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Is B2B Direct Mail The Goose That Lays The Golden Eggs?

/ 16th March 2020 /
Jake Mulcahy

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DMCM's Peter Whelehan makes the case for why B2B direct mail works and why it's time to look at it anew.

B2B direct mail works. Fact. I can say this with certainty because DMCM has lots of happy clients (and award-winning case studies) to prove it. Furthermore, direct marketing awards are independently judged and weighted towards results and creativity, not spurious metrics such as ‘spontaneous awareness’ or ‘prompted recall’.

Marketers are taking notice of direct mail again, particularly in the B2B space. It’s working better today than it ever did and has re-established itself as one of the best ways – if not the best way – to engage a B2B audience and get a response, usually by generating qualified leads.

B2B databases enable companies to identify industry sectors they want to do business in. They can then drill down into companies within those sectors, using search criteria such as geographic location, number of employees, job title and so on. Crucially, B2B databases identify the names and addresses of key decision-makers within companies, along with their full contact details.

Data Goldmine

There are plenty of GDPR-compliant B2B databases available that provide companies with a goldmine of data. It’s also important to remember that unlike electronic channels such as email and SMS, direct mail remains an opt-out channel, which makes it easier to identify and target prospects.

B2B data facilitates pinpoint-targeting of direct marketing communications by quite literally getting a brand message into the hands of key business decision-makers. It also allows for highly creative and carefully personalised messaging too.

In Association with

So, in addition to communicating rational reasons to engage with your brand, it also creates a touch-point opportunity to develop an emotional connection between the individual and the brand.

Creative Impact

Direct mail allows creative teams conceive physically engaging pieces that other channels quite simply can’t. Direct mail is trusted too. Anyone anywhere can send an email to as many people as they want. As a result, email isn’t trusted in the same way that direct mail is.

A corollary is that other direct channels don’t match direct mail response because of lack of trust from the outset. Sure, there’s less direct mail happening than there was 20 years ago, but that’s the point. This is exactly why direct mail gets better cut-through and response rates continue to rise. To get noticed in in the B2B space today it pays (literally) to send clever, creative direct mail directly to known individuals.

It’s more likely to capture their imagination, put a smile on their face and incentivise them to respond and particularly if there’s a relevant and compelling proposition and offer.

Measuring Effectiveness

Direct mail campaigns cost more to produce than many other channels, but this is a good thing! It reinforces trust and the fact that direct mail is seen as more exclusive and ‘premium’ channel. The more important benchmark is the results that campaigns generate.

We’re seeing cost per lead (CPL) and cost per acquisition (CPA) continue to fall year-on-year for B2B direct mail campaigns, as the costs of executing a campaign are more than offset by the return the campaigns generate for clients.

We know this because we measure it. And, while we understand that every agency needs to work to their client’s budget, it’s not so much about what’s spent on a campaign, but more about what it delivers back in return by way of CPL, CPA and return on investment.

Peter Whelehan (pictured) runs DMCM, Ireland’s leading direct marketing agency and An Post Smart Marketing Agency of the Year 2018-2019. DMCM is a specialist independent Irish agency focused on generating proven results with highly targeted, creative direct marketing campaigns.

Tel: (01) 602 4766
Email: peterw@dmcm.ie
dmcm.ie

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