One study, Cyclical Analysis of the Direct Mail Market, found that direct mail had grown every year from 1951 to 2001, independent of whether the economy expanded or contracted.  (Ironically, the study was completed just before the one year where direct mail volume dropped, after 9/11 and the anthrax scare in 2001/2002.)  Direct mail is the one print medium where the picture is good and rosy. 

And that's in spite of rising postal and print costs and anthrax scares.  And in spite of marketers shifting many activities to online. 

So why the continued investment in the medium where even the most carefully crafted campaigns are considered "junk" by the majority of recipients?  Direct mail works.  Forty-seven percent of people surveyed report that, during a 30 day period, they will respond in some way to the direct mail they receive, either by visiting a website, returning an order, calling an 800-number, or simply going to the store.  (If you're marketing to Hispanics, it's good to note that response to direct mail has increased significantly, with 54% of this audience reporting response.)

Direct mail is one of most easily measured media; Send out 100,000 pieces, get 1,100 responses, and you can figure your response rate without a complex formula and probably without a calculator.  Direct mail works for items cheap and expensive, and it allows precise targeting by demographic, location, interest, or affiliation.  It offers simple, fast ways for recipients to contact the sender, and it can be structured to convey short or long messages effectively.

Oh--and it also enhances the effectiveness of online marketing efforts.  According to one study by the ICR Research Group, 73% of wired households still prefer to get information about new products and promotions by direct mail. 

Response Rates:  Whose Numbers Matter?

Ask different direct mail providers about response rates to campaigns, and you'll get answers cover a broad spectrum.  Search direct mail response, and you'll see claims of 30%, 40%, and sometimes higher.  But let's start with what most professionals will accept.  The Direct Marketing Association publishes an annual report that measures 18 different direct response media, including mail, e-mail, newspapers, and telephone.  According to their 2005 numbers, here's how response breaks out:

Across a variety of campaigns, with different offers and different prospect and customer lists, these are pretty consistent averages from year to year.  But is it possible to get the high response rates that some people claim?

We can provide a qualified "yes," because we've had it happen with our campaigns for clients.  A direct mail campaign we did this spring generated a better than 20% response rate.  And we have done campaigns that go much higher--one as much as 80%.  

But there are a number of factors that come into play.  Lists, offers, creative, timing and other issues all can have dramatic impact (good or bad) on response.  If you're selling a high-ticket electronics item to a broad demographic, then your response rate is going to be relatively low.  If you're trying to get a select group of engineers to order the specification information for your new product, then you can expect a higher rate.

The Creative Connection

One thing we love about direct mail (in addition to direct ROI measurement) is the creative flexibility it offers.  Over the years, we've done our share of postcards (many very effective), but we've also mailed people toy robots, puzzles, first aid kits, MP3 player earphones, and a variety of other gadgets. 

A toy robot helped sell the DIY Network into cable companies nationwide.  Dimensional mail can be many times more effective than flat mailers.Dimensional direct mail in particular is often one of the most effective ways to reach highly targeted audiences, especially people who are difficult to see or talk to by phone.

And it gives you the ability to make connections outside the direct mail campaign itself.  For example, in numerous B to B campaigns, we have offered recipients a premium as a response.  Those who respond to the direct mail begin conversations with salespeople who work toward the close.  But that doesn't rule out the people who don't respond.  Salespeople find they're often easier to reach by phone because they've seen the direct mail, and salespeople can still use the premium offer to set an appointment to drop it off at the prospect's office.

In fact, in one case, a company we worked with sent out its dimensional direct mail in waves, waited for response, and then followed up by phone with people who didn't respond.  The original plan was to mail to a total of several hundred recipients, but the company stopped mailing at less than a hundred because it sold out its inventory with this technique.

One other interesting factor with "fun" mailers that include toys and gadgets: Never discount the appeal to the recipient not just for themselves, but for their families.  Toys often find their way into the hands of children and grandchildren.  In one case, a direct mail campaign called for toy tomahawks, feather headdresses and moccasins to be sent to oil company executives to promote new sensing equipment.  The agency received a call from the president of one of the country's largest oil companies, asking if it would be possible to get a second set of the mailers.  (It was sent FedEx).  A couple of weeks later, a picture of the president's two grandchildren, dressed up in their Native American outfits arrived at the client. 

So did several orders for sensors.

If you'd like to dig deeper into direct mail effectiveness, we can share more--including the one thing that works time and time again for getting key prospects to trade shows and other events.  Just click here.

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