Postcards and PURL Improve Direct Mail Response
New Integrated Marketing Technique Improves Profitability
Oct 23, 2008
Raising response rates by half or a full percentage point doesn’t sound like much, but when working the math, it quickly becomes apparent that many direct mail marketing companies, such as catalog marketers and other business to consumer marketers can boost revenues just by bumping response rates up a bit. A new technology called PURL (personalized URL), used in conjunction with postcard marketing, excellent direct mail lists and copywriting techniques has proved to boost response rates for many companies. (Please note that PURL is a registered trademark owned by Nimblefish Technologies Inc.)
Personalized URL Directs Customers to Individualized Content
A 2006 study by the Direct Marketing Association indicates that 43% of all direct mail marketing respondents take their direct marketing piece right over to the computer and use the Internet to complete the transaction, find more information, or request additional information. That’s an astonishing figure, especially given that many multi channel merchants still haven’t quite figured out how to integrate traditional direct mail marketing with online marketing and ecommerce websites.
Given this trend in consumer response habits, printers, list brokers and marketing consultants teamed up to create PURL. A personalized URL directs customers to a website created especially for them. A car dealership, for example, may use postcard marketing to send postcards to anyone interested in a hybrid vehicle. If that dealership has robust customer data, it may know which customers expressed a preference for which brand of hybrid as well as certain features, such as color or safety options. Using that data, marketing consultant have devised an algorithm that pulls unique customer data selections into a website template, creating customized content matching each individual’s preferences. The result is a highly measurable and successful way to entice visitors to the website to request more information, set up an appointment, or complete the transaction.
Effectiveness of PURLs
Recent data revealed by companies offering this service indicate that when used with appropriately targeted creative, offers and mailing lists, PURL can boost response rates by as much as half a percentage point to several percentage points.
How does this impact the bottom line? Consider the following hypothetical situation. Catalog company A spends $500,000 on a postcard marketing acquisition direct mail campaign. Prior to PURL, they expected a 1% response rate on a mailing of 2,000,000 cards, or 20,000 orders. The average dollar amount of each order is $100. Before using PURL, the numbers above yield $2 million from an investment of $500,000 in the marketing campaign.
Assuming the company uses PURL and has similar creative and the same offer and list, boosting response rates by another percentage point changes the profitability dramatically. Now the response rate is 2% or 40,000 orders of $100 each. The company has just boosted its revenues from the mailing to $4 million. Even if they spent twice as much on their marketing to incorporate PURL, or $1 million, they’ve also doubled revenues, up from $1.5 million to $3 million after using PURL.
These numbers are greatly simplified, of course, but all things being equal, many companies are seeing a boost after using personalized postcard marketing.
Where to Find PURL
PURL may not be affordable to all businesses, but for those seeking a highly personalized direct mail marketing vehicle, PURL offers advantages that outweigh the costs. One company offering PURL is Market Approach. Check with printers and list brokers; they may also know of other companies offering PURL.
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