The $740B Market that Loves to get Direct Mail from Brands
If your target audience includes Millennials and Gen Z'ers, and you're not using direct mail (DM) as part of your omnichannel strategy — you may want to start.
Why?
Because both groups, combined, represent a buying power of about $740B.
That's a lot of buying power.
And they actually love getting DM — Imagine that!
Millennials are currently the largest living generation. Generation Z is right on their heels. Together, these two groups make up over 42% of the US population and represent a buying power of roughly $740 billion (and climbing!).
While it’s true both generations are digital natives (often bouncing from three to five screens and networks at one time), it’s also true that millennials and Gen Z love direct mail.
Marketing research shows both age groups find traditional mail to be a refreshing break from always-on digital ads, a welcome form of nostalgia, and a more personal advertising experience. (Source)
And, according to the USPS, 88% of millennials regularly read their mail, and 40% regularly purchaseitems featured in mail ads.
Millennials respond to individualized experiences and messaging. So using a direct mail piece to personalize and re-engage with them once they've engaged with your digital efforts is a great strategy.
You can recommend specific products, based on their purchase history (or ads they've responded to).
And you can alert them to a 'back-in-stock' item or give them a first look or first offer on a new, cool product.
Millennials are willing to give away more personal data to get more value from a brand. Also, relevancy and timing are crucial in determining when to employ a direct mail effort.
This group values their freedom and don't have a lot of brand loyalty. They want the best product or service that meets their needs — and they love the cool factor.
Because of their love of 'cool' and hating to miss out on the latest thing, this opens the door to talk to them directly about what your product does that can help them look good and feel good.
And this group prefers experiences over discounts, you can use DM to make them feel special, offer rewards and entertain them. Invite them to join a unique community or attend a special event.
You may consider a donation match to a cause they'll relate to, instead of offering discounts.
Let's look at the Gen Z'ers...
Younger Millennials will continue to reach their prime working years through 2021, and Gen Z will reach their prime working years from 2022 to the second half of the 2030s. (Morgan Stanley)
Gen Z consumers value a two-way conversation with their favorite brands. So marketers should focus on building a relationship to cultivate brand loyalty.
Using DM in a meaningful way is a great avenue to promote idea-sharing, by inviting them to be a part of your brand's product development process.
You can even ask them to test your new products before anyone else, and get their feedback.
This group is very open to create digital content on behalf of brands they trust, so providing a good reason for them to do that would be really smart.
These Gen Z'ers have a very short attention span of about 8 seconds, which is 4 seconds less than Millennials...
So get right to the point — fast!
This generation craves an authentic connection to your brand, and this will build loyalty to you as long as you meet or beat their expectations. They want to get promotions and special discounts on the products and services that they are interested in, so give that to them. (Source)
They'll make a decision about your brand's relevance in a New York minute, so make it fast and make it real.
You'll want to give them something interactive to keep their attention. Maybe video, social, gamification, or self-education elements will allow them unique ways to connect with your brand.
The USPS even rewards you for leveraging innovative and interactive elements in your DM pieces.
Be sure to employ digital tech, like QR codes, in your DM piece to optimize the mobile checkout process for these people.
They regularly use mobile wallets and also like installment payments... so if your brand offers payment flexibility, be sure it's a key focus in your 'short' messaging.
Neuroscience & Behavioral Science...
Direct mail campaign effectiveness is actually rooted in cognitive science. Neuroscience and behavioral science research have long investigated how the brain processes advertisements. Studies have revealed that direct mail is proven to subconsciously appeal to human emotions, boost brand recognition and drive purchase intent
Neuroscience and Touch
In 2019, the USPS partnered with Temple University to analyze direct mail’s effectiveness and influence on consumers across all demographics.
The researchers used neuromarketing techniques to gain insights on visual attention, emotional engagement, and brain activity to understand a person’s conscious and subconscious response to both print and digital advertisements.
While both mediums have their advantages, print was proven to elicit a stronger emotional response, was more comprehensible and memorable, and made the products or services feel more desirable and valuable to the recipient than digital advertising.
Making the case for 'touch'...
Sappi’s neuroscience research explored the sensory experience print advertising has on consumers. The studies confirmed that touch has an influential role in consumer decision-making and purchase behaviors, stating...
“84% of online orders originate from physical interactions with catalogs, magazine ads and direct mail.”
Considering the findings from neuroscience research, brands should recognize the impact a physical mail piece can have on brand perception and response rates.
High-quality paper stocks, engaging textures or coatings, and personalized messaging will create an impactful customer experience and stimulate a memorable, meaningful connection.
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Behavioral Science and Simplicity
Behavioral science combines psychology, sociology, and cultural anthropology to examine human behavior and decision making. It recognizes that humans do not make all decisions rationally.
Principles from behavioral science research can assist direct marketers as they consider the customer journey and the brand messaging that guides consumers to take that next step.
In a recent Brand United presentation, behavioral science leader Shirin Oreizy explained how marketers can construct environments that attract consumers in their target audience to take a desired action based on the following behavioral science concepts:
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Friction: humans naturally prefer the path of least resistance. -
Working memory: the average adult brain can hold only 5-9 pieces of information at a given time. -
Cognitive fluency: the simpler the action, the more likely humans are to believe the message and adopt it. -
Narrative bias: humans have evolved to remember and relate to stories.
These concepts are highly relevant when creating mailers that will drive response.
To design simplified and influential direct mail that leads recipients toward the desired action, optimize content with relevant information, utilize relatable storytelling and personalized elements, and streamline online and offline environments for uncomplicated conversions.
In Conclusion...
If you're one of those few marketers who think DM is dead, you may want to rethink that notion.
The digital space is the world we live in and invest a huge amount of marketing dollars in it. But it's gigantic, noisy and becoming more and more difficult to separate your brand from the herd.
Direct Mail offers us a straight line of communications between our brand and our specific customers. We can speak to each market segment in a way they want, offering them what they want. It's personalized.
Put yourself in their shoes.
Would you like to be shouted at from a bullhorn, along with throngs of other consumers...
Or would you prefer to get a tasteful, beautiful piece in the mail that's addressed to you, personally, and speaks to YOU, individually?
When this is done right, these groups will tell their friends about you, leave reviews online about you, and buy from you.
They'll become your influencers.
We're already two years into the prime working years of the Gen Z'ers. So now, through the second half of the 2030's, they'll make up the largest purchasing segment of the US population.
So start building meaningful relationships with them NOW, with #MeaningfulMarketingMessages that will resonate with them in a personal way.
If you're ready to employ DM to these groups, or any other, I'd love to help with your campaign strategy and messaging. Just reach out.
Always forward,
Carolyn
Go4MoreIn24
#KickAssCopywriter