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Why EDDM Will Not Work For You

The Every Door Direct Mailing system that the USPS has established can have it’s pitfalls; it can arguably be more beneficial to some businesses over another, but most of the arguments against the system come down to your Return on Investment (ROI) and are based on you doing a complete mailing yourself. The EDDM postage expense was raised from .142c per mailing to .145c per mailing which is cheaper than targeted mail postage, but the downfall is that you have to send the mail to every household in a given postal route rather than certain households. In other words, if your actual target audience is mixed among different postal routes, you could be sending your message to a lot more non-targeted leads than you would if you did a targeted mail campaign. This could mean more money spent on a less targeted campaign.

The problem, though, is in the way you go about setting up your EDDM campaign.

First off, you can still target your campaign to only include routes of a given income range or that do not include many apartment complexes; while it cannot be micro-targeted, you still hit your micro-targets, but also hit those that you either may not have considered before, or were not a large enough target to focus in your previous mail campaigns.

Having to send to every house in a postal route can mean that you are sending hundreds more mailers than you may have before, and some would have you believe that because of this, you may end up paying more per customer. The problem lies in the service you provide: if 1 client will bring in $200, then you profit on a targeted mailing campaign that would otherwise be more expensive if you did the same gravity as you do with an EDDM campaign. If 1 client brings more or less, it alters your ROI, and everyone wants to have a positive ROI.

Yet, how logical is it to conclude that you would only gain the same amount of clients you would with a targeted mailer versus EDDM where you are sending¬†out 10x as many mail units? Wouldn’t you at least gain 1 more client than you would on a targeted mailing? Of course only 1 more client may not be enough to justify an EDDM campaign for your business, but maybe you need a better offer to entice those that would not have otherwise been interested in your business. More often than most, if you have a specific target demographic profile that you know cannot be deviated from, EDDM would likely not be beneficial to you, but only if you are thinking of it in terms of doing a solo mailing. It can be a pain to set up too because you must bundle your mailers into groups of 50 with facing slips that show what route and how many bundles per route there are that you are mailing within, but this can usually be outsourced to an employee or elsewhere for around $300.

The reason EDDM won’t work for you is because you are thinking in terms of taking on the expenses on your own. This is why co-op mailing is so effective: you send the same offer to the same audience, but you share the expense with your fellow businesses.

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Reach 10,000 locals for less

It does not sound so enticing, however, if you are sharing that mailer with a competitor; that’s why LocSavings has created a unique mailer that will emphasize your custom offer or deal without having to compete against others in your category. If you don’t give your audience an option to go with someone else, they have more reason to try your offer out first. Other mass mailing options may showcase your offer in a similar manner, but will put it along with competing businesses that give your audience more choices to go anywhere else. Our mailer only allows one business per category (spa/gym/pizza/Chinese/car wash/mechanic/etc) per mailer. Once a space is filled on a campaign, a competitor cannot be on that mailer until you relinquish your spot.¬†What does that mean in terms of your ROI?

Instead of spending $1280+ to send a targeted marketing mailer to 1,000 targeted residences to gain a possible 15-20 clients (an average of $64-85/client), you could spend $645 to send a targeted marketing mailer to 10,000 local residences to gain 15-20 clients or more (an average of $32-43 or less/client) with a greater probability of gaining more than with just your targeted campaign. LocSavings offers you the opportunity to gain a better return on your investment. Every Door Direct Mail will not work for you as effectively if you do not know what you are doing, do not have a great offer, and if you are not sharing the expense of such a saturated mail campaign, but with LocSavings, you can make it work for your business.

Posted in EDDM.

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