Posted on 7 March, 2019Do you segment your direct mail? If not, you should as it results in an average uplift of 128%!
New research by Go Inspire into the effectiveness of DM has found that increased design vibrancy in mailing produces an overall incremental revenue increase of 20 per cent. However, for high-value, highly loyal segments of customers, this vibrancy becomes a disincentive and reduces incremental revenue by 50 per cent! Clearly it is important to have a clear understanding of who your customers are before you send mail packs through their door!
The study also found that imagery tailored to a recipient’s individual area of product interest produces a staggering 128 per cent uplift in incremental revenue. This varies between product categories from 72 per cent to 197 per cent, a range that confirms the importance of distinguishing between different customer segment behaviours and potentials to develop a prioritisation strategy.
It has long been known how effective direct mail can be as a call to action, particularly in terms of generating sales, however, little research has been carried out to measure in revenue terms how direct mail can become even more effective.
Clearly a segmented targeting strategy pays dividends. Moreover, as our own research shows following the introduction of GDPR the perception of direct mail amongst consumers is rising and therefore if marketers commit to making the channel even more relevant direct mail will continue to be one of the most cost effective methods of reaching customers in a tangible and personal manner – of course this only applies if your data is as up to date as possible. Send mail to people that have passed away, moved house or spell their name wrong and the uplift will soon disappear and turn into brand damage!