DUKKY

Editor’s Note:  This post was written by Damon Samuel and was originally posted on his blog, Broadcast Thoughts. It is reprinted here with permission. In the post, Damon explains how better targeting, among other factors, has helped improve direct mail response rates at the marketing agency he works for. At Dukky, we integrate social and viral sharing with direct response campaigns through the use of social PURLs, and use the information gathered to help improve targeting and response in future campaigns.

For years people have derided junk mail. It is the bastard step child of marketing. No one likes receiving junk mail. But the fact is, it works.

Now I’m the first to admit that response rates are poor. Last DMA stat I saw was 1.8%. But the fact remains, it can be highly profitable. And in a time where my mail box is the emptiest I can ever remember I believe Direct Mail is showing strong signs of life.

Here are a few reasons I think DM is gaining strength.

First has to do with a direct mail campaign we have done for a client. In interests of not violating confidentiality all I’ll say is the response rate this year is nearly double from 2 years ago and up 50% from last year. Revenues are also way up. Granted we had better targeting which drove a lot of the positive change.

Second, the offers and pieces I do receive are more valuable. With rising costs of doing campaigns the companies that continue to use direct mail are investing heavily in it. When I get a credit offer it always has very generous terms with extravagant perks. Or in the case of the Porsche Panamera launch piece, the creative cost a fortune. It was a well designed box shipped overnight with color samples and design documents and probably cost $20-$40 to mail all told. Of course a single response is worth thousands for them.

Third, companies are using analytics more effectively. See point 1, my client utilized better targeting. Example 2, my wife and I both received offers from a credit issuer on the same day. I usually round file my direct mail pieces unless I am specifically looking for that product. I opened both of these since they obviously had different creatives. The offer and message treatments were equal but I could tell you which creative would have been more likely to generate a response. Here’s a hint, it was the one with the value proposition clearly displayed at the top of the messaging.

Last, direct mail stands out in a world of email spam. I have 5 email accounts and can also receive communication through two social networking sites. I also have a blog that accepts comments. I am inundated with electronic communication. I also believe many companies over communicate via email when consumers opt in. I just don’t need 2 emails a week. In fact I typically opt out after a few weeks at that rate. Share of active attention is a premium. I can delete an email in seconds along with 30 others in the same click. It takes me 20 seconds to walk from the mail box to the garage while I am purposely sorting through my mail before I reach a trash can. The DM piece guarantees I will at least see its shell.

E-marketing is fantastic and is here to stay. Just don’t write off direct mail just yet. There is still plenty of evidence that when the right piece with the right offer hits the right consumer a company can make millions.