interests, and opinions.

• It can be easy to monitor the results of direct mail campaigns. Direct mail pieces can include a reply device such as an application, a form, or a coupon with an identifying code. If prospects mail, for example, the reply forms to the advertiser, then the code can be used to calculate response rates and return on investment.

• Direct mail pieces can provide more in-depth information. Some direct mail pieces such as sales letters can include detailed information about the benefits of a product or service. That is, they can more thoroughly discuss how a business will solve prospective or existing customers' problems and meet their needs.

Disadvantages

• Direct mail advertising is costly. Executing a direct mail campaign can be very expensive. Thus, it may not be feasible for small businesses, independent professionals, and other self-employed people to implement. Costs associated with direct mail advertising include the following:

• Mailing lists
• Professional services (e.g., direct mail consultants, writers, proofreaders, and/or graphic designers)
• Printing
• Postage

Plus, more than one mailing (including test mailings) might be necessary to produce the best results.

• Direct mail is perceived as intrusive and is largely ignored. Most direct mail gets tossed in the waste basket or recycling bin. Recipients may give it a passing glance or never even open it. By and large, it is truly perceived as junk mail.

• Direct mail has low response rates. Obviously, direct mail yields positive results for some businesses. If it didn't, we would not receive large amounts of it every year. But the average response rate is 3.4%,* which might not be sufficient given the expense involved.

Direct Mail Advertising Must Be Carefully Crafted

Direct mail advertising can lead to increased sales. However, it is not as simple as renting or creating a list of names and addresses and sending a letter, post card, or flyer that discusses the features of a product or service. To be effective, a direct mail package must be carefully crafted to reflect the needs of an accurately targeted group. Furthermore, its contents should focus on the benefits of the product or service rather than its features.

* Direct Marketing Association (2012 Response Rate Report)

References

Suttle, Rick. Pros & Cons of Direct Mail Advertising. Demand Media. http://smallbusiness.chron.com/pros-cons-direct-mail-advertising-1437.html.

Research Triangle Institute. Direct Mail Gets Most Responses; Email Highest ROI.

http://printinthemix.com/Fastfacts/Show/575.

United States Postal Service. Getting Started. https://www.usps.com/business/get-started.htm.

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