Great. Let’s get rolling. Shall we.
What is direct marketing?
According to Wikipedia direct marketing is a form of advertising in which you communicate directly to customers through many different forms of media including: text messages, email, websites (blogs), online advertorials, database marketing, fliers, catalogs. promotional letters, newspaper ads, magazine ads, outdoor ads (billboards), and targeted television commercials. Direct marketing is also known as direct response.
Let’s run through some facts and figures on direct marketing.
- Television is no longer a focused content activity. In 2014, 78% of U.S. internet users access second screens during shows, and 71% did so during Ads. The biggest second screen activities by far are checking email, social media, time filler, content snacking activities that often require little thought. March 2015 (Source: Chief Marketing Officer Council World Wide)
- People want to be in control of the content they want to receive: 86% of people skip TV commercials. 44% of direct mail is never opened. 91% of people have unsubscribed from company emails they previously opted into. February 2015. (Source: Chief Marketing Officer Council World Wide)
- According to Winterberry Group, spending on direct mail in 2013 in the U.S. is expected to decline by 0.9% $44.8 billion, while all direct and digital marketing is expected to rise by 5.9% to $137.2 billion. August 2013. (Source: Chief Marketing Officer Council World Wide)
- 79% of consumers will act on direct mail immediately compared to only 45% who say they deal with email straightaway. (Source: Chief Marketing Council World Wide)
- 54% of mailed post cards are read by recipients. November 2012. (Source: Chief Marketing Council World Wide)
- Targeted direct mail boasts a 4.4% response rate, compared to email’s rate of 0.12%. November 2012. (Source: Chief Marketing Council World Wide)
- Email marketing yields an average 4,300% return on investment for businesses in the U.S. July 2015. (Source: Chief Marketing Council World Wide)
- I know we’re focusing on customer acquisition in this blog post, but this is an interesting statistic on customer retention and email marketing you should know. In 2014, email marketing was cited as the most effective digital marketing channel for customer retention in the U.S. January 2015. (Source: Chief Marketing Council World Wide)
- Click through rate (CTR) of emails is higher when using the recipients first name in the subject line over no use of the first name. January 2015. (Source: Chief Marketing Council World Wide)
There you have it.
What are your thoughts on the statistics I just shared with you?
One key takeaway for me personally is the higher response rate from targeted direct mail versus email. 4.4% versus 0.12% respectively.
Given that we live in the digital age that surprises me.
What do you think?
Not all direct marketing is created equal as evidenced by each of these statistics.
Direct marketing for new customer acquisition (best return-on-investment)
- Depending on what your marketing budget is as a small business owner, it is very beneficial to employ targeted direct mail marketing campaigns as part of your customer acquisition process.
The proof is in the pudding. Numbers don’t lie. Just look at the statistics.
The biggest reason in which I already touched on and this is the response rate versus email.
- Email marketing should be used as part of your customer acquisition marketing efforts.
Email marketing yield on average 4,300% return-on-investment for businesses in the U.S. last year – 2015.
What are your thoughts?
That should tell you two things:
- If you’re not using email as part of your customer acquisition process, you need to get with the program.
- That type of return-on-investment is phenomenal! There is no other customer acquisition marketing strategy that comes even close to those numbers.
I would be remiss if I did not mention the fact that email marketing (in 2014) was determined to be the most effective digital marketing channel for customer retention in the U.S.
So that just speaks volume to the overall effectiveness of email for new customer acquisition and customer retention.
Wouldn’t you agree?
Do you see the benefit of incorporating email into your customer acquisition efforts?
Also, as it relates to email marketing it was mentioned in the statistics above that you get a higher click through rate by using the recipients first name in the subject line over no name.
I would make sure you do that.
Remember to build a relationship with your prospects.
[tweet_box design=”default” float=”none”]Get to know their needs, wants, and desires before trying to cram your product down their throat.[/tweet_box]
I share some valuable tips on email marketing here. Recommended Reading: Email Marketing Tips for Customer Acquisition
Direct marketing for new customer acquisition (worst return-on-investment)
- As you can tell by the statistics we discussed above television commercials are the worst type of direct marketing you can use as part of your customer acquisition process.
People no longer pay attention to them as they once did.
They’re too busy checking their email or looking at Facebook, Twitter, Google+ or any of the other social networks the cool kids use these days. Too many to keep track!
But you get the point.
Another point on why television commercials have lost their appeal is because you want to be in control of the content you want to receive.
All other mediums allow you to do that, whereas television does not.
This has also led to the phenomenon known as Apple TV, Netflix, and Amazon.
So, there it is.
Direct marketing is effective in customer acquisition.
All forms of direct marketing?
There are two forms of direct marketing that are effective in new customer acquisition.
- Targeted direct mail marketing
- Email marketing
If your marketing budget as a small business owner is robust then, I would use both targeted direct mail and email marketing.
If you don’t have deep pockets, then the obvious choice is email marketing as that will give you the most bang for your buck as a small business owner.
Do you have a customer acquisition process in place for your business?
Is your current process working?
If your process is working, do you want to improve it?
If you’re answering “Yes” to all of these questions then my hats off to you. Business must be awesome!
Otherwise you and I should talk. Let’s see how I can get you to where you want to be.