Direct Mail Marketing

Direct mail marketing is a way of reaching a target market directly. There are several different ways that direct marketing can be applied, but they are all characterised by their direct approach. Probably the most common form of direct mail marketing is in mass mailings to a list of known buyers of a particular type of product. Sometimes this is less targeted and the result is often known as “junk mail” that usually gets thrown into the wastepaper bin without being opened.

Today, direct mail marketing can be applied to a marketing drive through email. This is a more immediate form as it is usually easier and cheaper to buy targeted lists. However, the law governing the use of email is considerably more strict than that of postal mailing, and it is much easier to fall foul of the law and end up being prosecuted. Direct marketing through email works best when a list has been created from scratch through an op-in system, whereby each person on the list has agreed to be there. The resultant list is extremely focused and targeted, and often very responsive too. This in turn can mean much greater profits for no extra effort.

Direct marketing can also take the form of leaflet distribution on a door-to-door basis. This form of mass marketing can be extremely effective if carried out with careful planning and execution. It requires a person, or many persons, to physically go to houses and deliver a pre-printed leaflet of a promotional nature through the letterbox in the door of each house. This approach is not always a wanted one, and some people can get annoyed when they receive something they did not ask for. However, if the mailing is not a completely obscure one, it is highly likely that many people will find the offer useful, and they will subsequently take the required action, which is usually buying whatever item or service is on offer.

The typical response to direct mail marketing can be quite low if the offer is not tightly focused and targeted to a segment of the population that is known to be interested in the offer. Even when the offer is an excellent match for the people who receive it, the conversion rate can still be perhaps 2% or 3% at best. When you consider that most of the time the recipients of direct mail marketing are not an excellent match for the offer, it is no wonder that the average conversion rate is usually in the order of less than 1%.

Direct mail marketing usually depends on large numbers to make the offer a viable one. It is common to have companies mail out their offer to many tens of thousands of households, and mailings to households in the six figure, and even seven figure range, is certainly not uncommon. For this reason, each mailing needs to be cost effective if only one in every hundred is acted upon, on average. For large companies this can work out very well, and direct mail marketing is an extremely profitable method of reaching a targeted audience.

On January 16th, 2012, posted in: Direct Mail Marketing by jason

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