The Importance of Personalisation in Direct Mail Campaigns in 2023

The Importance of Personalisation in Direct Mail Campaigns

Personalisation is vital in direct mail campaigns because it helps to generate a more relevant, engaging, and successful marketing message that connects with specific recipients. Brands can boost the effectiveness of their marketing efforts and create better response rates and revenues by employing data insights and personalisation tactics.

Increased customer satisfaction and engagement: Personalisation enables organisations to give clients a customised experience that fits their individual requirements and preferences. Customer satisfaction and loyalty may improve as a result.

Personalisation involves generating one-of-a-kind and relevant experiences for each consumer. A company may individually adjust its messaging, interactions, and brand image to fit the requirements and expectations of its consumers by leveraging data to understand their behaviours, preferences, needs and wants. It is crucial that businesses retain customers, as new customers are more costly to attain (Reichheld & Schefter, 2000). Personalising your direct mail allows you to reduce costs.

Let’s take a look at Sarah, for example. Sarah recently bought a subscription for pet supplies. One month after her purchase, she receives a letter that is addressed to her with her name and her pets name. The mail thanks her for her order and suggests other products that would be suitable for her pet. Sarah is happy that the company took the time to catch up with her and includes images and supporting text that aligns with her personal taste of products she might like to purchase in the future. 

On the other hand, a generic letter that is sent en masse is much less likely to catch the attention of the customer, not to mention expecting them to take action. The simple addition of including the customer’s full name in a letter, increases response rates by a staggering 135% (Compu-Mail, 2022). The more irrelevant and impersonal a letter is, the more likely it is to end up in the bin within minutes of being opened.

When customers like Sarah receive a piece of personalised mail, they feel like they are being heard and understood by a business, and that they are more than just a transaction to the business they are purchasing from. Treating customers like individuals rather than a collective can help businesses create more meaningful relationships with their customers, which in turn increases customer satisfaction. 

Increased customer satisfaction is one of the many benefits of personalisation. When a customer feels like a business has gone out of their way to create a meaningful experience for them, it makes them feel more valued and important to that business. Thus, leading to improved customer loyalty, repeat purchases, and positive word of mouth. 

Increased revenue: Personalisation can lead to increased revenue by encouraging customers to make repeat purchases, upsell or cross-sell, and refer others to the business.

Personalisation can help encourage customers to repeat purchases. Customer data featuring aspects of customers’ purchase history and abandoned baskets, can help businesses create more targeted campaigns and promotions that incentivise customers to purchase again. With the addition of personalisation, a business can increase their average order value and revenue per customer. 

Personalisation also encourages referrals. By providing customers with a personalised, one of a kind service, they will be more likely to recommend your business to their peers, building trust with your customers as the recipients are much more likely to trust recommendations from their friends and family. 

Enhanced brand perception: By providing personalised experiences, businesses can enhance their brand perception and reputation.

There are a number of ways that personalisation can significantly improve brand perception. Firstly, creating an emotional connection between customer and business can help your brand image resonate with your customer, therefore creating a connection between the two. A personal touch may convey to the receiver that the brand regards them as individuals and that their satisfaction is of the utmost importance. 

While creating an emotional connection with customers is important, remaining professional should also be a top priority for businesses. Remaining professional shows the customer that the business is willing to go the extra mile for their customers which is a powerful way of increasing the perceived value of the business. 

Innovation is another great way of enhancing your brand perception. With the current oversaturation of online marketing alternatives, personalising your direct mail marketing efforts, sets your brand apart from its competitors. Innovation conveys the sense that the business is sensitive to client demands and eager to invest in developing meaningful and long-term connections with its customers, resulting in a favourable brand image.

Lastly, the use of personalisation creates a memorable experience for the customer, therefore leaving a lasting impression on them. The customer may then share this positive story with others, increasing brand perception and loyalty. 

Better customer insights: Personalisation allows businesses to gain valuable insights into customer behaviour, preferences, and needs. This can inform future marketing strategies and improve overall customer engagement.

By employing data and analytics to understand individual consumer behaviours and preferences, personalisation in direct mail may deliver significant customer insights.Tracking customers responses is one way of understanding your customers better. For example, data can be collected and then analysed, aiding in determining your customers reactions to various campaigns. Understanding your customers’ responses can assist in fine-tuning future campaigns to align with customers’ needs more effectively.  

Personalisation also allows you to segment your market in a more conclusive manner by analysing things such as customer demographics, purchase history, and interests. This helps your business to enhance the tailoring of your marketing strategies to different customer groups and aids in communicating with them successfully. 

By harvesting useful data, businesses can not only create more relevant and meaningful campaigns, but also gain valuable insights into their customers preferences and habits. As a result, businesses can further optimise their desired messaging to drive growth. 

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Sources

Direct marketing statistics for 2022 (2022) Direct Mail Marketing Company. Compu-Mail. Available at: https://www.compu-mail.com/statistics/30-direct-mail-statistics-you-can-use-right-now#:~:text=Personalization%20holds%20tremendous%20power%2C%20and,is%20as%20high%20as%2037%25. (Accessed: April 11, 2023). 

Reichheld, F.F. and Schefter, P. (2000) The economics of E-loyalty, HBS Working Knowledge. Available at: https://hbswk.hbs.edu/archive/the-economics-of-e-loyalty (Accessed: April 11, 2023). 

Postma, O.J. and Brokke, M. (2002) “Personalisation in practice: The proven effects of personalisation,” Journal of Database Marketing & Customer Strategy Management, 9(2), pp. 137–142. Available at: https://doi.org/10.1057/palgrave.jdm.3240069.