Direct Mail Marketing Guide for Small Businesses

Today’s marketing channels are primarily digital, with email marketing and social media marketing growing in popularity because of their ease, reach and low cost. However, physical advertising can have a significant positive impact on your customers and bottom line. 

Integrating direct mail marketing with your other marketing channels can provide your customers with a unique, personalized experience that helps your business stand out from the crowd. We’ll explore direct mail for business and share how you can create a successful, impactful direct mail campaign. 

What Is Direct Mail Marketing?

Direct mail marketing involves sending physical mail, such as AcclaimMailer, or other postcards, letters, or brochures, to customers to promote a business. It can be used to introduce a product, advertise a sale, or encourage customers to take action.

Every direct mail piece should include:

  • The business name or logo for brand recognition.
  • A clear call to action (CTA) that tells the customer what to do next.
  • Contact details, such as a phone number, email, or website, to make it easy for customers to respond.

Tip: Adding a QR code can make it easy for recipients to visit a website or find contact details instantly.

Does Direct Mail Marketing Still Work?

While digital marketing dominates, direct mail still has a strong impact. Research shows that it can improve return on investment (ROI) when used alongside digital marketing.

  • A 2020 MarketingCharts survey found that 59% of businesses reported good ROI when combining direct mail with other marketing channels, and 7% said the results were very good.
  • The same study found that 69% of businesses saw strong response rates from customers when adding direct mail to their strategy.
  • Jet Mail, a direct mail marketing service, reported that some campaigns with 2,500 mailers saw a 30% response rate—much higher than the average response rate for email marketing.
  • According to a 2022 GetResponse report, marketing emails in North America had an average open rate of 23.53% and a click-through rate of 3.86%, significantly lower than the response rate for direct mail.

These numbers show that direct mail is still an effective way to reach customers.

Benefits of Direct Mail Marketing

1. It Encourages Customer Engagement

Direct mail is a physical item that customers can touch and read. When mail includes a special offer or an action, such as bringing a coupon to a store, customers are more likely to pay attention.

2. It Is More Memorable Than Digital Ads

Receiving mail can create a sense of nostalgia, making people more likely to remember the message. Personalizing direct mail with a customer’s name or a handwritten note can make it even more effective.

3. It Reaches a Wider Audience

Not everyone is active on social media or checks emails regularly. Direct mail can reach customers who may not engage with digital ads, including older demographics.

4. It Allows for Creativity

Direct mail can be combined with digital strategies for a more engaging experience. Businesses can include QR codes, augmented reality features, or personalized URLs to encourage online interaction.

5. There Is Less Competition

With most companies focusing on digital marketing, fewer businesses use direct mail. This makes it easier to stand out when customers receive a well-designed mailer in their mailbox.

Tip: The United States Postal Service (USPS) offers promotions that can help businesses save money on direct mail campaigns.

Challenges of Direct Mail Marketing

Despite its benefits, direct mail has some drawbacks that businesses should consider.

1. It Can Be Costly

Unlike digital marketing, which can be done at a lower cost, direct mail expenses include printing, postage, and design. Postage is a major cost, and as postal rates rise, campaigns can become expensive.

2. Results Are Harder to Track

Tracking how many people open, read, or take action from a mailer is more difficult than monitoring email open rates and digital ad clicks. Businesses may need to include discount codes, QR codes, or unique URLs to measure effectiveness.

3. It Cannot Be Changed Once Sent

Unlike digital ads that can be updated or adjusted based on performance, direct mail campaigns are final once they are printed and sent. If an error is found or the campaign is not performing well, changes cannot be made.

4. Mailing Lists May Be Inaccurate

Addresses can be outdated or incorrect, leading to undelivered mail. This can result in wasted materials and increased costs.

How Much Does Direct Mail Marketing Cost?

The cost of a direct mail campaign varies based on several factors:

  • Mail Type and Quantity: Standard postcards cost around $0.44 each, while oversized mailers and catalogs can cost up to $10 per piece.
  • Design Costs: Basic designs can be made for free, but custom designs may require hiring a professional.
  • Printing Costs: Prices range from $0.03 to $2 per piece, depending on size, paper quality, and whether it is printed in color or black-and-white.
  • Postage Fees: Postage rates range from $0.25 to $2 per piece, depending on size and delivery method.

Steps to Create a Direct Mail Marketing Campaign

1. Set Clear Goals

Determine what the campaign should achieve, such as increasing sales, driving website traffic, or announcing a new product.

2. Understand the Audience

Tailor the message to the interests and needs of the target audience. Use past customer data to guide the campaign.

3. Build a Mailing List

There are two main ways to get mailing addresses:

  • House Lists: A list of customers who have interacted with the business before.
  • Purchased Lists: Lists bought from marketing companies that include potential customers based on demographics and interests.

House lists tend to have better response rates since customers are already familiar with the brand.

4. Craft a Strong Call to Action (CTA)

A CTA should be clear and direct. Examples include:

  • “Bring this coupon to our store for 20% off.”
  • “Visit our website and enter this code for a special discount.”
  • “Scan the QR code to book an appointment today.”

5. Choose a Mail Format

Common types of direct mail include:

  • Postcards: Great for short messages and promotions.
  • Letters: Useful for fundraising, customer surveys, or more detailed information.
  • Brochures and Catalogs: Ideal for showcasing multiple products or services.
  • Self-Mailers: Folded materials without envelopes, commonly used for event announcements.
  • Dimensional Mailers: Interactive mailers with pop-ups or 3D elements to grab attention.

6. Design the Mailer

A well-designed mailer should be visually appealing and easy to read. The CTA should stand out, and important information should be clearly displayed.

7. Send the Mail and Track Results

Businesses can work with a direct mail service to handle printing and mailing. Including trackable elements, such as promo codes or QR codes, can help measure success.

Examples of Creative Direct Mail Campaigns

Several businesses have used direct mail in creative ways:

  • World Water Day: A company in Belgium sent blank blue mailers that revealed a hidden message when dipped in water.
  • Earth Hour: To encourage businesses to save electricity, candles were sent in boxes designed to look like buildings, symbolizing turning off the lights.
  • Smart E-Bike Promotion: Customers received a helmet kit made from recycled cardboard to promote eco-friendly biking.
  • Hell Pizza: Fortune cookies with dark humor messages were sent to match the brand’s edgy style.

Best Practices for a Successful Direct Mail Campaign

  • Keep the design simple and clutter-free.
  • Use easy-to-read fonts.
  • Make the CTA the focus of the mailer.
  • Personalize the message to the audience.
  • Test a small batch before sending a full campaign.
  • Proofread to avoid mistakes.
  • Send follow-ups to increase engagement.

Conclusion

Direct mail marketing remains a valuable tool for reaching customers. By creating well-designed mailers with a clear call to action, businesses can engage their audience in a way that digital ads often cannot. When combined with other marketing efforts, direct mail can help build strong customer connections and drive sales.

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