Where postcards used to be the most affordable way to connect with potential customers, marketers now have a range of options, including direct mail, search ads, site ads, email marketing, social media, mobile ads, and more. Today, marketers face a vast array of channels, which can be both beneficial and challenging. On one side, they can experiment with various strategies to increase sales. On the flip side, having so many choices can stretch budgets thin across different methods, making each one less effective. The important thing is to identify what works best for your business and concentrate on that channel. Given that digital marketing is often very cost-effective, it raises the question: Are postcards still useful?
The main expense in postcard marketing isn’t the printing cost; it’s the postage. Over the last 20 years, postage rates for postcards have risen sharply—from 19 cents in 1993 to 33 cents in 2013. So, even if you find a good deal on printing, like 10,000 postcards for about $250, you’ll still face a $3,300 postage bill to send them out.
Despite postage costs, postcards absolutely remain relevant. Here’s why:
● Direct mail has the highest rate of success in new customer acquisition at 34 percent
● Postcards have an average response rate of 3.99 percent, according to the Direct Marketing Association Response Rate Report 2012
● Fifty-four percent of postcards are read by recipients, according to the DMA 2012 Statistical Fact Book
In fact the Direct Marketing Association has tons of data that supports the fact that postcards are not only read but are powerful marketing tools. But how does that translate to your business?
Let’s say you have a web-based service that charges $20 per month, for a total of $240 per year, and 75 percent of new members remain with you for a minimum of 12 months. You can say your average profit per sale is $180. You print and mail 10,000 postcards, which achieves the average response rate of 3.99 percent, or 399 new customers. Your gross profit for the campaign is $71,820.
Now, subtract the cost of printing and mailing your postcards (we’ll estimate $4,000 for posterity), and that leaves you with a net profit of $67,820. That figure is very relevant.
With a great mailing list, a great offer, and good copy and design, you can predict your postcard marketing profits by adding your own numbers into this equation:
(3.99% of postcard volume)(value of each sale) – (printing + postage) = estimated net profit
If you have design, copy, or mailing list rental fees, add them in with printing and postage before you run your estimate.
The fact that postcards are delivered right to your customers and that they have to at least glance at your postcard – and that the DMA’s figures demonstrate that postcard marketing is highly effective – prove that postcard marketing is not only still relevant but still one of the best marketing tools available today – even in the digital age.