Is Direct Mail Still Effective? The Statistics That Prove It Works
Yes – direct mail remains an essential and statistically superior marketing tool, with 92% of all direct mail opened, a 3.4% response rate among existing customers compared to 0.12% for email, and an ROI of £3.22 for every £1 spent. Forget the headlines about Facebook and Google: even the internet giant Google uses direct mail to target business clients and consumers. Why would the heavyweight of PPC and SEO still use this time-honoured marketing method unless it was still very much significant? Let’s look at the figures.
Direct Mail Statistics at a Glance
| Statistic | Figure |
|---|---|
| Direct mail opened | 92% of all direct mail is opened |
| Recipients taking action | 48% of people have taken action after engaging with direct mail |
| Response rate (existing customers) | 3.4% for direct mail vs 0.12% for email marketing |
| Return on investment | £3.22 per £1 spent, vs £3.12 per £1 for online advertising |
| Business investment | Over £1.5 billion invested by businesses in 2016 |
| Share of advertising spend | 13.9% of all advertising spend |
| Business mail sector | 26% of all income in the sector |
| Charity advertising spend | £239m of £394m charity ad spend goes to direct mail |
What Do the Figures Say About Direct Mail?
Charities have been using direct mail for a very long time to promote their causes and increase donations, and the latest statistics show that charities spend a higher proportion of their advertising budget on direct mail – £239m out of £394m – than on other forms of advertising. In 2016, businesses invested more than £1.5 billion into direct mail, with direct mail accounting for 13.9% of all advertising spend and 26% of all income in the business mail sector. A report by the Direct Marketing Association found that the response rate for direct mail to an existing customer averages 3.4% – which might not seem a lot until you compare it to the email marketing average of a measly 0.12%. Direct mail has also been found to offer a high return on investment, especially compared to online advertising: £3.22 for every £1 spent on direct mail, versus £3.12 for every £1 spent online.
Direct Mail vs Email Marketing
| Measure | Direct Mail | Email Marketing |
|---|---|---|
| Response rate (existing customers) | 3.4% | 0.12% |
| Open behaviour | 92% of mail is opened | Easily deleted in bulk, often unread |
| Physical presence | Seen, touched and valued more | Fleeting and on-screen only |
The Countless Benefits of Direct Mail
Royal Mail has also set out some fascinating benefits of direct mail, and they hold up in practice:
- Personalisation – The latest figures show 92% of all direct mail is opened and 48% of people say they have taken action after engaging with the content. This effectiveness comes from the personal touch of direct mail compared to an email’s synthetic, methodical appearance, and direct mail uses the most up-to-date technology in data and print to create a unique, customised piece that targets your customers directly.
- Integration – An integrated campaign adds another dimension to internet marketing: direct mail can reinforce messages seen in poster campaigns and press adverts, and provoke people to visit your website and social media pages, raising more awareness for your business.
- Targeting – Direct mail can be targeted more successfully than TV or radio advertising, provided you have a good database. If you don’t have one, a mailing house offering direct mail services can help, updating your data to build relationships with potential customers and ensure successfully targeted mailshots.
- Measuring – By enclosing a return envelope or an order card, you can accurately count responses, or you can provide unique email addresses, phone numbers or discount codes so that every contact can be tracked and recorded as coming from your direct mail.
- The real deal – The internet is fleeting, making it easy for potential customers to delete multiple messages at once without ever reading them. Responders say they value something more when they can both see and touch it rather than only view it on a screen. With so many benefits, it is no surprise that direct mail is still popular – so why not start planning your campaign today?
Direct Mail Effectiveness: Frequently Asked Questions
Is direct mail still effective?
Yes. 92% of all direct mail is opened, 48% of recipients take action after engaging with it, and it delivers a 3.4% response rate to existing customers – around 28 times higher than email marketing’s 0.12%.
Does direct mail have a better ROI than online advertising?
Yes. Direct mail achieves an ROI of £3.22 for every £1 spent, compared to £3.12 for every £1 spent on online advertising.
Why does Google use direct mail?
Google uses direct mail to target business clients and consumers because physical mail cuts through in a way digital channels cannot – a strong endorsement of the medium from the biggest name in online advertising.
Why do charities rely on direct mail?
Charities spend £239m of their £394m advertising budget on direct mail because it consistently drives donations better than other advertising formats.
How do I measure a direct mail campaign?
Enclose a return envelope or order card, or feature unique email addresses, phone numbers or discount codes on your mailing so every response can be traced back to the campaign.
How do I start a direct mail campaign?
For more information on our direct mail and bulk postage services from The Direct Mail Company, get in contact today at sales@thedirectmailcompany.co.uk or call us on 0333 038 3797.
