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It's in the MAIL; Experts say even in these times of online marketing, good old direct mail marketing is an effective way to improve business.

Article Excerpt
Byline: Brad Finkelstein

In tough times, experts on direct mail marketing state sending pieces to a well-vetted, targeted list is much more effective than just sending out large mass mailings.

Direct mail is still an effective means to keep in contact with current, past and potential customers, the experts say, but in the current environment, one tracker of data on direct mail notes a large decline in its use. Whether this is because direct marketers are being more efficient in using their resources or a decision to cut back on marketing altogether is not explained in the data.

In the second quarter of 2008, according to Mintel Comperemedia, Chicago, mortgage and home-equity direct mail marketing volume is down by 10% from the first quarter.

"Economic struggles have hit lenders hard," explains Farah Huq, senior analyst at Mintel. "As companies work through a shaky market and new legislation, they're scaling back notably on direct marketing. Many seem to be waiting for winds of change before they send more offers."

But that entire decline is in the equity loan and home-equity line categories. There was actually an increase in mailings for mortgage loans, 240 million pieces compared with 220 million for the first quarter.

Still, the 358.4 million pieces mailed in the second quarter falls well short of the 768.4 million mailed in the fourth quarter of 2006. There were 396.9 million pieces mailed in the first quarter of 2008.

"Though mortgage mail volume remains far lower than a year ago, this is the first uptick we've seen in two years," comments Ms. Huq....

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