Businesses across various industries have abandoned direct mail marketing techniques, in favor of newer, online mediums of communication to interact with their customers. However, ask leading marketers what they think and they will tell you that direct mail is far from being an obsolete communication channel. Although email inboxes continue to grow more cluttered everyday with unsolicited offerings, it is actually direct mail that has proven to evoke stronger emotional responses to product offerings in consumers. On average, the Direct Marketing Association estimates that direct mail has a response rate of 4.4%, compared to an estimated response rate of only 0.12% for email. Yet due to its physical nature, achieving such results via direct mail campaigns comes with a high customer acquisition cost. Across industries, direct mail has an average cost per acquisition of $31.10 per prospect, compared to $21.20 for email — leaving the direct mail medium prohibitive for many businesses to leverage successfully.
To generate high response rates while maintaining reasonable marketing spend, personalized direct mail should only be sent to prospects who are most likely to respond. AI allows marketers to predict the likelihood that your valued customers will respond to your direct mail outreach. By identifying the subset of customers or prospects most likely to respond, you can maximize the utilization of your marketing costs and avoid spending resources on those unlikely to respond. For each of your customers, AI will also generate the top statistical reasons behind why they will respond. Your marketers can augment their outreach by tailoring their message to the unique priorities of each customer. This allows you to achieve high response rates and deepen customer relationships, while maintaining lower costs per acquisition by only investing in your most valuable customers.
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