The rise of the internet has changed everything we know about modern-day communications. From direct mail and phone calls to emails and text messaging, communication has evolved into streamlined processes that require less effort, lower cost, and with a seemingly bigger payout.
As we’ve witnessed the rise of new communication, also rising is the number of spam emails, scam texts, and robocalls reminding you of your car’s extended warranty. These new ways of communicating are saturated, and savvy businesses are turning to more traditional methods to rise above the noise, ultimately putting their brand back in front of customers.
Physical Mail vs Email
The email marketing landscape has become over-saturated due to its price and ease. Roughly 320 billion emails are sent daily, it’s estimated that spam emails make up 45% of that number. It can be difficult to stand out among so much digital noise, making physical mail an attractive alternative once again.
But does direct mail realistically have anything to offer?
- The average return on investment for direct mail is $4.09 for every $1.27 spent, a whopping 222.05% ROI. (Global News Wire)
- There was a 49% increase in sales and a 125% increase in customer inquiries who received both email and mail offerings. (HBR)
- Nearly 75% of Millenial respondents in a survey said physical mail makes them feel special. (USPS)
- 83% of Baby Boomers value the reliability of mail, and a majority said they prefer a paper bill over a digital one. (USPS Report)
- More than 72% of Generation X receive bills in the mail. (USPS Report)
Digitally fatigued consumers are ready for a change. Direct mail is not only less saturated but consistently yields great ROI, while giving you more tools to make your brand stand out.
Give Your Brand Some Love
How well do your current customer-facing communications display your brand? Sure, email has its own customization options, but with 43% of Gmail users reading their emails without rendered images, chances are your brand is not going to be displayed in a flattering or even memorable way.
Direct Mail has the ability to reach your customers at home through a medium that paints the full picture of your brand, regardless of their inbox settings, browser version, or spam filter sophistication! Direct mail templates can be customized and uploaded as PDFs. This ensures your brand is accurately displayed when the physical mail lands in your customer’s mailbox.
Direct mail excels in making your brand more:
- Personalized – The effort of sending direct mail vs. a generic email resonates with consumers. More than 70% of Gen X consumers feel mail is more personal than online digital communications.
- Interactive – Get your customers to physically engage with your brand with a simple call to action. From promo codes to short URLs and trackable QR codes, there are more ways than ever for consumers to act on direct mail.
- Memorable – Show your customers you care by giving them something of value that lands on the top of their desks, not the bottom of their inboxes. A photograph of your team, a swag box, a unique branded item, or a 3d pop-up card are all great examples of direct mail offers that will leave a lasting impression.
Direct Mail in Lending
Direct mail has awesome benefits, but what does it mean for you as a lender? We’ve seen our most successful clients take advantage of physical mail to improve customer communication and increase their collections rate by over 20%.
Payment reminders and past-due notices are especially effective in a physical mail format. With scams becoming more prevalent and focused on the financial industry, it can be hard to know who to trust in your email inbox. This can lead to unnoticed or ignored payment reminders. Borrowers are more likely to trust and act on physical payment reminders sent directly from their lender, especially if these letters mention their loan specifics!
Some other examples of mail lenders send their borrowers include:
- Welcome Packets
- Disclosure Forms
- Loan Statements
- Legal Notices
- Promotions and Offers
According to studies, direct mail generates 13x more responses than email, which is a big win for lenders especially. Higher response rates mean better borrowers, on-time payments, successful collections, and repeat customers.
Automate Direct Mail with Mail House
Physical mail is back. Whether you’re looking to send the occasional mailer, automate your existing processes, or looking to rival the pony express, Mail House powered by LoanPro is the easiest way to do it. With increased loan performance, the convenience of automating your mail based on triggers and events inside LoanPro, and built-in compliance, Mail House is the key to taking full advantage of direct mail in a platform you already trust.
Ready to see how Mail House can power your business’s direct mail? Grab some time on our expert’s calendar and get your mailing processes up and running on a modern platform.
