Digital marketing is a term that covers all marketing channels and strategies which can help to promote products and services…
An average office worker finds more than 100 emails in their inbox daily. Many of them get deleted before they are even read. If your whole marketing strategy relies on digital tools, you are not just facing competition, you are practically invisible.
Tactile marketing is not about going back to the past and abandoning the internet. It is a strategic, data-driven approach in response to a particular circumstance when the market is oversaturated with digital content. The companies that are currently leading the race are those who see direct mail as a precise marketing tool with the right data.
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When email marketing began a good campaign could achieve open rates over 40%. Today, B2B averages hover around 20% and click-through rates have dropped to less than 3% for most industries. Over the same period, the cost to acquire a new customer through paid digital has doubled.
Email and paid search didn’t stop working. Everyone got access to the tools. The barrier to sending a million emails is close to zero. Same for running a Facebook ad – it’s a credit card and an hour of set-up. When a channel becomes universally accessible, the signal-to-noise ratio collapses.
This is just a market correcting itself. What was previously a differentiating channel has become commoditized. Businesses that understand this cycle will rotate towards channels where the attention hasn’t been arbitraged away yet. Physical mail is one of those channels.
Neuromarketing is a scientific field that studies the brain’s responses to marketing stimuli. From this research area, numerous insights have been gained that have impacted marketing practices, and others that are heading in this direction. Currently, neuromarketing is an important tool to understand the behavior of consumers more accurately and offer them better products and services.
One of the most exciting neuromarketing findings is that our brain processes physical and digital ads differently. The so-called “Parietal Memory Activation” occurs when we are exposed to physical media. This means our brain is more active when reading a direct mail piece, business card, brochure, or letter. The parietal lobe is in charge of connecting space with the movement and integrating the different senses that we receive from the outside. This benefit greatly nurtures creativity and grabbing the reader’s attention using the document’s texture, dimensions, and other attributes.
The main reason people are against direct mail is because of the associated costs. Sending an email costs almost nothing. Meanwhile, a physical mailer can cost between two and five dollars per unit, and even more if you use dimensional mail. It seems like a bad investment when you do a direct comparison.
However, things look different when you consider the response rates.
The click-through rate for emails in most B2B categories is between 2% and 5%. On the other hand, response rates for direct mail campaigns – if they are well-targeted and well-executed – average between 9% and 10%. In the case of dimensional mail (mail that is packages, tubes, or boxes), the rate is higher because they are hardly ever thrown away without being opened. The Association of National Advertisers’ Response Rate Report shows that direct mail generates an average ROI of 112%, while that number is 30% for social media ads and only 28% for paid searches.
In simpler terms, if you spend $5,000 on 1,000 mailers that cost $5 each to send and you get 90 responses, your cost per response is about $55. If you spend that same $5,000 on a paid search and you get 100 clicks at $50 each, you won’t get the same number of clients. This is because the recipients of the mailer are typically cold-to-warm prospects you chose, and not someone who mistakenly clicked on a link.
Before any of the aforementioned math comes into play, the letter has to be opened.
Unopened: anything that is clearly junk mail from a couple of strides away. Pre-printed label. Bulk indicia. Corporate return address. Glossy window. These items are scanned and immediately slotted into a mental category. Most people eliminate mail on top of the recycling bin. All the obvious bulk goes in right off the bat.
Opened: anything that looks personal. Hand-written envelope. Real stamp. Return address penned by a human hand. The brain does a quick heuristic – this looks like it came from a real person, therefore it is worth a few more seconds of my attention.
The open rate on a well-done handwritten envelope is almost 100%. Not marketing rubbish – math. One simple psychological ploy: curiosity. Who sent me something personal?
This is why the tactical execution of direct mail is just as important as the strategy. The content could be spectacular but if the envelope screams mass communication, you are toast.
The tension that undermines most tactile marketing efforts is the idea that personalization and scalability are mutually exclusive. Crafting a personalized letter, by hand, requires time and effort. Therefore, the notion that you could write a unique letter to every customer on your list is virtually impossible. This scenario doesn’t play out in real life, so companies either forego tactile marketing altogether or settle for something that looks personal but blatantly is not.
The result of contemporary technology in this field is a Handwritten notes service that generates real handwritten notes at scale. These notes are triggered via a direct CRM or Marketing Automation integration, from a customer signal that indicates proprietary information that a company notates in their system (a closed deal, customer anniversary, or once-in-a-lifetime event). The note is written by a robotic pen which is the closest simulation of a human hand currently on the market.
Authenticity is the currency that modern consumers are most suspicious of. They can smell automation. But a note written in real ink, with natural variation, addressed to them by name and referencing something specific about their relationship with your company – that reads as human. And human still converts.
In account-based marketing, the objective is to grab the attention of a few high-value prospects, most of the time, the C-suite executives from certain companies. Those individuals are experts in ignoring any kind of approach. They have assistants, strong spam filters, and have already stumbled upon every LinkedIn message out there.
When you can’t get through to someone digitally, try physically. A package sent via mail can go past an executive’s assistant. A box can be opened. A package of quality, sitting on someone’s real desk, does not get ignored. If you write a legitimately interesting letter, it does not get thrown away.
A good ABM strategy using physical mail includes the following steps: identify your top 50 prospects, research what could be interesting for them, send a physical mail piece that ties back to something about their company or role, send a follow-up digital message within 48 hours to reference the physical piece, and briefly mention the letter in your call or email. Mail opens the door, digital closes.
Used together, they outperform a solely digital play every time.
Most of the budget is allocated to customer acquisition, leaving retention with the leftovers.
The problem is that it costs much more to acquire a new customer than to retain an existing one. The value a customer represents during their lifetime is determined mostly by their behavior after the first purchase. A customer who is valued and appreciated will return, while a customer who feels neglected will not.
The time right after a customer makes a purchase is a high-trust moment, as this is when they trust you the most. Sadly, many companies only send automated confirmation emails and shipping notifications during this period. A few others send a discount for the next purchase. But hardly any company sends a physical item.
Receiving a card in the mail a week after making a purchase, with no ulterior motives, has a much greater impact than an email. It shows the customer that the company was still thinking of them after the sale was complete and that the relationship is important. This type of gesture is more valuable than any dollar spent on digital retention strategies.
The same principle applies to other points in the relationship such as the anniversary of the customer coming on board, their birthday, or the anniversary of their first purchase. There are no technical barriers preventing these from being implemented, only a lack of priority when compared to digital strategies that don’t connect as deeply but can be scaled much faster.
The most effective marketing campaigns don’t make a choice between digital and physical. They integrate them in a sequence.
Digital does what it is designed for: reaching broad audiences, targeting specific subsets of that audience, speed, retargeting, and measurement. Physical does what it’s good at: demanding attention, fostering trust, generating emotional connections, and encoding something in memory. Used appropriately and at the right points in the customer journey, the two channels serve as a sequence that’s far more difficult to ignore than either channel alone.
The key is treating physical mail as a trigger-based tool, not a campaign-based one. Just as you’d set up an automated email when someone abandons a cart or upgrades their subscription, you can set up a physical mailer to fire at the same moments. The technology exists. The integration is easier than most teams assume.
Digital channels are where you find people. Physical channels are where you reach them. That distinction is worth building a strategy around.
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