Direct mail integral to customer retention
Ensuring consumers are happy requires a concerted effort on the part of marketing teams. It's also more cost-effective than many businesses might think. To achieve high performing marketing campaigns, companies should invest time and effort into direct mail. Along with utilizing the latest in address correction technology, enterprises should realize the benefits of direct mail compared to using a strictly digital delivery platform. Businesses can reconsider how much they are spending to attract new customers, use all available metrics to understand what their existing customers prefer and personalize mailers in a way that allows consumers to remember what the company has already provided for them.
New customers are more expensive
Although many companies are interested in expanding their business, research indicates keeping existing consumers invested in the brand can provide even greater benefits than focusing solely on acquiring new clients. Citing a 2013 Bain & Company survey, Business 2 Community indicated that it costs companies between six and seven times more to engage a new customer than to maintain a current one. In fact, a previous analysis performed by Bain reported companies could increase revenue by 25 to 95 percent by improving customer retention rates by 5 percent. By interacting with and marketing to customers who have already taken steps to utilize a company's services or products, the business does not have to allocate so many resources to getting leads and gathering extensive information about new customers.
However, retaining customers requires keeping accurate records, which includes making sure an enterprise has up-to-date address verification software. As a result, direct mail marketing campaigns can be more streamlined and effective, ensuring existing customers receive mailers.
Track what customers have purchased
Once consumers have received their service or product, it is important to keep diligent records of what has been purchased, as well as when it was bought. This can be difficult according to Multichannel Merchant, considering some purchases aren't made online and not all retailers are keen on sharing consumer information with other businesses. As a result, gaining as many insights into online shopping habits as possible can provide an enterprise with the data necessary to personalize direct marketing mailers.
Remind consumers what services or products they've bought
Consumers often need to be reminded of what the business has provided them in the past. This may be as simple as offering a product that is related to a purchase they made recently. Using direct mail to accomplish this builds off an already strong foundation. Direct Marketing News reported this marketing tool achieves a 4.4 percent response rate, as opposed to email, which prompts less than 1 percent of recipients to respond, according to a 2012 Direct Marketing Association report. Showing consumers that a business is trying to cater to their needs helps build a level of trust and engagement that can keep established relationships going strong.