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Direct Mail Marketing: Customer Acquisition and Retention
Even in the digital age, direct mail remains one of the most effective marketing strategies for acquiring new customers and retaining existing ones.
Customer acquisition is any campaign aimed at generating new customers, building brand awareness, or activating potential customer. It's able to stand out from the massive message of various channels, turn prospects into customers through a step-by-step approach and some promotions.
Customer retention is a strategy that focuses on retaining existing customers. Create targeted direct mail campaigns to connect with customers, build their loyalty, and achieve higher long-term customer value.
Improving customer retention by just 5% can increase a business' profits by 25-95%, and repeat customers often spend twice as much in the third year of their relationship with a brand as they did in the first six months.
While both customer acquisition and retention campaign play a role in a long-term marketing strategy, this two should not be confused as they target completely different audiences.
How to Use Direct Mail to Acquire Customers
Attention of potential customers
According to the report of USPS, once a direct mail item is picked up, 82% of people spend at least one minute to have a look.
In general, the audience for customer acquisition campaign might not be familiar with your brand, so it needs to succinctly summarize who you are and what kind of value/service you can provide.
Company name and logo - to demonstrate popularity, reputation or authority
Headline and subheading — a short introduction to the product and CTA
Blank space — Give the design some breathing space
Target audience
Correct and valid customer data is the key element for the success of direct mail campaign.Rather than reaching “everyone”, it’s better to use segmentation such as gender, age, income, purchasing behavior, etc, to find customers who are most likely to be interested in the brand.
Using customer data for personalization can make direct mail campaign more meaningful, as more customer data is collected, more relevant and customized content can be sent.
Brand value
Always assume that potential customers don't know or care about your brand and product, and answer the question they want to know-"What can I get from it?"
Who doesn't love to get something for free or at a lower price? So don’t just focus on introducing the features and benefits of the product in the copy and headlines, but tell them the value you can provide to arouse customers’ needs.
"Visit the website for a special Thanksgiving discount!"
"Scan the QR code and get a free dental checkup!"
Convey urgency
While some CTAs may seem over the top, but they really work on any channel, especially in customer acquisition.
In today's digital world, time is ticking all the time. FOMO (Fear of Missing Out) is real, bring it into the CTA and convince people to act now.
“Seasonal limited, May only”
"Limited stock, offer ends this week"
How to Use Direct Mail to Retain Customers
Interactive content
In fact, there is already an inherent advantage in customer retention campaign-customers are already familiar with your brand, so they are more likely to read your mail.
Customer retention campaigns are aimed to strengthen the relationship with existing customers, which can be done by introducing them to new products, sending them exclusive offers, or recommending add-ons to products they have purchased in the past.
Promote latest products
Product launches are great for retaining regular customers , as they are more likely to care about the latest product news.
By sending direct mail with images of the product and its features, using headlines like "Internal Access Only" or "Just for your sneak peek”,make customers feel like they're one of a kind.
In addition, special offers of new products, pre-order links, and even QR codes for early purchases which are more likely to increase customer loyalty.
Birthday or anniversary offers
Express brand blessings on customer birthdays or anniversaries with direct mail.
A case study by Hallmark Business Connections shows that insurers who sent birthday cards to their customers retained 16% more customers than insurers who did not send.
Instead of using a CTA like “Buy Now” for a sale, use something like “Gift for you,” “Best wishes,” etc., with a birthday or anniversary offer that can be redeemed online or in-store.
Event invitation
Inviting customers to brand events can greatly increase loyalty and retention.
Send something like "You're invited!" and segment your audience by location, making sure your event is close enough for your recipients to attend.
During the event, remember to track the attendance: online check-ins, filling out forms, scanning QR codes, etc., so you can send a “thank you for coming” postcard afterward and include photos, event recaps, or a calendar of future events to continue the connection with customers.
A strong direct mail campaign can combine both customer acquisition and retention strategies, and if the content of the direct mail is tailored to the target audience, it will lead to higher response rates and conversion.