Why Small Businesses Need to Embrace Direct Mail Marketing
Small businesses across the country are the backbone of this nation. They’re how so many middle class Americans earn their living, take care of their families, and contribute to economic growth. All small businesses have their own unique set of challenges, but they also share similar characteristics concerning resources and revenue. Failing to balance these two variables can be disastrous for small businesses, which is one of the reasons it’s so important that they earn a return on whatever strategy they invest in.
Marketing is one of those necessary strategies that the smallest of businesses must still practice. And direct mail is the form of marketing that has proven to yield some of the highest returns. But not all small businesses utilize direct mail marketing to its full potential, either because of misinformation about its process or because they are caught up in the digital trend. Either way, the opportunity to grow business is being missed, and small businesses are typically not in a position to be passing on opportunities.
Some Facts about Small Businesses
For those of you who don’t know just how significant small businesses are to the American economy, some of these stats may surprise you.
-There are 28 million small businesses in America
-Small businesses account for 54% of U.S. sales
-Small businesses offer 55% of all jobs and close to 70% of all net new jobs
-There are over 600,000 franchised small businesses in America that account for 40% of all retail sales
What’s even more interesting is that small businesses have increased by close to 50% since 1982. That shows that people are taking control of their financial futures and their careers now more than ever. It also means competition has never been fiercer, particularly now that the Internet has shrunk the world to where competition is no longer strictly in your backyard.
Small businesses need to face competition head on and find ways to stand out. Direct mail is one key avenue to making that happen, and once used correctly, it can elevate the status of your business dramatically.
Myths about Direct Mail
Some business owners or marketers may have preconceived notions about the process and effectiveness of direct mail. We’ll deal with the most redundant complaint, which is that direct mail costs too much for its return to be worthwhile.
This is just not true. In a 2015 study conducted by the Direct Marketing Association (DMA) and Demand Metric, it was concluded that the cost per acquisition for direct mail is approximately $19.00. This is lower than paid search and Internet display, and within $1.00 of social media and mobile advertising.
Another important metric crucial for small businesses is return on investment (ROI). According to the study, direct mail marketing yields a median ROI of 15% to17%. These figures should prove that direct mail is worth every dollar invested.
Direct Mail Still Thriving
Another fact to consider is that despite the digital era—social media, the Internet, email—direct mail marketing is still thriving. We’ve showcased, right here on our blog, large and small companies that have turned to direct mail for their marketing and earned positive results, sometimes bordering on unbelievable.
That’s because despite any other method of marketing, direct mail works. So long as the each step is properly thought out, targets are carefully identified, and the mailer is both aesthetically engaging and contains the right copy, direct mail will get your business the results it needs to remain competitive and earn revenue.
Macromark has been in the direct mail marketing business for three decades. We know precisely how to go about helping small businesses execute strategic campaigns starting with our list building. Contact us before you start your next marketing campaign and we will show you the impact direct mail can truly have.
“Small Business Trends,” U.S. Small Business Administration web site, last accessed February 22, 2016; https://www.sba.gov/content/small-business-trends-impact.
“Direct Media Response Rate, CPA and ROI Benchmarks,” MarketingCharts.com, April 14, 2015; http://www.marketingcharts.com/traditional/direct-media-response-rate-cpa-and-roi-benchmarks-53645/.