Those who know me understand that I’m rarely at a loss for words, but after reviewing the direct mail response rates cited in the recently released 2018 dma response rate report (dma membership required, fees apply) fees), I was a bit speechless. Even though we’ve historically seen direct mail lead the pack when it comes to response rates, the numbers were staggering. So amazing, in fact, I was reminded of the fine print on Jenny Craig’s ads that says, “results not typical.”
According to the 2018 dma response rate report, direct mail response rates are 9% for a list of your own and 5% for a list of prospects. the 2017 report showed a response rate of 5.1% to a list of houses and 2.9% to a list of prospects, and the average between 2003 and 2015 was 3.6% to a list of houses and 1.6% to a list of prospects. it also loops around every other channel, even if you combined the response rates of all of them. For comparison, email has a response rate of 1% for a list of houses and 1% for a list of prospects. social media and paid search achieved a 1% response rate, followed by online viewing at 0.30%. however, the survey makes it clear that the sample size for these results was small. we feel compelled to add, “and not typical”.
here are some other key points that relate specifically to direct mail response:
- letter-size direct mail performed best for lead generation with a 15.1% response rate.
- Industries that used direct mail the most were travel or hospitality (80%), non-profit organizations (75%). , publishing or media (71%), financial services-banks/credit (67%) and health (63%). Surprisingly, only 50% of insurance respondents said they were using direct mail.
- The most popular methods of measuring response rates include online tracking (53%), code or coupon ( 45%) and the call center or telephone (41%).
Again, although the report states that the numbers are based on a small sample size and should be used for informational purposes only, the data seems clear: direct mail should be part of any direct marketing strategy.
What accounts for this huge increase in direct mail response rates?
While the 2018 dma response rate report is not designed to provide that level of information, we know from experience that it is likely due to a combination of factors, including:
- marketers are getting smarter about sending emails to people who appreciate receiving them.
- better data and sophisticated models allow marketers to send offers more personalized.
- Increased use of digital production inkjet equipment can produce more targeted offers at higher mail volumes.
marketers want to know what works
The tremendous success and use of direct mail was part of the reason so many of us in the industry lobbied the dma to form the new council for printing in the digital age after it seemed to ignore the role of printing in recent years. As much as marketers want to know what’s on the horizon in terms of marketing trends, what they really need to know is what’s working. As the 2018 dma response rate report clearly shows, direct mail is extremely powerful in generating a response to your offer.
a strategic approach is still needed
None of that is to say that direct mail should be the beginning and end of any direct marketing strategy. the response rate report indicated that email still has the strongest ROI and lowest cost per acquisition. marketers continue to find value in social media. As Alan Sherman pointed out, we’re finding ways to link email and social interactions with signals that make direct mail even more effective. and paid search continues to be an important way to show a product or service to people who are actively seeking information.
Response rate data alone won’t help you determine the best approach to building customers or how to create personalized offers that drive action. If you need help developing a strategy that will identify the right people to reach and the right offer to present to them, contact our direct marketing experts.