By
Lob
Direct mail is a form of marketing that uses physical mail to reach an audience. It includes postcards, letters, and brochures sent to people's homes or businesses. While it has existed for decades, modern tools make it possible to send more personalized and data-driven mail than ever before.
Targeted direct mail is different from mass mailings. It focuses on sending messages to specific people based on their characteristics, behaviors, or preferences. Instead of sending the same message to everyone, targeted mail uses data to tailor content for each recipient or group.
This article outlines key best practices for running successful targeted direct mail campaigns. Each section breaks down a core part of the process, from building your list to testing and improving your results.
Knowing who you're sending mail to is the first step in targeted direct mail marketing. Unlike mass mailings that blast the same message to everyone, targeted mail uses data to reach specific groups with relevant messages.
To understand your audience, create detailed profiles using different types of data:
At Lob, we've seen that campaigns with detailed audience profiles perform significantly better than generic mailings. When you know who you're talking to, you can create messages that actually matter to them.
Your mailing list directly impacts how well your campaign performs. According to USPS, about 40 million Americans change their address each year. If your list contains outdated addresses, you waste money on undeliverable mail.
Keep your list clean with these methods:
Lob automates address verification, reducing undeliverable mail and saving you money on wasted postage.
Divide your list into groups with similar traits to send more relevant messages:
Segmented campaigns typically see response rates 4-10 times higher than non-targeted campaigns, according to the Direct Marketing Association. This means better results for the same budget.
Design affects how people respond to your mail. A well-designed piece guides the reader's attention and makes your message clear.
Select the right format for your goals:
Each format works best for different situations. Postcards work well for reminders and simple promotions, while letters are better for financial offers or detailed information.
Make your mail easy to understand at a glance:
Lob's templates help you create professional designs that follow these principles, even if you don't have a design team.
The words and images you use in direct mail creative make a big difference in whether people respond to your mail.
Your headline is the first thing people read. Increase your open rates with these proven headline approaches:
Keep headlines short and focused on what matters to the reader. Different industries have different effective approaches, but clarity always wins.
Your call-to-action (CTA) tells people exactly what to do next:
The easier you make it for people to respond, the more likely they will. At Lob, we've found that clear, single CTAs typically outperform pieces with multiple competing actions.
Personalization increases response rates by making mail more relevant to each recipient. According to research, even basic personalization can lift response rates by up to 44%.
Personalize at different levels based on your data:
For example, an online retailer might show different products based on what categories a customer has browsed before. A bank might feature different loan offers based on a customer's financial profile.
Lob enables variable data printing that changes text, images, and offers for each recipient automatically.
Send mail based on specific triggers or events:
Triggered mail typically performs better because it arrives when it's most relevant to the recipient. For example, a reminder about reordering a product that's about to run out is more timely than a generic promotion.
Testing helps you learn what works best with your audience. By comparing different versions, you can improve results over time.
Test one element at a time to see what affects performance:
Common testing mistakes include changing too many elements at once or drawing conclusions from too small a sample size.
Measure results to understand what's working:
Use tracking methods like unique codes, personalized URLs, or dedicated phone numbers to connect mail pieces to specific responses.
Lob's analytics tools help you see delivery confirmation and track response patterns in real time.
Direct mail works even better when combined with digital marketing. Each channel reinforces the others for a stronger overall impact.
Effective channel pairings include:
This table shows how different channels complement direct mail:
Consistent messaging across channels creates a unified experience that improves overall campaign performance.
Automation turns direct mail from a slow, manual process into a responsive marketing channel that works at digital speed.
Set up automated mail based on customer actions or events:
These triggers connect to your customer database or marketing platform, sending mail automatically when conditions are met.
Lob's API connects with systems like Salesforce, HubSpot, and Marketo to enable these automated workflows.
Automation streamlines the entire mail process:
Lob's Print Delivery Network manages production across certified print partners nationwide, optimizing for speed and delivery.
Successful targeted direct mail combines several key practices:
Each of these practices builds on the others, creating campaigns that reach the right people with the right message at the right time.
Ready to implement these best practices? Book a demo to see how Lob can transform your direct mail strategy.
How much does a targeted direct mail campaign typically cost?
A targeted direct mail campaign costs vary based on design complexity, printing specifications, mailing list quality, and postage rates. While targeted campaigns may have higher upfront costs than mass mailings due to data and personalization requirements, they typically deliver better ROI because they reach more relevant audiences.
What response rates should I expect from a targeted direct mail campaign?
Well-targeted direct mail campaigns typically achieve response rates between 5% and 9%, compared to around 1% for untargeted mailings. Personalization, relevant offers, and clear calls-to-action significantly impact these rates, as does the quality of your mailing list and the timing of your campaign.
How can I measure the ROI of my direct mail campaigns?
Measure direct mail ROI by tracking responses through unique codes, personalized URLs (PURLs), QR codes, or dedicated phone numbers that connect each mailpiece to specific customer actions. Calculate ROI by comparing campaign costs against the revenue generated from these tracked responses, including both immediate conversions and longer-term customer value.
How do I ensure my direct mail complies with privacy regulations?
Ensure compliance by maintaining clear opt-out mechanisms for recipients, handling personal data according to relevant regulations (like GDPR or CCPA), using secure systems for storing mailing list information, and staying current with postal regulations. Different industries may have additional requirements, so consult with legal experts familiar with your specific market.
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