Todd Schulte

Strategy

Accelerated Growth

Analytics

Mentor

Todd Schulte

Strategy

Accelerated Growth

Analytics

Mentor

Blog Post

Why All Direct Mail Marketing Professionals Should Add AI to their Budget.

Why All Direct Mail Marketing Professionals Should Add AI to their Budget.

Many business decision makers are struggling with ROI when it comes to integrating technology into their daily operations. Are they going to revolutionize the way their company runs, or just end up being a waste of time and money? For direct mailers, AI is an opportunity they shouldn’t stay on the fence about. Here’s why.

Where Direct Mail Marketers Are Struggling

One major issue that direct mail marketers have is the fact that it’s far more expensive and time-consuming to put together a print catalog compared to its digital or email equivalent. Jennifer Heim, Vice President of Miles Kimball, says that if one of her companies was to put out a catalog, they would need to consider “increasing postage, print, and paper costs not to mention the internal work that goes into creating it.” As a result, issues like overmailing and not knowing the optimal time to send materials have much higher stakes. There are several other issues direct mail marketers have to deal with, like ensuring their lists stay current.

Combine all these factors together, and this is where the myth starts to grow that direct mail marketing is “dead” or “outdated.” Christopher T. Spiro, Chief Creative Officer at Spiro & Associates, shares how while he often recommends direct mail marketing to clients, he tends to be met by challenges on the subject. “They often ask us if people still look at mail, do they respond to mail?  Is it cost effective? That is the singular largest pain point.”

How AI Handles Conventional Direct Mail Issues

Modern problems require modern solutions, and fitting AI into direct mail marketing programs helps address and mitigate a lot of these issues. Spiro shares how he used an AI-directed mail program for a regional home builder client of his, and found a great deal of success by providing an offer via a PURL (personal URL). When customers accessed the PURL, the client was able  “to track visits, preferences and follow up with a combination of an electronic and direct mail drip campaign.”

Using Artificial Intelligence it is now possible to identify whether a prospect should by targeted with conventional mail, or with email or if using both to reach the same prospect yields a superior result.  This campaign led to 1,000 homes sold as a direct result over a one-year period. However, this data and these conversions wouldn’t be accessible without AI-based message targeting and channel selection.

Heim shares the sentiment that AI is helping large direct mailers and can now help even mid size mailers perform their job better. Her current strategy, similar to most other mailers, is threefold:

  • Adjusting models on a regular basis based on results
  • Running stream tests to measure incremental value
  • Measuring or testing new customer segments based on certain criteria

“This is an exciting time and any direct mailer will tell you they always want to test optimizing how they mail customers,” she explains, as using AI to segment customer data means that all three of these functions can be done faster and with greater accuracy.