Direct Mail Marketing

What Is Direct Mail and How Much Do Companies Spend on It?

June 21, 2022

Even though digital marketing is more dominant than ever, consumers are getting tired of it. They seek something personalized and unique like direct mailer marketing. A beautiful postcard you can hold in your hand is much more memorable than a digital ad that covers online content, irritating you.

Hence, brands that want to stand out must combine online promotions with offline marketing. Such omnichannel campaigns can reach a broader audience and yield better results.

How does modern direct mail work?

It's easier than ever. Read on to learn more about marketing direct mail, its costs, and ways to mail cost-effectively.

What Is Direct Mail Marketing

Direct mailer marketing is the delivery of advertisements with the help of postal mail. Marketing direct mailing uses the same instruments of social influence as its digital alternatives but reaches consumers offline. Digital mailer marketing remains highly customizable and has versatile uses. Some send direct mail to sell their product. Others choose it as a safe option to promote a political candidate.

USPS is the leading US postal service that offers most direct mail services and sets the rules. The delivery forms differ, from brochures to coupon envelopes and catalogs. The means and ways of delivery also vary depending on your marketing goals. You may address pre-chosen recipients or spread mail randomly in a specific location.

What Comprises the Cost of Direct Mail Marketing

If you have never done direct mailer marketing before, it may be challenging to estimate the costs. Then you should know that design, printing, and shipping will impact your expenses most.

Here are the main factors affecting the cost of direct mail marketing explained.

Mailing

Mailing eats up the most significant part of the direct mail marketing budget since every mail piece takes several cents to deliver. The more people you want to reach through direct mail, the more you spend.

The speed of shipment and mailing plan are some other factors to consider. Every provider will offer you different pricing for different types of mail. For instance, USPS offers three main ways to send mail:

  • Every Door Direct Mail

This service allows you to mail to entire routes instead of individual addresses. EDDM is suitable for businesses that don't have mailing lists and want to promote their products locally.

  • Marketing Mail

It's the most popular way to send bulk mail for commercial usage. The Marketing Mail plan is recommended for businesses that rely on direct mail to spread the word about their products or services.

  • First Class Mail

First-Class mail is a mailing plan similar to Marketing Mail. Despite some weight limitations and higher prices, this option is excellent if you need quick delivery.

The pricing of a mail piece varies from $0.1 to $1. The most used option that suits businesses is Marketing Mail which costs up from $0.197.

Design

Direct mail marketing is highly customizable. You can add any image, branding elements, text, QR codes, and other details. The look of a mail piece has an enormous impact on the success of your mailing campaign, but it may also require an investment.

We've written some quick tips about the choice of colors and materials, but if you are no expert in commercial design, it would be best to use design assistance from a professional. Hiring an experienced freelancer in 2022 will cost approximately $100 for one hour of work. If the project is simple, that would be enough. A time-consuming brochure may take more resources.

Copywriting

Creating appealing content may seem simple, but there are many nuances to consider. That's why companies usually use copywriting services. The rate is slightly lower than design costs, approximately $60 per hour. 

A professional copywriter will write a catchy headline that distinguishes your direct mailer from the tons of colorful standard cards in the mailing box. They will also offer a CTA and text that can convince the target audience to convert.

Printing

Printing usually costs as much as postage, meaning you will spend approximately $0.3 for one direct mailer. Depending on the size, weight, delivery type, and the scale of your marketing campaign, the cost of printing may range between $0.05-1.00 per piece. That's why you should print in bulk or use third-party mailing services with such an option.

Thus, the total budget depends on the mailing services, the deal you've completed with designers and copywriters, and the marketing campaign volume. Besides, before starting a campaign, you may need to perform basic targeting to gain some knowledge about the target audience. The market research will also increase your mail marketing budget.

Direct Mail Marketing Benefits

Statista states direct mail marketing spending will amount to $43.3 billion in 2022. It proves that direct mail remains an effective way of reaching the audience. There are many valid reasons for that, including:

People like direct mail

Customer satisfaction is the most apparent yet crucial reason to implement mail marketing. Being the leading global postcard service, the USPS regularly researches the population's likes and interests to examine how different social groups treat direct mail and postcard mailing. The results are surprising. 86% of respondents find time to check their mail and look through its contents. 87% prefer offline mail over telemarketing calls. 78% state they particularly value direct mail for its privacy. Hence, people are more likely to appreciate your communications when you deliver them by mail.

High response rates

The warm attitude towards direct mail among consumers results in high response rates. The average response rate for postcards is 5.7%, which is a lot given that people open marketing emails in less than 1% of cases.

When many recipients open your messages, you have better chances to engage the consumers and nudge them into purchasing your product. If you succeed, the conversion rates and revenue will significantly grow.

Deep customization

It is easy to add an engaging call-to-action and print a colorful mailer that will stand out. You also have many options on how and to whom to send it. You can even use modern tools that allow you to gather the information from social media and use it to customize mail content.

Automation brings ultimate personalization into direct mailer marketing, making it time-sensitive and tailored to every lead. Advanced mail marketing automation tools like Inkit Send enable you to deliver trigger-based direct mail and align it with other channels. For example, the software can automatically send a personalized postcard if the lead ignores your emails for several weeks.

Cost-effectiveness

Let's compare direct mail to one of the most convenient ways of digital marketing, like an Instagram ad. Placing your ad will cost you from $0.20 to $2 per click. Although the cost is similar to direct mail marketing, IG stories are not the same as getting a mailer directly in your hands. Our brain better perceives physical interaction as it involves touching and seeing the object live. It creates a sense of engagement that increases the response rates.

Marketing direct mailing campaigns are a cost-efficient solution as it gives you a wide variety of tools and custom options that can suit many groups, from average consumers and small business owners to political promoters.

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How Can You Reduce the Cost of Direct Mailer Marketing?

Despite direct mail being cost-efficient, you can additionally cut some expenses through better targeting and optimization. This way, you will make direct mail cheaper and increase its ROI.

Here are the main tips to follow:

  1. Re-analyze targeting data

If you think you know a lot about your target audience and cannot learn something new, think twice. Consumer preferences change very fast. The marketing mail that was popular last year may be useless now.

Hence, you should research your target audience to learn what they like today. These findings will help you create the right mail design and reach fewer but more high-quality leads. As a result, you will decrease the volume of mail pieces, while the ones you send will become more effective.

  1. Print in bulk

Producing mail in large quantities considerably reduces expenses and makes you eligible for mailing discounts. Be sure to arrange the printing process so that you print in bulk. It would help if you also considered planning a campaign that will last at least several months to lower the price per piece.

  1. Try using templates

Designing new templates for each mailer may be tiresome and expensive while finding a professional specialist requires a try-and-error approach. So in some cases, we recommend using pre-made templates to optimize expenses. There are various template options you can choose from, but ensure no copyright risks are involved.

  1. Adopt automated tools

You could hire a dedicated team to handle mailing, but this will drain your budget. Hence, it's better to implement modern technologies to stay ahead of the competition and save money. Instead of thousands of manual operations, you can use an automated system that will manage most processes, including printing and delivery.

Inkit Send For Automated and Cost-Effective Direct Mailer Marketing

Inkit Send is a system that allows you to print and deliver custom communications offline. Integrate it with your CRM through an API to automate all processes related to direct mail fulfillment. Every process happens automatically, so you can save on paying managers or hiring a specialized team. The target is accurate and personalized, making automated mailing campaigns even more cost-effective.

Use a free trial to start your direct mailer marketing campaign and boost your profits.

Final Thoughts

In conclusion, marketing direct mailing is a highly effective way to promote your product or services. High response rates, cost-effectivity, and available customization options are just some of its benefits. If you power mail marketing with automation software, its advantages will become even more tangible.

Ready to captivate your customers?
Send personalized direct mail automatically based on customer actions.
By submitting this form, I confirm that I have read and understood Inkit's Privacy Policy.
Oops! Something went wrong while submitting the form.