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Is Email Replacing Direct Mail?

Posted by Sheera Eby on September 4, 2014

Many have hypothesized that email will replace direct mail. When you think about the best ways to develop and maintain communication channels with prospects and customers, what comes to mind? With the Internet being such a vital part of life and work for many, developing a successful email marketing plan is one of the top go-to tactics for many marketers. However, even a successful email marketing plan is only one part of the full marketing picture. For many firms, a multichannel marketing approach is the best way to get those amazing results you desire.

 

 

Email marketing outperforms direct mail?
Successful email marketing has an excellent reputation for effectiveness, especially in high-tech or business-related industries. The Direct Marketing Association reports that email marketing has an ROI (return on investment) of 4,300%, and it is hard to argue with numbers like this.1 Email marketing is cost-efficient and has a short go-to-market time frame.

 

However, not every prospect or customer is responsive or persuaded by email. Instead of being a complete solution, successful email marketing tends to be a component of a well-rounded multichannel marketing campaign. It is important to remember the email marketing fact that emails are only going to be opened less than 5% of the time.2 Even if you have a huge email list, the vast majority of your list isn’t going to ever come in contact with email.

 

 

Direct mail is on the upswing.
While at first glance you may think that online marketing has spelled the end of direct mail as a major player in the marketing world, this is actually far from the truth. Data from the Direct Marketing Association’s 2014 DMA Statistical Fact Book states that in actuality, the amount spent on this type of mail is growing; $44.9 billion was spent on direct mail marketing in 2013.3

 

Furthermore, direct mail response/conversion rates tend to be 30 times higher than email. While email is an extremely cost-effective means of communications, direct mail tends to generate higher response rates and, as a result, contributes a higher volume of conversions. Since most prospects and customers won’t respond to the first communication they receive, utilizing email and direct mail together tends to produce the best results.

One concern for many firms has to do with direct marketing response rates. In actuality, direct marketing response rates remain steady over the last few years. The reality is that direct mail continues to grow between 1 and 2 percent per year.

 

 

Email marketing: A piece of the puzzle.
One thing to remember as you are putting together a successful email marketing campaign is that email works best when it is used in conjunction with other forms of marketing. In particular, using email marketing with well-developed landing pages can ensure optimal conversions. By design, email is meant to generate enough interest to move the user to the next step, but it can’t generally convert without a supportive technique. A well-constructed landing page will give users a funnel directly toward the desired action.

 

Successful email marketing is not just a “set it and forget it” process. It requires constant retooling and finding new ways to engage users. More and more marketers are turning to email, and users are becoming more sophisticated. It’s important to stay on top of testing new approaches and working to constantly break through and optimize the email channel.

 

Email, digital and direct marketing tactics all contribute to a successful program. A multichannel approach improves your chances of breaking through to more potential prospects and customers. By working with someone who understands all the facets of a high-quality marketing campaign, your company will be able make the most of your prospects and customers.

 

Marketers need to continue to optimize their marketing efforts if they are to achieve success. Sign up for J&C’s multichannel direct marketing assessment and determine how to ensure you are leveraging multichannel direct marketing best practices that increase response and drive customer action.

 

 

Sources:

Topics: Email Marketing

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