Traditional direct mail has already proven helpful in providing customers with information about your business and products. So, why do savvy marketers feel that programmatic direct mail is a more efficient option for targeted marketing campaigns?
This post explains an automated direct mail marketing technique known as Programmatic Direct Mail. We compare it with the traditional direct mail to help you better understand how it can enhance your marketing efforts.
What is Programmatic Direct Mail Marketing?
Direct mail marketing has been used to promote goods and services for years. Today, it holds a special place among the top marketing channels due to its effectiveness in customer engagement, acquisition, and lead generation. 42% of purchase decisions are influenced by direct mail marketing.
Recent advancements in technology have brought about the need to adopt new marketing solutions. Programmatic mail is one of these recent advancements giving marketers an edge over their competitors.
But, what is programmatic direct mail? Programmatic mail is a direct mail marketing technique in which businesses rely fully or partially on automated systems to run their direct mail marketing campaigns. Software triggers mailings when a consumer meets specific parameters or exhibits certain behaviors, such as leaving an item at the checkout form.
Here's a glimpse of how it works:
The marketer installs a simple tagging code on a website, which allows it to track the behavior of the visitors. So, let's say that the customer failed to get through to the end of the sales funnel. Perhaps they didn't make a purchase but left at the last stage of the checkout process. The system responds by sending them retargeted tailored direct mail delivered to their physical address within hours. Doing this increases the chances of a sale.
More companies are now leaning towards programmatic mail advertising to improve customer engagement and boost their return on investment (ROI). According to Statista, the 2020 global programmatic ad spend was $129.1 billion. This figure was expected to reach $155 billion in 2021.
Programmatic Direct Mail Marketing vs. Traditional Direct Mail: Pros and Cons
Programmatic direct mail marketing can automate most of the operations associated with traditional direct mail campaigns. For instance, compiling a list of recipients, creating a new postcard design, printing, and mailing. It also allows integrating your direct mail campaigns with other marketing channels. For example, you can set up a triggered direct mail campaign to run after an email marketing cycle doesn't work.
While direct mail is delivered to an audience in the traditional sense by using an existing list of customer data or purchasing an audience list, programmatic direct marketing, which is similar to digital marketing, is a more "automated" method of distributing your marketing material to a warmer audience. These are people that already visited your website, showed interest in your products and services, and then, for some reason, failed to take the intended action.
Of course, you can still get good ROI mailing postcards using traditional direct mail marketing, but the programmatic system takes the guesswork out of it.
Benefits of using Programmatic Direct Mail Marketing
There are several benefits of using programmatic direct mail marketing to advertise your business, products, and services. For starters, it drives better marketing efficiency when retargeting prospects. Businesses often waste millions in customer acquisition because they target a general audience instead of specific groups. Programmatic direct mail solves the problem by sending direct mail to a narrowly targeted group of individuals based on their previous engagement with your web resources.
Other benefits include:
Retains customers and drives more transactions
Programmatic mailing, also known as data-driven direct mail, can retain current customers by sending them personalized messages and offers. Personalized messages and offers keep the customers engaged, increasing the likelihood of generating repeat sales, which translates to higher ROI.
Targets clients based on their interests, needs, and demographics
Programmatic direct marketing targets specific clients based on their needs and interests. It reaches potential customers that have already engaged with your website. You can target them based on who they are, their interests, hobbies, occupation, and so much more.
Triggers personalized offers that convert
Programmatic direct mail marketing makes it easy to use data science to hit the right individual with the right offer at the right time based on their purchase history and other activities.
By personalizing your direct mail campaigns, you can gain trust with your customers by providing them with tailored offers. The result is increased revenue and brand loyalty.
Ensures higher open rates
A programmatic campaign can help you reach your target audience more effectively than traditional methods. Traditional media like print ads are often too general and fail to capture readers' attention.
When you choose addressable or personalized direct mail based on how the user interacted with your website, you can send relevant messages. This helps you reach your target audience and increases your chances of getting recipients to open your mailers.
Leverages both online and offline data
Using online and offline data, marketers can segment their audiences based on numerous attributes such as gender, location, age range, affluence, and purchase history. This way, they can create highly personalized communications that speak directly to each individual's needs.
Reaches real customers
The traditional method of sending out direct mail involves sorting through thousands of names and addresses, looking for those matching your customer demographics. Unfortunately, that means you've got no way to tell whether the person receiving the mailpiece is actually in the market for your product or service.
However, with programmatic, you can target your audience to ensure that only people who are interested in what you're selling will receive your mailings.
Perhaps the most significant benefit of programmatic direct mail marketing is higher ROI. When you send out a direct mail piece, the response rate is usually around 9% percent. With programmatic direct mail, things are different. Retargeted prospects that showed interest in your products and services are much more likely to make a purchase, which would translate to a higher ROI.
Inkit Send for Automated Direct Mail Campaigns
Email marketing has grown over the years, but many businesses still use direct mail marketing as a more effective way to reach their audience. Inkit Send is a programmatic direct platform that enables businesses to send physical mail in response to customer action on their websites and mobile apps. It's an API you can integrate with your existing systems to automate mail printing, delivery, and tracking.
Businesses use Inkit Send to capture new customers, drive sales, and grow brand loyalty through physical direct mail that's personalized and relevant to individual consumers.