🎓 When to use direct mail vs email marketing

Use direct mail (e.g. physical letters) for customer acquisition, then email for retention. This strategy lifted revenue by up to 13.5%.                                                                                                                                                                                                                                                                                                                                                                                                                 January 02, 2024 | [Read Online]( When to use direct mail vs email marketing Use direct mail (e.g. physical letters) for customer acquisition, then email for retention. This strategy lifted revenue by up to 13.5%. [Thomas McKinlay]( [fb]( [tw]( [in]( [email](mailto:?subject=Post%20from%20Ariyh&body=When%20to%20use%20direct%20mail%20vs%20email%20marketing%3A%20Use%20direct%20mail%20%28e.g.%20physical%20letters%29%20for%20customer%20acquisition%2C%20then%20email%20for%20retention.%20This%20strategy%20lifted%20revenue%20by%20up%20to%2013.5%25.%0A%0Ahttps%3A%2F%2Fariyh.beehiiv.com%2Fp%2Fwhen-to-use-direct-mail-vs-email) New to [Ariyh](? This is a 3min practical summary of a scientific study 🎓 Join 24,793 marketers who use science, not flawed opinions 📈 [Subscribe here]( Today’s insight is brought to you by… [Storyblok]( Want a faster, more effective way to run your website? Try [Storyblok]( - the next generation headless CMS: - Edit your website as you browse it - Launch new landing or product pages in minutes - Create content once, publish across all your channels 170,000+ marketers and developers use it. Curious why? Try it out yourself for free - no credit card required. [Try it for $0 for 14 days]( Want to sponsor Ariyh? [Here’s all you need to know](. 📝 Intro You open your email in the morning and see a couple of emails from brands you are not very familiar with. You ignore them. On your way home that evening you check your mailbox and pull out a colorful, nicely printed brochure. It lays heavy in your hand and you find yourself giving it a long glance - what is it? The difference in attention is undeniable. Especially if your brand is unfamiliar. Here’s how you should use each of these channels in your strategy. P.S.: People also [remember print ads better]( for longer than digital ads, making them more engaging and effective. Previous insight: [No, .99 prices don’t hurt quality perceptions]( (more insights [here]() Use direct mail to acquire new customers, and email to retain them Topics: Ads | Brand & Strategy For: B2C. Can be tested for B2B Research date: August 2023 📈 Recommendation Use direct mail to acquire new customers, or reconnect with inactive buyers. For example, send physical letters, brochures, or even packages (depending on the value of the potential customer). Use email to retain your existing active customers, reminding them that you exist and to buy from you. For example, send educational content, discounts, or product updates. Both channels will work more effectively, and increase your overall revenue. 🎓 Findings - Sending direct mail (e.g. physical copy of a brochure) works best for prospects (i.e. new customers who have not yet made a purchase), while email marketing is more effective for customers who are already active buyers. - In an analysis of 230,395 sales and customers of two different companies across 7 countries, researchers found that: - Direct mail worked to attract new customers, especially at driving them to physical stores - Email marketing resonated with medium-high value existing customers, driving them to buy online - This strategy increased revenue for beauty retailer L’Occitane en Provence by 6.5% in Italy. It was projected to increase revenue by 13.5% in its other main markets and by 9.3% for a US women’s apparel retailer 🧠Why it works - Opening a direct mail is more emotionally appealing than opening an email. - Print materials provide the space to [communicate more]( detail, which is useful for familiarizing us with a brand. - When we receive and open a physical letter, it creates a personal, emotional, and [memorable experience](, which in turn increases [purchases](. - When we buy from a brand regularly, lower effort email reminders are enough, we do not need such a comprehensive pitch. 💥 Advertise on Ariyh Want to reach a specialized audience of ~25,000 marketing decision makers and founders? Sponsor Ariyh. You’ll grow your business and keep Ariyh free for everyone. Win-win 👇 [Learn more & book here]( This announcement was sponsored. Want your brand here? [Click here](. ✋ Limitations - The study analyzed a beauty brand and a women’s apparel company in Western countries (e.g. US, Germany, Italy). The effects for other products (e.g. software, food, services) and in other countries are likely to vary. - The research did not test variations in strategy and sequencing of email and direct mail. For example, a strategic use of email marketing might be useful to complement the first direct mail impression. - The study did not account for the perceived wastefulness of direct mail. Certain consumer groups (e.g. younger generations, environmentally conscious people) might perceive it negatively, potentially hurting the brand. 🏢 Companies using this - A survey of 351 marketing managers found that most companies wrongly reserve direct mail to target the most valuable existing customers: - New leads are sent large scale email marketing campaigns - Already active high-value buyers tend to get more curated physical communication - Correctly optimized email strategies are also rare, as 41% of marketers do not segment their audiences. - Most smaller and newer brands do not send physical communication at all, due to high pricing and fears of seeming wasteful or unsustainable. - Some large brands (e.g. Google, Burger King) continue successfully marketing with physical coupons or questionnaires. Geico insurance famously uses short, personalized letters with slogans like “Inside this envelope is a simple way that could save you $500 on car insurance.” ⚡ Steps to implement - Segment your customers based on whether they are potential customers, customers, and their shopping history. Target each group differently, you can go as deep as you like. - Focus on direct mail for new customer acquisition (e.g. if you’re a new coffee shop distributing pamphlets in the neighborhood postboxes). People will pay more attention to your ads [and remember them better](. - When targeting a group of potentially high value customers (e.g. an executive in a B2B sale), you can go the extra mile - ship packages, gifts, and even products people can test. - You can make letters feel personal to make them more effective. For example, you can use [photocopies of handwritten notes](. - Focus on email marketing for people who have already purchased from you (e.g. informing them of their favorite products going on sale). [Include buyer’s names in the subject line]( for better open rates. 🔍 Study type Market observation (analysis of ~84k customers of beauty retailer L'Occitane en Provence in six countries and ~24k customers of a US women’s apparel retailer) and field experiment (with ~120k customers of L’Occitane en Provence in Italy). 📖 Research [Direct mail to prospects and email to current customers? Modeling and field-testing multichannel marketing.](Journal of the Academy of Marketing Science (August 2023) 🏫 Researchers - [Albert Valenti](, IESE Business School - [Shuba Srinivasan](, Questrom School of Business, Boston University - [Gokhan Yildirim](, Imperial College Business School - [Koen Pauwels](, Northeastern University Remember: This is a new scientific discovery. In the future it will probably be better understood and could even be proven wrong (that’s [how science works](). It may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight? [Loved it]( | [Great]( | [Good]( | [Meh]( | [Bad]( - 📘 Supercharge your business with Ariyh’s [Playbook of Pricing & Promotions]( or [Playbook of Ecommerce]( - 📣 Want to advertise on Ariyh? [Here’s all you need to know]( - 🎓 New to Ariyh? -> Subscribe below or read other [3-min marketing insights]( [Subscribe here]( [fb]( [tw]( [ig]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Ariyh Calle Bailen, 11 Barcelona, Barcelona 08010, Spain [[beehiiv logo]Powered by beehiiv](