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Maximizing ROI: Tips for Cost-Effective Direct Mail Campaigns

Mathew Wiggins | Updated On December 21, 2023

People would think that Direct Mail Campaigning has become old news. Turns out, this form of marketing has more impact as compared to other forms of marketing. In today’s economy, people have access to numerous platforms. More places to access media, also mean more ways to avoid them. You can fast-forward through commercials on YouTube, TV, etc. But according to 2021 USPS research, it was found out that 72%  look forward to mailing and reading it immediately.  

It is a perfect example to connect with your customer to yield promising results. When done correctly, you can make your business stand out, just like the Royal Mail in 2022. They won several awards for their campaign “Open Door”. They curated personalized boxes relevant to their target brand and from the viewpoint of their shoppers. 

Direct mail campaigning is a form of direct marketing that is physically delivered to your mailbox through the United States Postal Services or other services. They can be in the form of postcards, flyers, or catalogs. 

All the cost-related measures should be the first thing to be taken into account. The cost of the package varies depending on the design, printing, personalization, and eddm postcard size requirements. Depending upon the parameters listed above, the price can cost from $0.30 to $10 per person. It is vital to plan so that you avoid any unnecessary spending and maximize your ROI. 

Here are a few tips for a cost-effective direct mail campaign for you to optimize your Return on investment.  

This list consists of the target audience to whom the mail is delivered. Sending your packages to non-existing customers or those who shifted can result in a waste of money. Try to sort your lists, remove any duplicate names and keep updating your contact lists periodically. Make sure that every piece of your work reaches your intended recipient. Any undeliverable mail piece or returned package can turn out to be costly. Some businesses even outsource to maintain the best quality. 

Maintaining your mailing lists in an organized way helps you keep track of your output, and you can even keep a tab on the customers who are interested in your services. You can use different barcodes on each mailer to identify the response rates and calculate ROI. In 2021, QR codes were the most popular used digital form of response as they simplify this process. This also helps businesses to examine users’ data and understand their audience. The below graph highlights the division of various digital channels that people include, which directly increase the traffic to their websites or business. 

This strategy will help you to evaluate your performance and determine what works best for you. This will help you in the long run, saving you loads of money and in optimizing your return on investment. 

An hour of doing can save you 10 hours of doing. Unlike online advertising or blog, you cannot fix a direct mail once sent. You can correct an ad or an article you posted marketing a particular product, but you cannot unsend mail which is physically delivered. The only thing to fix this mess is to send another one, resulting in extra expenditure. 

Plan in advance to prevent such blunders. Planners make their dream come true. Prepare a message that aligns with your strategies to avoid any confusion. This builds trust with your customer, and a little mistake can result in a loss of valuable capital. 

A very important factor that decides your overall cost and profit. Start by deciding your budget, followed up by the type of package you want to deliver. The rates of the parcel will depend on the size and weight. Estimate all the expenses including the profit, then make an informed decision. 

The catch is that people often compromise with their delivery. Either they go over budget or they cut down some expenses, which proves to be fatal for their business. Be creative and brief about the kind of message you want to send. For instance, some businesses often attach QR codes that take you to their websites. In this way, with low expenditure you attract traffic, resulting in Increased ROI. 

These are some of the examples where famous brands used these eye-catching as well as informative postcards in their direct mail.  Crafting a compelling and engaging message will help in optimizing your return on investment. While constructing a draft, make sure that you keep targeted recipients in mind. What kind of tone and language will appeal to them? Make yourself clear in call-to-action (CTA) in your message. Is it easily comprehensible and relevant? 

Add some visual elements to make it more attractive like bold colors, alluring pictures, and unique packaging. List down some offers or discounts, or what kind of services you offer innovatively. Be cautious to not make it all informative, this can make your customer lose interest. You want mailers’ attention to your mail as soon as they open their mailbox. Get creative with design and content. This will increase engagement and, in turn, will maximize your ROI.

Selecting the right audience will determine a large portion of your profit. Identify your clients and sort them into different categories including, age, location, gender, or income level. This will guide you in creating a personalized message, resulting in a higher response rate. For example, you would not like to send any cosmetics trial packs to a person who is not into fashion and lifestyle. 

You can also collaborate with other digital platforms to expand your business reach. Keep in mind the target audience, declutter your mailing list regularly, be creative with your message, and lastly, consider the size of the package. By following these tips, your direct mail campaigns will yield maximum returns on investment.