Choosing the right mail advertising for your shop

Sept. 20, 2016
The more personal and targeted you can make your direct mail marketing, the better chance you have of the recipient noticing it and actually taking action.

As someone who fervently believes that direct response marketing still has a viable place in a digitally focused world, I am often asked about the pros and cons of the various options that small- to large-size businesses have today when they want to target their customers and prospects with physical mail. While traditional direct mail has been around for more than a century, in recent years a variety of formats have been introduced. So, with all these choices, which format is best for your business and marketing objectives?

As with any product comparison, there are a variety of features that must be explored in order to understand which format will be most appropriate. The four that I will use for this comparison are:

  • applicable size restrictions
  • delivery and timing
  • targeting options
  • typical response rates

Traditional direct mail

Traditional direct mail marketing offers many options when it comes to targeting, personalization, size options and tracking capabilities. This format is heavily used and is the most popular amongst all direct mail formats. You’ll have complete control over the design, the size, the mailing list, and delivery dates. Traditional direct mail offers the most advanced campaign tracking; it offers the ability to measure response rates and return on investment. You can track how many of your mail ads were delivered and have the “return to sender” ads route back to you to help optimize your mailing lists.

Applicable size restrictions

Traditional direct mail is the most flexible in terms of size options. Your size options are unlimited, which gives you the ability to stand apart with unique mail ads. However, as you move from a letter to a flat and beyond, not only does the production cost of the mailer increase, but also the postage costs.

Delivery and timing

This type of mail can be sent via 1st class or standard postage. You have the flexibility to advertise a time specific to an event or promotional offer. Provides the greatest control of the production timing and when the ad arrives in mailboxes.

Targeting options

The major advantage of traditional direct mail is having the ability to target prospects or existing customers based on any combination of demographic and/or lifestyle attributes. Marketers can be extremely precise and targeted with their messaging and use personalization, which garners higher response rates. You have the options of providing a list from your customer database or purchasing a mailing list from a third party provider.

Typical response rates – 3.7% (database list); 1.0% (prospect list)

Every door direct mail

Every door direct mail (EDDM) is a class of direct mail that the United State Postal Service (USPS) launched a few years ago. The concept was created to send your message to “everyone” in a carrier route (think of a zip code as a pie – a carrier route is a slice of the pie). A critical factor to consider is the level of waste associated with ads delivered to vacant homes and/or bad prospects or targets. Mail ad personalization is not available when using this format.

Applicable size restrictions

There are specific mail size restraints and weight restrictions that must be observed to qualify for this format. You'll also need to include a mailing label and the correct indicia.

Delivery and timing

The advertiser or business using this format is required to prepare the mail for delivery, which includes creating the design, choosing the list, bundling the mail ads by carrier routes and delivering the bundles to the assigned postal office. Similar to traditional direct mail, businesses can control when a piece is mailed.

Targeting options

Zip codes and sub zip codes will be the primary attribute used to define your mailing list. Your EDDM bulk mailers will be delivered to each residence and business within that specified zip code area. While some filtering options are available (age range, average household income, average household size), ultimately you cannot choose to mail to one specific address vs. another. You can only mail up to a 5-mile radius of your business.

Typical response rates – 0.5%

Shared mail

Shared mail is a category of direct mail advertising that allows multiple advertisers (i.e. multiple businesses) to share the cost of third-class mailing by combining printed ads into one open package. Shared mail marketing dramatically reduces your individual distribution costs while getting your brand and message in the mailboxes of thousands of homes. Service is not available in all markets.

Applicable size restrictions

There are specific size restraints that must be observed for mailers to qualify for this format. Shared mail size restrictions can vary greatly and are usually dependent upon who you use as a vendor.

Delivery and timing

Shared mail advertisements arrive in the weekly newspaper circular or bundled in a stack of 20 or more cards in a plastic wrap. Typically, there is a 2-5 week window between the order date and the mailbox delivery date. As such, it may not be the right option for some time sensitive events or promotions.

Targeting options

Shared mail inserts are very low cost saturation mailings within pre-selected zip codes. No specifications can be made about which part of a zip code your mail ads will be sent to, but the zip codes can be selected based on certain basic demographic criteria (average age of home, average household income, average age of the residents). Not all zip codes are available, however most major cities are covered throughout the nation (some 90 percent of the USA). All shared mail vendors require a minimum print quantity per mailing, usually 10,000 – 20,000.

Typical response rates – 0.25% (greatly impacted by the number of ads in the pack)

Money Mailers or Valpak

This format is very similar to the shared mail format. It allows multiple advertisers (i.e. multiple businesses) to share the cost of third-class mailing by combining printed ads that are coupon/discount driven into one envelope package. On average, each Money Mailer envelope contains 38 inserts/advertisers.

Applicable size restrictions

There are specific size restraints that must be observed for coupon mailers to qualify for this format. Size options vary across Money Mailer franchisee vendors.

Delivery and timing

The vendor will provide an annual calendar with scheduled dates for mail delivery. Most Money Mailer franchisees distribute the shared mail envelope to consumers once per month. You’ll be able to select the months you desire based on a pre-set annual calendar.

Targeting options

You can mail anywhere in the United States, but this format is only available for local targeting. You choose zones to target, which are defined by whole cities and zip codes.

Typical Response Rates – 0.02% coupon redemption rate.

It is nearly impossible to make a blanket statement that one method is better than another when factoring in business type and structure, products/services offering, location, target market and ultimately marketing goals and objectives. At the same time, I will suggest that the more personal and targeted you can make your direct mail marketing, the better chance you have of the recipient noticing it and actually taking action. When these elements are coupled with quality data, the results can be remarkable.

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