The findings: Technology has enhanced how personal direct mail can be, but another survey just confirmed it’s also a very effective way to reach customers and build relationships with them.
- That’s according to a survey of 1,815 US consumers conducted in November 2023 by marketing firm Vericast.
By the numbers: The survey found consumers of all ages regularly read and engage with direct mail.
- Across all age groups, 72% of consumers regularly look at ads in the mail. But Gen Xers (78%) lead in looking at advertising mailers.
- 82% of consumers look at advertisements in the mail at least once per week.
- Over half of consumers collect advertisements relevant to their future goals—such as making a purchase.
Cutting through noise: Many consumers even incorporate sorting through mail into their downtime routines as a break from the constant stimulation from the world around them.
- For example, 58% of parents say paging through direct mail is “relaxing.” That rises to 66% for millennial parents (of younger children, on average).
Plus, it’s a secure way to get the message to consumers, given rising fraud.
- 67% of consumers concerned about privacy felt direct mail was more trustworthy than other media. And since baby boomers are the cohort most concerned about their privacy, they’d most likely appreciate this aspect of mailed ads.
- Regardless of age, 75% of consumers said direct mail made them aware of products and 60% said it helped them remember products and services when it’s time to make a purchase—compared to just 44% for digital ads.
In a digital world, the physical stands out: Perhaps because they’re inundated daily with digital communications, 55% of consumers pay more attention to direct mail than they do digital ads.
- The average open rate for a marketing email in the financial industry is just 31.35%, according to email solution provider Mailchimp.
- By comparison, almost half of consumers spend at least one minute reading direct mail ads.
The downside: Direct mail isn’t cheap, even if it’s done in bulk.
- The USPS estimates the cost of a DIY marketing campaign of 500 to 1,000 pieces of postcard-sized mail is around $800.
- And that doesn’t include the labor involved in creating, planning, and executing the campaign.
- Other third-party vendors estimate direct mail can cost anywhere between a few cents to multiple dollars per piece.
By comparison, a Facebook ad generally costs just less than $10 for 1,000 impressions, per Shopify.
Key takeaways: People welcome and even depend on interactions and habits that take them away from their screens, as we’ve seen with Gen Zers’ move to cash, and banking consumers’ affinity for paying bills manually. Direct mail marketing seems to be no exception.
As we’ve advised, direct mail can be an extremely effective way for banks to spread the word about their products and services. But it must be done thoughtfully— ideally as part of a larger campaign paired with digital aspects to make the expensive worthwhile.
