Welcome to the Talon Mailing & Marketing December 2020 Newsletter.
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is Better, Direct Mail or Digital Marketing?
By Kyle Curtis, Studentassembly.org
So which method provides a more reliable
return on investment (ROI)? Here's the rundown:
The holiday season is nearing, meaning more people are
willing to spend a lot for their loved ones. In fact, seasonal shopping
is so popular that last year alone, the United States spent over $110
billion in the retail sector. If you have a business, whether it’s a
clothing store or a cosmetics company, joining this trend is a must —
and the best way to boost your brand this festive season is with the
best marketing plan that includes either digital marketing or direct
To help you choose the best one for your marketing campaign this
holiday, here’s a rundown of direct mail marketing vs. digital
Although direct mail marketing requires more time and effort, even with
the USPS courier rates and expenses for the materials used in making the
mail, it’s relatively cheaper than digital marketing. That’s because
most sites charge you a set amount to advertise with them, which can be
expensive and unreliable since you wouldn’t know how effective it is.
However, with direct mail, you can decide to send a small batch first
before expanding, saving you more money and the opportunity to improve.
Every time you need to send direct mail to donors, you can decide on an
amount based on your reach instead of being forced to pay a set amount,
making it easier to upscale your choices after seeing the initial
response to your content.
Direct mail receives higher response rates since it follows a more
targeted approach. In fact, direct mail has an average 9%
response rate for house listings and 5% for prospects. Meanwhile,
digital advertising has a 0.1% click-through rate. That’s because most
people are exposed to thousands of digital ads daily and the average worker
receives over 100 emails every day — leaving your ads to get buried and
Return On Investment
Direct mail marketing remains a favored advertising strategy because it
provides a more reliable return on investment (ROI) than digital
marketing. In fact, direct mail has a median ROI of over 29%, while
digital ads only have 16%. That’s because most businesses focus on
building their companies and brands online, allowing direct mail to be a
less competitive and more reliable sector. Plus, direct mail has a
higher ROI rate because consumers tend to read direct mail more than digital
content. After all, on-page ads aren’t as appealing as personalized
mail received at home.
Direct mail marketing is more flexible when it comes to its advertising
options. In digital marketing, organizations can only choose one website
they want to advertise their brand on or how they want to send these ads
to their consumers. Meanwhile, in direct mail, you have plenty of
options, ranging from postcards to brochures.
More than 57% of consumers say that receiving direct mail makes them
feel more appreciated. That’s because direct mail can be personalized
to tailor the potential buyer’s interests while digital marketing can be
generic, making consumers less likely to engage with digital content.
Although direct mail marketing has been dubbed as ‘old school,’ it’s the
touchpoint you need to implement into your marketing efforts and sales
strategies to see the best results. However, in the end, a great
marketing strategy isn’t about comparing direct mail marketing with
digital marketing. It’s about incorporating various marketing channels
to provide an omnichannel experience for your customers this holiday
Tips to Improve Your Direct Marketing
By Melissa Thompson, SocialMediaToday.com
In direct marketing, some basics never change; but today, those
basics need to be augmented with some updated insights.
Erich Kominsky, CEO of
US Data Corporation stated, "For every dollar spent on direct
email marketing the average return on investment is $44.25. It will only
get better as marketing companies continue to develop innovations that
Here are six tips that will improve your direct-mail marketing business:
1. Target Your Audience
Part of the 40/40/20 rule of direct marketing is knowing who your
audience is and being able to target that audience with your direct
marketing. This will save you a lot of money and increase your return on
investment. Building your own list can be tedious and unscientific at
best, and it's easy to get scammed by online companies selling dirty
lists full of false leads that cost you a lot of money. Make sure you
get your lists from a reputable business. Consider renting a list if you
don't think your budget can afford buying one.
2. Create a Memorable Look
Having a great design that stands out and also reinforces your message
is essential to email-marketing success. Make sure you follow basic
design rules, but don't be afraid to get creative. If you don't have the
software or inclination to create stunning professional designs, hire a
graphic designer. The credibility that a professional design lends to
your direct email marketing message is well-worth the investment.
3. You're Selling Solutions, Not
No one cares about your widgets. What they care about are their own
needs and wants. Bob doesn't want a new drill, he wants to finish his
to-do list faster so he can go golfing. Mary doesn't want a dress, she
wants to look thin at the party this Friday. Alice doesn't want an
investment newsletter, she wants to find a great investment that will
let her retire at 45. Ted doesn't want a recipe book, he wants new ways
to impress his friends at dinner parties.
4. The Heart Comes Before the
Most direct marketers are number-crunching, logical people. It's easy
for them to fall into a cold, left-brain, bullet-pointed,
714-reasons-why type of sales pitch. However, people make decisions in
the right brain based on emotion. Then they justify that decision with
logic. To set up a sale, appeal to emotion first. Then, to close and
confirm the sale, use logic.
5. Remember the Basic Elements
Every direct marketing message includes three basic elements:
1. An offer
2. Enough information for immediate acceptance of the offer
3. A mechanism for responding to the offer
Without each of these, you are not doing direct marketing but merely
using a medium associated with direct marketing. And for direct email
marketing the response button must be prominent and not make customers
jump through hoops. Each second of delay will see more of your prospects
back out of the sale.
6. Mobile Marketing
Mobile marketing is taking over the marketing world. It is getting huge.
Google says that mobile search will surpass desktop search by the end of
the year. Perhaps the most stunning statistic is this: 70 percent of
mobile searches lead to action within one hour. By way of comparison, 70
percent of desktop searches lead to action within one month.
PEW-related research the percentage of adults in the U.S. who now have
cell phones is at 90 percent. It would be marketing madness to ignore
this gigantic subset of the consumer market. Snapchat is becoming a huge
player in the mobile marketing game. Large corporations like McDonald's,
GrubHub, and Mountain Dew have used Snapchat to promote new products and
standard services. This segment is only going to grow larger as new
technology advances what mobile apps can do, and how easily they can do
Ending in .99 Help Businesses Sell More
Michael Guta, Smallbiztrends.com
As a business, how you price the products and services you offer, will in
great part dictate the long-term success of your company.
The simple act of pricing something with .00 or .99 can have a
considerable impact on the purchasing decision of your customers.
A new report from Stripe titled “The Effect of Left-Digit Bias” looks at
how merchants may be leaving money on the table because of the wrong
online pricing strategy. As a matter of fact, 70% of the merchants in
the report were possibly guilty of this practice.
This is an important point to take note of for small businesses because
more of them now have an online presence.
As to the impact of the .00 or .99 price strategy for online businesses,
in the emailed report Stripe said, “The impacts of simple price
adjustments may be big, and we estimate the adoption of “9”-digit
pricing could increase subscription revenue by several percentage
The sheer volume of the data Stripe used for the report makes the
results noteworthy and one online business should pay attention to.
It represented over two million monthly plans, products, or
subscriptions at more than 100,000 merchants from 2012-2018.
Which pricing method looks more enticing to you?
As the report says, researchers have been exploring left-digit bias for
some time. It goes back all the way to 1936 when Eli Ginzberg reported
the results from a mail-order catalog experiment.
In his finding, Ginzberg said a one-cent price difference, from $1.99 to
$2, could have outsized impacts on demand.
Stripe also showed this bias in a 2003 study with $19 or $20 pricing and
mileage in used cars with 89,992 vs 90,011 miles for a 2012 study.
A 2018 study for food purchases under $10 showed left-digit bias greatly
impacted purchasing decisions. This included the sale of the same brand,
size, and flavor of ice cream sold at $4.99 vs $5.00.
For online subscription services in the US, prices ending in 9 accounted
for 28% of the merchants, while those ending in 0 were slightly higher
When it comes to buying products, new customers make more overall
purchases that end in a 9 for items which cost under $10. However,
Stripe says it also extends to items costing $700, $800, or $900.
This goes against the practice which says luxury items should end in 0.
Stripe adds, “This should serve as a wake-up call to merchants who
believe that luxury items shouldn’t end in “9” — they may actually be
missing out on significant gains.”
Should You Use Psychological Pricing
Based on the findings of the report, Stripe recommends large online
merchants to consider testing 9-digit pricing. It goes on to say by
setting this pricing strategy on portions of the products, a merchant
can gauge any increases in sales.
Evidence of this practice has resulted in higher purchases by consumers
for items ranging from $.99 to hundreds of dollars.
For smaller merchants, Stripe says 9-digit pricing should be set as a
smart default. This is because pricing experiments for small businesses
take too long and generate data noise which can create unnecessary
By setting standard 9-digit pricing, Stripe says small merchants can
potentially level the playing field against their larger competitors.
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Which is Better, Direct Mail or Digital Marketing?
Six Tips to Improve Your Direct Marketing
Prices Ending in .99 Help Businesses Sell More
Mike Borkan's Apps & Links - Apps & Web Sites you Probably
View Samples of Our Work
Direct Mail Humor!
Talon welcomes the following new clients this month to our growing roster
Mike's Favorite Apps & Links:
Some interesting things to check out...
Uncompromisingly good presentation software, enabling modern teams to
craft and distribute beautiful presentations more effectively. Sign up
Flux-academy.com - Learn the
art and business of web design.
Riverside.fm - Record remote
interviews that look and sound great. This is a wonderful resource to record
podcasts and video interviews with studio quality from anywhere.
Mmhmm.app - Whether you’re leading
virtual business meetings, teaching, or just trying to host a better
happy hour, the mmhmm app adds a little magic to the new online reality
we now find ourselves in.
Pfpmaker.com - Make an awesome
profile picture from any photo.
Did you know Talon offers the following services?
Click on the links below to see samples.
Direct Mail Humor!
Click on image below to enlarge.
Do you need help marketing to your clients?
Talon can help! Call Michael Borkan at 631-667-5500 x 11 to learn
how to increase revenue.
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