In a world dominated by smartphones, automotive direct mail remains a timeless marketing tactic that still holds its own. Not only does direct mail provide dealerships with improved response rates, but it’s also a cost-effective approach that outmatches more modern marketing methodologies.
But how and why is automotive direct mail cost effective? Aspen Automotive is here to give you a closer look at this budget-friendly strategy and why it’s a must-have addition to your dealership’s automotive advertising campaigns.
Automotive Direct Mail is Cheaper
Have you ever looked into the price of online ad space? What about radio commercials and TV spots? For the most part, the simple reason that automotive direct mail isn’t as widely used as digital mediums is why it’s less costly.
Let’s think about the design aspect first. Postcard-sized ads shouldn’t be too busy or too big. Designing one is less time-consuming (time is still money, right?) and can likely be done in a basic desktop publishing or creative app.
When it comes to printing and mailing these ads, you can do so at a bulk rate, saving yourself a bit of cash. That way, you can use that extra money to use higher quality materials or unique features to make the direct mail experience even more pleasant for your customers.
The Postal Service Makes It Easier Than Ever
Speaking of bulk rate discounts, the United States Postal Service (USPS) makes saving money on your direct mail campaign easier than ever. They offer several programs and promotions to make your campaign as successful as ever, all while saving you time and money.
Let’s take a closer look at some of these programs and promotions!
Annual Money-Saving Promotions
At the start of every year, the USPS will announce their calendar year’s promotions. These promotions typically run for three to six months. Each promotional period focuses on different types of direct mail. This way, you can experiment with types of direct mail you may not have tried before while also benefiting from a discount.
Some of the ways you can save by using the annual promotions and incentives through the USPS include saving a percentage on your order and earning credits for future mailers.
These types of promotions change annually, so make sure you’re staying up to date on each year’s offerings, which could include:
- Tactile, sensory, and interactive mail
- Emerging technology mail
- Personalized color mail
- Mobile shopping promotions
Taking advantage of these annual promotions and incentives gives you the ability to play around with new forms of direct mail you may not have before all the while saving money!
Every Door Direct Mail®
Another way the USPS helps you save money on your direct mail campaign is through the Every Door Direct Mail® (EDDM®) program. This saturation-like program helps promote your dealership to those living in a certain area of the community.
Choosing your demographics is easy thanks to the option to send mail based on age, income, household size, and zip code.
The EDDM® program lets you send anywhere from 200 to 5,000 pieces of mail per day per zip, ensuring your postcard, service coupon, or other type of direct mail is seen by the people you’re targeting.
Plus, with the EDDM® rate as low as $0.164 per piece of mail, this program can help you save money while still being seen.
Informed Delivery®
While the Informed Delivery® program may not directly help you save money, it may help increase your ROI, which is the name of the marketing game. This program gives residents access to their mailbox right from their phone.
Informed Delivery® shows a digital preview of what will arrive in their mailbox each day. Some of the benefits to Informed Delivery® are:
- 77% of notifications are opened daily1
- Interactive content to allow for faster engagement
- Recipients can view mail while on the go
For those looking for a way to boost ROI, merge direct mail with digital marketing, and experiment with new technologies, Informed Delivery® is the way to go!
Measurable Results are Lucrative Results
When it comes to whittling down demographics for your campaign, analytical tech is sure to yield a more focused group of recipients. With this is mind, you don’t have to cast as wide of a net the first time around. You can send out a low volume of promotional materials to start.
It’s easy to measure the success of direct mail campaigns. All you need to do is keep track of how many of the coupons and promotions were redeemed to determine how effective they were.
Once you have this information, you can nix the promotions (or demographics) that didn’t work and capitalize on those that did. In the end, this will lead to a more lucrative campaign.
Automotive Direct Mail Pieces Proven Results
There’s another simple reason why the direct mail marketing campaign still thrives in this digital age: it works.
Just think about how many ads you hear on TV or the radio or even just see on billboards throughout the day. It’s a lot—enough that consumers have learned how to tune them out.
Maybe we phase out this kind of advertising so easily because it’s intangible. Direct mail, on the other hand, is not. It gives you a promotion or coupon that you can hold in your hand. That’s a little bit harder to gloss over. Ultimately, you’re going to see some major returns for this reason.
On top of that, a study performed by the Canada Post revealed that direct mail requires 21 percent less cognitive effort to process and leads to higher brand recall than digital advertisements.2
Resulting from automotive direct mail’s enhanced impact on its recipients, you can expect to earn better returns on physical mailers when compared to digital advertisements.
In the long run, this means that a direct mail campaign will give your dealership more bang for its buck than an email, social media, or paid search strategy.
Better ROI = Cost Effectiveness
Part of what makes automotive direct mail cost effective is its impressive return on investment. In fact, the cost of direct mail is typically only a small portion of the returns it earns for your dealership.
According to Marketing Dynamix, “Direct mail median household return on investment is 29% (23% paid search, 16% online display, 30% social media).”3
With these statistics in mind, it’s easy to see why direct mail ends up being a more cost-effective option than its digital counterparts. The returns served up by this tried-and-true automotive marketing method far outweigh any shipping and production costs.
While such shipping costs aren’t associated with digital advertising mediums, the revenue produced by direct mail still exceeds the profit of modern marketing techniques.
Improved Response Rates with Automotive Direct Mail
Why are response rates so important for dealership success? Well, the more responses you receive from customers, the more likely your team is to garner sales from interested leads. The result? More revenue for your dealership which offsets any cost acquired from your direct mail campaign.
To give you a sense of just how effective this approach is in boosting response rates, direct mail returned an average response rate of 9 percent for house lists and 4.9 percent for prospect lists in 2018.4 Why is this the case?
Due to its tangibility, direct mail marketing is not only easier for consumers to process, but it’s also more memorable. When your ideal audience can easily digest and remember your dealership’s campaign, they’re more likely to consider you as a go-to business for purchasing a vehicle.
In addition, automotive direct mail’s versatility allows your team to send free merchandise and attention-grabbing mailers to your customers—something that isn’t an option with digital advertising.
Stand Out from The Crowd
Everyone tries to be unique, to be their own person and stand out from the crowd. Why shouldn’t you do the same with your marketing campaign?
Direct mail gives you the freedom to break free from cookie-cutter advertisements that often accompany digital campaigns thanks to its nearly endless creative design capabilities. For example, direct mail allows you to choose the size of the mailer, type of paper, color, font, texture, and much more. It even allows for the use of sensory items by adding features like a car freshener, a Spotify® playlist for their drive home, or a new keychain to your mailer.
With digital marketing, you only have the creative freedom to adjust how the ad looks and not how it feels.
Direct mail also makes it possible to send 3-dimensional mailers, something that’s sure to help you stand out from the crowd. Think of it this way, the more unique your mailer, the more likely it will grasp the recipient’s attention. Then, the more memorable, the more likely they are to visit your dealership, share with friends, or both!
Try Something Different for Your Next Advertising Campaign
Promotions, deals, and incentives are a huge boon for any car dealership. However, you want to choose the delivery method that’s sure to make the most of your budget for your dealership.
Direct mail marketing gets results, and it can help you save money in the long run. Try it for yourself by contacting our team at Aspen Automotive. We’ll show you exactly how effective direct mail can be for your car dealership.
Ready to get started? Give us a call or send us an email today!
