Are You Talking With Your Customers or At Your Customers?
When it comes to direct mail marketing, personalization matters. According to data and mailing firm Melissa Data, a personalized color mailer results in over three times the response rate of generic direct mail. However, the benefits of personalized direct mail do not stop at an increased response rate. A careful marketing campaign that uses personalization tools can reap rewards over the long-term, as well.
In addition to higher response rates, here are some other benefits of personalized direct mail.
- Greater Conversions
A response is one thing, but personalizing an offer with donor preferences can mean the difference between interest and action. Major grocery store chains cash in on this lesson by sending specially picked coupons to their customers. They use customer club cards to help track buying trends and send coupons based on the last eight weeks of individual purchases. Knowing someone purchased a certain salad dressing three times means they are likely to take advantage of a coupon for the product, and may buy other items while in the store.
- Build Relationships
Personalized direct mail campaigns can begin or continue the relationship building process. The first step is addressing someone by name. If you can offer them information specific to their geographic location, industry or job, then you increase the perception of familiarity. You also create a mailer that has personality and a human touch. Anytime you appear more like a person and less like a data bank, you increase the potential for a relationship with the donor.
- Build Trust
In addition to building a relationship, you are also increasing donor confidence. A faceless, nameless mailer addressed to a generic recipient inspires no trust. Information addressed to a home owner that is timely and relevant shows that you are in touch with your donors needs and are willing to offer real assistance.
- Increase Return on Investment
It may cost a bit more to do the research and work associated with personalized marketing. However, you could find that your return on investment with a personalized direct mail campaign is worth the expense. Consider some simple numbers. Assume that a response to your mailing will bring in $200. If you mail out 100 items via traditional direct mail, statistics show you may receive a 2 percent response, or $400 worth. With a personalized direct mail approach, you could increase the revenue to $1,300 for every 100 items, or a $9 increase for each mailing. Obviously, that is a very simple scenario, but you can see the possibility for a major increase in ROI.
The key to strong personalized direct mail marketing is an understanding of your donors needs and preferences. With a growing dependence on social media and online interaction, companies can make use of enormous data mines. Something as simple as online newsletter subscriptions can yield information about ages, household needs, geographic location and gender, as long as you are setting the process up for direct marketing later. Remember the benefits of personalization and plan for it throughout your marketing process.