Businesses Prefer Direct Mail
52.7% of the annual national marketing budget is spent on direct mail.* What this means is that even though social media has become common place in our lives, businesses still rely on direct mail as the number one advertising media to drive sales.
Direct Mail Advertising is on the Rise
In the 2013 calendar year, $45 billion was spent on direct mail. This was an increase over 2012.** One of the more well know companies using direct mail was Google. Even one of the largest online advertisers in the world knows the advantages of direct mail advertising.
Young Adults Prefer Direct Mail
According to Forbes, young adults ages 18 to 34 are some of the best targets for lead generation. Even though the internet is a huge part of the daily routine of this age group, in reality, this age group still prefers to learn about products and services via direct mail.
Direct Mail: Higher Response Rates = Lower Costs per Lead
When planning a marketing campaign, the cost per lead is more important than the overall cost of the campaign. Since the response rate for direct mail consistently averages 2-3 times higher than email, your overall cost per lead is lower.
Direct Mail Campaigns Generate Highest ROI
The goal of any business is to maximize profits. A recent study by Target Market Magazine showed that direct mail consistently produced the highest “Return on Investment” for both business to business campaigns and business to consumer campaigns.
*2012 DMA Response Rate Report
The internet was created as a means of sharing information. The ability to share this information also created new electronic ways for businesses to promote and advertise their companies. Today almost every business has a website to promote their goods or services and many businesses include email marketing in their advertising arsenal.
It did not take long to see that email marketing had two strikes against it:
- As the volume of email increased, so did the use of the delete and “mark as spam” buttons without the emails ever being viewed.
- As computer viruses became more prevalent and more destructive, again the use of the delete button increased.
It now remains to be seen if Google’s new inbox format will become strike number three against email marketing. At over one half a billion active accounts, Google’s Gmail has become one of the most popular email services in the world. Gmail’s new programming will automatically separate all incoming emails into one of three categories, each with its own separate tab:
- Primary Tab – This is the general inbox and is the main display when the user logs in.
- Social Tab – This tab includes all social media emails.
- Promotion Tab – Captures all opt-in email marketing offers and promotional displays.
No longer will promotional emails be intermingled within personal emails. The fear is that since Gmail is grouping all promotional emails together under one tab, that it will become conveniently easy to use the “delete all” button without viewing any of the marketing emails. Google has put this tabbing system into place to help manage spam, but all emails from your domain may put you into the promotions tab no matter what. At this point, it is too soon to tell what impact the new inbox will have on email marketing, so now more than ever it is important to have the right branding in place to make your email stand out from the rest.
Continue the Conversation
Marketing is key to the success of any business but must be customer driven in order to be successful. Make customers your prime focus and you’ll reap the rewards.
Insightful marketing is often described as “making what you can sell, not selling what you can make.” Companies that sell what they can make are product driven: they make the product first, consider customers afterwards, and see marketing simply as a means of persuading customers to buy.
The most successful organizations make what they can sell. They are customer led, creating products and services in response to customer need.
Research is conducted into customers’ needs.
- A product or service is designed to meet the need.
- The new product or service is marketed to potential customers.
- Customers buy the product or service.
- Product or service meets the customers’ needs.
- Satisfied customers recommend the product or service to others.
Here are three tips to help you become more customer focused in 2012:
- Make meeting the needs of your customers a top business priority.
- Gather as much information as possible on the needs of existing and potential customers.
- Develop an approach to marketing that is driven by customer need, not company habit and tradition.
The end result of insightful marketing is more customers and fewer complaints. You are also far more likely to enjoy healthier profits and be the envy of others in your industry.
Continue the Conversation: Contact FNBR Inc. toll free at 888-988-8148, by email at email@example.com, or www.fnbr.com.