A variety of elements and circumstances determines your direct mail expenditures. Direct mail marketing has its own set of benefits and costs that must be carefully weighed against one another.
Fixed Costs. Fixed costs in direct mail production are expenses for services or items that remain constant independent of the number of letters mailed, the client, or other factors. If there is a follow-up campaign, several of these fees may be significantly reduced if few or no adjustments are made.
Set-Ups. A direct mail campaign necessitates the preparation of the appropriate materials, software, and equipment for printing and sending.
Project Management. Labor, administrative, and continuing fulfillment activities linked with the direct mail campaign and responsibilities such as invoicing are included in these expenditures.
Consultation. A meeting with design and production workers to discuss project ideas may require a direct mail contract.
Design/Art and Copywriting. Indeed, design isn’t free. Many aspects of a direct mail project are charged for by agencies or design specialists, including modifications based on client feedback. The same is true for copywriters, whether on staff or hired on a contract basis.
Variable Costs. Direct mail expenditures can vary significantly from one campaign to the next, owing to the volume of material sent. Other factors can also influence your selection on how many items to mail.
Materials. Direct mail is not simply inking on paper. Pandemic-related shutdowns and restarts have interrupted typical supply networks all around the world. What does this mean for printers? Access to these consumables has been restricted, and their prices have risen. Even when they are accessible, transportation bottlenecks further complicate things.
Printing. The printing cost of a direct mail campaign varies depending on components options, such as ink and quantity.
Postage. Because of the numerous USPS laws that give marketers options for their campaigns, determining postal costs can be tricky. Bulk mailing permits are one of the few set postal costs that are standard. Factors including mail class, dimension, and weight influence postage pricing.
How to Save on Direct Mail Costs
Don’t be afraid to spend money on direct mail. However, there are ways to reduce your costs by allocating them to other variables in your campaign.
Keep Your Data in Shape
Good data drives direct mail campaign efficiency and effectiveness. So, reduce or eliminate the risk of Undeliverable As Addressed (UAA) mail caused by outdated, incomplete, or duplicate records by reviewing and updating your mailing list regularly.
Focus on Segments
Segmentation needs a second look to save money and create new growth prospects. Using the recency, frequency, monetary value (RFM) concept, prioritize those clients who deserve more of your attention with mail. Your top customers are the ones that have purchased the most lately, have purchased the most regularly, and have spent the most money.
Test and Keep Testing
Begin your campaign with a base or control group and a response rate. Then think about several variables that could lead to lower prices, a higher response rate, or whatever your aim is.
Limelight Direct Mail Marketing
Balancing the costs and effectiveness of direct mail campaigns is a must. Limelight Direct Mail Marketing can help any business develop the best campaign for the budget allotted. For information in direct mail in Greensboro, contact us at 919-452-5418 and see what we can do for you.
