How to Make Direct Mail Work the Second Time Around

By Chaim Lazar | March 4th, 2024 | Blog, Direct Mail

When companies ask me if direct mail works, I almost always respond, "Not the first time around." Direct mail has been proven effective over many years; however, companies often have unrealistic expectations for their first campaign. After hiring a copywriter, graphic designer, and mail house, and spending on printing and postage, companies may expect immediate results.

With a typical response rate of 1-2%, a mailing of 5,000 records often does not generate enough response to cover the initial campaign costs, resulting in a low cost per acquisition. Direct mail usually becomes effective when companies allocate a sufficient budget to test various lists and mail pieces. For example, testing five mailing lists allows a company to identify the top 1-2 lists and experiment with different creatives (postcards, inserts, coupons) to determine which combination yields the highest response rate.

Back-end list analysis is also crucial. It’s important to track not only the initial response rate but also the results over time. This includes re-engaging with recipients who showed interest but didn’t convert immediately. Moreover, leveraging digital media can enhance the effectiveness of direct mail. Follow-up via email, SMS, and telemarketing has been shown to be a powerful tool for re-engaging potential customers.

In summary, direct mail can be effective with a well-planned front- and back-end marketing strategy and a budget that allows for testing different creatives and mailing lists.