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Navigating the Digital Era: Reimagining Direct Mail

Posted on July 20, 2023October 10, 2024 by EmMa Matern

INTRODUCTION

Direct mail cuts through digital fatigue by offering a tangible experience that stands out amidst the overwhelming influx of messages. According to Compu-Mail.com, the average American household receives two direct mail pieces daily, while emails can flood in by the dozen. Due to their comparative scarcity, approximately 77% of Americans eagerly anticipate opening direct mail. Despite the prevalence of digital communication, the percentage of physical mail read today remains surprisingly high. Numerous statistics and studies have consistently demonstrated that direct mail continues to be an effective marketing tool that stands out in a tech-forward world.

Key Topics
1. How can you Leverage Technology to Enhance Direct Mail Campaigns?
2. Why is it important to Personalize and Target Direct Mail?
3. Why is it Important to Keep Data up to Date?
4. Why do Personalized Mail pieces Stand out?

Source: USPS Household Diary Study 2020

1. How can you Leverage Technology to Enhance Direct Mail Campaigns?

Direct mail is one of the oldest forms of communication still around today, recent developments allow the incorporation of digital elements into mail pieces. Leveraging technology has become increasingly vital in enhancing direct mail campaigns. By integrating interactive experiences into traditional mail, marketers are able to captivate their audience in new and exciting ways. One effective method is the utilization of QR codes, which help bridge the gap between physical and digital realms. These codes provide a convenient and instant connection for users, allowing them to access content, exclusive offers, or website URLs with just a simple scan. The scans can be tracked by the marketer to gauge real time success of the campaign. By integrating QR codes into mail pieces, brands can deliver a seamless and cohesive experience that engages recipients and enhances their overall interaction with the marketing material.

2. Why is it important to Personalize and Target Direct Mail?

Data-driven segmentation is a powerful strategy that enables businesses to effectively target their audience with tailored messaging. By leveraging customer data and insights, companies can divide their customer base into smaller, more specific groups. These segments can be based on various factors such as demographics, preferences, purchase history, or behavior patterns. By understanding the unique characteristics and needs of each segment, businesses can create segmented direct mail campaigns that speak directly to the interests and motivations of their recipients.

Postalgia specializes in Variable Data Printing (VDP). This advanced technology allows for the customization of individual elements within a direct mail piece. For example, names, addresses, or offers can be personalized to each recipient. This level of customization creates a highly personalized and targeted experience for the recipient, making them feel valued and understood. By incorporating VDP into their direct mail campaigns, businesses can increase the relevance and impact of their messages, ultimately driving higher engagement and response rates.

The beauty of data-driven segmentation and VDP is that they work together seamlessly. By combining the insights gained from segmenting their audience with the customization capabilities of VDP, businesses can create direct mail pieces that deliver the right message to the right person at the right time. Whether it’s addressing recipients by name, showcasing products or offers that align with their preferences, the level of personalization achieved enhances the overall effectiveness of the direct mail campaign.

3. Why is it Important to Keep Data up to Date?

To ensure the success of data-driven marketing campaigns, it is crucial for businesses to regularly refresh and clean their data. Outdated or inaccurate information can lead to ineffective targeting and personalization, diminishing the impact of direct mail efforts. By conducting regular data audits and utilizing tools that automate the data cleansing process, businesses can maintain a clean and reliable database, improving the quality of their direct mail campaigns.

In addition to data cleansing, it is essential to continuously collect and analyze new data to gain fresh insights into customer behavior and preferences. By leveraging tools and technologies that capture and analyze customer data, businesses can stay up-to-date with evolving customer needs and preferences. Incorporating real-time data sources, such as website analytics or CRM systems, enables businesses to gather valuable information on customer interactions and transactions.

To keep customer data accurate and up-to-date, it is important to actively engage customers in the data collection process. Businesses can encourage customers to provide updated information by offering opt-in forms or account profiles. By rewarding incentives or benefits for customers who update their information, businesses can incentivize customers to share accurate and relevant data. This approach not only helps in maintaining a clean and updated customer database but also fosters a sense of transparency and trust between the business and its customers.

Using automated data integration processes is crucial for syncing data across different systems. By integrating data from various sources, such as CRM systems, e-commerce platforms, or social media channels, businesses can have a holistic view of customer information. This integrated data enables businesses to create comprehensive customer profiles and ensures consistency across different touchpoints. Automation streamlines the data integration process, reducing manual errors and enabling businesses to deliver cohesive and personalized direct mail campaigns.

4. Why do Personalized Mail pieces Stand out?

Direct mail has a unique ability to make mail pieces more relevant and meaningful, leading to higher response rates and establishing an emotional connection with recipients. According to the article “Direct Marketing Statistics for 2022” by Compu-Mail.com, the response rate to direct mail can reach as high as 37%. One of the reasons for this is that people perceive a physical piece of mail as more “real” compared to the digital ones that flood their inboxes. The tangible nature of direct mail captures attention and engages multiple senses, creating a memorable and impactful experience for recipients.

Direct mail has been shown to generate higher response rates compared to other marketing channels. In the data mentioned above by Compu-Mail.com, mail pieces have an open rate of 90% (in contrast to the average email open rate of 23%), direct mail ensures that the message reaches the intended recipient. This high open rate provides an opportunity for businesses to make a strong impression and convey their message effectively. Direct mail marketing allows for customization and personalization, such as incorporating handwritten elements. Handwritten elements, such as handwritten addresses or notes, add a personal touch that makes recipients feel valued and appreciated. This attention to detail significantly increases the chances of the mail being opened and read.

Beyond higher response rates, direct mail also enhances the perception of a brand as customer-centric. By investing in physical mail pieces that are tailored to the recipient’s preferences and needs, businesses demonstrate a commitment to delivering personalized experiences. This customer-centric approach fosters a positive perception of the brand and strengthens the emotional connection between the business and its customers.

CONCLUSION

In the ever-evolving landscape of marketing, where technology and data reign supreme, direct mail stands as a timeless reminder of the power of human connection. It is a tangible testament to the impact that a carefully crafted message can have on an individual. Leveraging technology and personalization techniques has become crucial for enhancing the effectiveness of direct mail campaigns. By incorporating digital elements like QR codes, marketers can create interactive experiences that bridge the gap between physical and digital realms, engaging recipients in new and exciting ways. Data-driven segmentation and Variable Data Printing (VDP) enable businesses to target their audience with tailored messaging, creating highly personalized and impactful mail pieces. Regular data maintenance and collection ensure accuracy and relevance, while automated integration processes streamline data management. Personalized mail pieces that stand out from digital clutter generate higher response rates and establish emotional connections with recipients. By investing in customer-centric direct mail, businesses strengthen their brand perception and foster stronger relationships with their customers. With the right combination of technology, personalization, and data-driven strategies, your campaigns can achieve enhanced effectiveness and drive successful outcomes.

Postalgia is a forward thinking, full range mail service provider. We employ the latest printing technology to turn your campaign vision into reality. We make the process as easy as possible for you by designing your pieces to include QR codes, implement variable data printing, cleaning up your data, and we specialize in handwritten direct mail, proven to increase open rates and goodwill maximizing the effectiveness of current and future campaigns. Reach out today to create mail that gets opened and makes an impact.

Turn e-commerce into an IRL relationship with handwritten letters

Posted on October 2, 2020August 29, 2024 by Ilan Mann

E-commerce is everything for entrepreneurs in 2020. The NASDAQ estimates that by 2040, 95% of purchases will be facilitated by e-commerce. But we are already seeing that shift happening now. Consider: An Adobe report found that American consumers spent more than $50 billion on their smartphones during the 2019 holiday season—accounting for 84% of the holiday season’s spending growth that year.

E-commerce represents an amazing growth opportunity while also being plain scary. Why? Two words: frictionless and spontaneity. E-commerce sales represent a nearly frictionless experience for consumers. Today, a customer can see an ad for a watch, feel an instantaneous emotional connection, and make an impulse purchase under a minute from their phone with pre-loaded credit card information. The time between initial awareness and purchase decision can be less time than it takes for a freshman to microwave a bowl of instant noodles—a food that literally has the word “instant” in its name.

But a spontaneous purchase decision is also an easily abandoned one, and that’s a scary thing for online retailers. That Adobe report we mentioned above found that 50% of smartphone shoppers abandon their carts—half of online shoppers! You can lose them as quickly as you get them, and you can lose them as soon as they click off their browser to open a text from the ex they weirdly still talk to. Distractions abound. But as long as these distractions continue to negatively impact the bottom line—letting checkout carts collect dust in your backend—online retailers are left with a critical challenge.

How do you create a personal relationship online with an easily distracted customer you’ll never talk to?

You see, back in the good ol’ days… (Narrator: “They weren’t that good.”)

Customers would come into your store, and you would talk to them. Over time, you could build a relationship. They would recognize you and your expertise. And you had opportunities to persuade them about the value of a product or a purchase.

Today, persuasion is happening over ad images and tight copy. And as much as you’re competing with others in your product category, you’re also competing for customers’ attention as they scroll through the device in their hands. Insert The Simpsons’ “Old Man Yells At Cloud” headline. Your enemy in this scenario is a calendar notification as much as a competitor.

To win the fight, get off the digital battlefield onto winning ground. Go analog. Handwritten letters can be a surprising but effective counter-measure in the battle for customers’ online attention.

E-commerce retailers think everything about their customer experience has to be digital. Flip that thinking on its head.

Here are six specific ways an e-commerce retailer can use handwritten letters to outsmart the competition—not to mention that pesky calendar notification.

1. Send a handwritten thank-you note along with a shipped product.

A thank-you note is just an incomparably personal and simple way to build a connection with a customer. You’re shipping to this customer anyway—why not include a personalized, handwritten note thanking them for their purchase? There’s so much research to support the conclusion that expressing gratitude is a powerful way to build trust and relationships. Telling a customer how much you appreciate their business is just one effective way of making a one-time customer a loyal and long-term one.

2. Send a follow-up letter months after a customer has purchased a product…

There’s an impactful generosity to giving a customer free information before they become a customer. In turn, to check in on a customer’s experience of your product months after they’ve purchased shows how deeply you care. Consider including your phone number or email address so they can follow up personally with feedback. This is also a great way to keep you top-of-mind with a previous customer, and an encouragement for them to come back.

3. …And up-sell in that letter.

Use that follow-up letter as an opportunity to up-sell the customer on new products. This is especially true if you’re in a product category where certain items can complement your customers’ purchases, like a new hamper for a towel set, or a travel bag for shampoos and other bathroom items.

4. Drive direct mail targets to your website.

One InfoTrend survey found that more than half of customers who responded to direct mail either went to the brand’s website or visited their offline store. Once you’ve piqued a potential customer’s interest with a piece of mail, they’ll visit your website and start browsing. Worst case, they are sharing data through their clicks, allowing them to be targeted with paid ads. The boundary between online and offline is gone. With handwritten letters, you’re sending recipients straight to your website—right where you want them.

5. Try special discounts for letter recipients.

Send handwritten letters at scale with the help of Postalgia to a new market segment in a certain geographic area. For any new customer receiving your letter, include a QR code or a special checkout discount code. Like the thank-you note mentioned above, a personal invitation, combined with the opportunity to save a little money on their first purchase, is a great way to create a relationship.

6. Send a newsletter with product tips, along with a handwritten introduction.

People love getting things for free. Especially when those things are valuable. And whether it’s fashion tips for a new season, the most up-to-date info on local real estate prices, or the hottest trends in home furnishing, a colourful, visual newsletter can deliver high-value information to potential customers that might inspire them to buy from you. Even better: with today’s direct mail targeting, it’s easier than ever before to micro-target a newsletter right to your best consumer demographic.

Including a handwritten introduction with a newsletter is a great way to personalize the information shared—include an email or phone number so a potential customer can reach out to you and learn more.

These are just six examples, but any creative entrepreneur can think of occasions than fit their sales process. The lines between the offline and online worlds haven’t just been blurred—they’re gone. Take advantage.

Long Live the Concierge – Personalizing the E-Commerce Customer Experience

Posted on August 11, 2020August 29, 2024 by Ilan Mann

The transition for the brick and mortar storefront has been hugely exciting for a whole host of reasons:

The need to pay top dollar to rent space in a mall or heavy-traffic area, hire full-time staff, and catch window shopping customers eyes with immaculately curated glass displays presented an impossible barrier for most aspiring brands and entrepreneurs to overcome.

The e-commerce revolution has democratized the economy in a way thought impossible 30 years ago, using technologies that were unthinkable 20 years ago, at a scale unimaginable even 10 years ago.

The nosedive in operational costs has allowed e-commerce brands to focus their efforts on customer acquisition, product development, and excellent customer service.

What is often overlooked, however, is what has been lost from the traditional retail – and particularly luxury retail – experience.

E-commerce has allowed small but mighty emerging brands to punch far above their weight, putting out exceptional products, and selling the customer new high-end and luxury purchases – a transaction that would have previously been impossible without tens if not hundreds of millions of dollars of marketing, PR, and brand awareness efforts.

Think about Gymshark, Allbirds, or Colourpop.

The luxury retail brands that used to dominate shopping malls across America have woken up, and gotten the memo. Tools like Shopify have empowered retailers of all sizes, big and small, to compete for online traffic in the way that they used to compete for foot traffic.

If e-commerce brands want to continue to capitalize on the new, online economy, they need to take lessons about what was right about the old, brick and mortar economy.

A Place Where Everybody Knows Your Name

One thing that kept customers coming back to their favourite brick and mortar stores was the feeling that someone at the store knew them personally, and would take care of them personally.

Some of the functions of a friendly sales associate can be replaced by a chat-bot, or live-chat agent, but the feeling that a human being – rather than a faceless company – stands behind the purchase is much more difficult to replace.

E-commerce brands that want to keep their customers coming back need to find a way to make a human connection, and trigger the psychological feeling of comfort that comes from buying from another person, rather than a machine.

E-Commerce brands are also missing opportunities for up-sell and cross-sell.

The deluge of data now available to retailers when they sell to you online has allowed them to better target their offers to you, but it has also rendered them totally apathetic to the negative effects of spamming you.

Advantage: Brick and mortar.

Personable, commissioned sales representatives knew that once you were in their store, the hardest part of acquiring a customer was over, and that the longer they kept you in the store, the more likely you were to buy something else.

Bought a shirt? Here are some matching ties. Bought a guitar? How about an amplifier? A tuner? A set of replacement strings?

E-commerce companies have a massive edge at their disposal when it comes to the data that they have about their customers purchasing habits, but they waste that rich data by emailing you over and over until you unsubscribe, or running ads that you rapidly scroll past to get to pictures of your ex-girlfriend’s dinner.

food — **Not my ex-girlfriend’s dinner.**

They know that those emails have an abysmally low open rate (when they make it past spam filters, that is), and an even lower click-through rate.

They are basically saying “you’ve purchased from us once, and in the case of 99% of our customers, we’re satisfied with the relationship ending there.” Why would these marketing managers ever aim so low?

Can you imagine a commissioned salesperson deciding that it was totally fine to let 90% of customers leave the store without even hearing their pitch for a cross-sell or up-sell? Neither can I.

Big mistake. Big! Huge!

The last thing that you want to do, when running an E-commerce retail store, is turn your advantages into disadvantages, or accept that with the benefits of automation, data, and low overhead must de facto come the sacrifice of impersonal customer experience, low retention, and poor customer stewardship.

The days of strolling through a mall and window shopping while taking in the smells of the food court and sounds of the toy stores may be behind us, but the customer acquisition, retention, and engagement strategies that served big brick and mortar retail so well for so many decades shouldn’t be.

With data and automation at your fingertips, margins are higher, everywhere is local, and the opportunities for high-touch personalization are endless.

Get in touch to learn how you can turn your data into personal, handwritten cards that will get opened, read, and activate your customers.