It is widely accepted that customers recruited via direct mail are the best in terms of ongoing lifetime value and loyalty compared to other marketing channels. Yes it may cost more to recruit them initially, but if your priority is to build a good long term sustainable business then the investment in a high quality customer database is vital.
The issue is that many marketeers and business owners are under pressure to hit initial customer recruitment targets with little thought on the quality and long term value of those customers. Customers recruited via perceived cheaper channels tend to be less loyal and seasoned offer hunters. Therefore spending a bit more budget recruiting good quality customers via direct mail makes economic sense in the mid to long term.
There is also a very strong case that direct mail gives small to medium companies more opportunity to get in front of new relevant audiences compared to digital channels. The competition in digital is fierce and tends to be dominated by larger brands due to budgets. So for smaller brands to get noticed, direct mail has proven itself to be far more powerful in generating good quality leads and sales.
A low-cost click is not always a good customer. A high volume of enquiries is not always a profitable audience. And a fast campaign is not automatically a sustainable one.
Here are some reasons why direct mail makes sense as a customer recruitment channel.
- Less Competition: As most marketing budgets have shifted to digital platforms where competition is fierce and increasingly expensive. The physical mailbox has become less saturated and therefore allows a well-designed direct mail piece to stand out and capture undivided attention more easily for new prospective customers. .
- Brand Awareness: Direct mail serves as an introduction, helping new potential customers become familiar with your brand and it’s offerings. This is the crucial first step in building trust with an unfamiliar audience. This is especially the case for small and medium size companies.
- Tangible and Memorable Touchpoint: Direct mail is a physical item that stands out in a digital world filled with email spam and fleeting ads. This tangibility makes the message for new prospects more memorable, with studies showing higher brand recall compared to digital ads.
- Builds Trust and Credibility: Consumers often view physical mail as more credible and trustworthy than digital ads, likely due to concerns over data privacy and online scams. This perception of authenticity helps build a stronger initial connection with potential new customers.
Highly Targeted Data and Personalisation: Direct mail uses sophisticated data analytics to segment new audiences and personalize messages based on demographics, location, or past purchase behaviours. This tailored approach makes the recipient feel valued and increases the likelihood of response