In the age of digital dominance, many consider direct mail a relic of the past. However, Lob’s 2023 State of Direct Mail report challenges this notion, sparking a debate: direct mail vs. email marketing ROI.

Direct Mail: The ROI Champion?

The report throws a curveball, revealing that 75% of marketers believe direct mail delivers the best ROI, response rates, and conversion rates compared to other channels, including email marketing. This is further supported by the significantly higher average open rate of direct mail (80-90%) compared to email’s 20-30%.

Budgeting for Success:

This perceived advantage seems to be translating into action. 58% of marketers surveyed increased their direct mail budget in 2023, signifying a growing confidence in its effectiveness.

The Challenge of Response Rates:

However, the report also acknowledges a hurdle: 36% of professionals still struggle with low response rates from direct mail campaigns. This highlights the importance of strategic targeting, personalisation, and offer optimisation to maximize the impact of your physical marketing efforts.

Technology: Bridging the Gap

The report emphasises the crucial role of automation and technology in bridging the gap between direct mail and digital marketing. Integrating these channels and leveraging measurement tools can help marketers improve targeting, personalise messaging, and ultimately, boost response rates.

The Verdict: Direct Mail Vs Email Marketing

While the report suggests direct mail holds its own in the ROI battle, it’s crucial to remember that the most effective marketing strategy often involves a multifaceted approach. Leveraging the strengths of both direct mail and email marketing, while integrating data and technology, can help businesses achieve optimal campaign performance and reach their target audience more effectively.