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Direct Mail – The King of ROI

With the inevitable rise in new online tools, there has been doubt in the minds of many that traditional methods of marketing wouldn’t be able to keep up. However, we bring you good news! Traditional Marketing tactics are on the rise, in fact, reaching out to customers with personalized mail shots has seen Direct Mail’s ROI figures top all its rivals. That’s right Direct Mail is the king of ROI in the “modern” marketing world.

Below are some of the most powerful Direct Marketing tactics available today, including how frequently they are used, and their effects on ROI.

Email

Email is seen as the backbone of Direct Marketing, according to survey results. The data shows 94% of marketers plan to use email marketing in 2013, with 63% planning to increase email’s portion of the budget.

Interestingly, E-mail is the second most effective customer acquisition and retention direct marketing tactic in the B2C space, trailing behind Direct Mail.

Direct Mail

Despite rumours of this form of marketing being on the decline, Direct Mail is alive and well, and remains the most significant Direct Marketing channel. A recent study shows that Postal Marketing was the most commonly used channel in 2012, with 91% marketeers claiming to use it in their marketing campaign.

Direct Mail is a customer acquisition and retention giant for B2C marketers. In fact, 31% of B2C marketers believe that sending a Mail Shot is the leading tactic for gaining customer acquisition and retention. Direct Mail may be battling newer, flashier Direct Marketing channels, but there is no doubt that postal marketing remains the most vital B2C channels with regard to ROI.

Search Engines

Have you ever had a question about a brand, product, or service, and been told to “Google it?” The fact that Google has become a catchphrase in popular culture illustrates the importance of brands appearing in search results.

The Target Marketing survey results show 90% of today’s marketers utilize SEO, with about half planning to increase their usage. Only 9% of B2B marketers and 10% of B2C marketers maintain that search-related marketing is the strongest driver of ROI for customer acquisition, but getting on the first page of search results can be a beneficial way of increasing brand awareness and getting on the customer or prospect’s radar.

Social Media

There are more than 1 billion monthly active users on Facebook; this number can serve as its own argument as to why social is important to Direct Marketers in 2013. Aside from the sheer number of users, social media offers brands and services the ability to connect directly with their fans and followers, engaging in two-way communication.

The Media Usage Forecast shows 89% of marketers are currently using social media for engagement. Social Media also appears in the top 5 for customer acquisition (12.5%) and retention (10.4%) on the B2C side. Properly leveraging social data can serve as an extremely powerful tactic, as customer profiles with collected customer social interactions can open the door to further targeted messages that could lead to conversions.

Email, Direct Mail, Search Engines, and Social Media are the reason why direct marketing is not to be ignored. As digital channels continue to open doors for highly targeted messages, traditional direct marketing channels like Direct Mail continue to return high conversions, a perfect blend for direct marketers looking to drive a high ROI.