By
Lob
You're planning a direct mail campaign that needs to reach potential customers – and hopefully bring in some qualified leads. But how do you pick the targeting strategy that will let you get the most bang for your prospecting buck?
Dig into two popular direct mail strategies, Every Door Direct Mail (EDDM) and targeted direct mail, and pick the best approach for your business goals.
Every Door Direct Mail (EDDM) is a service offered by the United States Postal Service (USPS) that allows businesses to send mail to every household within a specified geographic area. With EDDM, there’s no need to purchase mailing lists or gather specific recipient addresses. Instead, you select routes based on zip codes or carrier routes, and USPS ensures your mail reaches every home along those routes.
It’s a straightforward, cost-effective way to saturate an area with your message, making it ideal for businesses that want to promote broadly to local communities. For example, a local pizzeria could use EDDM to announce a grand opening or a limited-time discount to everyone in the neighborhood.
Targeted direct mail is a marketing strategy that focuses on delivering mailpieces to carefully selected audiences based on specific demographic, geographic, or behavioral data. Unlike EDDM, targeted mail relies on curated mailing lists containing addresses of households or individuals that match your ideal customer profile.
By leveraging data such as age, income level, purchasing habits, or interests, businesses can identify and focus on prospects who are most likely to engage with their offerings. This precision allows for highly personalized messaging, typically resulting in higher engagement rates. Tools like Lob Audience make it easier to identify and target specific audiences by providing access to high-quality mailing lists and filling in the blanks in your existing data.
Now that you have a better understanding of EDDM and targeted direct mail, let’s dive into a detailed comparison of these two strategies. We’ll walk through the most important factors every direct mail marketer should consider, from cost and ease of use to personalization and engagement, when creating a new campaign. At the end of each section, we’ll highlight which approach comes out on top.
EDDM is typically less expensive than targeted mailing. It eliminates the need for a mailing list, saving you the expense of purchasing or maintaining one. Plus, EDDM offers discounted postage rates for bulk mailings, cutting costs even further.
But while the price tag may be lower, other factors can impact the overall cost. For example, because EDDM requires you to create and print your own mailings, campaigns can be time and labor-intensive compared to targeted mailing, which can often be automated when sent through a digitally powered direct mail service like Lob.
Winner: EDDM by a nose. Dollar for dollar, EDDM is often cheaper than targeted direct mail, but you'll still need to be on the lookout for hidden costs.
While EDDM may be cheaper upfront, targeted direct mail often yields higher ROI thanks to personalized messaging and enhanced targeting of specific demographics or audience segments that are most likely to convert. This can result in a higher response rate and, ultimately, a higher return on investment for your direct mail campaign. That said, if you're trying to reach a broad audience in a specified locale, EDDM may end up having the edge.
Winner: Targeted direct mail
One major advantage of targeted direct mail is its trackability and ability to gather data for analytics. With targeted mailing, you can use QR codes or personalized URLs (PURLs) to track response rates and measure conversions down to an individual level. This information can then be used to refine future campaigns and improve ROI.
On the other hand, tracking responses with EDDM can be more challenging, since there are no individual addresses or recipient information to track.
Winner: Targeted direct mail
Targeted direct mail allows for a high level of personalization, including design, messaging, product recommendations, and even mail format. By tailoring messaging and design to each recipient, you can increase the chances your marketing efforts will lead to conversions – and create a unified omnichannel campaign. Because EDDM relies on batch sends from the USPS, it cannot be tailored to individual recipients.
Winner: Targeted direct mail
EDDM (Every Door Direct Mail) offers a cost-effective way to reach every household in a specific area, making it ideal for businesses focused on location-based customers. For example, if you're promoting a new grocery store in a small town, EDDM ensures your offers reach a broad audience with diverse needs but a shared local residence. You don’t need detailed customer data—if they live nearby, they’re likely potential customers.
Targeted mailing, on the other hand, allows businesses to refine their audience based on specific traits like income or lifestyle. For instance, a high-end pet boarding service would need to target pet owners within a certain income bracket and proximity. While this approach is more precise, it typically results in fewer mailed pieces compared to the broader reach of EDDM.
Winner: EDDM
To increase your conversion rate with targeted direct mail, focus on crafting highly personalized messages that address the specific needs or interests of your audience. Use data insights to segment your mailing list and tailor the content accordingly. Incorporate compelling calls to action and track the performance of your campaigns to refine your approach over time. By investing in quality design and relevant messaging, you can create a memorable and impactful experience for your recipients – that ultimately leads to them taking action.
Ultimately, the choice between Targeted Direct Mail and EDDM depends on your business goals, budget, and the audience you want to reach. Many businesses find success using a combination of both methods, tailoring each campaign to the specific objectives at hand. By understanding the unique benefits of each approach, you can make an informed decision that maximizes your marketing impact.
Ready to create a personalized targeting strategy for your direct mail program? Contact us today for a personalized demo.
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