Timeless Tactics: The Modern Relevance of Direct Mail in Banking
Direct mail has re-emerged as a prominent player in bank marketing strategies, a trend which has been labeled with terms such as resurgence, renaissance or simply counterintuitive. While many marketers may be surprised by this trend, Media Logic has consistently recognized and championed direct mail for its enduring power and effectiveness. We have continuously highlighted its exceptional ROI, advanced personalization capabilities and innovative formats that drive measurable success. We believe it has remained a vital, strategic component of the modern omnichannel plan.
In a recent article in BAI’s executive report titled “The Triumphant Return of Direct Mail in Bank Marketing,” financial services marketers shared their thoughts on why direct mail is indeed thriving in today’s digital-first marketing space. Here are just a few of the reasons the experts cite for its success:
- “Millennials and Gen Z like receiving direct mail.”
- “It has the power to interrupt, surprise and provide value.”
- “There’s an increase in digital content fatigue.”
- “It provides an opportunity to share detailed information.”
Postalytics supports these insights with compelling analytics:
- Direct mail boasts a higher open rate — 80 to 90% compared to email’s 20 to 30%;
- It garners the highest ROI at 112% across all mediums, followed by texting’s 102%, email 93% and paid search 88%.
- Americans feel the most “comfortable” when receiving direct mail, with 25% preferring it over any other advertising channel.
- A significant portion of each generation would be disappointed if they stopped receiving physical mail: 57% of Boomers, 45% of Gen X, 41% of Millennials and 37% of Gen Z.
So, what’s the secret to making direct mail a success in a landscape increasingly dominated by digital channels? Here’s our thoughts on some of the tips and takeaways financial service marketers shared in the BAI article.
Tip #1: Personalize materials to be relevant to audience needs and preferences.
We couldn’t agree more. We recently pointed out ISG Research’s Direct Mail Benchmark report for just this reason. It referred to direct mail as powerhouse because of the “advancements in targeting and modeling technology, data analytics and consumer expectations that have allowed marketers to create highly targeted pieces that resonate on an individual level.”
Tip #2 Know your audience and let the information you have drive how you market.
We shared similar advice from an earlier article, where we said: follow the campaign objectives trend. One of the advantages of direct mail is its versatility. It is suitable not only for acquisition but also for retention, win-back and referral campaigns. As one marketer in the BAI article said, “For direct mail to be work effectively in the digital age, it must be highly targeted and data-driven.”
Tip #3: Use direct mail’s real estate wisely. Think beyond postcards and remember it has a longer shelf-life than other tactics.
We’re big fans of this tip. In our recent article, we discussed how direct mail can come in a variety of shapes and sizes to give marketers the ability to hit specific goals and audience preferences. Complex messages like those used for acquisition efforts lend themselves to letter packages, while self-mailers and postcards offer a visually appealing way to share easy-to-scan messages. Dimensional mailings like die-cuts and pop-ups, though costly, can break through the clutter and are ideal for special marketing efforts. Indeed, the physical act of holding a piece of mail can create an emotional connection that words and pictures alone cannot.
Tip #4: Use direct mail as part of an integrated marketing strategy rather than a stand- alone or primary channel.
Pointing to recent research from SeQuel, we previously shared that 91% of marketers report that direct mail in an omnichannel strategy positively impacts campaign performance. Specifically, SeQuel says, “Direct mail and digital marketing integration is bridging the gap between physical and online experiences to drive higher response rates and create interactive and immersive consumer encounters – while allowing more brands to execute cost-effective mail programs that deliver impactful results.”
Moreover, direct mail has seen innovations that integrate digital technologies, enhancing its impact and appeal. For instance, QR codes, personalized URLs and augmented reality features can bridge the gap between the physical and digital realms. And recently, we noted how the use of USPS Informed Delivery merges digital previews with physical mail, creating synergy between digital and physical realms and enriching the customer experience.
In addition to these tips, bank executives in the BAI article shared reminders on selecting the best timing for direct mail, considering ways to spur conversation and engagement, providing time to see ROAs and remembering to measure its effectiveness. Bottom line, they reminded marketers that while direct mail may seem traditional, it operates just like digital one-to-one channels but can feel more personal and engaging due to its tangible nature
At Media Logic, we’ve always believed direct mail never went out of style. By integrating it with digital strategies and embracing new technologies, direct mail continues to prove its value and adaptability in a rapidly evolving marketplace.
