The latest JICMAIL Response Tracker insights reveal that DM is still very much a marketing channel that achieves results….
Warm direct mail—mail shots sent to existing customers—command on average an 8% response rate. This level of engagement is not only on par with but often exceeds the effectiveness of other media channels.
Warm direct mail’s success, particularly notable in sectors like medical where it reaches a whopping 26%% response rate, underscores its potential in targeted communications. This method proves especially effective in maintaining and enhancing customer loyalty, offering personalised content that resonates well with the audience. The high response rates are indicative of the trust and rapport that brands have built over time with their existing customer base.
Cold Direct Mail and Door Drops: Expanding Reach
Switching focus to acquisition strategies, cold direct mail, aimed at enticing potential new customers, holds its ground with a response rate of 0.9%. This figure aligns closely with the average rates for digital channels such as cold email, social media, display advertising, and paid search.
Similarly, door drops excel in local and targeted outreach, capturing a 0.6% response rate. This method proves particularly effective in the retail and mail order sectors, achieving as high as 3.0% response rates, demonstrating its capability to penetrate specific markets and engage new customer segments effectively.
Financial Metrics and Strategic Insights
Financially, warm direct mail is highly cost-effective, boasting an ROI of £9.0 with a relatively low Cost Per Acquisition (CPA) of £25.70. The average order value (AOV) stands impressively at £161.70, reinforcing the value of investing in customer retention. Conversely, cold direct mail, though pricier with a CPA of £125.80, presents opportunities for substantial revenue gains with an AOV of £435.30, suggesting that newly acquired customers through this channel are highly valuable.
Door drops, while costlier per acquisition at £201.50, still offer a reasonable ROI of £2.60. Their strategic use in reaching particular demographics showcases their essential role in a diversified marketing strategy.
The Importance of Data Hygiene
The cornerstone of maintaining high response rates, particularly for warm direct mail, lies in the precision of data management. Effective data hygiene practices—like getting customers’ names right and deduplicating records—are crucial. These practices not only enhance the personalisation of communications but are vital for keeping engagement levels high. For cold direct mail, rigorous data management is key to generating strong average order values by ensuring messages reach the right prospects.
For further information about JICMAIL’s latest response tracker, or more information about our market leading data hygiene solutions get in touch!
