The Must Read on Do-Not-Mail for Direct Marketers
At first glance, the Do-Not-Mail registry bill recently addressed in the Senate Consumer Protection and Housing Committee can cause quite a scare for direct mail marketers whose success is dependent on mailings. However, a closer look at the bill should ease marketers fears about the legislation causing lower response rates and decreased business.
The legislation to create state-run do no mail registries has been introduced in 12 states including Colorado, Michigan, Texas, Maryland and Washington, and aims to regulate direct mail by imposing fines up to $2,000 per each mailing violation for individuals complaining of junk mail. If the bill passes, the affected states will need to build maintain a database to allow their respective residents to opt out of receiving direct mail.
While the proposed registry will inevitably limit the number of available direct mail recipients, it will simultaneously assist marketers by eliminating those people who are less likely to respond. As any successful direct marketer knows, the key to executing effective direct marketing campaigns is to target the appropriate audience. Industry standards deem that 40 percent or more of direct mail's success is based on getting that mail piece into the proper hands (Ed Mayer).
The Do-Not-Mail bill will help marketers make certain that individuals are receiving the information they ask for, as opposed to advertisements and offers theyre uninterested in reviewing. In this way, the legislation also assists to boost response rates by increasing the relevancy of the message and probability it will reach the appropriate audience. Do-Not-Mail could therefore be seen as money-saver, provided direct mail marketers avoid costly violations which can become devastating when repeated.
In order to avert infractions, direct mail marketers are advised to use advanced services to generate lists that are clean with complete and accurate information as well as supplementary fields that can be used to drive variable elements. Taking extra steps will be essential to executing extremely targeted mailings, reaching only appropriate niche audience members instead of mass mailing to large, generic groups or mistakenly including the wrong individuals on lists meant to be targeted.
Implementing the latest direct mail technologies such as Variable Data Printing (VDP) will further personalize direct mail pieces, helping recipients to be more receptive to mailed advertising. Based on the level of personalization and corresponding message relevancy, its been proven that response rates for direct mailings which utilize VDP are more than 500 percent higher than direct mailings which do not utilize this technology (Romano & Broudy). Not only will this boost marketers return on investment (ROI), it will also ensure that appropriate consumers are not opting out of mail pieces meant specifically for them as a result of poor targeting practices by other direct marketers.
But what about the reaction from consumers themselves? With CAN-SPAM and Do-Not-Call in place, you could assume that there will be overwhelming pressure for the whole country to adopt a more limiting legislation for Direct Mail. On the contrary, it has been proven that people are actually quite receptive to direct mail, provided individuals are not overwhelmed with the wrong type of mail. According to the Direct Marketing Association, direct mail is still the most preferable way of receiving marketing, which is likely why its also the most effective marketing method. Additionally, while the Do-Not-Mail registry is similar in concept to the Do-Not-Call list used to regulate telemarketing, the difference is the intrusion factor. Individuals cant control when someone calls but they are able to personally manage when they look at their mail and what offers they can relate to and find appealing. And mailing costs prevent pervasive marketing abuse, which can be seen with spam emails.
While the Do-Not-Mail registry might at first appeal to consumers, many people may likely change their mind and eventually remove themselves from the list. In the meantime, its in the hands of the direct mail marketing community to work towards stemming future legislation that may impede the industry by creating more relevant mail rather than just more mail. This way, consumers will receive a higher percentage of mail that is relevant to their needs and interests, and theyll be less likely to opt out - a win-win situation for direct mail marketers and consumers alike.