While Customer Acquisition Costs (CAC) are rising on digital channels, many businesses are revising their marketing models to include direct mail. Coupled with digital marketing, direct mail is a touchpoint that gets a tangible piece of marketing into the hands of potential customers.


If you are here because you are hoping to understand when to leverage direct mail, know this, volumes are up year over year. That means more businesses, especially the B2C businesses, or the B2B B2C businesses are turning their budgets and investing in direct mail. Again, we know that through sourced surveys, here are some results right now on-screen, of one of those source surveys. 44% of B2C marketers report increasing their direct mail budgets. And if we think about it, it makes sense, right? With rising CAC costs of digital channels, 53% said, “My digital channels aren’t as efficient. I’m going to go back to direct mail, I can measure it. I know who’s responding from it.” 

I’m gonna give an interesting example. When I was back at a telecom company, and if you want to look me up on LinkedIn, you’ll see where I was. And we were heavily invested in media mix modeling and the media mix models said, you’re spending way too much on direct mail, well one of our geography areas said, “We’re going to follow the model, very prescriptively, and we’re going to trim our direct mail budget.” Another one said, “You know, that seems really aggressive, I can really attribute direct mail, I’m gonna, you know, maybe dip my toe in the water.”

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What happened to the one that went all in was their walk-ins severely decreased. So a lot of the attribution that was going to direct mail was actually driving online walk-ins. And so, again, that mix of direct mail, that really helps push to digital, is very important. So, as you’re re-investing remember, you will get attribution and you will be able to measure specifically to direct mail, but also use that window to measure your digital walk-ins as well. Because it’s likely that your mail is really supplementing that volume. And you should be able to attribute some of your CAC to that as well.

Some people use it, because they’ve always used it. That’s the legacy channel. They know they can scale it quickly. They’ve got a little bit more budget, you know, they’ll drop some mail real quick. Sometimes, maybe you’re overinvested, like I just mentioned in your marketing mix. And sometimes when I was at that telecom company, you know, we just wanted to make sure to be in home when our competitors were. And that can be equally important. And if you’re starting to notice your competitors’ mail, and there are several services where you can look at mail volumes by geography out there, you know, you might want to take notice. Because if they’re in home and you are not, that could be an advantage for them.

So, anyway, some things to keep in mind, backed by data, as to why people are increasing their mail budgets as they closed out 2022 and getting into 2023.

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