How Effective is Direct Mail Marketing | Key Statistics

Direct Mail Success Rate: Research Studies

Several studies have been conducted to analyze the effectiveness of direct mail marketing.

These studies often focus on metrics such as response rates, ROI, and customer engagement, providing a thorough understanding of how direct mail performs in various contexts.

Direct Mail Success Statistics

1. The Direct Marketing Association (DMA) Report

According to the DMA, in real estate, direct mail has an average response rate of 4.9% for prospect lists and 9% for house lists, significantly higher than email, paid search, or social media marketing.

2. Canada Post Neuroscience Study

A neuroscience study by Canada Post found that direct mail requires 21% less cognitive effort to process than digital media, suggesting it is easier to understand and more memorable.

This study also revealed that direct mail elicits a stronger emotional response and results in a 20% higher motivation response, which can lead to greater brand recall and purchase intent.

3. Epsilon Channel Preference Study

Epsilon’s study on consumer preferences indicated that 73% of respondents prefer receiving information through direct mail because they can read it when convenient and refer back to it as needed.

4. Journal of the Academy of Marketing Science

A study published in the Journal of the Academy of Marketing Science found that 75% of consumers could recall the brand after receiving direct mail, compared to only 44% who could recall the brand after seeing a digital ad.

This shows the higher brand recall and engagement that direct mail can generate, making it an effective tool for building brand awareness and driving customer action.

5. Consumer trust in direct mail

A recent study found that 91% of consumers trust direct mail, making it a much more trusted channel compared to email (72%) and social media (58%).

This high level of trust is attributed to the physical and personal nature of direct mail, which is less associated with spam and phishing attacks.​

As you can see, these studies show how effective direct mail is, especially when paired with digital marketing.

Using a well-rounded marketing strategy means the sky’s the limit when it comes to your direct mail ROI.

What is the Success Rate of Direct Mail in Different Industries?

Real Estate

Direct mail remains a solid choice for real estate professionals. Average response rates for real estate direct mail campaigns range from 2% to 4%.

However, using targeted mailing lists you can see a response rate of up to 9% for house lists and 4.9% for prospect lists.

Restaurants

Restaurants can expect response rates of about 8-12% from direct mail campaigns. Combining these mailings with digital efforts, such as social media promotions or email follow-ups, can amplify results​.

For restaurants, direct mail can effectively attract new customers and retain existing ones. Campaigns that include special offers, discounts, or coupons often see high engagement.

Dentists

Dentists benefit from direct mail by targeting local residents with promotions for new patient specials or reminders for regular check-ups. The average response rate for dental direct mail campaigns is around 5-9%.

Personalized mailers, such as appointment reminders or service discounts, tend to perform well, helping build a steady flow of patients​.

Banks

Financial institutions, including banks, use direct mail to promote new account openings, loan offers, and other services. The response rate for bank direct mail campaigns hovers around 4.4%.

Informative mailers that clearly outline the benefits of the services offered can significantly improve engagement and conversion rates.

Roofing Companies

Roofing companies running direct mail campaigns offering free inspections or highlighting special promotions can achieve response rates of around 2%.

Targeted mailers sent after storms or during seasonal maintenance periods tend to perform particularly well​.

Want to know the potential profits you stand to make with direct mail? Use our free direct mail ROI calculator to see the impact of direct mail on your business.

Calculate Your Direct Mail ROI

Success Trends of Direct Mail Over the Years

Direct mail marketing has been a reliable strategy for over a hundred years, originating in the 19th century.

From catalog mailings by department stores like Sears Roebuck in the late 1800s to personalized letters sent by local businesses.

So, how effective is direct mail marketing?

Below are four case studies that dive into how effective these campaigns can be.

Athletic Club

One example is a campaign involving an athletic club that ran a comprehensive marketing effort over a two-week period.

The club first profiled its existing membership and identified 5,000 potential contacts in their service area who matched current member profiles.

The campaign included personalized direct mail postcards, ads placed in USPS Informed Delivery emails, a dedicated landing page, and four social media ads.

They also used Google and social media retargeting ads to follow website visitors around the web.

They tracked phone calls and SMS opt-ins to monitor user engagement.

Then, they created an all-in-one dashboard for real-time viewing of interactions and impressions.

The results were impressive.

While the initial projection estimated 12 new members with $16,848 in revenue, the actual return was 40 new members generating $56,160 in revenue.

The total direct mail investment, including postage, was $4,595, resulting in an ROI of $51,565 or 1,122%.

Mexican Restaurant

Another case study of effective direct mail marketing features a Mexican Restaurant with two locations that targeted college students living in both on-campus and off-campus housing.

They ran a 30-day direct mail campaign integrated with digital technologies such as Facebook, Instagram, and Google ads.

They followed up with students who showed interest through social media and Google ads.

Impressions were created through USPS Informed Delivery, a service that allows recipients to see a digital preview of their incoming mail before it physically arrives.

USPS Informed Delivery typically has a 67% open rate, which increases the chances that recipients will engage with the content.

They utilized geotargeting to display ads through YouTube, Google, Facebook, Instagram, and other platforms.

This strategy effectively targeted specific zip codes to reach prospects based on keywords, key phrases, and online browsing history.

This extensive approach allowed the restaurant to connect with students in on-campus dorms and off-campus housing, as well as their visitors and families in nearby residential areas.

The results were significant: 1,100 coupons were redeemed, resulting in a 5.5% redemption rate.

Each mail piece generated an average of 13.6 impressions, meaning that each piece of mail led to the ad being displayed 13.6 times across various digital platforms.

These campaigns both demonstrate that combining direct mail with digital components can achieve substantial results.

Jaguar Land Rover

Jaguar Land Rover (JLR) launched a direct mail campaign to promote the new Range Rover Evoque. The campaign targeted young, affluent, and tech-savvy individuals who are often overwhelmed by digital ads.

JLR sent out a direct mail piece featuring a QR code. Recipients could scan the code with their smartphones to easily book a test drive online.

This approach provided a tangible, engaging experience that resonated with the premium nature of the brand.

The campaign achieved a strong 44% response rate, surpassing the initial goal of 20%.

Of those who responded, 10% booked a test drive.

The campaign not only achieved its immediate objective of securing test drive bookings but also reinforced Jaguar Land Rover’s brand presence among a key demographic.

This campaign demonstrates how a well-executed direct mail piece, combined with a simple QR code, can drive significant engagement.

Riversol

Riversol, an e-commerce skincare brand, faced challenges in reaching customers effectively through digital channels alone.

Riversol launched a direct mail campaign to reconnect with lapsed customers and those who hadn’t purchased after requesting samples.

They sent an eight-page brochure with winter skincare tips and a 15% off promo code.

Customers who received the direct mail ordered 21% more items than those only exposed to digital channels.

Impressed by the results, Riversol plans to continue using direct mail as a key marketing strategy.

Sephora

Sephora aimed to boost conversion among customers who abandoned their online carts by adding direct mail to its digital retargeting efforts.

Within 48 hours of abandonment, Sephora sent personalized postcards featuring the item the customer had left in their cart to a test group of 13,000 customers.

The results were significant.

The test group saw a 16% higher response rate than those who only received emails, proving that direct mail effectively re-engaged customers and drove purchases.

Proven Direct Mail Success From Wise Pelican Customers

Dr. Johnna Thomas

Dr. Johnna Thomas focused on a targeted mailing list of recently relocated residents in her area.

She was able to reach a demographic of people who were likely in need of a dentist.

This approach resulted in 15 new patients from just three mailings, each with an average revenue of $700.

This strategy led to a 300-plus percent ROI, proving the success of direct mail marketing when specifically targeted to the appropriate demographic.

The effectiveness of Dr. Thomas’s direct mail campaign didn’t stop at attracting new patients.

It also had a positive secondary impact on her practice through patient referrals.

The initial success of her direct mail efforts laid the foundation for ongoing word-of-mouth marketing, further contributing to the growth of her practice.

Kirk Weingarten ROVI Homes

Based on Kirk Weingarten’s experience, his strategic use of direct mail marketing has yielded extraordinary results.

By targeting homes valued at around $600,000 in the Florida market, Kirk and his wife’s $400 per mail campaign generated nearly $100K in earnings, demonstrating an impressive 10x ROI.

This targeted approach demonstrates the effectiveness of direct mail marketing in generating significant returns when directed at a specific and profitable market segment.

The Weingarten’s success is evident in the six listings they secured within the first year of using this strategy.

The high-quality postcards they used not only boosted their visibility in the market but also strengthened their reputation in the community and established them as trusted local REALTORS.

Bottom Line

Direct mail marketing remains an effective strategy for businesses across various industries. It delivers strong response rates and impressive ROI.

Combining direct mail with digital marketing can further improve your results.

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