Marketing Communications

DIRECT MARKETING MEDIA AND TOOLS 433

Figure 13.4 Development of addressed mail items in the five largest European markets

Source: The Boston Consulting Group.

The perception exists that digital channels outperform traditional direct mail and telemarketing. However, the

Direct Marketing Association (DMA) tracked consumer behavior, following almost 30 billion e-mails and 2 billion

online display views in the days and weeks following the exposure to an online ad, and found that direct mail had a

higher response rate than e-mail and a much higher response rate than online ads. E-mail has a response rate of a

mere 0.12%, while direct mail generates a 4.4% response rate. The latter has decreased by 25% overall, but still

does better than digital channels.

For direct mail items of normal size, response rates are between 1.3 and 3.4%. Oversized mail does slightly better

with response rates between 1.5 and 4%. Postcards generate response rates of between 1.2 and 2.5%, and catalogues

between 1 and 4.2%. Telephone direct marketing is most effective, with response rates between 8.2 and 13%. On the

contrary, electronic direct marketing is far less effective. E-mail response rates are between 0.03 and 0.12%. Display ads

only generate a 0.04% response, and paid search 0.22%.

Online ads lead to only 6% immediate conversion after the click, which means that 94% of the conversion takes

place later on. Due to lower costs of e-mailing, the Return on Investment of e-mail campaigns is four times higher

than that of traditional mailings: $28.50 versus $7. Consumers are constantly receiving digital messages that they

often perceive as irrelevant and irritating. This may be the reason for the low conversion and for the fact that

traditional mailing remains a very strong marketing communications tool.

researCh insights

Direct mail response rates beat digital

Lotus Bakeries, with headquarters in Belgium, is selling authentic specialties like biscuits and cakes through-

out Europe and the USA. Over the past three years the Lotus CRM programme has been optimised by maximising

readers’ participation in the Lekkers magazine and coupon usage. In 2011, Lotus Bakeries wanted to increase its

frequency (10 to 365 contacts per year) and interactivity with consumers. It decided to switch to a 100% online

business insight

Lotus Bakeries switches to online direct marketing

M13_PELS3221_05_SE_C13.indd 433 6/5/13 2:56 PM