Direct Mail: Reliable, Trusted, and Gets Read

Despite the surging popularity of digital marketing, direct mail continues to hold a significant position in today’s industry. Direct mail is a reliable, trusted, and effective marketing tool for compelling recipients to act, attracting new customers, increasing customer loyalty, boosting brand awareness, reactivating dormant accounts, and delivering profitable results. In fact, over 100 billion pieces of mail (catalogs, postcards, letters, brochures, and flyers) were sent through the mail in 2014. Nevertheless, it’s not just marketers who are keeping direct mail alive—consumers agree that direct mail is still an effective form of communication.

Consumers are reporting that they do read their mail! In the recent InfoTrends study Direct Marketing Production Printing & Value-Added Services: A Strategy for Growth, consumers report viewing two-thirds of the direct mail that they receive. Furthermore, when consumers were asked what they did with their direct mail, 82% reported reviewing their direct mail pieces for a minute or more. Over a quarter of respondents—28%—will take at least two minutes to read their direct mail. Perhaps most significantly, over three-quarters of consumers agree that direct mail is an effective means of communicating.

Direct Mail Cuts through the Clutter

In 2015 U.S. companies sent an average of 1.47 million e-mails per month, most of which can be considered spam. Of all e-mails sent globally, 71% to 80% are spam. That’s a lot of unwanted e-mail for a consumer to receive, it’s no wonder that 79% of consumers will act on direct mail immediately compared to only 45% who say they deal with e-mail straightaway.

Direct mail is an effective marketing tool for many reasons. It can compel recipients to act, attract new customers, increase customer loyalty, boost brand awareness, reactivate dormant accounts, and deliver profitable results. According to the DMA, direct mail is the preferred channel for receiving marketing from local shops (51%) and banks (48%), while e-mail is preferred for events and competitions (50% each). Further, according to an Epsilon study, as many as half of U.S. consumers prefer direct mail over e-mail.

One key reason for direct mail’s popularity is that it is able to accomplish certain things more effectively than other types of marketing. Many consumers read direct mail because they prefer a tangible form of communication that they can experience with more than just their eyes. Unlike e-mail, television, or radio ads, a consumer can hold a direct mail item in his/her hand and even keep it for a period of time. Some forms of marketing are fleeting and forgotten, but a letter, brochure, or catalog can serve as a lasting reminder of a marketing message. Emails and other digital marketing tactics can be easily ignored or scrolled by. On the other hand, many people actually open envelopes. 70% to 80% of consumers say they open most of their mail, including what they label “junk.”

Direct Mail is the Cornerstone of a Multi-Touch Campaign

A third of the U.S. consumers that responded to InfoTrends’ direct marketing study reported reading direct mail more than e-mail, while 34% said they opened and read e-mail and direct mail with equal frequency.

1 Key sources are the United States Postal Service (USPS), CanadaPost, and the Direct Marketing Association (DMA)

Are you more likely to read an e-mail with a sales/promotional offer OR to look at a piece of direct mail?

Direct Mail Pie Chart

Since consumers engage with both print and e-mail, communicating with them using an integrated marketing campaign will drive higher results. In addition, direct mail can be a part of an interactive customer experience when used in conjunction with mobile devices and associated mobile apps. There are a number of tools that can enable a printed piece to trigger an interaction from a smartphone, including image recognition, augmented reality, NFC tags, and quick response codes. More and more direct marketers are integrating interactive elements with print both outside and inside the envelope to connect consumers to videos or mobile-enabled websites so they can learn more about a product or service, or creating mobile landing pages that enable consumers to take advantage of a coupon or discount. In addition, a direct marketer can point the consumer to a website or a personalized URL that can be accessed from a PC.

What Does This All Mean?

While direct mail has faced competition from e-mail, social media, and other types of electronic media, marketers have discovered that it still is an excellent channel for reaching consumers and driving response. Direct mail is a tried and tested media form, and it continues to be a staple marketing technique for companies of all shapes and sizes the world over. Today’s consumers and businesses are operating with all channels on, so service providers must be channel-agnostic and build business models that can generate revenue from printed and digital content. As the technology evolves and marketers continue to blend content from the print and online worlds, direct mail looks more promising, and exciting than ever. The statistics speak for themselves—people read direct mail and respond to it. In short, direct mail remains successful because it works!

Direct Mail Delivers Results!

Marketers of all sizes are coming to the realization that direct mail delivers. Direct mail is an integral part of the overall marketing mix. It’s vital for acquiring new customers, retaining existing ones, and reactivating dormant accounts. According to research findings from The Direct Marketing Association, the response rate for targeted direct mail is 4.3% while the e-mail response rate is only .12%. Take notice of the word “targeted” in that last sentence—targeting direct mail, whether through personalization or a segmented list, is what makes the connection.

Here’s the truth about direct mail: It’s not dying, it’s just changing. According to Winterberry Group, direct mail spending grew 2.7% in 2014 and a further growth rate of 1.1% is anticipated in 2015. This means that direct mail spending will top $45.7 billion in 2015. The resurgence in direct mail has catapulted as a result of a few key trends that are worth taking note of in the New Year.

The Customer Experience

Delivering a great customer experience starts with understanding what your customers want and taking action to deliver it. The hard part is taking what you’ve learned and adjusting the way your company works so that your teams, processes, and technologies are capable of delivering on the experience that the customer expects. InfoTrends, the leading worldwide market research and strategic consulting firm for the imaging, document solutions, production print, and digital media industries, has new research to back this topic. According to InfoTrends’ 2015 study entitled Customer Engagement Technologies: The State of the Market, North American and Western European enterprises’ top objective for communication investments was improving the customer experience.

Figure 1: Improving the Customer Experience is a Priority
Improving the Customer Experience is a Priority

In another InfoTrends study entitled Micro to Mega: Trends in Business Communications, enterprises with 500+ employees reported that the critical factors for selecting a print provider were providing the best value, offering the broadest range of services to enable “one-stop shopping”, quality output, and access to expert advice.

Figure 2: Key Vendor Selection Criteria: Value, Service, Quality, Expertise
Key Vendor Selection Criteria

Communication Relevance Matters: It’s All About the Data!

Although some say that money makes the world go round, today’s marketers are just as likely to say that customer data makes their world go round. Data offers businesses new opportunities to better understand their customers through a variety of sources, including purchasing behaviors, interactions, demographics, and history. The end objective is to deliver a personalized customer experience that prompts the consumer to take a desired action. InfoTrends’ survey of small and medium-sized businesses (SMBs) and enterprises found that personalization was critical to marketing communications. According to the study, 64% of SMBs and 60% of enterprises indicated that communications would either be personalized (one-to-one) or segmented (one-to-few).

Figure 3: A More Personalized Approach
A More Personalized Approach

Customers Expect Multi-Channel Engagement

The days of high-level single channel marketing campaigns are long gone. With the proliferation of media channels in today’s world, marketers are faced with more options than ever when considering how to reach consumers. Marketers must make choices about channels, but a heavy investment in one channel may cause them to miss the potential in another. Today’s consumers have all channels turned on—they are in control of how they gather information, obtain advice from friends and family members in their social networks, and complete transactions with suppliers. This result is a new set of rules for marketers and a new buzzword that print providers must understand and add to their vernacular… omni-channel.

InfoTrends’ survey of SMB and enterprise communication decision-makers found that organizations that used more channels in their customer communication campaigns experienced an overall higher response rate.

Figure 4: Marketers That Use More Channels Gain a Better Response
Marketers That Use More Channels Gain a Better Response

A key message that print service providers must convey to customers is that print remains an integral part of the overall marketing mix. After experimenting with digital only, many marketers have returned to print and direct mail, are producing catalogs, newsletters, postcards, and brochures. They are using print to improve customer acquisition and drive customers to other channels, but it’s also a durable and shareable media for delivering valuable information.

In early 2015, the Harvard Business Review published an article entitled Why Print Catalogs Are Back in Style. This article highlighted that major retailers are returning to mailing printed catalogs for one very simple reason—business results. According to Nordstrom, customers who have a multi-channel relationship with the brand spend four times more money than those who do not. Bonobos shared similar results, reporting that 20% of the website’s first-time customers are placing their orders after having received a catalog and are spending one-and-a-half times more than new shoppers who didn’t receive a catalog in the mail first.

In 2016, service providers must evaluate how they are going to participate in today’s increasingly omni-channel environment. How can you help your clients deploy campaigns in a print, mobile, online, and social world? There are tools as well as partners that are available to help. Print providers that hope to build a profitable omni-channel business need to pursue a mix of strategies that can include building, buying, and partnering to increase capabilities.

The Bottom Line

Marketers need help; they are seeking good direct mail partners to help them. Direct mail is changing, and service providers’ expectations are evolving as well. Today, your customers are seeking additional help with improving the customer experience through the use of data analytics and strategy for relevant multi-channel communications. Direct mail is a pivotal link in the marketing mix, and it’s time to pay attention to how direct mail delivers results!

East Coast Envelope & Graphics acquires Interstate Envelope Manufacturing

As the CEO of East Coast Envelope & Graphics, I want you to be among the first to know that we have just acquired Interstate Envelope.

Not only does Interstate have a proud history of high quality manufacturing and customer service, but we will be making investments in and upgrades to their manufacturing capabilities and adding resources in order to become the premier supplier to the trade.

East Coast will pursue a “Customer First” approach with a laser-like focus, fixated on creating value for our customers. As such, we will also be operating with a great respect for the critical importance of our vendors and employees in reaching our customer centric goals.

This means our customers will get the benefits of Interstate’s 50 years of experience, plus the latest technologies and equipment and an industry leading focus on customer service. We believe that this new combined effort will give you and your customers the products, service and attention required to grow your business.

I am also very pleased to announce that Fred Wilkowski, formerly of Interstate, with 30 years in the industry, will become the COO of East Coast and that Shawn Asselin, who has over 25 years of experience in the envelope, paper and direct mail industry, will serve as our Vice President of Sales. With Fred’s expertise and with Shawn’s recognized ability to meet competitive requirements and provide innovative solutions, we will be able to meet and exceed your expectations.

Fred, Shawn and I will contact you soon to schedule visits in the coming weeks. We hope to get a better understanding of your current business needs and to explain how our plans will help you generate greater efficiencies and more valuable service. Of course, please feel free to contact us at any time at (718) 326-2424 to discuss your immediate needs.

Your trust and confidence in us are of the utmost importance. We look forward to working with you and to living up to your highest standards. Thank you very much.

 

Les Stern
Les Stern
CEO
East Coast Envelope & Graphics