Chris Young
In an era dominated by digital noise, could the secret to driving eCommerce revenue lie in a blend of the old and new?
Snail mail has become somewhat of an anachronism and a relic of yesteryear. But could it still have a use even today, in 2023, and beyond? Many marketers are discovering that the problem with mailers isn’t that it uses antiquated means; rather the problem is that it wasn’t being bolstered with enough technology and consumer data. As a result, mailers became generic and just as interesting to toss in the direction of the recycling bin as they were to read.
However now, more than ever, people are voluntarily giving eCommerce companies masses of data that can be used for both online and offline retargeting and lead generation. This gives marketers and eCommerce companies a new way to personalize their mailers, not only by name, but also based on interest and intent. It also takes advantage of the one upside of mailers–it’s something physical that demands to be noticed. Could it be, in a world of fungible and disposable digital advertising, that a step back to physical marketing media is actually the best way to take a step forward? We certainly think it’s worth a try.
Direct mail retargeting is a unique marketing strategy that utilizes online user data to send personalized, physical mail pieces to home addresses. At its core, it takes the classic concept of direct mail — sending physical promotional materials directly to a prospective customer's mailbox — and infuses it with the precision of digital retargeting. This method allows businesses to reach out to potential customers who have shown interest in their products or services online, but haven't made a purchase.
The process begins when a user visits a website. Through the use of proprietary, cookieless technology, businesses can monitor and analyze these online activities, and collect voluntarily-given data like home addresses. Once this digital data is captured, the businesses use it to craft a personalized, direct mail piece and send it to their physical address, all done within 48-72 hours of their first website visit.
This seamless integration of online and offline marketing not only re-engages potential customers who may have fallen through the cracks of digital-only campaigns but also adds a personal touch that fosters brand connection and loyalty. It's a compelling fusion of the old and the new, offering a fresh perspective in a landscape often dominated by purely digital tactics.
Direct mail retargeting's unique blend of digital precision and tangible connection offers significant potential for revenue growth. While the primary aim of any retargeting strategy is to engage potential customers who have shown an initial interest but haven't taken an action (i.e. purchasing on site), direct mail retargeting takes this a step further. By providing a physical, touchable connection to the brand, it stands out amidst the relentless digital noise that consumers encounter daily, making it a powerful tool for capturing attention and driving conversion rates.
For instance, according to a study by the Data & Marketing Association, direct mail enjoys a response rate of up to 9% compared to the average email response rate of just 1%. This increased engagement often translates into improved conversion rates, leading to higher revenues. In our experience working with different companies on Household Retargeting, these numbers could be substantially higher. As a general rule, anywhere from 50 - 80% of website visitors will consent to tracking (i.e. allow location targeting). These visitors, if they do not convert, can then be sent a piece of mail offering a discount code, an app-install QR code, or a number of other incentives. By marrying digital data with traditional mail, businesses can create hyper-personalized promotional materials, which are more likely to resonate with potential customers. Enhancing the customer experience makes potential buyers feel valued and can significantly increase both conversion rates and customer loyalty.
While there are numerous retargeting strategies employed by businesses today, such as email and digital ad retargeting, direct mail retargeting offers unique benefits that often make it a more effective choice. Digital saturation is a key concern for eCommerce businesses. With the average consumer receiving over 120 emails per day and encountering countless digital ads, standing out from the crowd and capturing their attention can be challenging. In this digital deluge, direct mail retargeting emerges as a powerful alternative that meaningfully connects to the recipient.
Direct mail retargeting can be a breath of fresh air in a predominantly digital world, offering a tactile, personal experience that digital marketing methods lack. This tangible connection can foster stronger brand relationships and enhance the overall customer experience. For instance, while digital ads can feel invasive and emails can be easily deleted or lost in the inbox, a carefully crafted, personalized direct mail piece can create a lasting impression. Thus, while other retargeting strategies certainly have their place, direct mail retargeting often provides a more memorable, engaging, and effective approach.
Implementing direct mail retargeting in your eCommerce business involves careful planning, precise audience segmentation, engaging content creation, and vigilant tracking. The first step is to define the segment of your online visitors you wish to target. This could be visitors who abandoned their shopping carts, browsed specific product categories, or interacted with particular online ads. The use of cookies and tracking pixels can help gather the necessary data for audience segmentation. This initial targeting strategy should be continually refined based on campaign results and evolving business goals.
Once you've identified your target audience, you can start crafting engaging direct mail content. This content should be personalized based on the user's digital behavior. For instance, if they've abandoned a shopping cart, the mail might include a discount code encouraging them to complete their purchase. Remember, the beauty of direct mail retargeting lies in its ability to combine the precision of digital with the personal touch of traditional mail. Don't miss out on this opportunity to create a tangible, memorable experience for your potential customers.
Balancing digital and direct mail efforts is also key. Direct mail retargeting should complement your digital strategies, not replace them. Consider the customer journey and identify the touchpoints where direct mail could have the most impact. It could be after a certain number of digital ad impressions or a certain period of inactivity following a website visit.
Lastly, tracking the success of your direct mail retargeting campaigns is crucial. Use unique discount codes, personalized URLs, or QR codes that can be tracked when used. This will help you measure the response rate, conversion rate, and ultimately the return on investment of your campaigns. Constantly analyzing and optimizing based on these results will ensure your direct mail retargeting strategy continues to drive revenue for your eCommerce business.
The future of direct mail retargeting holds tremendous potential, with advancements in technology, data analytics, and personalization expected to reshape this strategy and make it even more effective. As businesses continually strive to deliver more personalized experiences, we can expect to see increasingly sophisticated segmentation in direct mail retargeting. Enhanced data analytics will allow businesses to delve deeper into customer behavior, identifying intricate patterns that could inform highly specific and successful mail content.
Advancements in printing technology will also play a pivotal role in the future of direct mail retargeting. Emerging technologies like variable data printing (VDP) are making it possible to produce direct mail pieces that are not just personalized in terms of text, but also in images, colors, and layouts. This next-level personalization can greatly enhance the customer experience, increasing engagement rates and ultimately driving revenue.
Moreover, the blending of digital and physical will likely become even more seamless. Augmented Reality (AR) is an exciting prospect in this regard. Imagine receiving a direct mail piece that, when viewed through a smartphone, offers an interactive digital experience, like a 3D view of a product or a virtual try-on. This blend of physical mail with digital experiences can make direct mail retargeting even more compelling.
The next step forward for engaging with prospects and customers may actually be a sort of step backwards into the days of snail mail and physical mailers. What many consumers have come to realize is that data is cheap and the marginal cost of showing someone an ad is almost zero and therefore they feel undervalued. However, physical mail gives the impression of forethought and appreciation which makes prospects feel like they’re valued before they ever even purchase anything.
The dirty secret is that the cost of this sort of marketing is often comparable with other digital marketing efforts while the engagement rates are significantly higher. The businesses that we have worked with on these sorts of household retargeting campaigns have experienced an incredible leap in revenue and show no signs of slowing. Be More Digital can work with you to set up one of these campaigns and run it seamlessly with your current marketing efforts. No design or mailing is required on your end so no additional hires need to be made and starting the process is as simple as installing a pixel on your website. For more information about Be More Digital’s Household Retargeting services, get in touch with our team of experts or take a look at our latest household retargeting case study.
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