3 Benefits of Behavioral Targeting in Direct Mail Campaigns

 

Author: Camille Lehmann, Senior Marketing Specialist

 

If you’ve been in the direct marketing industry for any period of time, you’ve undoubtedly heard that data is a key driver of results. Better yet, highly targeted data. But this may leave marketers with the question – What kind of data should I use? The answer largely depends on your direct mail campaign history. Have you sent campaigns before, and do you have customer response data? If the answer is no, the first step is to begin with demographic targeting to be able to later use behavioral targeting for improved results in subsequent campaigns.

So what’s the difference between demographic targeting and behavioral targeting and how do you use them to increase your direct mail ROI?

Demographic Targeting Vs. Behavioral Targeting

Demographic targeting uses information such as age, gender, geographic location, income, and vocation to target an audience. While there are hundreds of additional data points available for use, the first time a brand mails, these are often the only data points available, since there is no previous response data. Demographic data is frequently used to create a predictive Lookalike (or Profile) Model as a first step to predict those most likely to respond. It is not ideal, as it is simply not as powerful as analytic tools that utilize past behavior. After enough initial responders are gathered, strategists and analysts use this information to learn which people have an affinity for the product and are likely to respond via direct mail. If creative tests were done, we gain insight into which type of creative copy and formats appeal to responders. The response data is used to build a more sophisticated response model, which utilizes both demographic and behavioral data. It is based on the principle that past behavior indicates and is predictive of future behavior.  We then implement behavioral targeting in the next campaign and beyond.

Behavioral targeting and analytics use a brand’s own data, usually in the form of direct mail response and corresponding purchase data for better acquisition results. Marketers must consider how they will capture and measure response, so that information can be used to inform future decisions, making behavioral targeting more successful. Examples of this include using custom QR codes, a personal URL only for that campaign, a 1-800 number, or promotional codes unique to each campaign file.

“By utilizing data across sources, we can identify highly predictive data elements—leading to greater response and conversion results.”

-Alan Sherman, VP Marketing Strategy

Once you acquire behavioral data, why should you consider using behavioral targeting in your next campaign?

Benefit #1: Advertise to Consumers Likely to Engage

When you target behaviorally, you are analyzing the behavior of past responders and using that behavior to find more consumers like them. Targeting likely responders means better results.

Benefit #2: Print Less, Spend Less

Using behavioral targeting is more cost-effective when the data is available. The more targeted your audience becomes, the smaller it gets. With rising paper and postage costs, a smaller, but more responsive audience becomes more efficient to reach, both from financial and environmental perspectives.

Benefit #3: Greater Marketing ROI

While your audience is smaller, it is also more responsive. No longer is money spent on people who have less interest in what you are selling. The combination of spending less on materials and having a more responsive pool equals a greater ROI.

 

We’re data experts at Nahan with access to more than 20 of the best data sources comprising over 25,000 data points. Our decades of experience paired with the amazing partners we work with, means you get service that can’t be beat. We’d love to help you reach your audience the best way possible with your direct mail campaign. Contact us today to find out how we can help you increase your ROI.

 

Author Bio: Camille Lehmann is a Senior Marketing Specialist and has been on the Nahan team since January 2020. Camille is responsible for managing Nahan’s social media, blog content, and other internal and external content communications. She graduated with her Masters of Science in Marketing with a specialization in Project Management in 2020. In her spare time, Camille enjoys visiting new coffee shops and restaurants with friends, playing tennis, and finding new Pinterest projects.

 

The Dynamic Duo: Combining Direct Mail and Digital for Increased ROI

Author: Alan Sherman, VP of Marketing Strategy

Direct mail and digital ads are the ultimate power team. While compelling on their own, together they make a larger impact on the consumer, but this is increasingly difficult to achieve in the wake of the phasing out of third-party cookies.

For years, direct marketers have run cross-channel marketing programs that use third-party cookies to track user behavior across websites – we all see those ads that seem to follow us around online. In response to European and CA privacy regulations, third-party cookies have largely already been phased out by most browsers (now only relevant 40% of the time), such as Apple’s Safari and Google’s Chrome, which will fully phase out cookies in 2023.

So, if cookies are going away and direct marketers want to reach consumers at the same time across channels to lift and improve response, what do they do? 

Our Solution

Nahan’s solution is known as Direct Mail Companion™ (DM Companion™) – or if you’re a cataloger, it’s known as Catalog Companion™. The name may vary, but the solution remains the same. And what a solution it is! You can now leverage the power of your targeted offline prospect or customer files to create a seamless message before, during, and after your direct mail or catalog in-home date, leading to greater response and higher ROI.

DM Companion™ is a multi-channel marketing program that combines direct mail and mobile targeting. We leverage the direct mail file and target the same recipient via their mobile devices in their homes. The targeting process is based on geocoding technology that achieves a 100% match rate (except for multi-dwelling units) between the direct mail file and the digital universe.

Those that click the ads on their phones are further retargeted across digital channels and other known devices, all without the use of third-party cookies.

Respecting Privacy

We respect consumer privacy by leveraging mobile device ID, which is not considered Personal Identifiable Information (PII). It does not leverage cookies or IP address targeting and is not subject to digital privacy restrictions.

Results Are Impressive

Click-through rate results are typically 2x higher than traditional digital display campaigns, with a 50–75% reduction in cost-per-click and the added  frequency provides incremental response rate improvement of 20%+ over direct mail alone. Recipients can be digitally targeted before the mailing is delivered to build awareness, during the in-home delivery period, and during the remainder of the response cycle. This program uses a highly targeted, cost-effective approach that streamlines the path to response, and is proven across every industry we work with.

Multiple contacts to the same people across multiple channels translate to un-matched results. To find out more about DM and Catalog Companion™, get in touch with your Nahan representative or reach me at alan.sherman@nahan.com.

Bio: Alan Sherman is our Vice President of Marketing Strategy. Alan enhances Nahan’s current value proposition with strategy solutions that support new/existing client relationships. For clients, he leverages market, customer, and competitive intelligence to build achievable strategies for omnichannel marketing success. His marketing plan strategies include targeted data, predictive analytics, testing and creative that drive ongoing client performance improvement. In his spare time, Alan enjoys spending time with his family, traveling, going to concerts, watching sports (he’s a fan of the NY Giants, Boston Red Sox and Celtics) and walking the dog, even though it was just out.