Marketing is an essential aspect of any business, and with the ever-increasing number of marketing channels available, it can be challenging to know where to start. This article will outline must-know marketing statistics for business owners to help them make informed decisions when allocating their marketing budget.
Direct Mail Facts:
Direct mail continues to be a popular marketing channel, with a massive portion of U.S. local advertising spend allocated towards it. According to research, 70% of consumers find direct mail to be more personal than online interactions. Additionally, 54% of consumers want to receive direct mail from brands that interest them, and direct mail open rates can reach up to 90%.
Direct mail response rates are also higher than many other marketing channels, with a response rate of 3.7%. Personalization is a key factor in increasing response rates, with adding a recipient’s name increasing response rates by 135%. Furthermore, 62% of consumers who responded to direct mail made a purchase, and 39% of consumers try a business for the first time because of direct mail.
Source: Nerdwallet
Email Marketing Facts:
Email marketing is an efficient way to reach customers, with 4 billion daily email users worldwide (source: Hubspot). Compared to direct mail, email marketing is less expensive to create and send. However, buying a contact list can be risky, and email has lower success rates.
Although email marketing has a lower response rate than direct mail, it has a higher ROI. Email marketing produces $38 for every dollar invested, compared to direct mail, which produces $7 for every dollar spent (source: Campaign Monitor). Segmentation, personalization, and email automation campaigns are the most effective strategies for email marketing campaigns.
Here are some additional email marketing stats:
- Manufacturing Companies get an average open rate of 19.82% and an average click rate of 2.18% (source: Mailchimp)
- 64% of small businesses use email marketing to reach customers. (Campaign Monitor)
- The most effective strategies for email marketing campaigns are subscriber segmentation (78%), message personalization (72%), and email automation campaigns (71%). (HubSpot Blog Research)
Direct Phone Marketing Facts:
Direct phone marketing can be an effective way to reach customers, but it depends on whether a business is contacting current or potential customers. The average success rates when contacting existing customers using an in-house list are 12.95%, but it drops to 8.21% when cold calling potential customers using a third-party prospect list.
Although success rates are higher for direct phone marketing, the cost-per-lead and ROI can be higher than other marketing channels. The cost-per-lead for direct telephone marketing averages $190.49.
Source: smallbusiness.chron.com
Digital and Search Marketing:
Organic search engine optimization (SEO) and pay-per-click (PPC) ads are two popular digital and search marketing tactics. SEO is great for the long-term, while PPC is ideal for businesses that want quick results.
Research shows that 41% of marketers worldwide get the highest ROI from SEO, and organic search engine results generate 65% of website traffic. Furthermore, roughly 64% of marketers are investing in SEO, making it one of the most successful methods of business growth.
PPC search engine ads help bring in an average of $2 for every $1 spent. In addition, small businesses that use advanced SEM tools and ads strategies experience revenue growth in the previous year that is up to 4X higher than less digitally advanced businesses.
Source: raddinteractive.com
Social Media Marketing
Compared to digital search ads and SEO organic traffic, social media marketing yields a lower ROI but continue to be relevant as social media use rises. Worldwide, people spend an average of 2 hours and 28 minutes per day on social media. (Hootsuite)
Among American internet users between the ages of 18-34, almost 40% have bought a product from social media. (Semrush) Product research is one reason why 76% of internet users access social media. (Hootsuite)
Retargeting ads are the most-used among marketers, with 77% of B2B and B2C marketers alike saying they use retargeting as part of their Facebook and Instagram advertising strategies. (Sharpspring)
These marketing statistics are essential for every business owner to know when allocating their marketing budget. While each marketing channel has its advantages and disadvantages, knowing the success rates, costs, and ROI for each can help business owners make informed decisions about where to invest their resources.
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Read how Frederick’s Company partnered with DVIRC for digital marketing support and a business-friendly ecommerce strategy which resulted in $350,000 in new sales to date and the highest number of customers in company history.