For any business, it’s one of the biggest questions: does direct mail still make sense? To answer the question, then consider these numbers.
1. 14 Billion
This refers to the number of pieces of correspondence mail households received in 2016. Over the years, the quantity has been declining due to the digital age. People would rather email or use social media than to pay for postal service.
The biggest decline is in household-to-household correspondence. It dropped by 61% between 2001 and 2016. Business transactions by mail fared better, declining by only 19%. Interestingly, government communications rose by 4%, according to USPS.
2. 74.9 Million
This number represents the number of baby boomers in the United States. These are people born from 1946 to 1964. According to the USPS report, the number of mails received by a home depends on the average age of the head of the household.
Among the older population, they are more likely to get 3.1 pieces weekly in 2016. The younger generation averages only 1.6 pieces per week. U.S. businesses still need direct data management services. Many Americans still look forward to receiving direct mail.
In a survey by Gallup in 2015, around 41% still checked their mailboxes regularly. An overwhelming 90% said they experienced something positive when they received personal cards and letters. Approximately 83% shared they liked receiving packages while 60% would mind getting magazines. The last things they wanted to have were bills and flyers.
4. $600 Billion
It refers to the revenues Generation Z generates. This generation is people born from 1996 to 2010. They came right after the millennial group. Although young, they have a strong purchasing power. For one, they comprise around 32% of the world’s population. By 2020, they account for 40% of consumers in the United States.
They possess an incredible influence over their parents’ buying decisions. They have a say over 36% of the household purchases and 40% of products for the children. These people already thrive in the age of email and social media. Still, around 36% of them would love to receive direct mail, according to Gallup.
This accounts for the response rate of direct mail. It is according to the data gathered by the Direct Marketing Association (DMA) in 2017. Although it’s small, it was still better than email, which was 0.12%. With proper marketing and tracking techniques, this could further grow up to 30 times higher than digital mail.
For many, one of the advantages of email is analysis. You can already use tools to track response rates in real-time. You will know which of those on your mailing list are interested in buying.
In the end, your system can be more challenging with direct mail-that is unless you embrace new methods. With that in mind, data management now allows you to do the same. You can then use the information to make your direct mail system more efficient and money worthy. If you feel uncertain, seek the advice of an expert.