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The USPS® Direct Mail Report

The USPS Delivers Direct Mail Usage Report

Brand marketers want their fingers on the pulse. It’s how they read their customers and their competition. It can also be a guide in volatile markets to encourage recovery and help them thrive.

With most channels, that data is easy to find, but information on direct mail has always been less accessible. Until now.

Working with Forrester Research, USPS Delivers spoke to 324 marketing decision-makers across four major industries: automotive, financial services, travel and retail.

The survey uncovered a wealth of new information to show just how today’s marketers are using mail:

  • Postcards dominated the finance world.
  • Email was the preferred channel for coordination in travel.
  • And digitally enhanced mail topped innovations across the board.

Together, the insights compiled in this report help create a template for marketers to maximize their direct mail output. From spend to format, customer journey stages to actions driven, the latest direct mail data has arrived. 

The Automotive Industry

Automotive Trends


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Direct Mail Tactics Driving the Auto Industry

For marketers in this high-octane industry, direct mail has been a dominant channel. See how they’re targeting new customers and purchase-ready recipients through cohesive omni-channel campaigns.

Average Spend

Direct mail nets nearly a third of overall media budget.

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% of overall media budget allocated to direct mail
0
% spent on loyal customers
0
% spent on prospects
0
% of overall media budget
0
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29% of overall media budget allocated to direct mail
33% spent on loyal customers
26% spent on prospects

How do you measure direct mail success?


The real question is how many people bring that [post]card into a car dealership, and that’s the number that really matters. There’s a dedicated QR Code®[2] and phone number that goes into customer CRM that will guarantee attribution goes to us.

Chief strategy officer at an automotive company

Innovations

Digital enhancements and retargeting cinch the win.

81% of automotive marketers agree direct mail innovations made marketing objectives more achievable
87% say they allowed for better coordination of direct mail and other marketing channels
Gears
Currently Using/Planning to Use
Digitally Enhanced Mail60% currently using digitally enhanced mail, 23% planning to use
Retargeted Direct Mail56% currently using retargeted direct mail, 29% planning to use
Informed Delivery® notifications48% currently using Informed Delivery, 37% planning to use
Informed Visibility® Mail Tracking & Reporting31% currently using Informed Visibility, 42% planning to use
0
% of automotive marketers agree direct mail innovations made marketing objectives more achievable
0
% say they allowed for better coordination of direct mail and other marketing channels

Customer Journey Stage


Machine Machine

Marketers opt for awareness, interest and purchase campaigns.

Marketers Used Direct Mail To
Drive Awareness
61%
Drive Interest
56%
Drive Purchase
53%
Win Back Customers
53%
Drive Loyalty
52%
Drive Consideration
47%
Cross-Sell or Repeat Purchase
45%
Data highlights the channel's importance in capturing and ultimately converting first-time customers.

Digital Channel Coordination


Marketers aligned mail with emails most often.

Machine
26%
26
Paid Search
29%
29
Organic Search
40%
40
Mobile Web
48%
48
Paid Social
50%
50
Mobile App
52%
52
Web Visit
58%
58
Digital Media
69%
69
Email
% Coordinate Direct Mail With
Paid Search
26%
26
Organic Search
29%
29
Mobile Web
40%
40
Paid Social
48%
48
Mobile App
50%
50
Web Visit
52%
52
Digital Media
58%
58
Email
69%
69
0%
0
%

Actions Driven


Customers steered online or to purchase.

Marketers Wanted to Drive
47% App Downloads
48% Store Visits
58% Program Signups
60% Purchases
74% Website Visits

Automotive

Key Takeaway

Not surprisingly, marketers are pairing direct mail with digital to boost efficacy. A majority are turning to innovations to do just that. Digital enhancements and CTAs have proven to be major drivers in this industry.

The Financial Services Industry

Financial Services Trends


Stock Market Graphic

Financial Firms Invest in Direct Mail

Financial firms have long turned to direct mail to reach prospects and customers. Learn the ways they’re employing its popular formats and innovations to propel customers down the funnel.

Average Spend

Direct mail accounts for nearly a third of overall media budget.

0
% of overall media budget allocated to direct mail
0
% spent on loyal customers
0
% spent on prospects
0
% of overall media budget
0
Stock Market Graphic
28%
of overall media budget allocated to direct mail
32% spent on loyal customers
26% spent on prospects

What role does direct mail play for you?


The ultimate goal is you want someone to invest capital and get an investment strategy. The first thing that you want them to do is read [the direct mail piece] and understand the message involved, and then the next one’s going to be some expression of interest.

We also [send mail] for retention and ... we send weekly investment commentaries or topical updates in the marketplace

Senior managing director at a financial services company

Innovations

Digital enhancements make gains.

68% of marketers see digitally enhanced mail, which includes NFC, QR, AR or VR technology, as valuable
40% see it as highly valuable. This across-the-board consensus shows innovations, as a whole, make their marketing spend more efficient
Piggy Bank
Currently Using/Planning to Use
Digitally Enhanced Mail51% currently using digitally enhanced mail, 26% planning to use
Retargeted Direct Mail49% currently using retargeted direct mail, 34% planning to use
Informed Delivery® notifications41% currently using Informed Delivery, 40% planning to use
Informed Visibility® Mail Tracking & Reporting40% currently using Informed Visibility, 41% planning to use
0
% of financial services marketers agree direct mail innovations made marketing objectives more achievable
0
% say they allowed for better coordination of direct mail and other marketing channels.

Customer Journey Stage


Dollar Sign

Marketers zero in on interest campaigns.

Marketers Used Direct Mail To
Drive Interest
65%
Drive Awareness
56%
Drive Purchase
54%
Win Back Customers
47%
Cross-Sell or Repeat Purchase
47%
Drive Loyalty
46%
Drive Consideration
38%
Top of the funnel campaigns prove to be the most critical junctures for direct mail usage.

Digital Channel Coordination


Marketers aligned mail with web visits most often.

Dollar Sign
68%
68
Web Visit
65%
65
Email
57%
57
Digital Media
53%
53
Mobile Web
50%
50
Mobile App
29%
29
Paid Social
29%
29
Paid Search
24%
24
Organic Search
% Coordinate Direct Mail With
Web Visit
68%
68
Email
65%
65
Digital Media
57%
57
Mobile Web
53%
53
Mobile App
50%
50
Paid Social
29%
29
Paid Search
29%
29
Organic Search
24%
24
0%
0
%

Actions Driven


Customers guided online or to apps.

Marketers Wanted to Drive
41% Purchases
49% Store Visits
57% Program Signups
59% App Downloads
78% Website Visits

Financial Services

Key Takeaway

The numbers make it clear. Financial companies often focus on prospects at the top of the funnel. Their bottom line? To lead recipients to the firm’s website and drive them to download their apps.

The Travel Industry

Travel Trends


Palm Trees

Direct Mail Goes the Distance in the Travel Industry

In the travel space, direct mail has proven to be a first-class driver of engagement. Discover how it puts the channel to use in the hopes of converting customers.

Average Spend

Direct mail hovers at a quarter of overall media budget.

0
% of overall media budget allocated to direct mail
0
% spent on loyal customers
0
% spent on prospects
0
% of overall media budget
0
Palm Trees
26%
of overall media budget allocated to direct mail
33% spent on loyal customers
26% spent on prospects

What role does direct mail play for you?


Any program I am aligned with, there's usually a high dollar value associated with it – and we want to ensure we [are able to] measure the impact. And direct mail, it surprised me honestly, but it was impactful.

With digital campaigns we typically saw something like a 3 percent response rate – that’s within target. But with direct mail we were seeing 7 percent – in that range. That’s a pretty good deal for us.

Vice president, strategic consulting at a travel company

Innovations

Digitally enhanced mail takes flight.

83% of marketers agree direct mail makes their objectives more achievable
85% agree they cement direct mail’s place as a strategic marketing channel
Beach Umbrella
Currently Using/Planning to Use
Digitally Enhanced Mail68% currently using digitally enhanced mail, 20% planning to use
Retargeted Direct Mail42% currently using retargeted direct mail, 42% planning to use
Informed Delivery® notifications44% currently using Informed Delivery, 36% planning to use
Informed Visibility® Mail Tracking & Reporting47% currently using Informed Visibility, 31% planning to use
83
% of marketers agree direct mail makes their objectives more achievable
85
% agree they cement direct mail’s place as a strategic marketing channel

Customer Journey Stage


Camera

Marketers target purchases above all else.

Marketers Used Direct Mail To
Drive Purchase
64%
Drive Loyalty
59%
Drive Interest
56%
Win Back Customers
54%
Drive Awareness
53%
Drive Consideration
49%
Cross-Sell or Repeat Purchase
47%
Conversion, conversion, conversion. Bottom funnel campaigns are the most popular in this industry.

Digital Channel Coordination


Marketers aligned mail with emails most often.

Camera
76%
76
Email
63%
63
Web Visit
49%
49
Mobile App
49%
49
Paid Social
46%
46
Digital Media
42%
42
Mobile Web
22%
22
Organic Search
22%
22
Paid Search
% Coordinate Direct Mail With
Email
76%
76
Web Visit
63%
63
Mobile App
49%
49
Paid Social
49%
49
Digital Media
46%
46
Mobile Web
42%
42
Organic Search
22%
22
Paid Search
22%
22
0%
0
%

Actions Driven


Customers navigated to websites and physical locations.

Marketers Wanted to Drive
44% Purchases
59% App Downloads
59% Program Signups
61% Store Visits
75% Website Visits

Travel

Key Takeaway

Whether boosting landing page visits, phone calls or RSVPs, the channel has been a boon to the travel industry. Heavy users of direct mail innovations, this group values the efficacy and channel coordination they afford.

The Retail Industry

Retail Trends


Sneaker

The Biggest Direct Mail Trends in the Retail World

In retail, where loyalty programs are ubiquitous, direct mail remains a classic. Explore all the ways it has become a strategic marketing channel for this industry.

Average Spend

Direct mail nabs nearly a quarter of overall media budget.

0
% of overall media budget allocated to direct mail
0
% spent on loyal customers
0
% spent on prospects
0
% of overall media budget
0
Sneaker
23%
of overall media budget allocated to direct mail
35% spent on loyal customers
26% spent on prospects

What role does direct mail play for you?


With direct mail, it’s just a more personalized touch, whether as part of an insert in a package or just as a one-off, it’s much more personal than email or those other channels.

And people are so saturated today, and brands and companies are so focused on them that they really tune out the noise, but not as much with direct mail.

Global brand director at a retail company

Innovations

Digital enhancements and retargeting are a hit.

76% of marketers agree innovations make their objectives more achievable.
Controller
Currently Using/Planning to Use
Digitally Enhanced Mail59% currently using digitally enhanced mail, 25% planning to use
Retargeted Direct Mail49% currently using retargeted direct mail, 37% planning to use
Informed Delivery® notifications38% currently using Informed Delivery, 35% planning to use
Informed Visibility® Mail Tracking & Reporting46% currently using Informed Visibility, 37% planning to use
By including NFC, QR, AR, VR and retargeting technologies,
0
% of marketers agree innovations make their objectives more achievable.

Customer Journey Stage


Price Tag

Purchase and awareness campaigns on trend.

Marketers Used Direct Mail To
Drive Purchase
76%
Drive Awareness
68%
Drive Interest
63%
Drive Consideration
60%
Drive Loyalty
59%
Win Back Customers
43%
Cross-Sell or Repeat Purchase
43%
Retail marketers leverage direct mail to nurture potential customers and drive conversion.

Digital Channel Coordination


Retailers aligned mail with web visits most often.

Price Tag
79%
79
Email
71%
71
Web Visit
60%
60
Digital Media
52%
52
Mobile App
49%
49
Mobile Web
43%
43
Paid Social
32%
32
Paid Search
29%
29
Organic Search
% Coordinate Direct Mail With
Email
76%
76
Web Visit
63%
63
Digital Media
60%
60
Mobile App
52%
52
Mobile Web
49%
49
Paid Social
43%
43
Paid Search
32%
32
Organic Search
29%
29
0%
0
%

Actions Driven


Companies to customers: Shop, shop, shop.

Marketers Wanted to Drive
41% App Downloads
51% Program Signups
67% Store Visits
76% Purchases
78% Website Visits

Retail

Key Takeaway

Attention marketers: Shoppers are most often targeted with purchase campaigns featuring digitally enhanced mail. By adopting direct mail innovations, brands are seeing an increase in response rates, making it a strategic marketing channel where they plan to increase spending.

Methodology

Methodology


In this commissioned study conducted by Forrester Consulting on behalf of USPS in April 2020, the research company interviewed 324 US decision-makers in marketing, with decision-making authority around direct mail marketing. They were asked the following questions:

Which statement best describes your organization’s current direct mail program as it applies to each of the following capabilities?

  • Digitally enhanced mail
  • Retargeted/programmatic direct mail
  • Informed Visibility® Mail Tracking & Reporting
  • Informed Delivery® notifications

Approximately what percent of your company’s media spend goes to each of the following channels?

  • Direct mail
  • Email
  • Digital media (video/banner advertising, etc.)
  • Organic Search/SEO
  • Paid search
  • Web visit
  • Paid social
  • Mobile app
  • Mobile web

Approximately what percent of your direct mail budget do you spend against each of the following audiences?

  • Existing customers who purchase frequently
  • Prospects
  • Existing customers who purchase infrequently
  • Inactive customers

Which of the following types of direct mail are you sending to customers today?

  • Newsletters
  • Postcards
  • Self-mailers
  • Packages
  • Catalogs

Which of the following kinds of customer action does your organization try to drive with direct mail today?

  • Website visits
  • Purchases
  • Program signup
  • Store visits
  • App downloads

Which of the following objectives does your organization use direct mail for today?

  • Awareness
  • Interest
  • Win back customers
  • Purchase
  • Drive loyalty
  • Consideration
  • Post-purchase cross-sell, upsell or repeat purchase

Which of the following digital channels do you coordinate (i.e., send mail or send digital content depending on engagement with the other) with your direct mail campaigns today?

  • Email
  • Digital media (video, banner advertising, etc.)
  • Web visit
  • Mobile app
  • Paid social
  • Mobile web
  • Organic search/SEO
  • Paid search

Which answer choice best describes your view on how valuable each capability would be for your organization?

  • Informed Delivery® Notifications
  • Programmatic direct mail
  • Digitally enhanced mail
  • Informed Visibility® Mail Tracking & Reporting

What types of actions are you looking to drive with your direct mail campaigns?

  • Web visit
  • Store visit
  • Program signup
  • App download
  • Purchase

Answers to these questions were then analyzed and visualized for the purposes of this 2020 report.

Footnotes
  1. [1]The USPS® Direct Mail Report,” based on a commissioned survey conducted by Forrester Consulting on behalf of MRM, April 2020.