We field many calls at BB Direct from business owners wanting to know if direct mail is a profitable marketing medium for their business and if sales via direct mail marketing are even viable.
There are several variables that play a part in determining if direct mail marketing is right for your business. First, is ensuring that your product or service is a high ticket item. Are you offering a high price item that allows for a high profit? Profitable direct mail campaigns generally involve a higher ticket item since you need to sell less to make back your investment in the campaign (marketing list, design, printing and postage).
Next, you must ensure that you have a strong, compelling offer. Your offer should be not only valuable, but create a sense of urgency. This urgency can be created by using wording like “Act Now”, “Sale Ends this Weekend”, or “2 Day Only Sale”.
Finally, the third item that must be present for direct mail marketing to work for your business is the presence of a targeted list. If a member of your list, doesn’t have a need or want for your product/service and receives a mailing, you’ll most likely end up in their recycling bin. Mailing to a targeted list will ensure that your mailpiece and offer ends up in the mailboxes of those mike likely to respond.
Brand recognition also comes into play when determining if direct mail is right for you. If you are a new business, new to an area or offering a new product/service that you are wanting to remind your service area about, direct mail may be right for you.
Is your competition using direct mail effectively over time? If so it is most likely a profitable marketing medium for them and may be for you as well.
Also, take in mind lifetime values of customers. It may take a higher initial investment to secure a new client with direct mail, but if the client will become a long time buyer they will make that initial investment back (and much more!).
At times, direct mail works best when paired with another marketing medium such as email, telemarketing, social media or other digital marketing campaigns.