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Your return on investment should always prove a deciding factor in considering which communication channel to use in a particular campaign. Hundreds of case studies have been performed analyzing the effectiveness of Direct Mail versus identical Email campaigns, and while the results have generally confirmed widely held beliefs on the advantages of Email, careful consideration of your firm's promotional goals is still required to determine a strategy that is both cost efficient and effective.
It is no secret that the popularity of Email campaigns is largely due to the elimination of traditional costs associated with Direct Mail. The fixed costs of postage stamps, paper, printing, and handling are eliminated, leaving only the cost of creative development. Additional costs to consider are third-party address databases and mass-emailing services. The average CPM (cost-per thousand) of emails ranges from $100 to $400; a higher price does not necessarily yield higher response rates. In addition, Email campaigns can typically be deployed in less than half the time it takes for a traditional print campaign. More importantly, a firm can expect to receive over 75% of their results within days of the campaigns launch.
As always, a successful campaign is determined by the ability to target the customers most likely to buy your products and services. For both Direct Mail and Email, this oftentimes means investing in address databases, but acquiring contact information on your own via website sign-ups, partner corporations, or opt-in Email lists usually leads to higher response rates. A successful strategy for acquiring customer addresses is to offer an electronic newsletter which potential customers can sign up for on your site or any affiliate site (click here for more on Newsletters). In addition, on account of the increasing regulation of Email by government and growing public frustration with unsolicited Emails, efforts to acquire addresses of customers with an already expressed interest in your products and services are of the utmost importance.
One of Emails greatest strengths is the ability for a potential customer to immediately click on a hyperlink directly connecting to your firm's website. The click-through rate (CTR) of a particular link can be increased by offering incentives such as discounts or special deals that expire. This leads to another strongpoint of Email: the ability to precisely measure the effectiveness of particular links, offers, and over-all campaigns. Statistical graphs can reveal trends on what customers respond to most, and give feedback on potential changes (which will be relatively inexpensive to make) for your next campaign.
While everything you have read thus far might suggest the unequivocal advantage of Email, Direct Mail maintains certain benefits select firms continue to pursue. Marketers with larger budgets can afford to create print materials that are visually stunning and impressive. Oftentimes, creative design can be the motivating factor for a potential customer to read an offer. Emails still rely on catchy headlines or for individuals to have an embedded trust in the company to encourage clicking on a given item.
As a final note, Email must be recognized as more than a communication channel for simply promoting and selling individual products and services. Email can serve as cost-efficient and effective means to establish brand identity, act as a vital element in a PR strategy, and generally create buzz for your company. Marketers must first establish the goals of a particular message/ campaign, and then weigh the advantages of various channels for delivering that message powerfully and on budget.
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