16 | DMNEWS | December 1, 2008 | www.dmnews.com
Staying power To paraphrase Mark Twain, reports of direct mail’s demise as a proven lead- and sales-generating workhorse have been greatly exaggerated. In fact, spurred by the struggling economy, more consumers than ever are turning to promotional offers and coupons sent through direct mail. Pamela Oldham speaks to direct mail experts and marketers about the surprising results of the second DMNews/Pitney Bowes direct mail survey
“I
s direct mail deader than disco?” That was the question recently posed by a marketer on a business networking Web site. Judging from the wiggle room now available in mailboxes across America, it might appear that the sentiment is one shared by many companies, especially with today’s unprecedented economic trials. Marketers throughout the country are increasingly reducing their investment in or even abandoning the direct mail channel in favor of cheaper options such as digital. But do consumers actually prefer digital to mail? A new DMNews/Pitney Bowes survey on consumer attitudes and behaviors related to mailed promotional materials concludes that direct mail is still definitely a channel to be reckoned with. Results of the survey, conducted in September 2008, suggest that drastically reducing or eliminating use of the direct mail channel is probably not good for business — especially in light of the economic slowdown. What’s more, holding on to old-fashioned notions about direct mail may leave companies vulnerable to competitive promotional offers that arrive in one of today’s most personal and relatively uncluttered points of contact: the consumer mailbox. More than 1,000 consumers age 18 and up from 10 major metropolitan areas — Atlanta, Boston, Chicago, Denver, Houston, Los Angeles, Miami, New York, Phoenix and Seattle — took part in the online survey. Respondents were equally divided between male and female, and were screened to at least “sometimes” be personally involved in reviewing their mail. Despite the common perception that consumers greatly prefer e-mail, the study found consumers equally prefer to review their US Postal Service mail and their e-mail. In fact, 50% of
respondents report greater enjoyment reviewing their mail received through the USPS than scrolling through e-mail. Perhaps the single most important takeaway from the study, however, was that promotional offers sent by mail are still profoundly powerful ways to spark consumer action, and that their use has increased over the past few months of economic turmoil. The survey found that as many as 94% of consumers claim they took action on promotional offers and coupons received in the mail over the past year. Survey responses show more interest in discounts “The responses really validate the importance of direct mail and how it can be used when people are struggling and looking at their offers more closely. Done right, you can get some of the best hit rates because people desperately need those discounts on products and services,” says Leslie Abi-Karam, EVP of Pitney Bowes and president of mailing solutions management. “The opportunity in direct mail is to get very targeted. While [marketers] may not do the same volume, if they do the right targeting, it will allow them to get an even better lift now than historically.” The study shows that 85% of consumers review their USPS mail daily. Half of all consumers requested promotional materials or coupons from companies over the past six months, and these consumers are equally likely to have requested the materials or coupons to be delivered by e-mail or USPS mail. Yet, recent articles in mainstream media and business outlets describe a planned, dramatic downturn in direct mail spending as marketers in many sectors frantically seek to cut costs. However, experts such as Carolyn Goodman,