These Companies are Making Serious Dollars with Direct Mail Marketing
It’s exciting to see direct mail marketing experiencing somewhat of a resurgence in popularity. It has always been an effective means of engaging targets, but the practice went through a period of time where it received some bad press. All that is changing in a big way, with big companies now even more in tune with turning direct mail into mega dollars.
Costco and Williams-Sonoma are two industry giants currently using direct mail marketing to turn a profit. Both organizations are experiencing high returns on their investments and are continuing to reap the benefits of wide-scoped direct mail campaigns. Another brand, Neiman Marcus, earns $4.00 off of every dollar that goes into direct mail and after a short test run in 2013, online-only retailer Bonobos boasts 20% of its first-time orders because of direct mail catalogs.
Williams-Sonoma has seven companies underneath its brand’s umbrella. They are responsible for retailers such as West Elm and Pottery Barn, who are big name companies in their own right. Now, in today’s digital-heavy era, can you guess what percentage of Williams-Sonoma’s marketing budget is spent on direct mail each year? It’s about 50%; that’s half of its total marketing budget, which is absolutely incredible. And if you have any doubts that it’s working, the company has already generated $141 million in profit in the first quarter of this year alone.
Costco has become a household name across the U.S., having established itself as a go-to bulk shopping spot. So you would imagine they take their marketing seriously, and they do. Costco delivers 8.6 million magazines each and every month in the U.S alone, which makes it one of the three largest monthly publications in the world. Further, about 56% of their customers make a purchase based off of something they saw in the monthly direct mail piece. Those are astonishingly high numbers, which looks even better when you consider the average household income receiving Costco mail is $156,000.
A Multimedia Approach is Best
Settling on just one way of marketing just won’t cut it in today’s ultra-competitive business environments. Companies must have a multimedia approach that includes both direct mail and online, along with any other means of strategic marketing that makes sense for the brand.
These companies are just a few examples of how direct mail can have a positive impact on profit. When used to its potential and in combination with other forms of marketing, there are few things that can compare to the return.
Macromark has been in the direct mail marketing space for three decades. We’ve found a way to thrive through the down times and are here now, when direct mail seems to be picking up in popularity. You need to figure out how to include direct mail into your marketing strategy, or contact us and we’ll show you how to make it fit.
Buck, S., “Direct Mail Breaks Outdated Marketing Assumptions,” Fox News web site, May 18; http://www.foxnews.com/us/2016/05/18/direct-mail-breaks-outdated-marketing-assumptions.html.
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