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Why direct mail drives more sales than email
Since email marketing emerged in the 90s, companies have employed the strategy alongside their direct mail campaigns. Many had heralded email as being easier and faster, yet despite all of email's benefits, one thing remains certain: direct mail generates more sales among consumers, especially if the company employs address validation software.
A recent case study of one retailer's sales by the Harvard Business Review compared the performance of email and direct mail. When utilizing a direct mail-only campaign, the advertising led to 83 percent of consumers making in-store sales and drove 17 percent of online revenue for the study segment of 35,000 customers. Research also revealed direct mail had a slightly stronger response rate than email, 24 percent compared to 23 percent, respectively. Email-only marketing generated less in-store purchases at 79 percent, but more through the company website with 21 percent.
While some may favor email, direct mail drives loyalty among consumers and results in stronger customer retention across the board. A new study by Target Marketing Magazine found 80 percent of marketers surveyed invest in traditional mail campaigns, with 28 percent reporting they were increasing their direct mail budgets through 2013. In B2C marketing, direct mail impacts client retention and acquisition; it accounted for 37.5 percent of retention rates and 31.3 percent of lead generation. Email only accounted for 29.2 percent of customers staying with the brand and 16.9 percent of new consumers.
Companies using address correction within their direct mail campaigns drive the greatest client satisfaction and overall sales. With direct mail, organizations can make the effort to connect with customers directly using materials customized for them to boost brand loyalty.
