The State of Direct Mail: ROI by the Numbers

Direct mail marketing currently accounts for $38.2 billion of U.S. offline marketing spend — a significant chunk of change, demonstrating that direct mail continues to play a pivotal role in reaching intended audiences, driving response rates and increasing sales. This effectiveness is largely achieved by leveraging data insights and the latest marketing technology, which facilitates a level of personalization and engagement that’s unmatched by other marketing channels.

Yet, too many marketers remain unconvinced of the reach and response direct mail marketing delivers. If you’re among them, keep reading for a recap of the latest efficacy data compiled from numerous industry studies and LS Direct internal data.

Past versus present direct mail marketing

The heyday of one-size-fits-all direct mail campaigns is long gone thanks to the integration of direct mail with digital marketing channels.

By combining direct mail with online tracking and analytics tools, marketers can create seamless omnichannel experiences. It’s no surprise direct mail marketing effectiveness has surpassed email, showing an average 4.4% response rate in 2024, compared to email’s average response rate of 0.12%.

Here are five observations we’ve made in analyzing the reasons behind high client success rates using direct mailers as part of a multichannel approach:

• They’re personalized. Sixty-eight percent of marketers say their primary use of data is to craft highly personalized and targeted messages to customers. 

Advancements in data analytics and printing technology have greatly simplified the creation of bespoke direct mail pieces. You can now craft messages that speak directly to individuals’ needs and interests using dynamic versioning and custom personas. By segmenting your customer database and tailoring your message as you would in a digital-only campaign, you can increase engagement and drive conversions in ways that email simply can’t replicate.

Personalized touchpoints create a strong sense of connection and relevance. For example, you can send a postcard to a customer on their birthday or mail a targeted brochure that aligns with their previous purchases.

• They’re timely. When using direct mail for retargeting, speed is a critical factor for success. The process of delivering direct mail to recipients (and waiting to see results) used to involve multiple manual steps. Once again, technology has given brands the ability to significantly shorten campaign timelines and reporting.

With the advent of dynamic content automation and digital printing, production timelines have been significantly shortened. For example, digital printing enables on-demand printing, which allows you to produce small batches of direct mail pieces quickly and cost-effectively. This flexibility is a game changer for marketers who want to test different designs, messages or target audiences without committing to large (and costly!) print runs.

And with the integration of automation software with printing equipment, marketers can automate the entire direct mail process, from design to delivery.

• They’re connected. Buyers have different needs and expectations at each stage of the customer journey. In days past, it was nearly impossible to track customer interactions accurately across online and offline channels. As a result, direct mail was limited to the top of the funnel.

Now, marketers can seamlessly track customers throughout their journeys through integrated communications at each stage of the buying process.

>>Related: Walking Your Prospects Through the Buyer Journey: A Roadmap for Success<<

• They’re memorable. Think of direct mail as a physical piece of your brand that stands out and demands attention. Customers are more likely to engage with a piece of direct mail that they can hold in their hands, flip through at their leisure and display on their desk or fridge.

The enjoyment of postal mail surprisingly isn’t limited by generation. New research finds that 57% of Baby Boomers, 45% of Gen X, 41% of Millennials and 37% of Gen Z would be disappointed if they stopped getting physical mail. 

From the quality of the paper stock and the creativity of the design to the thoughtfulness of the message, you’re creating a tangible experience that leaves a lasting impression and increases the likelihood that your brand will be remembered when it’s time to make a purchasing decision.

• They deliver (no pun intended). It’s harder than ever to stand out in a crowded inbox. And with digital ads bombarding consumers daily, direct mail differentiates itself as a unique and personalized communication.

Direct mail has undeniable staying power. It conveys an investment by your brand, delivering valuable content, fostering trust and building brand loyalty in a format preferred by many audiences.

What was once perceived as junk mail has now transformed into a premium tool for any savvy marketer. Moreover, when 84% of marketers state that direct mail delivers the highest ROI of any marketing channel, it becomes clear that direct mail has solidified itself as a mainstay in the marketing landscape

Choosing a direct marketing mail format

Selecting the right format for a direct mailer is a blend of art and science, as your design choices can impact everything from production timing and costs to postage expenses and delivery times.

Making informed choices is critical to success, regardless of your ultimate goal:

• Targeting new movers
• Thanking a buyer for a recent purchase
• Reactivating lapsed customers and reducing churn
• Recognizing buyer loyalty with an exclusive promo code
• Promoting new store openings or location-specific special events

A mailer’s amount of content will naturally influence your choice of format. A recent analysis identified the most popular formats as follows:

• letters (58%)
• postcards (56%)
• brochures (53%)
• catalogs (52%)
• self-mailers (50%)

If you’re new to direct mail design and production, it’s best to collaborate with an experienced direct mail marketing partner to select the most effective direct mail format for your goals.

Types of direct mail formats to choose from include:

Brochures. Ideal for sales-oriented campaigns, brochures allow you to showcase a product or service in a visually appealing and informative way by including high-quality images, detailed descriptions and persuasive calls-to-action.

These elements work together to prompt recipients to take the next step. Additionally, they provide a versatile platform for effectively communicating your brand’s story and value proposition.

Letters and newsletters. Who still loves getting letters in the mail? We do! Letters and newsletters are ideal for conveying informational content about your brand.

Reach your audience and build connections by sharing new services, product launches or exclusive promotions in a tangible and more personal way. 

Catalogs. Catalogs have a longer shelf life compared to digital ads and can effectively express your brand’s story. They help customers envision an appealing lifestyle. By using higher-end stock, colorful images, detailed descriptions, and compelling layouts, your catalog creates a sensory experience that captivates customers and entices them to engage with your brand.

Catalogs also provide an opportunity for cross-selling and upselling. By strategically grouping related products together and highlighting complementary items, you can encourage customers to increase their overall purchase value.

Postcards. This consumer (and marketer!) favorite is a popular choice due to its compact size and cost efficiency. Postcards are easily displayed on pin-up boards or refrigerators, ensuring that your message stays visible. They’re also an effective vehicle for postal retargeting.

For a successful postcard campaign, you want to ensure that every inch counts. Focus on:

• High-impact images
• Brand consistency
• Quality paper
• Personalized messaging
• Data-driven offers

Combining postal mail with a digital marketing strategy drives better results and improve your direct mail marketing ROI.

Pairing direct mail and digital to optimize results

Still wondering how to do direct mail marketing to be successful today? An omnichannel approach pairs print with digital channels to create a more consistent and impactful customer experience.

Thanks to dynamic marketing technology, you can send highly personalized, data-driven programmatic direct mail to convert website visitors. You can also promote customer retention while simultaneously reactivating lapsed buyers. By doing so, you can effectively optimize your direct mail remarketing efforts.

Unlike pay-per-click ads that can be difficult to track and measure, direct mail allows you to:

• Monitor response rates
• More accurately track conversions
• Analyze a campaign’s success in real time

This level of data-driven insight enables you to make informed decisions about your marketing communications to boost conversion rates. By leveraging data from various touchpoints, you can create a holistic view of your customers. You can also personalize their experience at every stage of the buyer’s journey with targeted offers that best resonate with them.

Does direct mail marketing work?

Yes — and better than ever. But innovating your direct mail marketing strategy is the key to staying ahead of the competition.

Need more convincing? Download The State of Direct Mail Marketing 2024: A Fresh Look at a Traditional Channel.