COMMENTS
Direct mail as a singular strategy is in decline, but if you're market isn't to be found online, direct mail that drives to web and then incorporates lead nurturing is still an fantastic tool for targeted prospect acquisition/
I would have to second Stephen's motion. Furthermore, I've seen some pretty remarkable work done
www.glsmn.com. Keep in mind I am an inbound marketing addict, but then the two are integrated I think it is the right mix for certain demographics.
Provocative post.
This seems a bit of a wide brush approach: dump print. What about segmenting and testing to see what really works? How will you know what the preferred method of communication is, otherwise? Marketing basics have not changed. Do you know who your audience is? We have a vast toolbox of channels for communications now. They all have a place.
Interesting post. I think a distinction should be made between B2C and B2B marketing. The example given is B2C.
In consumer marketing, direct mail continues to be a tactic used frequently (judging from the catalogs, postcards and other items in my mailbox at home) and probably ignored by most consumers. It is true consumers are going online to locate and research local businesses more than ever.
But in B2B there was already a radical switch from direct mail to almost 100% email in the '90s. Due to the overwhelming number of email sent in the B2B marketing, business buyers have email fatigue. As a result, direct mail is seeing a bit of a resurgence. It may cost more, but if no one else is doing it, your direct mail piece will receive some attention. We typically recommend a very targeted, role-based contact list and a personal approach.
Interestingly, at a recent MarketingSherpa event, direct mail was discussed as 'old school' but making a come back.
"You will need a much more advanced system to tackle them." You'll need something alright - but need it (always) be much more advanced? E.g., how about qualitative follow-up phone calls to a targeted mailing?
It is nice to know that people won't be elected because they use junk mail.
Magdalena -
I must say that this is a pretty self-serving marketing. There are many companies that do very well with direct mail, because their business model and market responds to it and there are many that benefit for a more intense focus on online marketing of which inbound is a segment.
I think it is important to remember that you have to design your marketing mix around what works for your market. That is why marketers--no matter what their segment--need to develop a master understanding of their customer, how they evaluate products and services and how they purchase. Then you put the pieces in place that meet them in the market.
As a Hubspot Partner, we are clearly believes in content marketing, but deliver the best performance by marketing through the channels that deliver the best results for THAT customer.
Ryan Malone
SmartBug Media
An
inbound marketing agency and Hubspot Partner
@RyanMalone Free reports: Elder Care Marketing Industry Report 7 Tactics to Boosting White Paper Performance
Interesting. To scrap direct mail altogether. What about using bit.ly's at the bottom of each print ad or piece of direct mail to measure how many people are going to the site from that print or ad campaign? The data certainly wouldn't be as indepth as clicks, opens, bounce rate, etc that would come with specific landing pages. Has Hubspot seen any results or have any data on the use of bit.lys for specific ad campaigns?
It never fails to amuse me that marketing specialists (inbound, DM, email,advertising, etc.) constantly tout their own specialty as the silver bullet for marketing success while downgrading the alternatives. It's the old adage: if all you have is a hammer, you see every problem as a nail.
As a full-service PR agency we select the marketing channel(s) we think are best for our clients. No one channel is always best all the time.
And while measurement is always desired, traditional advertising is difficult to measure, yet somehow it hasn't disappeared.
You're not the only kid on the playground. Learn to play nice with others.
Kudos Alan Graner! I couldn't agree more. There's no doubt we're experiencing a significant shift in media consumptions habits. However, with the exponential specialization and fragmentation of the marketing services side of the business (agencies, consultants, "experts") there's also increased myopia and tremendous bias toward one's own strengths, expertise and of course service offering.
Try selling J.Crew they should stop selling catalogs. This is a pretty horribly generalized article.
@Diane: It might seem like a rushed assumption, but it is based on the idea that consumers have fundamentally changed their buying habits by shifting research & purchase processes online. It is a radical assumption because it stems from a radical change.
@Jennifer: Thanks for your comment--very insightful! I do agree that people are increasingly experiencing what you call "email fatigue." In these cases, I see creative pieces of direct mail as an effective marketing channel.
@Brendan: Two months ago, the national Do Not Call registry passed 200 million numbers. You can call targeted prospects if it works for you. We find it increasingly ineffective.
@RyanMalone: Thanks for your comment! Definitely agree that a mix of marketing efforts is healthy for a business and should be designed according to the company's specific needs and goals. That being said, this article is meant to emphasize changes in consumer behavior. As audiences shift online, business resources should also be reorganized. Even if you are not ready to eliminate direct mail yet, maybe it is worth re-evaluating your investments in traditional marketing.
@Ashley: We haven't conducted any research regarding bit.ly. But it seems difficult to ask of people to remember the cryptic URL, no?
@John: Let us know how it goes!
@Alan & Ken: Thanks for your comments! As mentioned above, I definitely recognize the need for designing a marketing plan tailored to a company's specific needs. But the myopia emerges when businesses remain slaves to their comfortable habits (in this case direct mail), instead of experimenting with something new and more measurable. It is worth performing a test and tracking the results--at the very least, it will be a great learning opportunity.
Since when can you not track DM ? Put in an offer code or a call to action to a landing page... presto
Hi Ralph,
The tracking of direct mail is not nearly as precise as that of online offers. You can never be sure if the piece got to to the right person, who opened it, who took action? With email, on the other hand, you can be much more confident in your data.
Aside from results, the value of real-time engagement & feedback is what really gives online offers an advantage over direct mail pieces. In a way, it is customer empowerment...
I am disappointed that a savvy organization like Hubapot would make such a broad statement that DM is dead and provide one example to support your argument. 'Bad' direct mail is dead, yet direct mail is still a very effective medium (like most channels) when segmentation and advanced targeting is combined with a strong offer and enaging creative. In fact, surprisingly, DM is the preferred communication channel for Gen Y for financial services due to the ability to take time for consideration in conjunction with other channels.
There are many other examples supported by credible research sources that illustrate the benefits and effectiveness of DM. Going forward, maybe your team should research more than one firm, promoting a service that is a 'luxury' for many unemployed and underemployed households.
First off, I agree with all in support of multi-channel marketing and the design of campaigns based on a company’s needs and goals.
While not having the same "instant gratification" that you can see with an email campaign, tracking direct mail has gotten more advanced than just using and tracking offer codes. With the use of Confirm services via the USPS you can track when mail reaches your customers (via Destination Confirm service), as well as when to expect responses (via Origin Confirm service).
You can combine delivery tracking with QR Codes and/or Personalized URLs on your mail piece to get recipients to your web site. Once the customer/prospect hits your site you can combine and continue the tracking from there for even more analytics.
Just have to disagree with this premise that DM is dead. I am in the DM biz and we are seeing lots of clients in many different types of categories have better response now than previous years. You cannot blankedly say DM doesn't work for all, it depends on a lot of factors including what the product or service is and who is target audience. We track almost every piece with an redeemable offer, a call tracking # that records call, name, address of prospect, and coding on piece. Also, our DM reading rate is the highest its ever been(over 85% Avg). We are able to give consumers just as much power as online media since they choose whether or not they want to read.
Terribly general article and not correct. DM is definitely measurable, maybe not IMMEDIATELY but if you use the correct response and measurement tools you will be able to track ROI.
Direct mail postcards are a key component of the marketing mix. Exotic Flowers is in a visual business. We direct mail our existing customer base 5 times per year. These cards are a key to keeping Exotic Flowers at top of mind awareness.
Now, now, your bias is showing. People, including those looking for gym memberships, haven't magically stopped opening their direct mail. And as a marketing consultant who works with small businesses, they are as bad at measuring online results as they are measuring offline results.
I must say this post is way to broad… So direct mail no longer works? Then why are the most profitable companies in the world still sending billions of mail pieces a year? Because they like to dump money into a medium that will lead to $0 in profit for nostalgic reasons? I don’t think so. As long as the direct mail piece has a solid creative and targeted list, you can pull a profit.
The difference today is bad direct mail pieces with broad lists no longer make money.
@Jim: I am not arguing that direct mail is dead (though it is heading in that direction); I was simply trying to convey that if people's search for products & services has shifted online, this is also where marketing should thrive.
Also, as a Gen Y representative, I don't receive any print mail from my bank anymore--by the time these pieces arrive at my doorstep, they are already outdated. I would rather check online. Feel free to send along the research you referred to, I would love to take a look!
The right message at the right time to the right person using the right media. Just like Mark Twain's reported death, the death of Direct Mail is greatly exaggerated. It is a potent measurable tool when used properly. When your only tool is a hammer everything is then viewed as a nail. Conclusion; use the right tool for the right application.
If you're using direct mail alone, you'll definitely see little effect. If it's integrated with other channels, you'll see something positive. I have to agree with some of the other commenters that the claim "direct mail can't help your business grow" lacks too little context here for that to be true.
Magdalena: Your article is compelling but I somewhat disagree with the conclusion based on my personal experience. I've received direct mail from companies that prompted me to visit their website ... even though I did not need their service. Once on the website, I've clicked through several pages and made a note of the service for future consulting. Their website confirmed my first response and this may lead to more business. Some sales cycles can be as long as one year. Thank you for a well-researched and written article.
There's an important difference between opt-in and junk DM. I pretty much hate all things DM, but I do opt-in to receive coupons from my absolute favorite restaurant...and when I do get that coupon, I hop on the hour long train ride with my wife to eat at said restaurant. I'm happy to receive that DM.
However, anything I don't ask for is given the stink eye and then tossed in the trash.
Though one exception was a campaign for Stacy's Pita Chips where they sent a basket filled with Stacy's goodies to ALL women named Stacy in the US. No request to purchase, just sent them quality chips. Of course the buzz was amazing and many of the Stacys had blogs.
When I hear DM, I picture those flyers for new flooring (though I rent, which means I have no say in the matter) and put it in the same category as telemarketers, spam, and door-to-door salesmen, however that's probably not fair. You can still be creative, offer items of VALUE, create awareness, and drive new business if you approach it effectively and as part of a multi-channel marketing plan.
Be careful though - not all mail is created equal.
@Jean and Jon: Thank you for your comments, guys! That is absolutely true--if you opt in and are anticipating, say, a coupon--direct mail can be pretty effective. Especially, if it is part of a more comprehensive marketing campaign that uses other channels, such as blogs and social media activity. I see the potential of such traditional marketing when it is incorporated in a larger and richer initiative. I am definitely fond of clever experiments! But again, it is highly important to measure performance and compare results.
The only argument I will make for 'direct' mail is that it breaks up the completely social (techy) mail.
When someone signs up for a blog or we have a warm lead or something that warrents a 'personal touch,' we like to send a personal note on a post card that breaks up the completely electronic interaction that has taken place thus far.
I don't know if I would call it direct mail, but maybe relationship-based mail. The postcard acts as a great icebreaker/large image and the personal handwritten note comes across as sincere, genuiune and relationship-based.
Otherwise, I put a lot of our chips on the idea of social interaction and inbound marketing processes.
Thanks for the post,
Matt
The objective stated was increasing brand awareness. Direct Markeitng can do that but it is an incidental consequence of any targetted effort. E-mail is not the best awareness tool either. More imortantly I challenge the writer to provide any kind of metric on generating brand awareness using only online tools.
@Matt: That's a great approach--I like your relationship-building efforts. There people have opted in to be in communication with you and will probably appreciate your notes. Would love to hear more about your campaigns!
@Jerry: Thanks for the challenge! In the article above, I mention "traffic" and "leads" as the metrics that can help you track success. Online, you can measure brand awareness based on inbound links, for instance--how many people find your content remarkable enough to refer to it. How is this spreading your influence?
We've used bit.ly links in our direct mail. This works the same as creating a custom URL in a TV commercial so that you can track the source.
Just because one company hasn't seen a loss since dropping direct mail doesn't mean the rest of the planet should follow suit.
In my previous company (an online company no-less that traditionally doesn't rely on direct mail) we were told time and time again at our events that the reason they attended was because they or their boss got our postcard in the mail.
As a consumer, I still respond to direct mail as well.
Isn't it possible that Beacon Hill Athletic Club just had a bad designer, copywriter or just overall bad direct mail strategy?
Hub Spot, Nice to know people are paying attention to your comments.
Thanks for being here.
JM
@Amanda: I think the question here is not about the quality of the designer, copywriter or startegy in direct mail--it is about investing in these resources. If you have the budget to do so and see palpable results, go for it! I believe that investing these resources in new ways leads to more interesting insights.
@John: Thanks! Nice to see such a great discussion--it is hard to keep up with it! :)
At my program on "How to Market Seminars," delegates keep telling me how they are effectively using direct mail to sell bookings at their events. For example, a personalized letter + brochure to pass attendees gives a marginal increase in revenue much greater than marginal costs. A personalize letter to a past delegate's "approving manager" also meets the incremental cost vs incremental benefit test. Some providers mail the certificate of completion to the gatekeeper as a follow up strategy. Window envelope mailings with letter to a rented list have surpassed threshold ROIs for many providers. Many providers have creative ways to track "key codes" so that the effectiveness of direct mail can be measured relative to other media in the marketing mix.
This post may be a little too biased. It's important to use or collect important data including who your audience is, where they are (online, offline or both) and their behaviors and preferences to marketing. When you have this data, you are armed to choose the best ways to communicate with them.
I recommend using integrated marketing and technologies for tracking & calls to action such as QR codes or PURLs (if DM is relevant).
It's not really about tools and technologies, it's more about how to reach your audience the way they want to be reached. Most importantly whatever the action you want them to perform, whether it's to your website or a survey, please make it super easy for them.
Looks like I'm a little late to the party. Here are my thoughts:
1. No matter what kind of measurable marketing, you need a compelling offer. Your response rate will depend largely on the offer.
2. What good is an offer without giving it to the right people? Inbound makes sense because you are trying to attract people that are searching for your type of product or service. Direct mail makes sense ALSO if you nail down your "marketing persona". If you send 10,000 mail pieces to the wrong list and a FANTASTIC offer, you may still receive a low response.
3. Don't we all want to see ROI on our investments? Direct mail tends to be a more expensive channel, but if the return is there...it doesn't make it less EFFECTIVE.
4. Marketing isn't about trying to find the cheapest channels...its about finding the most effective channels.
5. As a lead generation company, we use direct mail, email, PPC and inbound strategies with our clients. We can reach different prospects through each channel. If you can use them effectively, why not use them all?
6. I want to pose a question: Don't you think there are people out there that need your product or service, but don't know it yet? You aren't going to reach those people through Google because they won't be looking.
Excellent thoughts and debate going on in this thread! Keep them coming.
Nice case study.
I'm sure the headline was meant to drive engagement...but it also discounts the acumen of the writer. There are thousands of companies that rely on direct mail...and search...and display...and newspaper ads...and radio...you get my point. And actually, direct mail is one of the more trackable forms given discrete toll free phone numbers, landing page urls, A/B splits on offers, household level targeting, bar coded coupons, etc.
Much of the value for any individual form of advertising depends on the target market. To me, Inbound Marketing is fundamental to being in business, so as such, it doesn't not take resources from tactics like direct mail.