Your Prime 5 Advertising and marketing Aims – Solved!
The Interactive Advertising Bureau (IAB) recently surveyed a number of consumer brand marketers to understand their customer acquisition goals, marketing strategies, and media buying decisions in 2021. The survey results made it clear that new rules for consumer sentiment and brand loyalty would be set in 2020. Marketers have responded by positioning customer satisfaction as their top marketing and promotional priority in 2021.
Top 5 marketing / advertising goals
- Increase customer satisfaction
- Identify high quality target groups
- Increase customer contacts
- Increase customer loyalty / loyalty
- Make your first purchases
Direct mail has been adopted by growing and established brands alike because it can reach, resonate and transform both potential and private audiences. The mail channel also works well as an anchor platform for direct marketing programs as it can help integrate digital marketing efforts (including CTV | OTT) for a more targeted and profitable marketing strategy.
Surveyed marketers agree that 41% said they invest their advertising budget in offline media – with the majority being spent on direct mail and print. The results also confirm that the channel is worth the investment as marketers recognize that direct mail offers acceptable customer acquisition costs (CAC) and delivers high quality, high lifetime value (LTV) customers.
If your growth goals reflect IAB research, direct mail can help you meet your top marketing goals.
Increase customer satisfaction
Today’s consumers are not focused on one channel, but rather on their own preferences and purchase expectations on the timeline and channel of their choice. In a recent survey by the CMO Council, over 85% of global consumers admitted that a mix of digital and physical channel experiences is their preferred way to interface with brands, and more say that multi-channel touchpoints (including direct mail) are for satisfaction their needs are critical.
After a successful launch in the email channel, a senior meal delivery brand wanted to incorporate their digital campaigns into email to further improve the brand experience and potential engagement. The multichannel strategy increased sales by 35%, reduced the overall CPA of the campaign and increased sales by 67% over the previous year. “Direct mail is now at the heart of our integrated marketing strategy,” announced the brand’s CMO.
Identify high quality target groups
USPS research confirms that email recipients spend an average of 13% more than non-recipients.
At its core, the consumer data available for creating direct mail lists is strong – of course, the offline channel is positioned so that your best audience is effectively identified and reached. Best performing customer models are based on a strategic mix of optimal customer subsets, relevant consumer characteristics, world class modeling techniques, and in-market testing to identify your best target audience. Not only are you reaching a high-quality audience with email, but you are also using a medium that has a significant impact on purchasing decisions.
A car insurer continued to test customer models to ensure the campaign was optimized for scalable growth – an industry best practice. The insurer tested a proprietary model and 20 other list sources against the control. The proprietary model was the top performer, beating control by two times. It confirmed itself as the insurer’s best and largest audience – and increased its sales rate by 133%.
Increase customer contacts
The latest ANA data shows that response rates for direct mail are six times higher than all digital channels combined. Hence, it’s common for brands to start the buyer journey with direct mail to increase brand awareness, capture leads, and further entice prospects into the funnel. With the data science functions of the channel, e.g. B. Post-to-Pixel and Reverse-Append, you can recognize your anonymous target groups for retargeting campaigns. You can also use modeled target groups and acquisition campaigns to inform and influence new prospects for your product or service.
In search of economies of scale in a highly competitive market, an insurance brand tested direct mail to gain brand awareness and increase sales leads. The opening campaign immediately verified the validity of the email channel, achieved a lead rate of 1.85%, and delivered thousands of new leads and hundreds of new policies.
Increase customer loyalty / loyalty
Not only are you 70% more likely to sell to an existing customer, but you will find it more profitable to sell to a regular customer than to buy a new one. Unfortunately, brand loyalty is more difficult to maintain with today’s consumers than it has been in the past. Through CRM segmentation and trigger-based mailings, you can use direct mail to send the relevant and personalized messages to your target audience values in order to build long-term customer relationships.
Instead of targeting previous customers with a unified program, a DTC specialty brand used its CRM data to segment and realign both previous customers and new leads with personalized direct mail. This strategic retention program now offers the highest ROI of any direct mail campaign for the brand. In addition, the sales per policy increased by 21% and the value for the customer lifetime multiplied by eight times.
Make your first purchases
When a consumer makes a first purchase, they have to trust a brand and what it offers. This is especially true as consumers become more selective in times of uncertainty or financial stress. Direct mail has two advantages to achieving this marketing goal: it is delivered by the most trusted brand in the US, and consumers trust print more than digital advertising. As a result, more than 60% of DTC brands rely on email to reach new audiences and make their first purchases.
In search of additional growth channels, an identity theft brand decided to test the ability of direct mail to increase audience reach. Since launch, the channel’s performance has taken off – over 2 million first-time members have been converted. The CMO now considers the channel “irreplaceable” as it generates 40% of its annual revenue and has more than $ 500 million in revenue.
New to the direct mail channel? This free e-book, Direct Mail 101: How to Grow and Scale with Direct Mail, has guides, best practices, and checklists to help you create a goal-oriented and valuable program.
This article originally appeared on the SeQuel Response blog and was republished with permission.
Author: Erik Koenig
Erik Koenig is the Chief Marketing Strategist at SeQuel Response, an award-winning direct response agency based in Minneapolis, Minnesota. With over 10 years of experience in direct marketing, Erik is passionate about helping brands optimize their channel performance with data-driven strategies and an integrated approach for online and offline … Show complete profile >
