Response Rates: Gain Further Insight into Your ROI

7/26/2023 Response Rates: Gain Further Insight into Your ROI

Direct Mail Marketing Rates of Return

A rate of return (RoR) is the net gain or loss of an investment over a specified period of time, shown as a percentage of the investment’s initial cost. In layman's terms, your rate of return is used to measure the profit or loss of an investment, in this case, your direct mail marketing campaign.

Based on the type of response you’re looking to receive from your direct mail marketing campaign, your rate of return will vary. According to the Data & Marketing Association (DMA), direct mail marketing is alive and well, offering a response rate of 9%.

While this may seem like a low statistic, it’s not nearly as low as the online advertising market sector. For companies that send out email blasts promoting sales, coupons, and discounts, only 1% of recipients respond. Furthermore, 87% of consumers have been influenced by direct mail marketing to make an online purchase, and 86% connect with the advertised business directly. So what does this mean for your future direct mail marketing campaigns?

Consumers love to interact with businesses, influencers, and other shoppers via social media—that’s nothing new. But what you may not be aware of is the fact that your direct mail can cause a spike in not only your ROI but your social engagement—spreading the word about your business over a multitude of channels.

Why Does Direct Mail Have a Higher ROI Than Digital?

When you log onto your computer or smartphone, you’ve likely been bombarded with advertisements—from an abundance of “spam” emails from companies you’ve never heard of to receiving pop-up ads for household items or services you searched for one time. The truth of the matter is simple, the digital marketing world is oversaturated and oftentimes poorly targeted. 

  • Oversaturation: It can take a lot of effort to have your advertising campaign stand out from the crowd online, which is why direct mail marketing strategies are the most effective way to put your company’s best foot forward. Direct mail is a less saturated market, allowing your message to be delivered clearly and even be remembered.
  • More Targeted Demographics: When advertising online, you can target a specific audience, but it’s never as precise as direct mail. With direct mail campaigns, you can choose specific households based on income, location, and other factors to ensure your product or service is advertised to people who are actually interested in it.

Improving Your Response Rate with Customers of All Ages 

Understanding your audience is one of the most important factors in deploying a successful direct mail marketing campaign. But when generations keep changing the game, it can be difficult to keep up. Thankfully, we’re here to break down how you can increase your ROI and appeal to a variety of generational populations. Now that we’ve covered the numbers behind direct mail marketing let’s get more personal.

Baby Boomers

Direct mail is nothing new to the boomers of the world. They spent their afternoons looking through catalogs and brochures for home furnishings and the latest trends; bills and credit card statements were delivered via mailbox. This generation of consumers is nearing retirement age, has money to spend, and is willing to purchase premium goods and services. In order for your business to stand out among baby boomers, you can include the following in your direct mail campaign:

  • Customer loyalty offerings
  • Clear and concise call to actions
  • Clean and crisp design that’s easy to read
  • Imagery that’s relatable 

Gen Z

Gen Z is the generation of 11 to 26-year-olds who have real comfort with technology and prefer the immediacy of in-person shopping. Their desire for personalized experiences and technology is profound, and you can easily use this information to your advantage when crafting your direct mail marketing campaigns.

While this younger demographic likely isn’t purchasing home services, they are preferential to dining and entertainment opportunities. Since these consumers rely on reading reviews and the opinions of influencers, your direct mail marketing strategy would benefit from including testimonials.

Millennials

This generation of 27 to 42-year-olds, known as millennials, are constantly glued to their smartphones and electronics. But as of recently, they’ve tried to find new ways to break these habits. Direct mail is one way to provide them with something tangible to hold and view. During a recent survey conducted by the USPS, the majority of millennials said they enjoy receiving mail because it makes them feel special.

Your messaging for your direct mail marketing campaign targeted to millennials should be authentic, keeping messaging short and easy to read. You can also combine print with multimedia by adding QR codes to your designs.

Our Proven Solutions

Let our direct mail marketing options speak for themselves.

At RSVP Advertising, we pride ourselves on offering proven direct mail marketing for small and large businesses alike. By using our targeted technology and 30+ years of experience in the lead generation and marketing industry, we’re able to target affluent homeowners interested in your business. If you’re looking for a direct mail advertising solution that can grow your business, bring in new leads, and generate a return on your investment, look no further than RSVP Advertising. We’ll deliver your branded message to the right audience both locally and nationally.

Generate Qualified Leads With RSVP Advertising

Reach the right people with the right message when you put the power of RSVP’s proven direct mail marketing to work for you. Contact us today or call us at (800) 360-7787 to start increasing your response rates and design your direct mail marketing campaign.

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