What Is Direct Mail Marketing?

Direct mail marketing is a service for companies that need to send bulk communications via mail. The service provider handles the printing, preparation, and distribution of these items on behalf of the company sending them, and they are often used for general correspondence, transactional mail, or marketing campaigns.

Direct mail marketing at a glance

Direct mail marketing involves sending a letter or promotional material directly to a residential or business address via a UK courier (such as the Royal Mail). Some examples of items commonly sent include:

Letters
Postcards
Leaflets
Booklets
Popup mailers
Samples
Brochures
Coupons

Note: Direct mail marketing often takes advantage of mail merge, which lets you personalise batch documents to every recipient.

When is direct mail marketing used?

Despite the name, direct mail is not solely used for marketing. It offers a solution for any business that needs to send postal communications to a large number of addresses, and may prove a more effective way of sharing information compared to email, social media and other communication channels. We’ve listed some examples below.

Local marketing

Direct mail marketing is an effective strategy for local businesses aiming to target specific neighbourhoods or cities. By sending tailored messages through the mail, companies can create a personal touch that resonates more deeply with the local audience compared to broad-spectrum digital campaigns.

UK wide marketing

Direct mail is an excellent tool for reaching audiences across the UK, from urban centres to remote rural areas. This approach is especially beneficial for businesses whose services or products are not confined by location, such as e-commerce platforms or national charities.

International marketing

For reaching a global audience, direct mail marketing can be an effective but costly option. It's often more practical to partner with mailing services located within the target countries to minimise costs and ensure timely delivery.

Statements

Direct mail marketing can be used to send statements to your customers across the UK. Every letter can be customised based on your database. You just need to create a template and provide the information required to fill in the blanks.

Invoices

Direct mail marketing offers a reliable method for sending invoices to customers, ensuring that billing communications are delivered directly to their physical addresses. This can be particularly useful for businesses where digital billing is not the norm or where a physical invoice adds a level of formality and seriousness to the transaction, such as in legal or property services.

Utility bills

For utility companies, direct mail remains a crucial channel for dispatching monthly or quarterly utility bills. It provides customers with a tangible record of their consumption and expenditure, which can be helpful for record-keeping or when digital access is limited.

How effective is direct mail marketing?

Direct mail remains a relevant and effective marketing tool, contrasting sharply with digital formats in terms of engagement and trust. Here are some key statistics that demonstrate its impact and effectiveness in reaching and influencing customers today.

Open and engagement rates: Direct mail maintains an impressive open rate, with about 80-90% of direct mail being opened, compared to only 20-30% for emails. Additionally, about 42.2% of direct mail recipients either read or scan the mail they receive, indicating significant engagement with the material sent through this channel.
Response rates: Direct mail can yield a high response rate, averaging around 4.4% overall, which significantly outperforms digital channels like email, which has a response rate of about 0.12%. For more targeted direct mail to existing customers, the response rate can be as high as 9%.
Consumer preference and trust: A large segment of consumers, including younger demographics such as Gen Y and Gen Z, show a notable preference for receiving direct mail. About 61% of consumers enjoy receiving direct mail about new products, indicating its effectiveness in capturing attention and fostering brand connection. Furthermore, direct mail is considered more trustworthy than digital ads, with 76% of consumers trusting direct mail when making purchase decisions.
ROI and purchase influence: Direct mail also shows a strong return on investment (ROI), with median values reported around 29%, which is competitive when compared to other marketing channels. Moreover, about 60% of consumers have made a purchase as a result of direct mail, which showcases its direct impact on consumer spending behaviours.
Personalisation effects: Personalising direct mail can significantly increase its effectiveness, with personalised campaigns seeing a 135% increase in response rates over non-personalised campaigns.

Sources

How to get started with direct mail marketing

To successfully launch a direct mail marketing campaign, three fundamental elements must be in place: a targeted customer list, a professionally designed mail document, and a reliable service provider.

Customer list

A customer list is essential for any direct mail marketing campaign as it determines who will receive your message. This list should be carefully compiled to include individuals or businesses that are most likely to respond to your offerings. A well-segmented customer list enhances the precision and effectiveness of the campaign, ensuring that your marketing efforts are directed towards an audience with a higher potential for conversion.

Mail documents or designs

The design of the mail piece is crucial as it represents your brand and conveys your message to the recipient. Whether it’s a flyer, postcard, or catalogue, the document must be visually appealing and clearly communicate the key benefits and calls to action. A compelling design can significantly influence the recipient's engagement levels, prompting them to take the desired action, such as visiting a website or making a purchase.

Service provider

Choosing the right service provider to print and distribute your direct mail is vital. This partner will handle the physical production of your marketing materials and ensure they are delivered accurately and on time. A reliable service provider can offer valuable insights into postal regulations and help optimise postage costs while also ensuring your campaign materials meet quality standards and make the right impact upon delivery.

Get started with direct mail marketing

If you're ready to start a direct mail marketing campaign and need expert help with design, printing, and distribution, consider UK Postbox. We ensure your marketing materials are crafted with quality and delivered efficiently from our UK location. For more information on our services and how we can help you achieve your marketing goals, please get in touch below.

What is direct mail marketing?