The USPS sent 120.9 million mail pieces last year! What is fascinating about this figure is that direct mail still gets so much recognition, even though the digital era is the new trend. Individuals and businesses use postal services to send communications on a wide scale even today. 

In fact, a report by the Business Research Company projects that the global direct mail industry will reach $87.93 billion by 2028, with a 2.7% Compound Annual Growth Rate (CAGR).

Direct mail is flourishing in all industries, including the banking and financial services sector. However, businesses must be equipped with the latest technology and best strategies to get the most out of this channel. We have compiled a list of best practices you should know and follow to ensure your direct mail marketing campaigns never miss. Let’s dig right in!

TL;DR

• Direct mail remains a powerful marketing tool, projected to grow to $87.93 billion by 2028.
• Effective strategies include using personalized elements, hyper-localized content, and client success stories to engage customers.
• A/B testing different offers and designs can significantly enhance campaign effectiveness.
• Automating direct mail processes can save time and reduce costs for banks and financial institutions.

Key Takeaways: 

• With the increasing number of banks and financial organizations in the country, firms must take the best measures to connect with their audiences and acquire clients, like sending engaging direct mailers. 
• The best direct mail practices, like sending postcards with interactive maps, printing client reviews, using hyper-localized content, and inviting clients to exclusive events, can help businesses achieve their goals.
• Banks and other companies can target people based on their life stages, like pitching their education loans to students or home loans to newly married couples. 
• They can test their direct mail efficiency by experimenting with the copy, headings, offers, CTAs, etc., and testing for high responsiveness. 
• PostGrid’s print and mail API can allow banks and financial institutions to conduct profitable direct mailing campaigns without making a manual effort or spending huge amounts of money.

Many might consider banking and financial firms’ offerings as pull products. However, due to increasing competition and high customer expectations, they have actually become push products. After all, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have listed 4,844 insured commercial banks and 574 loan and savings associations.  

Hence, they must put their best foot forward when talking about catching a direct mail recipient’s attention and, more importantly, holding it. Here are some best practices to launch the most successful direct mailing campaigns ever: 

1. Send Direct Mailers With Surprise and Delight Elements to Intrigue Customers 

According to CrowdTwist, 67% of customers state that surprise gifts are crucial to their experience with businesses. 

Thus, banks and other institutions can include small surprises in the mail for their clients to improve engagement. Sending such tokens of appreciation can have a huge impact on your audience, nurturing their loyalty to your brand.

Idea: Curate and mail financial planning guides, vouchers for finance-related consultations, mini calendars, etc.

2. Capture the Essence of Handwritten Notes Via Your Direct Mail Items

According to a National Pen Company survey, nearly 83% of customers think that getting handwritten notes makes them feel more valued.

Including a handwritten direct mail piece from your locality’s branch manager or a senior executive to make people feel special. It transports people to a time when brands took real effort and added a personal touch to their communications. Since the personal touch is often lost within the financial sector’s complex and compliant correspondence, this can be a step toward generating individual attention. 

Idea: Create postcards, letters, or flyers using unique handwriting fonts and print them using high-quality printing services. 

3. Invite Clients to Exclusive Events

A research study showed that 78% of people in the US become lifelong clients of brands that have invited them to an event as VIPs. 

It shows the impact inviting clients to company events can have. Thus, banks and other financial institutions can leverage this marketing strategy and invite select customers to exclusive events, whether virtual or in-person. This shows people that you appreciate them and also paints your company in a positive light. 

Idea: Send postcards or letter invites to clients, asking them to join you for financial planning workshops, investment seminars, or customer appreciation events. 

4. Get the Best Out of PURLs and QR Codes

A report from the QR Tiger showed that QR code scans crossed the 26.95 million mark last year. 

Since more people are becoming acquainted with this technology, using it can yield positive results. Print and send direct mail pieces that include interactive elements, such as QR codes and Personalized URLs (PURLs). These can link to custom video messages or individual-specific financial health assessments. 

It allows you to use customer data to create engaging advice or product recommendations. Since many people have trouble understanding complex financial products, you can use these elements to guide them toward helpful resources.

Here’s an example of using a QR code within a direct mail piece by Better Business Funding: 

Idea: Include Augmented Reality (AR) aspects into your direct mail pieces. Recipients can scan the QR codes or visit the PURLs to see visual presentations of their loan accounts, investment growth opportunities, or savings graphs. 

5. Let Customers get a Sneak of New Products and Services

According to Yotpo's State of Brand Loyalty survey, early access to new products is one of the most significant loyalty program advantages for 50.8% of the surveyed customers. 

Whenever you introduce a new product or service, you can give loyal and long-term clients an early sneak peek or discount access to these items. This can create a sense of exclusivity, which can increase their interest and help you maintain high retention levels. 

Idea: Use flyers or self-mailers to inform customers about new launches of products or services with a discounted premium rate, lower interest charges, or zero processing fees.  

6. Print Out Your Client Success Stories

A Spiegel Research Center survey found that products with at least 5 reviews are 270% more likely to be purchased than those without reviews.

Banks, financial services institutions, and related businesses can best use client success stories to send relatable content to clients. While you may have such reviews and testimonials on your website, you need to print them out on letters, postcards, flyers, etc., to ensure other people actually read them. This will demonstrate what your audience thinks about your brand, giving other clients and non-consumers a glimpse into your brand’s functions. 

Here’s an example of a mailpiece by Geico, wherein it has printed out its customers’ reviews: 

Idea: Feature real-life stories of how your bank has helped clients achieve their financial goals. Include testimonials with ratings from long-term clients and before-and-after scenarios to demonstrate the tangible benefits of your services.

7. Leverage Seasonal and Cultural Themes

TD Bank’s Merry Money Survey in 2023 revealed that 70% of respondents plan to create financial budgets before the holiday season begins in December. 

You can take advantage of this figure this year and help people plan their budgets by offering your financial solutions. Send some of your banking and financial services-related mail items during cultural events in your neighborhood and seasonal changes. This relevance allows you to get better engagement rates. 

Idea: Conduct direct mailing campaigns to distribute financial advice during the holiday season, such as tax preparation tips and back-to-school budgeting guides. 

8. Use Interactive Maps for Branch and ATM Locations

A new study by Cornerstone Advisors found that half of the clients who opened a checking account with a bank within the past three years visited a physical branch. 

If you want more people to walk into your bank branches, ATMs, or other places where you conduct business, printing visually appealing and helpful maps can do wonders. These maps should guide people from their doorstep to the nearest banking location in their area. This strategy can enable you to get more foot traffic, thereby increasing acquisitions and brand visibility. 

Idea: Highlight the special offers or services available at each location. Offer exclusive branch-specific promotions to encourage recipients to visit.

9. Take Care of the Industry Standards and Postal Regulations While Mailing

The penalty for violating HIPAA regulations can extend to $50,000 per violation. 

There are no hard-and-fast rules for sending direct mail because it is an extremely flexible and creative field. However, if you want to mail personalized items using customer data, it is best to follow HIPAA regulations and maintain high confidentiality standards. This will help you avoid violating the law and paying hefty fines.

Also, please ensure you follow the USPS-prescribed dimensions for the collateral you send. For example, your mailpiece should be 3.5” x 5” x 0.007” at minimum. Postcards should not measure more than 4.25” x 6” x 0.016”, whereas letters should not measure more than 6.125” x 11.5” x 0.25”.  

Idea: Use HIPAA-compliant print and mail solutions, like PostGrid, which can handle mailing compliance and ensure your mailers adhere to USPS measurements and other guidelines.

10. Create and Send Mail Around Monthly Financial Challenges

According to the Fed’s Survey of Consumer Finances, the average savings for people that come under the age category of 25-year-olds is $20,540, 30-year-olds is $20,540, and 40-year-olds is $41,540. The median savings for these age groups are $5,400, $5,400, and $7,500, respectively. 

Financial businesses, such as banks, credit card companies, and others, can challenge their clients and non-consumers to complete small monthly financial tasks, such as saving a certain amount or reducing their expenses in a specific category. 

They can send instructions to enter the challenge via postcards or letter envelopes. This will spark interest and motivate people to set financial goals that they might fulfill by opening an account with your bank or availing of other services. 

Idea: Offer rewards for participants who complete the challenges. To promote multi-channel visibility, you can also announce the winner on social media or via email campaigns.

11. Focus on Hyper-Localized Content

90% of marketers said that location-based advertising improved their sales, 86% stated that it increased their client base, and another 84% said that it boosted their customer engagement, as per a survey conducted by Factual.

Do not just focus on the names and preferences; customize your direct mail items based on the recipients’ local communities. Include details about local businesses, events, and community projects the recipients can participate in, primarily the ones your bank supports. This will create a sense of personal connection and neighborhood involvement. 

Idea: Launch a direct mailing campaign every week announcing the business of the week. Or create a list of all the upcoming events people can participate in, with a link to register for them. 

12. Design and Align the Mail With Your Branding Guidelines

In research by Mikhaela Buzec, almost 12,000 respondents said they preferred minimalism over maximalism.

Minimalistic designs are trending, making it crucial for businesses that they don’t go overboard with their mail pieces but keep it simple. 

Every mailpiece you send represents your firm; hence, always align it with your brand’s guidelines. It should also have a consistent layout, design, and color palette so that people recognize it and recall your banking or other financial institution without trouble. 

The design should be minimalistic but informative. Leave enough negative space for your message to breathe, and add bullet points and images whenever possible!

Look at this simple and attention-grabbing mailer by Navy Federal Credit Union: 

Idea: Use PostGrid’s pre-built templates, wherein you can add your brand’s colors, logos, and texts. You can also save and reuse these templates whenever needed, helping you stay consistent. 

According to a USPS study called “Millennials and the Mail,” 62% of Millennials said that they visited a store based on information they received via mail in the past month. In another survey, 75% of Millennials stated that receiving mail makes them feel special. 

Targeting Millennials via direct mail can be beneficial for banks, credit unions, and other financial organizations. Similarly, focusing on specific audience dynamics and demographics can drastically alter your direct mailing campaign results. One excellent technique is to focus on which life stage they are at and what financial solutions they require! Here are some examples:

Credit Cards

You can pitch your credit cards to people who want to build their credit score. People in their 20s who want to start their family and build a house or those running a business and need to take out occasional business loans might fit your client persona. 

College Loans

Most students take out college loans at the age of 18 to 19. You can send direct mail postcards or other printed materials to them, highlighting the benefits of getting your credit card. Also, you can send them educational materials on how to build financial stability at this age and plans to save up for the future. 

A New York Life study found that the average age at which people can completely pay off their student loans is 45. Thus, you can promote your budget and savings plans to people between 20 and 45 and help them settle their debts. 

Home Loans

Curate tailored direct mail pieces for people who are looking to buy a house or remodel their existing home. For these promotions, you can focus on people’s life stages, like getting married or having children. Since these are crucial times in a person’s life when they plan to move to a bigger house, contacting them with good offers can help you acquire them as clients.

Many banks and financial organizations also collaborate with real estate agents, brokers, and other businesses to gather details about people looking to purchase houses. They then use this data to promote their home loans via direct mail, which is a solid marketing strategy for them.

A/B testing empowers banks and financial institutions to make data-driven decisions that can significantly enhance the effectiveness of direct mail campaigns. Here are some key areas where A/B testing can be particularly beneficial:

Offer

Banks can test different types of offers to see which resonates most with their audience. For instance, one group might receive a mail piece offering a low interest rate on a loan, while another receives a mail piece offering a sign-up bonus for a new account. By comparing response rates, banks can identify the most compelling offer.

Headline and Copy

The headline and body copy of a direct mail piece play a crucial role in capturing the recipient’s attention and conveying the message. A/B testing different headlines or varying the length and style of the copy can help determine what language and tone are most effective in engaging the audience.

Design and Layout

Visual appeal is another important factor. Financial firms can test different design elements, such as colors, images, and layout, to see which version garners a better response. A more visually appealing mail piece might stand out more in a pile of mail and entice recipients to read further.

Call-to-Action (CTA)

The CTA is what drives the recipient to take the desired action. Testing different CTAs—such as “Call Now,” “Visit Our Branch,” or “Apply Online”—can reveal which prompts the highest response rate. The placement and design of the CTA can also be tested to optimize visibility and effectiveness.

Timing and Frequency

The timing and frequency of direct mail drops can significantly impact their success. Banks can test different mailing schedules to determine the optimal timing for their audience. For example, a financial product might perform better when promoted at the beginning of the month, when people are more likely to be planning their finances.

PostGrid’s automated direct mail solutions allow you to handle your mailing campaigns online instead of manually taking care of every element. You don’t need to negotiate prices with a ton of printers, designers, and other vendors. PostGrid brings all the features to you, right on your device. You can even integrate it with your existing systems via HubSpot, Salesforce, Zapier, Magento, ActiveCampaign, Stripe, etc. 

1. Save 1000+ hours annually: Don’t let your staff waste time printing letters, assembling envelopes, or sticking stamps. Automate all direct mailing processes and save time.
2. Prevent human errors: Design, print, and mail all postcards, letters, flyers, newsletters, guides, etc., online to not leave any scope of manual errors. 
3. Save more than $100,000 annually: No more spending a fortune on printing perishables, variable data printing, pre-sorting, postage, etc. PostGrid allows you to pay all-in-one prices for your printed mailers, reducing expenses significantly. 
4. Maintain logs for all campaigns to stay audit-ready. PostGrid’s print and mail dashboard lets you check your past orders without hassle and access your campaign details whenever needed. 

Sign up to get more details and get started with your first mailing campaign for your bank or financial institution!