4 Reasons Why Direct Mail is a Killer Marketing Strategy Now

Why would one of the world's smartest companies (Amazon) promote a signature product recently with direct mail?

Because it works, of course. 

Here's another example. 

In 2012 the peer-to-peer lending company, Prosper, was lending $150 million while netting $8 million revenue. They could buy the most brilliant digital marketing - yet they were losing money. 

Today, with new management, Prosper is on track to lend $3.7 billion and net $200 million in revenue. Not only are they not losing money, they're now the second biggest peer-to-peer lender in the US after Lending Club. 

What's their secret? 

Uh, again, direct mail. 

That's what Prosper CEO Aaron Vermut told conference attendees in London recently. 

Before the new management, Vermut said the company's marketing "was key words and direct to site traffic. A lot of that turned out to be a lot more subprime than we anticipated." 

Now Prosper buys mailing lists and data to see what interest rates to offer people on loans. 

The pre-approved offers in the mail send people to the website to get the deal. 

Why not use only digital marketing? 

"We don't want people who are looking for money online," says Vermut. "If they're at their computer searching for money, they're probably not going to pay you back." 

While Vermut holds up direct mail as the key to getting Prosper back on its feet, now the company uses some online marketing again. 

Vermut adds: "It's gone from 100% SEO to 100% direct mail to today where it's 40% direct mail, 40% partnerships, 20% digital." 

Even The Wall Street Journal noted the recent uptrend in direct mail with certain markets. 


The amount of competition online. 

A few years ago, people had a handful of marketing tools. Now they have dozens.

With all the new options, isn't direct mail too expensive for a small business? 

Not if you want to stand out from the crowd who only use email and social media. Not if you want people to see your business first before they see all your competitors online. 

And not if you use the right data provider - to help you select the right market and save on postage. 

Each of these factors could easily be another article. 

Both traditional and online marketing are important for your success today. Integrate them and you can drive totally new opportunities to your business en masse.

Written by

Joel Buhr