Is Direct Mail Dead?

The volume of mail sent in the UK has been reducing at a rapidly accelerating rate over recent years, from 21.5 billion items in 2007/08, to 18.8 billion in 2009/10*.

And it’s easy to see why; direct mail is time-consuming and costly to produce, let alone to post. Add to that the reduction in Royal Mail collections and deliveries and you can see why many companies have turned to the internet as a cost-effective way of reaching out to customers.

Why spend thousands printing brochures that cost even more to post, when customers can just look things up on the internet – and virtually for free.

So is it time to knoll the death bell for direct mail?

The answer is a surprising but resounding no and it’s a fact that many businesses need to sit up and take note of.

Direct mail is learning to adapt and change in the face of new media competition. Gone are the vast and uninspiring bulk mailings of the ’80 and ‘90s and in its place are highly personalised, higher value, targeted mailings.

As a medium to convey complex or emotive messages that reinforce your brand values,  direct mail is still second to none. Mail can be consumed at your own time and place. It can be touched, even smelt and formats can involve and motivate prospects. Carefully targeted and crafted mail packs are delivering surprisingly high response rates, not just the 1-2% expected of many years ago.

Direct mail gives smaller brands the chance to talk to their customers without the need for extensive advertising budgets. Used as part of an integrated campaign, direct mail provides the tangible, physical contact with your prospects that really makes your business stand out from the crowd.

Leading marketing services agency WPP recently reported revenue increases of 12.2% to £2.2bn in the three months to 30 September 2010, with traditional media driving the fastest growth.

The question for businesses now is whether they have adapted their thinking on direct mail?  Have you written out DM from your marketing budget or is it time to reconsider?

It is well known that brands that maintain marketing budgets during a recession, when competitors are cutting back, can benefit from improved market share and return on investment during good economic times.

So next time you are planning your marketing budgets, don’t write off direct mail but take time to reconsider how it can be used within your marketing mix to build relations with your customers, to make them value you above the competition.

And if you are in any doubt of whether the returns will work for you, talk to us now…

* Postcomm, Annual Report and Financial Statement, 2009-10, HC 148, 15 July 2010, p 20