In a Digital Era, is Direct Marketing Still Relevant?
Is Direct Marketing Impactful in the Home Improvement Industry?
The new face of direct mail and today's recipients
Despite all the many ways home services Businesses can communicate and market digitally, such as through email, social media, and search engine marketing, direct mail (DM) continues to be a highly effective strategy for many of the service categories in the home improvement industry. Direct mail remains an important tactic in your multichannel marketing strategy.
Return on Investment
Direct mail is a cost-effective marketing channel that large and small home services Businesses can employ. According to a study conducted by LOB, 79% of marketers report that direct mail delivers the best ROI of any channel they use. A study by the Association of National Advertisers (ANA) showed that the ROI for direct mail sent to a “house” list was 161%.
High Open and Response Rates
According to the ANA study, direct mail has an open rate of 90% versus 20-30% for emails. Additionally, direct mail sent to a “house” list (opt-in subscribers) achieved an average response rate of 15.6% while the “prospect” list (potential Customers) rate was 10.8%. Of course, open and response rates can vary depending on the list and the offer being promoted.
Impact on Purchasing Decisions
Direct mail can have a tangible influence on consumer behavior. Studies indicate that 39% of Customers try a Business for the first time because of direct mail advertising. Additionally, recipients of catalogs purchase 28% more items and spend 28% more money. (United States Postal Service)
Direct Mail Effectiveness
According to research by the United States Postal Service, 85% of millennials take the time to read their mail to make sure they’re not discarding useful information. In addition, 66% of millennials say they Frequently and occasionally use marketing mail as a prompt to go online.
Technology in Direct Mail
Even as it is continued to be used effectively, the reputation may appear old school, however with the incorporation of technology the positive effects include:
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Boosting return rates
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Increasing productivity
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Lowering costs
The new face of direct mail
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AI-driven direct mail campaigns are expected to grow significantly in the next five years. AI improves targeting, messaging, and response tracking.
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Many of today’s direct mail campaigns include QR codes or augmented reality (AR) elements. These tools help to connect offline and online promotions.
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Personalized direct mail is becoming more sophisticated. Variable data printing allows for highly tailored messages that can improve response rates.
Since both direct mail and digital marketing have proven to be effective promotional tools for companies in the roofing, remodeling, windows and doors, HVAC, plumbing, landscaping and others, the optimal strategy will rely upon a multichannel approach enabling you to communicate a consistent and effective message to your Customers and prospects through multiple avenues.
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