Lots of companies are using direct mail as part of their marketing strategy, but why exactly are ecommerce companies sending it and how does it benefit them? We’ve got the answers.
What is ecommerce?
Ecommerce is also known as electronic commerce. It refers to the buying and selling of products and services online on the world wide web, using the internet, as well as the transfer of money and data to carry out the transactions.
With the first ecommerce transaction carried out back in 1994, the ecommerce market has grown massively. Total global ecommerce sales worldwide in 2020 amounted to over £3 trillion with online shopping being named one of the most popular global activities in today’s society.
Ecommerce is turning to direct mail
Many ecommerce brands are making use of direct mail in a bid to branch out and diversity into other marketing channels, especially due to the increase in working from home as well as the rising costs of digital ads per click.
Plus, it’s proving effective! It has been seen that in 2020 93% of direct mail clients reported an increase in year on year sales with 73% planning to increase their marketing spend on direct mail campaigns.
Why does direct mail benefit ecommerce companies?
There are many benefits as to why direct mail is benefiting ecommerce companies, which can explain why they are choosing to invest their marketing spend in the channel.
Gives customers a ‘human experience’
Ecommerce companies lack physical stores, shop windows and products for customers to touch and therefore be physically immersed within the full brand experience. Psychological studies show that people value things they can see and touch 24% more than something they can only see. This suggests that if you sent the same campaign as an email and as a direct mail, the mailer would be perceived as a higher value than the email.
Stand out & improve brand awareness
Direct mail can really help ecommerce companies to stand out from a saturated market and improve their brand awareness with their target audience, by putting their brand physically in front of the eyes of their consumer. This is because mail improves brand recall, with 80% of people saying they can remember something they’ve seen or read within a piece of mail they received within the last four weeks.
Combine this with 60% of respondents from a recent study, who said that a memorable direct mail can keep a sender’s company at the top of their mind, therefore improving brand awareness. This is due to physical mail activating parts of our brains that are responsible for long-term memory at a much stronger level than other media types, such as social media advertising and email.
Builds trust & makes an emotional impact
Creating emotional and impactful campaigns that resonate with the consumer and provide a level of trust in the company, is what many marketers strive for. A good direct mail campaign has the ability to do just this. In the recent study Private Life of Mail, it was found that 38% of respondents thought that the physical appearance and properties of a direct mail did have an influence on how they felt about the sender. This means that the way the mailer is designed can really help to reinforce your brand image and values.
Making your customers feel valued is also a vital part of creating an engaged and returning customer base. 57% of people claimed that receiving direct mail from a company did make them feel more valued as a customer. Sending direct mail can therefore help to create a more genuine and personal two-way relationship, especially if the direct mail is personalised!
Improves website traffic
Direct mail has been proven to drive website traffic and sales online, which is a great reason why ecommerce companies should be using direct mail. In fact, studies show that 92% of those who received direct mail were driven to online activity, 87% were influenced to make an online purchase and 86% connected with the business in some way.
So let’s see if these match up with the commercial benefits. Market research carried out by Royal Mail found that campaigns that included direct mail were 27% more likely to deliver top-ranking sale performance and 40% top-ranking acquisition levels. And it’s not just for big corporations with big budgets, 75% of small businesses that used direct mail agreed that it offers a good return on investment.
Helps form an omnichannel experience
It has been suggested that an omnichannel experience is the most beneficial in terms of successful marketing campaigns, engaged consumer base and company growth. An omnichannel experience refers to a multi-channel marketing strategy in which a seamless customer experience is received across channels. It is 360 degrees approach that ensures the customer is receiving the same brand message and experience both online and offline. This is a challenge with ecommerce companies, who lack physical stores, however direct mail can act to play a key part in this holistic approach.
Allows for tactical targeting
Much like with online advertising, tactical targeting and segmentation can be carried out with direct mail for both prospecting and current customers. This ensures your direct mail will be in front of the right consumer.
Increased lifetime versus email
Direct mail has been proven to have a longer lifetime and exposure than emails. The majority of emails are deleted or discarded in a matter of minutes, never to be seen again. In contrast, studies show that direct mail can stay in a recipient’s home, on average, for up to 39 days after it’s been sent. This gives the direct mail significant time to be unconsciously absorbed by the consumer or to be picked up and read at a later date.
There are therefore multiple benefits to using direct mail, especially for companies predominantly operating online. From improving brand awareness and recall to driving online sales, there is a reason why ecommerce companies are using direct mail.
If you are interested in learning more about direct mail and how it can help your company, get in touch here or by calling 0333 577 0444.