Are you gearing up for your next auto loan promotion? Do you want to increase your odds of reaching the account holders or prospects most likely to purchase a new vehicle or refinance an existing one? Financial institutions are finding that they can gain more interest in their auto loan direct mail pieces by accurately…
I could share statistics all day long to prove that direct mail still works, but I won’t. Okay, just one, it does provide the lowest cost per lead and a higher response rate than almost any other marketing channel. When it comes to direct mail marketing, it will pay to understand the nuances of implementing a strategy.
With Every Door Direct Mail (EDDM), direct mailers now have the ability to target specific areas for saturation mailings at reduced cost. To mail to all residents in a typical geographical area could cost as low as 14.5 cents in postage! That’s a substantial discount off even the lowest standard rate postage rates.
According to Warren Storey, VP of Product Marketing and Insight at ICOM, a division of Epsilon Targeting, “There is definitely a growing trend that email inboxes are getting more and more full. Over the last three years, we’ve seen an increase in the percentage of consumers saying, yeah, they like getting email but they get far too many.”
As it turns out, electronic marketing has caused a large drop in the volume of direct mail over the last decade (just ask the US Postal Service). Due to the decrease in direct mail, marketers have seen that their mail doesn’t compete with as many other pieces in the mail box. As a result, direct mail response rates are climbing. At the same time, due to overuse, e-mail response rates are declining.
As all mailers nationwide implement the Intelligent Mail Barcode (IMB) by May 2011, it will be interesting to see if companies take advantage of the potential benefits – or if the entire IMB program will be a wasted effort. Designed as a cost-saving measure for the USPS, the IMB does have some potential benefits for LKCS clients.
Earlier this month, the US Postal Service reported a $1.9 billion decline in profit for the first half of the 2010 fiscal year. Looking at mail volumes, total mail pieces have been declining annually — a net loss of 35 BILLION pieces of mail in 2009 compared to 2007. Clearly the recession and continued e-mail growth is hurting the USPS. But, that’s not the whole picture.