Mail Large for Ad Response Rates

When using direct mail, the larger the mailing piece, the better the response rate.
     About 1.12% of consumer receiving a postcard respond, while the rates are 1.28% for a letter-sized ad and 1.44% for an oversized mail piece. When the mailing list includes only past customers, the rates are about 2.47% for postcards, 3.40% for letter-sized ads, and 3.95% for oversized mail pieces.
     The consumer psychology explanation for the differences is that a larger size implies higher importance. This is particularly true for consumers who view themselves as less powerful. In studies on a related topic, researchers at HEC-Paris and Northwestern University offered a set of study participants a choice of different-sized bagel slices. Those participants who felt powerless chose bigger slices.
     Larger mailing pieces do cost more than smaller ones, both for production and for postage. Balance that fact against the improved response rate. And any marketing campaign using direct mail will cost more for production and postage than a campaign using e-mail. However, because the response rates to e-mail ads are so low—about .03% for a general list and .12% for a past-customers list—the cost per order or sales lead is slightly more for e-mail than for direct mail campaigns.
     Other considerations when deciding on your mix of direct mail and e-mail marketing:

• Multichannel and multi-impression marketing work better than campaigns using a single-channel one-shot. The highest response rate—about 13%—is with telephone marketing to past customers. Furthermore, only 6% of actions following an online display ad occur right after a click. Consumers generally require time and repetition before popping up as prospects. 
• Over the years, there has been an increase in e-mail response rates and a decrease in direct mail response rates. So the marketing mix returning the best return on investment (ROI) this year might not be the best one a few years from now. 
• Although larger size advertising mailing pieces for unfamiliar products get higher response rates, smaller size sample packages of unfamiliar products get more consumer trial. Researchers at Technical University of Lisbon and at Tilburg University in the Netherlands found that people who were hesitant about eating a food product were more likely to overcome their hesitations when presented with small packages than when presented the equivalent amount in a large package. 

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Label as Small to Increase Trial 
Slice Off Consumers’ Small-Penis Syndrome