Direct Mail

Direct Mail

FACEBOOK OR DIRECT MAIL?

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DIRECT MAIL ALL THE WAY OF COURSE!

The world of Direct Marketing is a crowded place and there lots of different ways that business make direct contact with potential customers. There is what people consider to be the old fashioned way – Direct Mail Provider and a whole plethora of “new media” routes.

It’s Facebook we are particularly interested in this week. As Facebook users ourselves, we’re getting a bit sick of having all sorts of adverts posted on our walls. Not only that, but we were interested to find out how effective it really is. And the interesting thing is, the answer is “not very”.

Here’s what we discovered. Although Facebook has billions of users, it is only 16% of your Facebook fans (UPDATE: according to The Time, this figure dropped to just 6% in February 2014!) or buddies that will see your post. That means for every 1000 fans you have, on average only 160 (UPDATE: ’six’, as per The Time’s post above) will see your post and if any of them are anything like us (and we do consider ourselves to be normal…), they will probably ignore it!

Forrester Research has recently published a new report which takes a critical look at Facebook’s (and other social medias’) return on investment. It makes interesting reading, as can be seen from the chart below. In fact, Facebook creates less business value than all the other digital marketing sources Forrester looked at.

Can Direct Mail Help Your Small Business

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Can Direct Mail Help You?

Direct Mail is just one of a number of different marketing tools you can use, so how do you decide what is going to work for you or not? We found this rather interesting way of looking at things at www.marketingdonut.co.uk and thought we’d share it with you.

As you all know, Direct Mail is personally addressed mail delivering your marketing messages by post. It isn’t unaddressed junk mail dropped through someone’s letter box along with a gazillion other fliers. It enables you to develop specific messages for your target audience and you can measure the response you get from it, which will tell you whether you are getting a good return on your investment or not.

Marketing Donut came up with 3 different scenarios to demonstrate who it might work for. They posed the question “Who does it work for?” and considered 3 different businesses, each of which might spend £250 sending mailshot to 1000 people. So….for example:

  1. A travel company that sells holidays at £1000 each, £250 of which is profit. In this scenario, if one customer buys a holiday as a result of the mailshot, the mailshot has paid for itself.
  2. A sandwich shop makes £1 profit on each sandwich it sells for £2. Regular customers spend an average of £5 a week, generating £125 of profit each per year. In this scenario, if the mailshot brings in 2 new regular customers, it will have paid for itself
  3. A pottery makes £5 profit on each set of mugs it sells, but customers don’t tend to buy more than one set. In this scenario the mailshot would need to return 50 new customers to pay for itself. Not such an attractive proposition

If you’re thinking of pulling together a Direct Mail campaign, it’s definitely worth thinking of the economics and the above shows you how you can do this. For more information on preparing your next campaign, why not check out some of our other useful blogs like:

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FACEBOOK OR DIRECT MAIL?