Direct mail campaigns can be a highly effective marketing tool for small businesses. Though we live in a digital era, direct mail campaigns are still relevant today. According to a report by the USPS, 56% of consumers say that receiving mail is “a real pleasure.” The same report also indicated that 55% of people said that they “look forward” to checking the contents of their mailbox.
Because of the personal and targeted nature of direct mail, it can be a successful way for small businesses to reach their ideal audience and grow their business. However, there are pros and cons of direct mail marketing that all small businesses should be aware of before undertaking a campaign. We’ll discuss these advantages and disadvantages in more detail, going over factors such as cost, response rates, personalization opportunities, and more.
The Benefits of Direct Mail Marketing for Small Businesses
For small businesses, there are many reasons to consider direct mail marketing. From creating lasting connections with their audience to building brand recognition in local communities, there are plenty of advantages to consider with direct mail marketing. That’s why direct mail remains an essential tool for businesses looking to boost their marketing efforts.
Targeted Reach
When considering the pros and cons of direct mail marketing, one of the most significant pros is the ability for businesses to reach targeted audiences. With a well-defined mailing list, whether obtained from existing customer databases or through demographic research, businesses can tailor their message to resonate with specific audiences, ensuring a higher response rate.
Personalization
With targeted reach capabilities, small businesses will have the opportunity to personalize their direct mail to cater to the recipient’s interests. Tailoring messages, designs, and offers to suit their audience’s preferences is likely to secure higher response rates than generic advertisements. Additionally, this personal touch is more likely to lead to a long-term customer relationship, as it promotes connection and engagement.
Tangibility
Another one of the pros of direct mail marketing is its tangibility. Unlike digital advertisements that can be quickly scrolled past or emails that can be automatically sent to a junk folder, physical mail has a tangible presence that can’t be completely ignored.
Plus, a well-designed postcard, brochure, or catalog can leave a lasting impression on recipients who see it. This often results in a higher recall value, contributing to higher response rates.
Brand Recognition
Direct mail can also boost a small business’s brand recognition. Particularly for businesses looking to establish their presence in localized areas, this benefit of direct mail can help businesses expand their reach and grow. However, the key to unlocking this benefit lies in consistency. Frequent and regular direct mail campaigns contribute to brand recognition and trust. Seeing a brand’s message in the mailbox regularly can build familiarity and credibility over time.
High Response Rates and ROIs
In general, direct mail campaigns can produce high response rates and ROIs. According to this report, direct mail has an average response rate between 2.7% – 4.4%. While this statistic may not seem that high, in comparison, email marketing response rates are only around 0.6%. Additionally, according to the 2022 ANA Response Rate Report, direct mail has an average ROI between 85-112%. Based on these statistics, direct mail marketing has a high possibility of success for small businesses operating on a limited budget.
Complementary to Digital Strategies
Direct mail is also a great complement to other digital marketing strategies. Integrating direct mail with online campaigns, such as including QR codes or personalized URLs, creates a seamless multichannel experience for customers.
The Cons of Direct Mail Marketing
While there are many advantages to utilizing direct mail in your marketing strategy, there are also some disadvantages to be aware of. For small businesses, understanding the pros and cons of direct mail marketing can help ensure that your campaigns are as successful as possible. From waste to high costs, direct mail has some potential disadvantages that all business owners should know about.
Waste
Using physical materials can potentially lead to a lot of waste. For many businesses and individuals, sustainability is important. To combat the problem of waste, businesses should send relevant, high-quality mail to targeted lists. Sending out mass general mail pieces are more likely to be tossed in the garbage without being read.
Long Lead Times
Unlike the immediacy afforded by digital marketing, direct mail campaigns typically demand longer lead times. Designing, printing, and mailing physical materials take time, making it less suitable for businesses with dynamic and rapidly changing promotional strategies. From the time it takes to design and create a mail piece to actually getting it into the hands of your intended recipient, the timeline may be weeks long, depending on multiple factors.
For example, a business may want to ensure that the messaging and design of the mail piece is fantastic, as it costs money to create. It may involve the creation of materials such as brochures, catalogs, or postcards that require high-quality imagery and aesthetics. The development of these materials requires time for intricate design, compelling copywriting, and high-quality printing production.
Another factor that may influence the lead time is coordination with the postal service. Once a business’s materials are ready, they must be dispatched through postal services, a step that requires coordination and adherence to postal schedules. However, there may be potential delays in postal processing and distribution that are outside of a business’s control. Particularly, during busy holiday seasons, your direct mail marketing pieces may experience delays in reaching their intended recipients.
Cost
Overall, the costs related to designing, printing, and distributing physical materials can be significant, especially for small to medium-sized businesses with limited marketing budgets. Some of the biggest challenges are the cost of printing and producing high-quality materials. One of the ways to mitigate production costs is by using EDDM instead of a direct mail agency. Using this method, you’ll be able to reach a wide range of consumers within a certain geographic area at a low postage cost. You also won’t need to worry about creating a targeted mailing list with this option.
Additionally, since direct mail pieces need to stand out and grab the attention of recipients, the need for visually appealing and professionally printed materials can lead to substantial expenses, particularly for large-scale campaigns or intricate designs. However, crafting visually appealing and compelling content for direct mail pieces requires investment in design and creative development. This cost includes graphic design services, copywriting, and other creative elements that contribute to the overall effectiveness of the campaign.
We understand this need for effectively designed mailers while also staying within budget. That’s why we offer several options to ensure that you can create the perfect mail piece without breaking the bank. We offer free design templates for a DIY option that’s perfect for small businesses on a limited budget. We also have an in-house creative team that’s ready to help you create a successful design if you need something more unique or creative for your campaign.
Time-Consuming
In general, running a direct mail campaign can be incredibly time-consuming. From design conception to following up on leads and tracking the performance of the campaign, the process can take a lot longer than digital methods. For small businesses with limited personnel, marketing projects that take up a lot of time may not be realistic.
Working with a company like ours can help make the whole process smoother and less time-consuming. You won’t need to worry about heading to the post office or production, as we handle that part. Our resources can also help speed up the creation process, making your whole campaign fast and easy.
Planning Your Direct Mail Campaign
There are several pros and cons of direct mail marketing that are important for small businesses to be aware of. From the tangibility and high ROIs of direct mail campaigns to cons, like high costs and long lead times, there are many considerations you need to account for when planning a campaign. However, even with the apparent disadvantages of direct mail marketing, there are potential solutions to solve these problems as well.
Every Door Direct Mail offers a solution by mitigating some of the traditional costs associated with direct mail, making it a great option for those looking to harness the benefits of direct mail marketing without breaking the bank. We offer this solution, as well as other services to ensure that you have a fast and smooth direct mail campaign. If you’re ready to get started building a campaign, check out our easy-to-use platform.
