Postcard Marketing Facts: Does mail marketing work?
We spoke with our in-house designer and marketing expert of 11 years, Christopher Melman, about marketing guidance for direct mailing facts and EDDM marketing facts, and here is what he recommends:
Q: "Chris, what do you recommend to clients interested in postcard marketing?"
A: "Great question! Lets say we are targeting 5,000 clients - Mailing to those same 5,000 customers 4 times, for 4 separate months, works better than lets say 20,000 people just one time.
The more times you hit the same group you get better results and you increase return rate per client by 70%. More is not always better.
Many clients usually do a 1-shot-mailing-attempt on a larger scale and never try it again. They walk away thinking they wasted their money which is true, they did because they did not have facts on their side. Hitting up more people just 1 time will not bring great results. It is best to do less, more times, to the same people.
If you are looking to gain a few new clients, here is some math that can also help... On average, if the offers on postcards are done right, the returns are about 3% returning contact. (Best offers to give are all 3 together: buy 1 get 1 free, dollar amount off like "$5 off orders of $20", and, percentage off offers. This covers you on all 3 possibilities which increases your response rate to 88.4% more chances of contact versus just 1 offer.
Remember, you really have to shake people to respond to an ad so the offer must be greater than what you are willing to give if you wish to acquire a new client.
Don't forget, every business has a customer acquisition cost (the price it costs you to gain 1 client) so expect an immediate loss for future earnings.
Example: let's say your clients are worth at least $25 in profit and you yourself know your clients or customers come back 5-10 times in one year. Then that 1 customer in this scenario is worth $125-$250 for the year. If you spend $1,000 in marketing and you gained just 30 clients (3% return rule) then those clients are worth a total of $3,750 to $7,500 in the future, all from a $1,000 marketing investment. In this scenario, your customer acquisition was only $33.33 to gain on customer ($1,000 marketing expense divided by 30 people gained = $33.33 cost to acquire). As you see here, you could afford to do this over and over. If you reached 30 clients on your 3rd attempt of marketing and all 30 only came on the 3rd round, then it costs you $3,000 to gain these clients, or $100 per client, still keeping you at a profit when you factor in what their repeat business for 1-year is worth to you.
Genius ehy? When you have facts on your side, you have a road map to postcard marketing success.
So on 5000 mailings, there will be 3% interested in what you are selling.
That is 150 people.
Again, only you know what each client is worth to you of course but lets say they are worth $20 each, that is $3,000. When you take into account clients repeat 5-10 times a year, that number can be a possible $14,000 to $21,000 new business sales for the year for this 2nd scenario.
Hitting up each client one time is about 23 cents cost on average (depending on postcard size, etc), and with the magic-4-hit-number, you are under $1 to achieve all that.
Whereas Google ads or facebook ads can reach $2 to $4 per click and 80% of mobile users click links by mistake, it then becomes a lot of wasted money to go digital ads unless you have a super targeted proven keyword base.
Marketing in any form should be looked at like watering a plant. What you patiently do daily to nurture your business, will bare fruits of success at a future date, so what you did last year in business you are enjoying in your life today, and what you do today will be your success in the months ahead.
I hope these numbers help everyone."
- Christopher Melman :)