The print is not dead yet.
Despite the world heralding that direct mails are dead, we know that fact: it’s not.
Data continuously demonstrates that consumers are more tend to respond more positively to direct mail than emails:
- Better response rates: According to the report of the Direct Marketing Association (DMA), direct mail receives a 4.4% response rate, compared to 0.12% of email.
- Better brand recognition: 60% of people said direct mail leaves a lasting impression on them and tend to recall easily.
- Received more positively: 57% of respondents said postcard marketing makes them feel more valued, creating a more authentic relationship.
This shows that direct mail, when executed thoughtfully and strategically, turns out to be an effective bank direct mail marketing tactic to increase revenue.
But, before hashing out direct mail campaign costs, it’s important to determine which type of direct mail piece is most effective for your brand. While research from the Data and Marketing Association suggests that the response rate is highest for oversized envelopes, you will still want to determine what will work best for your campaign goals.
What factors to consider for cost analysis?
- Your budget
Oversized mailers and catalogues are more expensive to design, print, and ship – especially catalogues because they are heavier.
- Your product or service
What’s your product? What are you trying to sell? If it’s more serious, like financial services, you might choose a traditional letter. If the offer is easy-going, create a capturing, colourful postcard.
- Your target audience
Whom do you want to sell? If you are nurturing current or prospective clients who know your brand and message – a postcard will go nicely. If you are targeting cold leads, a more expensive and comprehensive brochure will be a better option to educate them about what you do.
A Breakdown of Direct Mail Campaign Costs
Direct mail pieces cost around 30 cents to more than $10 per person, depending on the costs you spend on copywriting, design, direct mail lists, printing, and distribution.
Some organisations have the capability to do much of the direct mail work in-house and pay only for printing and mailing. While some organisations think they have the capabilities to handle it all, but end up falling short of the desired messaging and eye-catching design. So, we always suggest speaking with professional financial services direct mail marketing agency to compare and contrast the quality of work and the cost.
And still, others opt to work exclusively with vendors as they know it’s outside their wheelhouse and are on board with choosing the best quality that leads to the best ROI.
Here’s a breakdown of individual costs for a direct mail campaign:
When it comes to the design of your direct mail piece, you have three options to consider:
- DIY: If you want something basic, you can create what’s suitable for you using the designing tools available out there.
- Find or buy a template: There are numerous online sites that offer free templates or sell them for about $10 a pop. But, when creating a piece of direct mail for banks these can be frustrating as some sites aren’t intuitive, and you will be restricted to the designs they offer instead of getting exactly what you want.
- Hire a pro: If you need help with an important, creative project, we recommend hiring a professional designer. The price will be based on the complexity of the project and the number of revisions you ask for. For instance, a postcard designed by a novice freelancer could cost you $150 while a brochure designed by a senior designer at a marketing agency could cost around $1500.
If you have a small budget, you may have to write your own marketing copy. But even with a small budget, you can hire a professional copywriter and as per your budget, get the proofread done by a pro.
If you have the budget for a writer to work on the whole project – go for it. But your copy should be compelling and entice the recipient to take action – buy the product or redeem the offer. Proofreading a postcard insurance direct mail marketing copy may cost you $25 while writing a full brochure may cost you around or more than $600.
Mailing List Costs
The free mailing list can be created by gathering data you have on current customers. Purchased lists can be brought from list brokers and agencies, where you may pay from 2 cents to 30 cents per record.
The cost will vary based on the number of records you buy, the contact info it includes – such as the name of the recipient, his, or her title, and additional info such as phone number or email – and sometimes the number of times you send the list.
Printing costs will generally depend on the following:
- Black and white versus colour
- Paper quality
- Paper size
- 1-sided versus 2 sided
- Number of pages
Distribution and Mailing Costs
Distribution costs range from $0.25 to $2.00 per piece depending on the number of pieces being deployed.
And the number of mailing costs. Prices fluctuate and are dependent on the current postage rate, the amount of mail you send, and the weight of the mail. Usually, the bigger the pieces of financial advisor postcard marketing, the heavier the order, and the more you’re going to pay.
A direct mail campaign is not a one-and-done thing. You should send out four and six highly personalised pieces to see desired results. If designed and created correctly and a proper budget is applied for implementation in direct mail campaigns, and if executed strategically – it can be a highly successful way to market your finance business to your target audience.
So get cracking with your marketing team and develop your next creative mail, or contact your trusted marketing solutions and print management team to learn how you can strategize in the best way possible!