Email Marketing & Publishing June 2004

Marketing Research
Go Postal or Go Email?

In the early days of email, marketers quite naturally borrowed their techniques from years of experience with postal mail. But as the industry matures, distinct differences are emerging. The Direct Marketing Association produces an annual report called the State of Postal and Email Marketing. The findings show how the two mail streams are diverging. Here are some of the key differences:

Mailing frequency: The most obvious difference is in mailing frequency - postal mailings are remaining stable while email usage is increasing. The main reasons cited are email's considerably lower expense, and changes in company strategy.

Response rates: Postal mailers are noticing declines in response rates - about 21% of them. Among email marketers, this is only 6%. As marketers gain experience with email, they become more effective and adept at increasing response.

List techniques: Postal mailers are still more sophisticated in their use of list techniques. Over 90% favor prior mail history analysis, internal housefile databasing and personalization. Among emailers, barely 50% apply these techniques. This suggests that much is still in testing mode.

Selling strategies: Similarly, a greater percentage of postal mailers report routine use of customer retention programs, customer re-activation and customer purchase frequency. However, email is more heavily used for cross-selling purposes.