7 Reasons Why FinTech Companies Need Programmatic Direct Mail

In a competitive market like financial technology, where growing startups brush up against traditional finance companies, marketers need a way to differentiate and convert customers. One way to turn prospects into customers is through programmatic direct mail.

By observing the actions of prospects on your website or mobile app, you can trigger personalized direct mail that is sent out within 48 hours of the interaction.

Direct Mail Has a Huge Impact

Reaching people in their mailboxes can impact growth.

In fact, one financial services company found that 90% of borrowers were acquired through offline channels — the largest of which was direct mail.1

Compared to emails and display ads, direct mail:
Generates 10% more customers2
10%
Has a 90% or higher open rate (compared to email’s 30%)3
90%
Drives 60% of consumers back to the website4
60%
Has a house-list response rate of 5.1%
(compared 0.06% click-through rate on digital ads)5
5.1%

Mail is also secure. There are more than 200 federal laws enforced by the Postal Inspection Service to protect Americans from fraud.6 This assurance, as well as the less intrusive and more tactile experience of direct mail, leads 76% of consumers to trust direct mail when it comes to purchasing decisions.7

Programmatic Direct Mail Converts Prospects

When you use data gathered from digital channels to inform direct mail pieces, you get the best of both worlds. You can understand what a visitor to your website or mobile app is interested in based on what they looked at, then send a personalized piece of direct mail to help convert them from prospect to customer.

7 Reasons to invest in programmatic Direct mail

1

Combining the scale of digital and the efficacy of direct mail yields close to a 40% conversion rate.8

40%

In a space as competitive as FinTech, where customer acquisition costs are high, conversion rates matter. When a company sends a personalized email, conversion rates hover between 1% and 5%.9 A physical direct mailpiece is 8 to 40 times more effective, converting close to 40% of prospects into customers.8,9

2

Used together, digital and direct mail can result in 20% or higher response rates.10

20%

That’s ten times higher than the response rate for all digital channels combined and more than 200 times higher than the click-through rate for digital retargeting.10 To get prospects to invest, borrow or bank with your business, consider using programmatic mail to translate digital behavior into an opportunity to engage and ultimately convert prospects.

3

Multi-channel campaigns saw a 37% increase in response over single-channel campaigns.11

37%

On its own, direct mail outperforms other marketing channels. But combining direct mail with other digital media, such as email, gives you a greater chance of reaching your customer with the right message at the right time. A site visitor may not be ready to sign up today; if you send regular reminders to their inbox and mailbox, response rates could see growth.

4

One study showed that using direct mail and digital media together increased customer purchase or signup intent by 10x.12

10x

FinTech businesses need a sustainable customer base to survive. When digital media and direct mail are used in conjunction, one large study of a telecommunications advertiser showed a brand-to-customer connection that is 10-times stronger than digital-only campaigns.12 This translates to greater rates of consideration or intent to sign up and could mean a strong opportunity to capture and convert consumers in search of investing, borrowing or banking services.

5

Research has shown that campaigns that use direct mail and digital together produced 10% higher brand recollection than single-channel digital campaigns.13

10%

Brand recognition is vital for FinTech companies solidifying their place in the market. Using well-branded content across digital and direct mail channels has been shown to increase a customer’s recollection of a business: Brand memorability in one study was 5.5 times higher after an omni-channel campaign than that of a digital-only campaign.12 When a person recognizes a brand in a competitive market, they are more likely to give that company their business.

6

Recipients of omni-channel campaigns paid 39% more attention to the messaging than to that of single-channel campaigns.12

39%

Messaging helps differentiate your FinTech business from competitors. When you use a mix of digital media and direct mail to communicate a consistent message, people will pay more attention than they would if you were using just one channel or the other.

7

Research has shown that integrating digital and direct mail in campaigns resulted in 5% higher emotional intensity than single-channel digital campaigns.13

5%

Ninety-five percent of purchasing decisions are made subconsciously, based on emotional connections and brand recall.14 It’s possible that positive emotions could correlate to an increase in a prospect’s likelihood of investing, borrowing or banking with you instead of your competitors.

Key Takeaway

Combine your rich digital data with effective direct mail communications to create a comprehensive marketing campaign that works. You can convert prospects visiting your site into customers at a higher rate and build a strong, loyal customer base that will help your FinTech business stay ahead of the competition.

USPS Can Help

Looking to learn more about programmatic mail? USPS representatives can help you find the best solution for your business needs.

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Merging Email and Direct Mail for Powerful Holiday Marketing

For many companies, the holidays are a crucial time to drive business. Marketers need a fine-tuned plan to capitalize on the busy shopping season and attract customers. Some include email in their holiday marketing mix, others choose to focus on direct mail. But choosing one channel over the other could do your business a disservice.

By combining email and direct mail, you can target and convert consumers even more effectively. For example, in one study, businesses increased their order value by more than $3 when using the two mediums combined; they also saw a 25% response rate.1 Learn about the benefits of email and direct mail, and best practices for creating a campaign that uses both channels in sync.

Two Potent Channels

Email and mail can make a real impact on holiday sales.

Email has serious reach.

eMarketer estimates that there will be 253.4 million email users in the US in 2018, accounting for nearly 90.6% of internet users and 77% of the population. By 2021, that number will grow to 266.3 million users.2

Direct mail has a high return on investment (ROI).

A 2016 report showed that, in the US, direct mail has a 27% median ROI.3

Email campaigns convert more with a house list.

The same report showed the following conversion rates:

House list rates:

  • 21% open rate
  • 10% click through rate
  • 5.5% conversion rate

Prospect list rates:

  • 16.4% open rate
  • 5.9% click through rate
  • 4.3% conversion rate4

Personalization makes a difference for both channels.

One study showed that brands that personalize the subject lines of their emails experience 27% higher unique click rates and 11% higher open rates than those that do not personalize their promotional emails.5

By personalizing a direct mail campaign with a customer’s name and location, one company achieved a 9.7% conversion rate.6

Using both channels in tandem can capture more consumer attention during the holidays.

According to a study by Canada Post, marketing campaigns that integrate direct mail and digital media hold 39% more of a customer’s time than digital campaigns alone.7

Consumers prefer email and direct mail during the holidays.

A 2017 survey showed that Internet users most preferred email and direct mail to receive their holiday deals.8

How to Create a Multichannel Campaign

Consider these best practices when implementing a holiday campaign featuring email and direct mail.


  1. 1. Decide on the optimal timing.

    When planning a direct mail and email campaign, mail is typically the first touchpoint. Once the mailpiece is sent, choose two to four different moments to send out emails. The first email should go out a week after the mailing to keep the original mailing top-of-mind. Send the other emails a few days apart to not overwhelm the recipient. According to HubSpot, Tuesday is the best day of the week to send an email, while 11 am ET sees the highest email click-through rates.9


  2. 2. Make sure your branding aligns.

    Creative elements in the mailpiece and subsequent emails should match. Leverage the copy and visuals you’re using for your holiday campaigns in both. For example, your holiday tagline can be used in header copy of the mailpiece and the subject line of your first email or its body copy. Be sure your mail and email also leads to the same final touchpoint – whether it’s your website or a holiday microsite.


  3. 3. Personalize the content.

    Help boost conversion rates by personalizing the copy in your mailpiece. For example, you could include the name of the recipient in header copy and customize content in the rest of the mailpiece to their specific customer segment. For the first email sent out, consider including the recipient’s name in the subject line. This small change can bump up email open rates and direct mail responses.


  4. 4. Use a comprehensive mailing list for your campaign.

    Creating a house or prospect list for your campaign will be more complicated, since you’ll need to match email addresses to physical addresses. For a house list, work with your internal teams to merge the address data you already have. For a prospect list, work with a list supplier that can tap into a multichannel database. You don’t want to buy a list that’s missing email or physical address information for the same prospect.


  5. 5. Consider using programmatic mail instead of a list.

    The latest trend in direct mail leverages programmatic technology to send personalized mailpieces triggered by digital interactions. You’ll need to be sure the programmatic database has customer information that includes email and physical addresses. Once a visitor interacts with a specific touchpoint on your site—whether your homepage, a category page or product page—the programmatic technology will send a mailpiece within 24-48 hours of the interaction.

Summary

Nailing down the right marketing mix during the holidays is crucial for year-round success. Sync up your email and direct mail efforts instead of choosing one channel over the other. With a well-timed, well-designed campaign, your business could see increased sales during the holidays.