Direct mail campaigns remain a powerful tool for reaching customers and prospects and driving engagement. If you're looking for ways to reduce costs while improving the effectiveness of your direct mail campaigns, this guide is for you.

From understanding how the cost of direct mail adds up to 7 exclusive tips on reducing those costs and increasing response rates, below are the details you need to save money on your next direct mail campaign.

Understanding Direct Mail Costs

Direct Mail Design

Designing your direct mail pieces takes time and can be either free or costly. If you hire a professional graphic designer, this is an additional cost that can range from $100 to $1,000 or more, depending on the designer's expertise and the specific requirements for your design.

Alternatively, you could opt for an internal designer or design your mail piece yourself. While this takes time away from your usual day-to-day tasks, it is the most cost-effective option.

Printing Costs

Printing costs are based on the type of direct mail material, size, quantity, type of paper, and finishes you choose, as well as the printing partner you select.

For example, mailing a catalog will cost more than mailing a postcard. Mailing a 72-page catalog will cost you more than mailing a 40-page catalog. Additionally, mailing 200 4" x 6" postcards will typically be less expensive than mailing 200 6" x 11" postcards. Overall, the more resources and time required to print your direct mail materials, the higher the cost will be. For example, a catalog typically includes more paper and ink, and it involves binding your catalog together. In contrast, a postcard is a smaller, single piece of paper that does not require binding or folding, resulting in lower costs.

Mailing List

You can mail your pieces using a list you already have or from your internal database, or you can create a brand new mailing list.

Launching your direct mail campaign using a mailing list created from your internal database or an existing list will be the most cost-effective option, as you already have the address information. The only thing you might need to account for is deduping or NCOA. When you choose to deduplicate your mailing list, your direct mail provider removes any duplicate addresses, ensuring that recipients receive only one mail piece. NCOA, or National Change of Address, is a process where your direct mail provider compares your mailing list with address change data provided by the USPS. If any addresses are listed in the move data, they are updated to the new address. These services have a small additional cost, as they require your provider's time.

The other option is to create a new mailing list to target a new audience, which can be highly beneficial for building strong brand awareness and expanding your customer base. However, it will cost you more than mailing to an audience you already know. The cost of building a mailing list varies. For example, creating a list based solely on location and age will be less expensive than compiling a mailing list based on buying activity or interests due to the way this data is compiled.

For more information, check out our blog "How Much Does a Direct Mailing List Cost."

Postage

Postage varies based on your mailing quantity, the speed of delivery, and the weight of your mail pieces.

Larger mail quantities qualify for bulk mail postage discounts. These bulk mail services include First-Class Mail (a minimum of 500 mail pieces), Standard Mail (a minimum of 200 mail pieces), and Every Door Direct Mail.

Every Door Direct Mail (EDDM) is the cheapest option, but your mail pieces will be delivered to every address on a selected mailing route. First-Class Mail is the more expensive bulk mail option, but it has the fastest delivery time. Standard Mail or Marketing Mail is the second-cheapest bulk mailing option, but it will take a few days longer to arrive than First-Class Mail.

If you wish to have a more targeted campaign than what EDDM offers and do not want to meet the minimum quantity of 200 or 500, you will need to pay full, single-piece postage. In addition, the heavier the mail piece, the more the postage costs will be. For example, a catalog typically weighs more than a postcard, meaning the cost to mail postcards is cheaper than mailing catalogs.

How These Direct Mail Costs Add Up

Ultimately, the final cost of a direct mail campaign will be determined based on the above factors. While it may sound like the cost will add up quickly, direct mail campaigns can be completely tailored to meet your exact budget and goals. For example, if you want to mail catalogs, you can save money by choosing a smaller catalog, designing your catalog in-house, or selecting Standard Mail over First-Class.

Read further to discover other ways you can significantly reduce the cost of a direct mail campaign.

How to Save Money on Your Direct Mail Campaign

Efficient Design & Layout

When designing your direct mailers, you can save and make money in two ways.

To save money, you can save on hiring a professional designer by designing your mailers in-house. To further assist you, you can request a free direct-mail design template from your printer. Even if you aren't familiar with designing printed pieces, these templates will help ease and speed up the entire process.

You need to create an effective design to make more money on your direct mail campaign. A money-making design features high-contrast, catchy and large headlines, branded elements, high-quality images, and an irresistible call to action with a coupon or other offer. For more tips on creating a direct mailer that generates amazing revenue, check out these direct mail design tips.

Targeted Mailing Lists

When you target the right audience, you're not wasting money sending mailers to uninterested individuals. For example, say a pizza restaurant wanted to send a postcard to every household within a 3-mile radius. Unfortunately, not everyone within that radius likes or can eat pizza, resulting in a lot of wasted money. Instead, this pizza restaurant could save money while increasing its revenue by targeting only those who show an interest in pizza or have dined at one of its competitors before.

Targeting can be as specific as you need it, from targeting individuals based on location and demographics to buying activity, interests, or similarities with your most successful customers. Check out our blog "How Targeting Helps You Save Money on Direct Mail Campaigns" to get ideas on how you can save on your next campaign.

Bulk Mail & Other Postage Savings

Utilizing bulk mail services is the most effective way to save money on your direct mail campaign. While Every Door Direct Mail is the most cost-effective direct mail option, it's only suitable if you're introducing your brand to a local area or offering a product or service that everyone might need. Otherwise, you'll waste money mailing to uninterested households.

Therefore, using First Class or Standard Mail is your most cost-effective option. To take it a step further, instead of choosing First-Class Mail to meet your deadline, you can plan ahead and select Standard Mail to save money while still ensuring your mail pieces arrive on time.

Suppose you don't have 200 people to mail to; in that case, bulk mail discounts are out of the question, right? Luckily, even if you have one direct mail piece, you can still take advantage of bulk mail discounts thanks to Direct Mail Commingling. This service allows you to send as few as one postcard with bulk mail discounts applied. It works by combining your small quantity with other companies' mailings, allowing you to launch affordable direct mail campaigns without mailing to unnecessary individuals.

Saving on Print Choices

Printing will account for a large portion of your direct mail campaign costs. However, you don't need to spend a fortune. The key is to analyze your goals and budget and then create a balance between quality and cost. Quality is essential. When you have a high-quality marketing piece, your message and brand stand out, increasing ROI and brand awareness. To save money without sacrificing quality, here are a few things you can do when printing your direct mail materials:

Standard Mail Size & Format: Select standard sizes and postal service-approved formats. This reduces production costs and ensures a perfect fit in recipients' mailboxes, increasing the likelihood of engagement. 

The Standard Printing Options: Select the standard options your printer provides, which are approved by the USPS, including sizes, paper types, and coatings. Custom paper, sizes, and finishes will cost extra. 

Quality + Low Prices: Find a printer that prioritizes both quality and competitive pricing.

Coating Selection: If you choose to use a coating for a unique finish or extra protection against the mailing process, opt for a UV coating rather than an aqueous one, as UV coatings cost less yet still produce a beautiful finish.

Turnaround Time: Turnaround time refers to the duration it takes to print your materials. Just like ordering anything, the quicker you need your items, the pricier it will be. So, plan in advance to select a longer turnaround time and save a significant amount of money on printing your direct mail materials.

Testing & Optimization

Testing your direct mail campaign can help you save money by allowing you to analyze what is and isn't working, thereby optimizing your campaign so that your mail pieces aren't wasted but instead drive responses.

If you're planning a large direct mail campaign, try mailing to a smaller audience first. You can use Direct Mail Commingling or Standard Mail to do this. By sending to a smaller audience first, you can measure the results and make adjustments accordingly. When launching your large direct mail campaign, you can ensure your mailer's message, offer, and design are as effective as possible before the big rollout.

Additionally, you can A/B test your campaign to see which elements lead to more cost savings and revenue.

To save money on a direct mail campaign by testing, you need a way to track your results. You can include a QR code with tracking parameters, a promo code, unique contact information, or a coupon.

Integrating with Other Marketing Channels

You can integrate your direct mail campaign with other marketing strategies to save money and increase your revenue.

By taking this approach, such as combining your direct mail with email, social media, online ads, podcasts, and more, you increase overall reach and effectiveness while distributing your budget across multiple channels, leading to potential cost savings.

Choosing An All-in-One Print & Direct Mail Provider

You can save a lot of time and money on your direct mail campaign by finding a provider who can print and mail your direct mail materials.

Doing this saves time and money because your provider can print your materials and then mail them directly from their facility on your behalf. This means you don't need to purchase a mailing permit, address and bundle your mail pieces, or run to the post office. Instead, everything is prepared and handled for you.

Conclusion: How to Save Money on Direct Mail Campaigns

Overall, here is a summary of the tips you can follow to save money on your next direct mail campaign:

Cost-Effective Design: You can save money using a free direct mail design template and designing your mail pieces in-house. Additionally, ensure that you create a compelling and eye-catching piece with a clear call to action. 

Targeted Mailing Lists: Sending mail to a smaller, targeted audience minimizes waste and enhances the impact of your campaign, ensuring that your message reaches the most relevant recipients.

Leverage Direct Mail Discounts: Utilize bulk mail discounts through bulk mail services or Direct Mail Commingling to dramatically lower your per-piece cost.

Selecting The Right Mail Size & Materials: Choose standard postal service-approved materials. These materials are provided as standard options by your printer. By selecting these options, you can create high-quality direct mail pieces at an affordable price.

Test & Optimize Your Campaign: Test your campaigns to determine which elements generate the best results, thereby optimizing your entire direct mail campaign and ensuring your pieces are profitable rather than wasteful.

Combine with Other Marketing Efforts: Integrate your direct mail campaign with other marketing strategies to increase effectiveness, allowing you to distribute your budget across multiple channels and achieve cost savings.

Choose a Print & Direct Mail Provider: Selecting a provider that handles printing and mailing your materials can significantly reduce time and costs, as they will take care of everything for you.

Implementing these strategies reduces direct mail campaign expenses and enhances effectiveness, ensuring better responses and sales.

To save money on your direct mail campaign, click below to discover some of our most popular direct mail services. At Conquest Graphics, we're your go-to print and direct mail partner, dedicated to helping you find the best options for your goals and budget.