Cost-conscious business owners always look at return on investment, because it’s one of the best indicators of overall performance. When you’re on a tight budget, you have to act strategically to get the best return on your marketing investment, which is why a direct mail campaign can be a marketer’s best friend.
Versatility boosts ROI.
You can use a direct mail campaign to accomplish virtually any marketing goal:
- New customer acquisition.
- Customer Retention — selling more to existing customers and strengthening their loyalty.
- Re-acquiring former customers who haven’t been around in a while.
Direct mail helps build a stronger foundation for all your marketing. Greater visibility and branding establish a sense of familiarity and stability, intangibles that instill confidence in prospects to check you out and become your newest patient, client or customer. This is the same reason you use other “generalized” marketing efforts such as networking and sponsorships.
You can use a direct mail campaign to motivate a specific type of response, whether that’s call now, come into the office, store or visit our website.
Well-defined targeting boosts ROI.
You can direct your mail right into the hands of your hottest prospects. For some businesses, it pays to literally target the entire community, entire neighborhoods or ZIP codes. Most businesses don’t have that broad of an audience, so you can create a mailing list exactly targeted to people most likely to buy from you.
The list is the key. If your direct mail campaign is aimed at existing customers, that’s pretty straightforward. Direct mail is an excellent technique for generating new business, and that requires more thought. You might know who you want to target — general demographics such as age, gender, income level, whether they’re parents or seniors, etc. – but a direct mail professional can help you see where they are and target your mailing accordingly.
You can print postcards of optimum quality to match the size of your mailing list, and reach your best audience at the lowest possible cost.
The ROI on a direct mail campaign is measurable.
That’s not necessarily the case with other forms of marketing. With direct mail, you can compute numbers such as cost per piece or cost per lead, but they don’t tell the whole story. Overall return on investment is the most meaningful number.
That’s even more true when you compute each customer’s lifetime value – not just what they spent in response to your current direct mail campaign, but what they’re likely to spend with you in the years to come. If you’ve never sat down and penciled that out, you should. You’ll be impressed by your ROI, and you’ll see clearly why it’s so important to focus attention on retaining and pleasing current customers.
But there’s a time investment, too.
Conducting a successful direct mail campaign requires understanding how to design the right mailer, choose the most compelling offer and the most appropriate call to action. You have to develop the right mailing list, plus you have to know the ins and outs of the postal code and other bulk mailing requirements. You have to sort your mail, prep it and take it to the post office.
Why bother with all that when you can reap all the benefits of a direct mail campaign by simply partnering with a professional direct mail company? They can handle all the details, expertly. That may increase your initial investment a bit, but it can exponentially increase your “time ROI.” Instead of stepping away from key activities that directly grow your business, you can stay focused on operations and customer relations.
A direct mail campaign not only increases your marketing ROI, it could become your go-to resource for growing your business.