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Maximize ROI with Automotive Direct Mail

Direct mail marketing is a familiar term to many because throughout the years delivering materials via mail has proven to be a successful strategy that dates back to the 1900's. Many may feel that direct mail marketing is a term of the past, however recent data states otherwise. This article will dive into the data that proves the immediate benefits of using automotive direct mail. Also, we will review why and how using artificial intelligence (AI) paired with automotive direct mail can efficiently boost ROI.

Direct mail in today's market

According to recent reports, the response rate for direct mail was significantly higher than email, social media, paid search, and online displays. According to the article posted on Compu-mail and the response reports published by the Data and Marketing Association in 2017, the response rate for direct mail was just above 5%. That's a 4.8% difference over paid search and online display. The numbers are evidence that direct mail is still a proven way to reach consumers. The following statistics highlight just a few facts about direct mail usage:

  • Direct mail has a physical aspect that resonates with a person's instinct to determine substance. 
  • Direct mail provides less cluttered and direct contact to consumers when compared to email.
  • According to Baker Good Child ", 92% of all direct mail is opened and 48% of people admit to taking action as a result of engaging with it "

 From the data, we can see that direct mail continues to be a valuable marketing strategy. With direct mail, there are many ways to maximize its effectiveness. A great way to accomplish a successful campaign is with AI.

Automotive Direct Mail and AI

Computing, data and AI have made extraordinary advancements in recent years. Today machines are capable of analyzing complex datasets and making decisions based on the data it consumes. With the use of customer trend data and algorithms, AI can assist with identifying leads, monitoring competitors, and reacting in a way that makes the consumer experience a personal and engaging campaign. By using AI to create a 1:1 targeting strategy, response rates can increase up to 50%. 

The Marketing Trifecta

Analyzing the data above it is clear that consumers are looking for a unique and personal experience. We've discussed how direct mail can be utilized with AI now let's consider adding email to the picture. Email has been a proven and successful way to reach consumers and has prompted consumers to react. According to the DMA "Email marketing has an ROI of 3800%" and Pew research has found that over 90% of adults online are using email, with about 60% of adults using it from day to day. Similar to direct mail consumers are more likely to engage and make purchases when the emails have a personal feel. AI paired with direct mail and email efficiently creates a personalized multichannel campaign.  With petabytes of data available for an AI platform to consume not only can a campaign yield extraordinary engagement it can also produce valuable data insights on consumer behavior and automotive purchase predictions.

The opportunity to improve ROI with multichannel campaigns and AI is available today. If you would like to learn more and begin using AI with your business contact us at your earliest convenience.

Learn how to get more bang for your buck with direct mail by using your own data. Watch the AdStack Webinar to learn how to cut costs across your direct mail channels.

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References:

Compu-mail:30 Direct Mail Statistic for 2017

Baker Good Child: Direct Mail Statistics You Should Know

The data and Marketing Association: 2017 Reports

Sean Marra
Sean Marra
CEO of ePush! With over 20 years of experience in automotive, Sean’s fearless approach and instincts put him at the forefront of the industry when it comes to Digital Marketing.

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