Minimize Your Customer Acquisition Cost with Social Direct Mail

Marketers are using new metrics in the digital age to understand how to get consumers engaged with their businesses. One of these metrics is customer acquisition cost (CAC). CAC is the cost of converting prospects into customers. It is a new way of following consumers from targets to first-time customers to your most loyal fans. Direct mail is an effective way of getting in touch with a diverse group of consumers. By integrating it with social media, you can reduce your CAC and make two to three times the profit. Social Direct Mail gives companies the power to connect with consumers more efficiently. Here’s how it works.

Direct to Your Prospects

Direct mail has gotten you in front of your consumers for years. Your prospects can physically touch your deals, creating a powerful relationship between your company and consumers. You can reach so many more people than with any other channel. But it comes at a cost as postage is expensive. And once you send out the offer, your company loses all control. To acquire customers, you need to capture their attention and call them to action. You don’t want to keep spending money trying to court a prospect. Losing control can be scary, and you never really know what to expect. It leaves companies wondering and wanting more. 97% of marketers see improvements when adding additional channels. Unfortunately, 90% of marketers struggle to do it seamlessly. Figuring out a way to do it efficiently can be tough. But Social Media + Direct Mail is here to help.

Harness the Power of Social Media

With messages bombarding consumers daily, it is difficult for them to sift through it all. Direct mail pulls consumers in, but sometimes, it doesn’t have the power to convert them into customers. With Facebook ads, you are marketing directly to a captive audience. Ads cannot be skipped and are not filterable, so you have your audience’s full attention. The added power of Facebook ads is great. But many times, you are marketing to different consumers. By spending money on more new people, hoping they engage with the ad, you are increasing the CAC. There’s a better way. Propelo Media gets you the pull of direct mail and combines it with the power of Facebook. It all starts with your existing mailing list from your direct mail campaign. We take your list and match it to Facebook’s member database. Then, we create a campaign around these people. That way, you get in front of your direct mail prospects again. More face time means more chances to make a connection with the consumer. Social Direct Mail gives you more mileage and profits from your successful direct mail campaign. You can get in front of your direct mail prospects again without spending more on postage. Instead, harness the power of Facebook, and call your prospects to action. By getting more customers, you grow your business, making it more appealing to additional consumers as well as investors. All of this means greater return on investment and lower CAC.

Lower Your CAC and Improve Your Profit Margin at the Same Time

Investing in an omni-channel marketing plan that targets the same consumers through direct mail and Facebook gets you more customers faster. You are able to convert those prospects into loyal customers. By saving on marketing, you can reinvest more into the company, pushing you further than you ever thought possible. And, in turn, that makes investors and executives more interested in your company, providing more opportunities for growth. So, how does it work? Consumer acquisition cost is simply cost spent on acquiring customers divided by the number of new customers in that period. For example, if you spent $500 on your marketing campaign and acquired 5 new customers in the same period, your CAC is $100; try our ROI Calculator to estimate your own CAC. To minimize the cost to acquire new consumers, companies need to invest in smarter marketing. Marketing’s role is to court prospects into becoming loyal customers. By marketing to the same prospects twice, you show consumers you are committed to them. The effort your business puts into creating relationships with prospects translates into commitment and brand trust. And that commitment translates into purchases. Having a consistent message across channels reminds prospects of your products and what you value as a company. A unified voice shows you are committed to your mission and your customers. That’s why Social Media + Direct Mail works. It creates that relationship and bond with consumers by showing a commitment to your brand. Using only your direct mailing list, we work with you to create one campaign across channels. Prospects will see your offer in the mail and then be able to engage with it online. Here’s an example of how it worked for one of our clients.

An Example

A furniture company wanted to engage new customers with a $100-off coupon on their products. They sent it by mail directly to consumers. With us, all they had to do was provide the mailing list. We took care of design, printing and sending. Then, we take took direct mail list and cross-checked it with Facebook’s user database. Facebook users on the direct mail list saw a matching ad on their newsfeed at the same time. They could engage with the ad by clicking on it, which sent them to a landing page. The furniture store chose to send prospects to their website, where they could download the coupon. With a $2,500 Facebook integration budget, they saw a 25% lift in total sales. This translated to a 19.5x return on investment. You can break down CAC for each of your marketing channels. If you know which channels have the lowest CAC, those are the best choices for getting new customers for less. By integrating Facebook and direct mail, you get the boost from Facebook when you are reaching the same customers. Want to test out integrating your direct mail with social media, to lower your CAC and increase your profits? Contact Propelo Media today for a free consultation and demo.