Direct Email vs. Direct Mail – Which is the Better Investment?

Is your company trying to decide between a direct email campaign and a direct mail campaign? What are the differences between the two – does one yield better results over the other?

Let’s look at some of the pros and cons of each:

Pros

Email

  • Email marketing is very affordable, as there’s no need for printing and postage.
  • Accumulating and maintaining an email list can be easier.
  • Email marketing takes less time than direct mail.
  • It can be sent instantly, in response to a competitor’s campaign or a current event.

Direct Mail

  • Direct mail is highly targeted. So long as you know who your target market is, you’ll be able to reach them.
  • So long as lists or calls to action are coded correctly, direct mail is very easy to track and determine the company’s ROI.
  • Mail is much more personal than email; the customer can hold something tangible in their hands.

Cons:

Email

  • People on your list may not appreciate getting an inbox full of marketing tactics.
  • It’s possible that customers will delete the email without ever looking at it.

Direct Mail

  • Direct mail campaigns include printing and postage which can add up quickly.
  • Consumers may throw away what they consider to be junk mail without ever reading it.

While both have their pros and their cons, it’s important to note that the return on investment for either campaign can be great if executed correctly. Defining your goals, defining your audience, utilizing past data and turnouts, keeping an up-to-date list of contacts at all times, and respecting those that do not wish to receive your marketing materials, all contribute to your success rate.

Some companies, for example, e-commerce retailers, have much better results with email marketing campaigns because they conduct their businesses online, whereas other companies, such as service providers, may have much better success rates with direct mail.

Every company is different and there’s rarely a “one size fits all” approach. With more than 25 years of experience in the telemarketing industry, Natimark understands the urgency that comes with every marketing campaign and list purchase. That is why we have invested so much time and money in to creating the tools that every marketing person, department or company needs to achieve a competitive advantage in the marketplace today.

If you’re currently undecided and would like some expert advice on which campaign will work best for your company, please contact our team!

What is a Lift Chart?

Have you ever looked at customer data or various forms of predictive modeling and felt as if your first assignment should be going back to school and getting a degree in statistics? Although intimidating at first, data is something we’ve all got to get comfortable with at some point in time. After all, understanding it and utilizing it results in smarter business decisions, improved targeting, increased conversions and reduced marketing costs.

So, what is a lift chart, aside from a common tool used within our industry?

A lift chart graphically represents the expected penetration of using a ranked list in comparison to the expected penetration of “business-as-usual” (“business-as-usual” utilizes a random data set).  The ranked list represents various portions of your data set and shows which models work best.

This is very important data to uncover, especially when utilizing direct mail campaigns to market your company. If you can determine which portions of your data set get the best response rates, you can mail fewer pieces to achieve a new number of customers. This data could also be used to acquire new customers within a particular budget. By utilizing the ranked list, you are not wasting money on very large data sets with an overall low response rate.  You identify who the “worst” customers are, or the prospects that are unlikely to respond, and you no longer need to spend money on postage and printing for these contacts each month.

Lift charts are often linked to profit charts because profit charts display all of the same information, but also display the projected increase or decrease in profit by utilizing each model. In the perfect scenario, the ideal line in the lift chart represents a prediction that is never wrong. The reality however is that the model will likely fall between a random guess (utilizing a random data set) and a perfect prediction. Any improvement over the random guess is considered to be a lift – where your company loses less money and does not waste funds targeting individuals or companies that will never become your customers.

Does your marketing department need to get better control of its spending? At Natimark, we have been providing better data and better results for over 20 years. If you want to acquire more customers while spending less, contact our team today:  (866) 923-3403.