Firms Hold Fast to Snail Mail Marketing

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The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies like Per Annum to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.
However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it's not so easy to dismiss.
Ms. Settle says that at first she blamed the economy for the dropoff, until she "started hearing from customers that they never got their 'reminder' in the mail." Ms. Settle quickly sent a postcard mailing in June, which recouped the 25% loss, she says.
Costs are still taken into account. Many entrepreneurs find that the boiler-plate methods of the past—such as purchasing mailing lists and sending fliers or coupons to a mass audience—often aren't cost-effective. Instead, business owners are creating personalized mailings, which may include special offers or other valuable information, and sending them to a hand-picked list of current and prospective customers.