Direct mail volume has declined in recent years, but you probably still notice offers from banks in your mailbox almost daily. Direct mail + banks is a winning combination for marketers, and the results are only getting stronger with the advent of digital marketing.
In fact, direct mail works so well in the financial industry that even online institutions (like online lenders and financial tech companies) have hopped on the bandwagon. Whether you’re marketing investments, insurance, credit, loans or general banking, there are several reasons direct mail should be a big part of your marketing mix.
Here are 4 benefits of direct mail marketing in financial services:
1. Direct Mail Helps Banks Connect with Millennials
Do not fall into the trap of focusing all your efforts on digital and mobile when catering to millennials. Millennials actually enjoy direct mail more than any previous generation. Not only that, but they are the most adept at ignoring digital ads.
However, you can’t just send out a generic mailer and call it millennial outreach, either. This is where you need to exercise those cross-channel marketing chops. For example:
- For local targeting, send a postcard that includes a personalized URL to a trackable landing page with valuable content marketing.
- Use variable data dynamic content insertion (available in Inkit’s direct mail software) to personalize marketing postcards just as you would emails.
- Create postcard automations wherever your customer lifecycle could use a personal touch. Think about using artificial intelligence to automate postcards for sign-up bonuses, customer appreciation incentives, special personalized offers and various behavioral triggers.
2. Direct Mail From Banks Reaches Seniors
Of course, millennials aren’t the only ones checking their mailboxes every day. Did you know that direct mail is actually the top influencer for seniors’ Medicare plan decisions? While more and more seniors are doing research online, they still respond best to printed materials. This demographic is most likely to sit down and spend time reading direct mail, thoroughly considering the information in front of them. Pro tip: When planning campaigns for senior citizens, consider using direct mail to stay front-and-center with existing customers in this age group. According to Kern Health Systems, 44% of Medicare beneficiaries start shopping around after receiving promotional mail from other providers.
3. Direct Mail Lends Credibility to Banks
Direct mail, by its very nature as a tangible object, lends credibility to the sender—especially as compared to digital ads. According to a Temple University study, direct mail elicits a significantly stronger emotional response and brand recall than digital ads. This can be key in an industry where trust is critical, and even more so for online financial institutions that need to build a connection with consumers. Direct mail can send a subtle message to recipients that your online bank is more than just smoke and mirrors, or that your financial institution has the resources to communicate with more than email. Pro tip: When sending direct mail to build brand awareness and authority, be sure to include a call to action to view supporting content online, driving cohesive cross-channel engagement.
4. Direct Mail’s Response Rates Beat Digital—By a Landslide
Okay, so this last one is true in all industries. Direct mail just works. It really does. Direct mail is the top channel for direct response marketing. According to the Direct Marketing Association, direct mail beats all digital channels combined by a factor of 10-30. And when you sync direct mail with your digital efforts (to get the best targeting and tracking), you can supercharge results even more. Consumers—overwhelmed by cluttered inboxes and bombarded with unsolicited ads when they’re trying to relax by surfing the web—are simply more receptive to direct mail at this point in the Digital Age.
Interested in automating your bank’s direct mail marketing? We can help you get started. Soon, banks will also be able to use Inkit to automate letters—such as bills, collection notices, action letters and more. This will save your marketing and compliance departments from the hassle of manually sending mail.