Unleashing the Power of Direct Mail: Insights from Financial Services Marketing
Direct mail remains a powerhouse in the marketing arsenal, especially for financial services.
With the rise in digital content, it would be easy to assume that direct mail is losing relevancy. However, according to a 2024 report conducted by SG360, 84% of marketers surveyed agree direct mail provided the highest ROI of any channel they use.
The tactile nature of direct mail enhances its value, creating memorable and engaging experiences that digital channels often can’t match. What’s more, direct mail offers many distinct benefits to help marketing efforts stand out in a crowded marketing environment.
Format choices help maximize your marketing objectives.
One of the ways direct mail drives such a large response — and what sets it apart from other channels — is that it gives you the ability to use different formats. An email is an email. Direct mail, on the other hand, can come in a variety of shapes and sizes. This gives financial services marketers the flexibility to tailor their approach to specific campaign goals and audience preferences.
But does the format have an impact on the effectiveness of a direct mail package? According to another survey on consumer interactions with direct mail from financial service providers, the findings are illuminating:
- 48% are more likely to read a letter package: Letter packages, often perceived as more formal and informative, capture nearly half of the audience’s attention. This makes them ideal for complex messages and is one reason why they are used for acquisition efforts.
- 31% are more likely to read a postcard or self-mailer: While postcards may seem less detailed, they offer a quick, visually appealing way to convey straightforward, easy-to-scan messages, capturing the interest of nearly one-third of recipients.
- 39% of postcard readership is among 35- to 54-year-olds: This age group, often busy with professional and personal responsibilities, shows a higher inclination towards the concise and impactful nature of postcards.
Of course, there are other factors that need to be considered, including the complexity of messaging, required insertions and, of course, ROI. But having the ability to choose, test and change different formats is one of the many strengths direct mail offers.
Add dimension to increase engagement.
Another way to take advantage of direct mail formats is to use dimensional mailings. From boxes to die-cuts to pop-ups, there are a multitude of dimensional formats that can break through the clutter. Of course, with added dimension comes greater production costs, so this type of format should be saved for special marketing events, such as a product launch.
However, choosing the right format is just the beginning. Another advantage that direct mail offers over email is tactile engagement.
Tactile elements create emotional connections.
The physical act of holding, touching, and reading a piece of mail engages more senses and can communicate benefits that words and pictures alone cannot.
For instance, because a soft, varnished paper stock has a distinctive, luxurious feel, it can convey the exclusivity of a financial product to an affluent audience.
But paper stock can also have a negative impact. More than 50% of consumers surveyed agree that low-quality paper creates a negative impression.
To leverage the power of touch in your direct mail campaigns, consider these elements:
- Format: Choose the right format to complement your message and audience.
- Dimension: Use dimensional elements like boxes or die-cuts to keep the prospect engaged with your mailing.
- Paper stock: Select paper stock quality that reflects the value of your offer.
- Coating: Apply coatings like varnish or matte finish to highlight key messages.
