Business Challenge Summary

Clozetivity Southeast PA is a recently launched custom closet franchise company that needed to produce new leads at a lower cost per lead. The client needed help generating more awareness to get in front of prospective buyers using a mix of social media and paid digital advertising. Knowing that content and SEO take time, Clozetivity Southeast PA needed to expand the ways they could target the market to generate awareness and leads more quickly.

Solution

The client turned to &Marketing to supplement their digital approach with a traditional marketing tactic, targeted direct mail, using Every Door Direct Mail (EDDM) by USPS. EDDM strives to make direct mail more efficient and targeted by allowing you to select routes based on specific audience parameters: 

• Route: City, Rural/Highway, PO Box
• Residential or Residential AND Business
• Age
• Average Size of Household
• Average Household Income

Not only does this ensure mail pieces are seen by the right people, but at an average price of mailing that is less than a postage stamp. Users are responsible for the printing and delivering of the mail pieces to the post office, but the USPS does provide listings of certified available printers to use for both guidance and physical printing (see here). Mailings currently cost as low as $0.189 per piece (postage). 

After designing two different postcards to A/B test, Clozetivity Southeast PA partnered with PrimoPrint to print 6×9 postcards, select the routes of the audiences they were targeting (residential, high average household income, ages 25-55), and deliver the printed pieces to the USPS for delivery.  

Is direct mail marketing still effective?

Direct mail marketing maintains its effectiveness when strategically implemented, offering tangibility, personalization, and targeted messaging that can create memorable interactions. Although it can be more cost and time-intensive, direct mail stands out in less cluttered physical mailboxes, potentially building trust and capturing attention.

The integration of direct mail with digital strategies, alongside careful tracking and measurement, can enhance its impact. However, its success depends on various factors including the industry, audience, message quality, and design.

Direct Mail Marketing Results

After sending about 12,700 highly targeted direct mail pieces for $5,700, Clozetivity Southeast PA received four high-quality leads from Postcard A, two of which led to sales of over $10,000. This led to a Return On Ad Spend (ROAS) of 351%. Additionally, Clozetivity generated brand awareness among roughly 6,000 potential buyers. Though Click Thru Rate (CTR) was low (0.18%) by industry standards, the conversion rate was extremely strong (17%). This can be attributed to the brand being unknown and the testing of the creative pieces sent. As Clozetivity Southeast PA continues to improve its awareness online through digital advertising and content, the brand will use the lessons and success from this direct mail test to further expand reach.

What is the average return on direct mail marketing?

The return on investment (ROI) for direct mail marketing can vary widely depending on various factors such as the industry, target audience, quality of the mailing list, design of the mailer, and the offer presented. However, to give a general idea, the average “return” or response rate is anywhere from 0.5-2%. The exact ROI is going to depend on the type of campaign you’re running and what action you ask your recipients will take.

It’s important to note that this is a broad average and actual returns can be significantly higher or lower based on the specifics of the campaign. Well-targeted and well-executed direct mail campaigns have been known to yield ROIs much higher than the average, while poorly executed campaigns could result in a loss. To learn more about direct mail campaigns and decide whether they might be a tactic you should integrate into your marketing strategy, reach out to our team!

We’d love to learn more about your challenges and how a coordinated marketing approach might help take your organization to the next level.