Why SaaS Companies Should Use Direct Mail to Generate Leads
May 10, 2022
SaaS direct mail is also a powerful way to reach decision makers and influencers at companies that aren’t currently using your product or service. When used as part of an account-based strategy, your integrated direct mail has the ability to amplify your results exponentially.
In today's digital age when SaaS companies are continuing to search for ways to generate leads, it's easy to forget about the power of direct mail. With large SaaS companies like Google, Amazon, and LinkedIn incorporating direct mail into their marketing strategies, however, it’s worthwhile to consider how B2B direct mail can help you stand out. It doesn’t mean abandoning digital methods, but rather creating an integrated approach to account-based marketing that will help your SaaS company improve SaaS demand generation, set yourself apart, and achieve your overarching goals.
Success of B2B Direct Mail
Are you curious about the success of B2B direct mail? The numbers might surprise you: Response rates for direct mail exceed email marketing, with 4.4% of campaigns achieving responses, compared to just 0.12% online, according to the Direct Marketing Association. This may be due to the fact that, with overstuffed email inboxes, consumers are more receptive to direct mail than unsolicited email campaigns. In addition, direct mail can serve as a constant visual reminder of your brand’s message. By comparison, emails may be deleted, forgotten, or sent to the spam folder — often much more quickly than a piece of direct mail makes it to the trash.
SaaS direct mail is also a powerful way to reach decision makers and influencers at companies that aren’t currently using your product or service — as well as those who don’t use social media or who tend not to read emails. You can target these individuals by industry, job title, geography, and other variables that will help you zero in on the right audience.
Another reason B2B direct mail is so effective is that it provides customers with an easy way to respond to your offer. If they want more information from you or want to buy from you, all they have to do is visit your landing page, call your toll-free number, or even scan a QR code to instantly access your information.
Benefits of a Multi-Channel Strategy
It’s important to note that most companies cannot rely on direct mail alone for effective marketing campaigns. Connecting your direct-mail campaign with email, paid media, and other channels can help improve your results and engage with customers who may not be receptive to your direct mail. Research also shows that B2B marketers using three or more channels achieve a whopping 250% higher purchase and engagement rate than those using a single-channel approach.
Consider the many benefits of direct mail:
● You can measure ROI. It’s easy to track the effectiveness of your direct-mail campaign because you are able to track sales leads generated by each piece of mail you send out. By using unique promotional codes, you can also track how many people opened your mailing, what location they were at when they opened it, whether or not they placed an order online after receiving your mailing, how many times they visited your website from their mobile device after reading your letter, and much more.
● You can integrate it with multiple channels. At SaaSMQL, we integrate with your inbound and outbound funnels to trigger a direct-mail sequence that is tied to emails and ads, creating a well-timed campaign that’s designed to reach the right person at the right time.
● It’s cost-effective. The cost per acquisition (CAC) to generate qualified meetings and opportunities is typically much lower for well-executed direct-mail campaigns when compared to Google Ads, LinkedIn Ads, and tradeshows.
● It’s memorable. A thoughtfully designed postcard, gift, or brochure with a strong call to action can help you connect with current accounts as well as reconnect with cold accounts or lost opportunities.
● It’s personal. When someone receives a physical piece of mail from you, they instantly feel connected with you as a brand because it forces them to think about your business and whether they want to engage with it further.
Use Cases for B2B Direct Mail
There are many different use cases for B2B direct mail as part of an account-based, multi-channel marketing strategy. Here are some examples of integrated direct mail applications:
● Answering a question, introducing new product features, or addressing a particular pain point. For example, a customer might want to know about the new features that were announced at last week’s webinar or what the next steps are after submitting a quote request form. In this case, you can send a piece of direct mail with the answers to these questions, along with any promotional offers and links to videos, articles, and landing pages.
● Cross-selling related products and services. If you have several products and services that could be relevant to your customers, consider sending out an email campaign inviting them to explore these additional offerings. Then follow up with another piece of direct mail with more details on each product so they can make an informed decision about which one is right for them.
● As part of multi-channel marketing for tradeshows and events. Send an invitation via direct mail and email inviting attendees to stop by your booth to receive a piece of swag. For example, we sent a poker chip to attendees of the SaaStr Annual that they were able to redeem at our booth for a VIP gift. You can also include discount codes and other offers within your direct mail and other channels to encourage more people to take action.
● As part of outreach. To generate qualified meetings, your mailer can include an invitation to schedule a demo. These types of mailers usually include some type of gift card and should have a strong call to action.
● New-client welcomes. Once a client signs an agreement, this can trigger a new-client welcome package to the company.
B2B Companies That Use Direct Mail
There are many large B2B and SaaS companies such as Google that use direct mail as part of an account-based, multi-channel marketing strategy. These companies have the resources to send thousands of direct-mail pieces every month, but that doesn’t mean there isn’t room for smaller players to utilize the strategy. Simply take a cue from large SaaS companies, start small, and continue to scale as your campaigns pick up speed. At SaaSMQL, we are able to consistently generate $1 million in new sales pipeline every month by incorporating a direct-mail approach, and you can do it, too. Here are some examples of large SaaS companies that are sending direct mail.
Direct marketing is nothing new for Google; the tech giant has been using the strategy for many years. Take a look at the February 2020 ad below, which features plenty of white space and shows B2B prospects how their Google Ad would appear in search results. This is a powerful, visual reminder that if you are not currently advertising on Google, you are missing out on opportunities to have your company ranked in search results.
LinkedIn, a professional networking site that also allows employers to post jobs, sent this direct mailer to explain how their job-posting services work. Recipients can clearly understand how to use LinkedIn for their recruiting efforts, with just three simple steps to get started. Note the time-sensitive promotional offer of $50 off and the calls to action incorporated throughout the different steps.
Small-business payroll provider Gusto got creative with this mailer, which features a maze that reminds recipients that although starting a business is difficult, Gusto is there to partner with them. Don’t you just want to pull out a pencil and try to make it through the maze?
Steps for Incorporating Direct Mail
When you’re ready to get started with a direct-mail campaign, follow these steps to get the best results:
Decide what type of direct-mail item you want to send. This could be a branded box with a one-pager, a $50 Amazon gift card or a similar incentive, and a food item such as caramels or popcorn.
Be sure to include a call to action to schedule a demo and take advantage of a limited-time promotional offer, like the $50 LinkedIn discount example above. You should also include a link to a custom landing page where you want to drive traffic from your mailers.
Select the list of contacts to whom you want to send the direct mail. Target accounts might include people who are dissatisfied with your competitors’ offerings, people with upcoming renewals (either with a competitor or with your company), and people with titles who are likely to be decision makers at your target companies.
Create an email campaign to pair with your direct-mail campaign, and send this out before your item ships.
Follow up with recipients after they have received your item, and track ROI and conversions in Salesforce or your desired CRM platform.
Top Tips for Effective B2B Direct Mail
B2B direct mail is clearly an effective marketing channel that can help you reach your target audience, but it’s not always easy to get right. If you want to see a significant return on investment from your B2B direct-mail campaign, there are several things you can do to improve its effectiveness. Here are some things to keep in mind for your integrated direct-mail campaigns:
● Use a compelling headline. You only have a few seconds to grab the attention of your prospect and make them want to read more. So make sure your headline is clear and compelling. It should tell readers what they can expect to find in the rest of the postcard or package so they can quickly assess whether to keep reading — and your headline should entice them to do just that.
● Use strong copywriting. Your copy should be concise, well-written, and persuasive — nothing too clever or fluffy here. Keep it simple, explain exactly what you want someone to do, tell them exactly how they will benefit by doing it, and include any special offers, if applicable.
● Use design elements strategically. Visual elements such as colors and the placement of your text can make your campaign more engaging and memorable, but they shouldn't distract from the main message or create confusion about what's happening next in the process. They should always support what you're saying rather than cause confusion or disinterest.
● Use an attention-grabbing image. Incorporate an image that catches people's eye right away — something that makes them stop reading their other mail and pay attention to yours. For example, if you're selling a SaaS platform for accountants, use an image of someone doing their taxes or balancing a checkbook — something that’s relevant and interesting to accountants but might not interest everyone else in the world.
● Personalize every piece of information that goes into your campaign. That includes everything from the envelope to the salutation on the letter inside, along with the greeting in your accompanying email campaigns. This level of customization helps ensure that you’re sending out personalized messages that catch your recipients’ attention while also increasing response rates.
Direct-mail marketing is so much more than sending out a mailer or placing an ad in the paper. It’s a targeted approach to reaching prospects and customers. In recent years, with the influx of digital marketing tactics, direct mail has been proven to improve conversion rates and achieve higher ROI over other marketing channels. It has also shown to be a trusted medium for businesses, even more than online campaigns. When used as part of an account-based strategy, your integrated direct mail has the ability to amplify your results exponentially.
There are many different moving parts that go into effective SaaS direct mail. For effective SaaS demand generation, reach out to the experts at SaaSMQL for help setting up your campaign. Not only can we help you get the results you want, but we can also help you avoid costly mistakes throughout the execution of your campaign.
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