Is direct mail dead?
DM News online has a bit called GLOVES OFF and last Monday (May 17) the topic was “Is Direct Mail Dead?”
Two executives,
Scott Grimes – CEO and cofounder of Cardlytics – and Dan Smith – SVP of marketing, ClickSquared – took more or less opposite sides.
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Smith wrote “No. Direct Mail is not dead.” and closed with “Direct mail might not make sense in all situations, but it remains an integral part of cross-channel marketing.” Reasonable answer.
Grimes’s contribution needs a closer look. First, here’s a line from the Cardlytics website that more or less describes what his business does: “Merchants present customers offers directly within their online banking pages.”
Now here’s his take on whether or not direct mail is dead. The bullet points between his paragraphs are mine:
Yes. Despite direct mail’s reputation as a marketing standard, its effectiveness has always suffered from a number of practical limitations. Essentially, marketers are in the dark regarding the efficiency and ROI of direct mail, even though its cost – in terms of time, money and labor – is significant.
· Every marketing discipline is ineffective in some way because of practical limitations. That’s why we have so many different disciplines.
· Marketers are in the dark regarding the efficiency and ROI of direct mail? No. It’s the exact opposite, down to the last nickel if we care to track it that far.
Through transaction marketing within banking, as well as other emerging channels, direct mail has finally met its match as users are deriving tangible benefit from reduced expenses, improved targeting and tracking capabilities and ease of redemption.
· Sounds as if transaction marketing within banking is the leading emerging channel.
· Direct mail has finally met its match? Well, that might be true for things that can be sold successfully through transaction marketing within banking to people who don’t mind being interrupted while they’re banking. Impulse items, I imagine. Anything more complicated might need a link to a website or, heavens, direct mail.
Launching a direct mail campaign requires significant up-front expenditures for design, mailing lists and printed materials. Marketers hope to recover these investments over time. Besides being expensive, lists and databases quickly become obsolete, have significant duplication and are prone to error.
· Recover investments over time. Hmm. Sometimes we recover 100% or more the very first time out and every time we mail out we acquire something more valuable: knowledge that helps us get better and better as we skip along creating a foolproof money-making machine for our clients. It’s fun. I imagine the same sort of thing happens in transaction marketing within banking.
· All worthwhile lists (databases, too) are updated regularly and don’t become obsolete unless the list owners want to commit business suicide. List renters frown at internal duplications. Among different lists, significant duplication can be a pretty good indication that you’re on the right track in list selection. You don’t pay for most duplicates and computers de-dupe in the blink of an eye. No prob. Prone to error? I don’t know about prone, certainly not in my experience, but errors do happen from time to time, and probably happen even in transaction marketing within banking.
Additionally, direct mail does not provide marketers realistic means of tracking who receives the offers – let alone who actually “opens the envelopes.”
· Well, not a 100% realistic means of tracking who receives the mailings. With simple list hygiene and CASS, we’re pretty sure of 95% or so. Not bad and as realistic as the Red Sox pitching problems.
In today’s digital age, direct mail is archaic, especially in the ways in which customers must redeem incentives. Mailed offers generally include physical coupons or promotional codes that need to be printed or remembered, a difficult scenario for a busy, digital consumer.
· I’m sure he meant that direct mail is seen by some as archaic. Not sure what redeeming incentives has to do with it (compared to the entire proposition) but it probably involves the ghastly inconvenience of slipping something into a prepaid envelope and dropping it into a mail box or calling a toll-free number or logging onto a URL or sending an email, even faxing. The horror.
Many efficiencies presented by emerging channels far outweigh direct mail in terms of giving marketers and customers what they want.
· Ah, to hell with it. Grimes can do what he does and we’ll do what we do. Good Luck to him.
















