Marketers have heard this time and again, and many have shifted their campaign focus to the digital space. But as our lives become more and more consumed by digital media, consumers are giving less time and attention to the digital messages they receive. The average lifespan of an email is now just two seconds and brand recall directly after seeing a digital ad is just 44%, compared to direct mail which has a brand recall of 75%.
Further research shows direct mail marketing is one of the most effective tools for customer acquisition and loan growth.
The current Data & Marketing Association (DMA) response rate report reveals the direct mail response rates for 2016 were at the highest levels since 2003. Additionally, while mailing volume has trended down since October 2016, response rates have trended up, and reached 0.68% in March 2017, up from 0.56% in October 2016.
Using data and insights to tailor a direct mail campaign can yield big results. Here are some attention-grabbing tips:
Identify Your Target Market: Before developing your offer and messaging strategy, begin with the customer profile you are trying to attract. Propensity models and estimated interest rates are great tools for identifying consumers who are more likely to respond to an offer. Adding them as an additional filter to a credit-qualified population can help increase response rates.
Verify your Mailing List: Experian’s address verification software validates the accuracy and completeness of a physical address, flags inaccuracies, and corrects errors before they can negatively impact your campaign.
Personalize the Offer: Consumers are more likely to open offers that are personalized, and appeal to their life stage, organizational affiliations or interests. Experian’s Mosiac profile report is a simple, inexpensive way to gather data-based insight into the lifestyle and demographics of your audience.
Time the Offer: Timing your campaign with peak market demand is key. For example, personal loan demand is highest in the first quarter after the holidays, while student loans demand peaks in the Spring.
Direct mail can help overcome digital fatigue that many consumers are experiencing, and when done right, it’s the printed piece that helps marketers boost response rates.