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Amid Virus Disruption, Direct Mail Has ‘Optichannel’ Advantages

As the majority of American adults hunker down at home, with all but essential businesses closed or working remotely because of the COVID-19 crisis, AccuList reminds marketers of the unique advantages of targeted direct mail, which takes promotions right into homes, has the highest response rate of any channel, and has the ability via print technology to connect with digital, too.

Direct Mail Can Rise Above the Current Digital Noise

Direct-response agency SeQuel Response notes that since the majority of American have responded to state lockdowns and virus fears by increasing their online shopping, many direct marketers have flooded the digital zone with new e-commerce sites, digital advertising, social media promotions, and e-mail. With online channels increasingly overcrowded, direct mail offers an alternative way to reach consumers in their homes and an opportunity to rise above the noise. The agency provides some good tips for direct mail in the time of COVID: 1) Ensure creative elements and messaging align with consumer sentiments and promote social responsibility and even national pride for positive brand awareness; 2) reconsider mail frequency and timing if warranted for a particular product/service, but make sure not to lose touch with the audience; 3) solidify existing customer relations, with increased focus on retention and brand awareness to help survive on the other side of the crisis; 4) integrate direct mail with digital marketing, a proven way to boost campaign performance and reduce CPA, including print technology, such as QR, AR and VR; and, finally 5) plan for the post-crisis world, recognizing that a campaign takes six weeks from list development to creative production to mail drop, and make sure messaging and brand positioning can evolve post-crisis.

Leverage Mail Strengths With Modeling, Digital Alignment

Given the coronavirus disruption of buying processes, “optichannel” campaigning, meaning supporting a prospect’s or customer’s shopping and buying process using the channel that is best for them, becomes essential for ROI. Direct mail adds special advantages to an optichannel mix, especially when combined with modeling and digital integration, argues a recent Target Marketing magazine article. Among the article’s examples is Galileo Learning, which operates 75 children’s summer camps across parts of California and Illinois. The company used tight response-lift customer modeling to identify higher-response prospects on external lists and then used the resulting savings to create even better creative. As a result, response surpassed expectations by bringing in 155 new campers and $66,000 in new revenue. Another Target Marketing case study is especially relevant for nonprofit fundraisers trying to help the most vulnerable in the current COVID-19 crisis. It comes from Meals on Wheels in the Diablo region of California, whose mailed holiday donor appeal garnered $230,000 in donations and 43% new donors. The charity attributes the 75,000-piece mail campaign’s success to, first, defining more-responsive list segments for existing donors, lapsed donors and prospects via demographics and customer-look-alike modeling, and, second, adding targeted digital advertising (e-mail, social and online display). The added digital effort not only delivered a 600% increase in campaign impressions over the mail-only control, the donors acquired by the “optichannel” campaign gave an average of 169% more than mail-only donors.

Industrial Marketers Bet More on 2018 Direct & Digital

AccuList USA has a long track record of helping warehouse, industrial and back-office product marketers via data brokerage, predictive analytics and multi-channel direct marketing, and we’ve learned some important lessons along the way.

Industrial & Tech Marketing Budgets Expand in 2018

The good news is that many industrial marketers were inspired to expand investment in 2018. According to the “2018 Budget Trends in Industrial & Technology Marketing” report published by engineering.com, industrial marketing budgets in 2018 are expected to hit “the highest levels of growth (45%) and the lowest reported levels of shrinking budgets (4%), of any of the last five years.” More than half (54%) of manufacturing marketers expect their budget to be larger in 2018.

Quality, Targeted Data Is Key to B2B Direct Marketing

But expanded multi-channel spending still needs to be smart spending. As data brokers, we can’t overemphasize that successful B2B direct marketing–including direct mail, print catalogs and e-mail campaigns–starts with quality, targeted data. Marketers can boost response by using predictive analytics and buyer profiles to target–and then opt for the rental lists of active product inquirers/buyers that our proprietary list research finds to be top performers in each vertical. Targeting the right message to decision-makers in the buying process is also key; with product and industry factors affecting whether to select a chief engineer, purchasing manager, warehouse manager, human resources chief, or C-suite executive in mailing lists.

A Digital Strategy Is Now Essential for Leads and Sales

While direct mail continues its response leadership, there’s no denying that most B2B buyers are digital shoppers today. Research by Acquity Group finds 94% of B2B buyers say they conduct some form of online research before purchasing a business product, for example. Forrester Research has found that 59% of B2B buyers prefer not to interact with a sales rep, and 74% find buying from a website more convenient. That makes digital catalog sites into essential sales tools, giving customers the option to browse product, pricing, and inventory information in real-time and then self-serve. Of course, online traffic-building requires a good search engine optimization (SEO) strategy given that 73% of global traffic to B2B companies comes from search engine results. But most successful B2B marketers also invest in paid digital efforts. In fact, a 2015 study by Content Marketing Institute, MarketingProfs, and Fathom found that manufacturers ranked search engine marketing highest among paid marketing options in terms of efficacy (52%) and promoted social media posts came in second (39%).  For social media ads, B2B marketers see video as a top response tactic, which is why manufacturers in the study ranked YouTube as the most effective social media site, followed by LinkedIn ads, which AccuList USA supports. Take a deeper dive into the core elements of digital industrial marketing with this post by gorilla76, a B2B consulting firm.