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• This article explains why most companies should think twice before
eliminating direct mail from the marketing communications mix.
One major trend in marketing is the dramatic shift from traditional to digital marketing
channels and techniques. Winterberry Group, a widely respected consulting firm serving
the marketing and advertising industries, says that from 2007 through 2009, spending on
mobile marketing increased at a compound annual growth rate of 30.0%, spending on e-
mail marketing grew at an annual rate of 20.8%, and search marketing increased at an
annual rate of 11.6%. Over the same period, spending on direct mail fell at an annual
rate of 10.7%, and spending on print advertising declined by almost 20% per year.
The move away from direct mail reflects a growing belief that (a) digital marketing
methods are essential to creating engagement with today’s Internet-savvy prospects,
and (b) direct mail has become less effective as a marketing tool. Proponents of this
view argue that both consumers and business buyers have fundamentally changed how
they seek and gather information about products and services. The Internet has put a
huge volume of information about most products and services at the fingertips of
potential customers, and they’ve become convinced they can find whatever information
they need, whenever they need it. These empowered buyers pay little attention to
unsolicited marketing messages, and therefore all forms of “interruption” marketing—
including direct mail—are losing effectiveness.
So, as you think about how to develop an effective marketing program for your
company, you need to ask two important questions.
For now at least, we believe that most companies should answer “no” to both
questions. No one doubts that digital communication channels are here to stay. Digital
marketing techniques are already important for many companies, and they will become
more important in the future. Some companies have moved entirely to “inbound” digital
marketing with great success, but we’ve also seen several companies end their direct
mail programs only to restart those programs because of falling sales.
Every company is different, and an “all digital” approach to marketing will work fine
for some. But we believe that it’s too soon for most companies to completely abandon
direct mail. The reasons are simple: Direct mail still works when it’s done right, and it
can perform some marketing jobs better than digital marketing alternatives.
The proliferation of marketing channels and techniques gives marketers more ways
to reach out to potential customers than ever before. At the same time, however, it’s
Recent research shows that many people still prefer to receive marketing messages
via direct mail rather than through other communication channels. For example, in a
survey conducted earlier this year by ICOM, over 2,500 U.S. consumers were asked
about how they prefer to receive information about a variety of products and services.
The survey specifically addressed health products and services, household and personal
care products, travel, insurance, charitable causes, and financial services.
The ICOM survey also revealed that consumer channel preferences are driven by
several factors, including convenience, trust, richness of content, and environmental
concerns. What may surprise some is that direct mail scored high on most of these
factors. For example:
• Seventy-nine percent of survey respondents said they find direct mail more
convenient than digital alternatives. The respondents who expressed a
preference for mail said they can read postal mail whenever they want, they can
refer back to mail when needed, and they can easily take mail with them and
pass it along to others.
• Direct mail materials ranked in consumers’ top five most trusted sources of
information. Online information sources other than company websites ranked
very low in terms of trustworthiness. They occupied the last six positions on a list
of sixteen alternatives.
If you’d like to discuss how an integrated, multichannel marketing program can boost
sales for your company, contact G. David Dodd at 931-707-5105 or by e-mail at
ddodd@pointbalance.com.