Mailing lists can be an effective way to nurture customers, keeping them updated on company news and promotions. But just which type of mailing list is most effective: email, SMS or direct mail? While there’s no universal winner, this post compares each one to help you determine the best solution for your budget, audience and goals.
Email is the primary digital option and the most popular form of mailing list for customers to subscribe to. Such mailing lists can be managed through platforms like Mailchimp with the option to segment lists and create automated follow-ups or birthday promotions. Once sent, emails can be received instantly, and they can contain plenty of information including images and attachments.
- Cost: Email marketing shines here as the cheapest option – while you do need to consider the cost of a bulk mailing software subscription, the cost per email is nothing.
- Open rate: Due to the sheer volume of emails that each person receives, the open rate for emails is relatively low averaging 20 to 30% across most industries. Subject lines have a big impact on the open rate.
- Conversion rate: While emails easily allow links and tracking, the conversion rate is typically only 1 to 5%, however it’s worth reiterating that companies receive more email subscribers than subscribers to other mailing lists, so you may still generate more leads overall.
SMS
SMS (short message service) mailing lists involve sending bulk messages via text. To opt in, they require a subscriber to provide their phone number. Platforms built for SMS marketing can help you manage these mailing lists and lists can similarly be segmented. Messages have a character limit, but are pretty much received instantly as with emails, making them useful for fast succinct messages.
- Cost: SMS costs about $0.01 to $0.03 per message, but carrier fees and opt-in regulations can bump up costs, especially when sending messages to international recipients.
- Open rate: Text messages have the largest open rate by far – typically 90 to 98% – due to being hard to ignore.
- Conversion rate: SMS has a high conversion rate of 10% to 20% due to its high open rate. Due to many recipients immediately opening texts (unlike emails which can be read days later), SMS is very effective at promoting flash sales.
Direct mail
Direct mail involves sending newsletters, vouchers, catalogues or flyers directly to subscribers’ physical addresses. Unlike emails and SMS messages which are received instantly, direct mail can take days to be received. However, this old-skool method has seen a revival in recent years due to the diversity of materials that can be sent via the post, making it possible to stand out.
- Cost: Direct mail costs more than other mailing options at $0.50 per piece, which can mean lower profits on conversions.
- Open rate: About 40 to 60% of direct mail gets read. How it is presented and packaged greatly impacts the open rate.
- Conversion rate: Tracking conversion rates for direct mail can be tricky without using QR codes, however it’s believed to be around 5 to 9% on average. Brochures and vouchers can have a much higher conversion rate.
A mailing list showdown: which is better?
When it comes to targeting broad audiences and saving costs, email takes the crown. However, SMS dominates when it comes to speed and engagement – making it suited to flash sales and urgent updates. Direct mail can meanwhile allow more creativity when it comes to visual presentation and may appeal more to premium brands or companies with older customers.
