Maximizing Marketing ROI. It’s not just for recessions.

Given consumer spending at the start of 2023, it may seem like the media are crying wolf when it comes to recession fears. The problem is, although consumer spending and corporate profits seem strong, all of those reports are based on trailing data. It shows us what happened last month or last quarter. The Consumer Confidence Survey®, on the other hand, is meant to reflect prevailing business conditions and likely developments for the months ahead – and confidence is down for the past 2 months.


Regardless of the indicators, ROI-driven marketing is always the safest/best place for your marketing spend. Being an agency that specializes in direct marketing, we have some ideas on this topic.


Recognize which channels drive the most ROI.

 For prospecting, the 2022 Association of National Advertisers (ANA) Response Rate Report shows direct mail in the lead. Direct mail’s advantage over digital is that our mailboxes are far less saturated with advertising compared to our screens. Plus, direct mail has a longer lifespan in the home.


For customer retention, email continues to be a leader in ROI. Depending on the source, average email ROI is $40 for every $1 spent. This performance number is heavily weighted by retail where brand loyalty makes for strong sales. We like to say numbers don’t lie but they statistics are easily skewed.


What about Social? According to HubSpot, Instagram holds first place among social media channels, closely followed by Facebook. Of course, your choice should be guided by where your audience spends the most time.


What mix is best for your ROI? That depends.

While each channel has its own contribution to ROI, how they work together is the key to maximizing your marketing campaigns. Direct mail and digital channels can be used to trigger each other to boost results. That’s why we all need to think with an omnichannel mindset.


Starting with a data-driven omnichannel strategy is how marketers solve the puzzle. For example, acquisition campaigns using the power of direct mail or DRTV can use QR codes to drive to social where you can gain a follower – or to a personalize landing page to complete a sale. Consumers who click through to a website but don’t act may need a postcard or email follow-up to motivate action. The interconnectivity of channels is a perfect example where the whole is greater than the sum of its parts.


Increase your consumer intelligence to boost relevancy.

Now is always the right time to make sure your strategy and creative are more driven by customer data and analytics. This is about more than adding personalization to email subject lines and headlines. Start testing a deeper level of personalization with your creative – including everything from the offer to the imagery – to discover the impact your customer data can have on campaign results.


After all, relevancy is what always wins the day in direct marketing.

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