Home is Where Decisions are Made
Over the holidays I had decided that I wanted to buy a new rowing machine. I started to do some research while I had some downtime. As with most things, I got distracted by life and forgot about the rower. Then a couple of weeks ago I received a postcard in the mail from one of the brands I had researched and it reminded me of what I was looking for. I took the postcard and had a conversation with my wife about it. We discussed the pros & cons, the cost, and where it would live. After this conversation (and dinner), I went back to my office and did one final leg of research before pulling the trigger. I am thrilled with my purchase and so glad I received that postcard in the mail as a nice gentle reminder.
Prior to the pandemic, most medium to high consideration purchases were made at home by couples and families. But now that we are ALL, home more than not, these same purchases are made at home by single people as well. This means that the majority of all medium to high consideration purchases are made at home.
If you are a brand or retailer trying to stand out and capture the attention of in-market consumers, I can’t think of a better medium to leverage. According to the Association of National Advertisers (ANA), Direct Mail provides the highest ROI of any medium. According to a study they performed, Direct Mail averages a 112% ROI. By comparison, Email 93%, Paid Search 88%, Social Media 81%, and Display 79%.
Given the media overload and fragmentation that exists today, why not give Direct Mail a proper try? For someone like me, the only thing I watch on TV are on-demand content w/o commercials and sporting events. I barely read any of the marketing emails I receive because I am on the computer working all day, Display rarely captures my attention, and the only social media I use is LinkedIn. We are all different, so different audiences need to be reached differently. However, the noise in my physical mailbox is less than anywhere else. If I receive advertising in the mail and its relevant, I save it. I currently have 7 on my desk right now for me to attend to when I have a spare moment. They all act as good reminders.
Direct Mail isn’t what it used to be. Sure, you can still buy lists of people that supposedly fit within your target audience. You can mail assets 3rd class at a low postage rate, and you will certainly get some sales. This is a reasonable way to fill the top of your funnel or re-engage some previous customers with generic messaging. The ROI should be positive. However, consumers today expect to be spoken to in a more personal way. If you know what they are shopping for, capture that in the mail you send them. If they are in your CRM, capture them with something relevant and complimentary to what they previously purchased. If you want to find new customers, target ones that look similar to your existing ones and message them carefully. Most importantly, be timely with your messaging. If someone is in market for a type of product that you sell, get in front of your competition.
Lastly, measurement is one of the hottest topics of 2022. Since direct mail is being delivered to a physical address and when someone makes a purchase, they need to provide their address for delivery, a matchback analysis is easy and extremely valid. With programmatic direct mail, you can even measure incrementality compared to other channels in your media plan. And don’t overlook deliverability rates. Third party lists are vastly inaccurate so leverage a partner with a user graph that is updated daily. So go ahead and give this channel a try, you won’t be disappointed. If you would like to know if your business is a good fit for this medium, speak with your contact Cogent. We are here to help. Below are benchmarks for a few different verticals:
- Retail: 7x ROAS
- Luxury: 13x ROAS
- Home Furnishings: 9x ROAS
- Furniture: 41x ROAS
- Home Fitness: 15x
- Beauty: 9x ROAS
- Jewelry: 15x ROAS
- Travel: 16x ROAS
