Direct mail is an important component of your marketing mix. Not only does it allow for more personalization, but it’s been proven that this type of marketing resonates more with customers. Even millennials respond positively to direct mail - according to Forbes, 77% of millennials actively pay attention to direct mail. Don’t just take our word for it; here are a few examples of how direct mail has impacted some of the nation’s largest companies.
The popular lingerie brand Victoria’s Secret spoke about their recent decline in sales and consumer interest. In early 2016, the company decided to analyze their existing marketing efforts. After much thought, the company decided to eliminate their direct mail catalogs. According to QuickPivot, “they had the data to back it up: in a test conducted during the fourth quarter of 2015, the company reduced the number of catalogs it released by 40 percent without seeing a negative impact on sales." But in February 2017, the company experienced a 20% decline in sales. This year, their third-quarter earnings slipped by a whopping 89%. According to CEO John Mehas, the drop in revenue was “due to the ‘cumulative impact’ of its decision to exit the swim and apparel businesses and to eliminate its catalogs and direct-mail promotional offers, on top of what it admitted was ‘poor assortment.’”
The tech behemoth is well aware of how consumers respond to the internet and digital marketing such as paid ads, email, and more. Yet, they also consistently invest in direct mail to advertise their offerings. Why would a global giant like Google need to invest so heavily in direct mail? According to LinkedIn, the company finds that “direct mail drives sales more efficiently than digital ads.” One way Google uses direct mail is by sending a personalized piece to business owners who have recently signed up for a Google My Business account. They encourage the recipient to take the next step to get their business noticed by leveraging Google Ads. They also provide a coupon code for an ad spend credit along with a personalized sample of what their ppc ad can look like.
A financial tech company that’s grown astronomically over the last seven years, SoFi spends billions every year on their marketing. While they have concert series and live events each year for their customers, the company also allocates much of their budget to direct mail. According to Fast Company, SoFi sends out “15 million mailers” each month. The company’s CMO, Joanne Bradford, says she stands behind direct mail because of its efficiency and the targeted data it yields. Other companies who swear by the importance and success of direct mail include fashion-guru Le Tote, Burger King, and Tylenol.
Direct mail allows you to reach your customers in a more authentic way - not only can you personalize the content down to the offers, but the data that you can reap from these campaigns is invaluable. While digital marketing is a great tool to add to your marketing, it works best when paired with strategic direct mail. When setting up your campaigns, be sure to allocate the appropriate amount of spend to both direct mail and digital. To learn about how you can properly use your direct mail spend, contact Darwill today.