Choosing Between Every Door Direct Mail (EDDM) and Targeted Mailing: Which is Right for Your Business?

When planning a direct mail campaign, choosing the right strategy can significantly impact your results. Two popular approaches are Every Door Direct Mail (EDDM) and targeted mailing. Both have distinct advantages, depending on your business goals, budget, and customer demographics. In this article, we’ll explore both options and integrate expert insights to help you decide which is best for your business.

What is Every Door Direct Mail (EDDM)?

EDDM is a service offered by the U.S. Postal Service that allows businesses to send promotional materials to every mailbox in a specific geographic area. You don’t need a mailing list, and there’s no need to worry about customer demographics, as the focus is on reaching every household or business within a targeted area.

Key Features of EDDM:

• No mailing list required: EDDM targets every door in a specified geographic area, typically based on ZIP code or postal route.
• Cost-effective for large mailings: Because EDDM sends mail to everyone in a given area, it is often cheaper per piece than targeted mailing options.
• Flexible delivery options: You can choose to target residential areas, businesses, or both, depending on your campaign.
• Ideal for local businesses: EDDM is particularly useful for businesses that serve a specific local market, such as restaurants, retail stores, home services, and healthcare providers.

Pros of EDDM:

1. Broad Reach: With EDDM, you can reach an entire neighborhood or region, ensuring that your message gets in front of many people.
2. Simple Setup: You don’t need to invest in purchasing or maintaining a mailing list, making it an easier and faster option for businesses to implement.
3. Lower Postage Costs: EDDM is typically more affordable per piece because it leverages bulk mail discounts.
4. No Personalization Needed: Since EDDM isn’t based on specific customer data, it doesn’t require personalizing messages for each recipient, simplifying the design process.

Cons of EDDM:

1. Lack of Targeting: While broad reach can be beneficial, it can also lead to wasted resources. Your message may end up in the hands of individuals who aren’t part of your target audience.
2. Limited Personalization: EDDM doesn’t allow for customized messaging based on recipient behavior or preferences, which can reduce engagement and conversion rates.
3. Limited Frequency: Since EDDM involves sending mail to an entire area, it can be difficult to reach the same audience more than once without oversaturating the market.

What is Targeted Mailing?

In contrast to EDDM, a targeted mailing campaign involves sending your message to a specific group of people based on demographics, purchasing behavior, or other criteria. This method relies on a customer database or purchased mailing list to deliver personalized, relevant messages.

Key Features of Targeted Mailing:

• Requires a mailing list: Whether you build your own database or purchase a list from a third party, targeted mailing allows you to reach specific customers who match your desired profile.
• Highly customizable: You can personalize your message based on the characteristics of your audience, such as age, income level, purchasing history, or location.
• Higher cost per piece: Due to the level of targeting and personalization, targeted mailings are generally more expensive than EDDM.
• Best for niche markets: Targeted mailing is ideal for businesses with a specific product or service catering to a defined group of consumers.

Pros of Targeted Mailing:

1. Precision: You can direct your marketing efforts to individuals who are most likely to respond based on their demographic or behavioral traits.
2. Higher Response Rates: Since the message is tailored to the recipient, it is more likely to resonate, leading to higher response and conversion rates.
3. More Personalization: Targeted mailing allows you to personalize content, such as addressing recipients by name and crafting offers based on their preferences or past behavior.
4. Efficient Use of Budget: While targeted mailing may cost more upfront, it tends to be more efficient in reaching people who are already interested in your product or service.

Cons of Targeted Mailing:

1. Higher Cost: Mailing lists can be expensive to purchase, and targeted mail campaigns typically have higher postage costs due to the lack of bulk mail discounts.
2. List Maintenance: If you’re using your own mailing list, maintaining up-to-date, accurate data can be time-consuming and require additional resources.
3. Smaller Reach: Since you’re only sending mail to a select audience, your total reach is smaller than with EDDM.

Expert Insights and Additional Considerations

To further inform your decision, let’s integrate insights from industry professionals who have shared their experiences and recommendations.

Targeted Mailing as a Strategic Investment

Investing in a targeted mailing list is considered a strategic move. By analyzing your existing clients over the past 18–24 months, you can build a predictable and effective mailing list. Paying close attention to branding and messaging ensures that the additional cost of targeted mailing is justified by reaching the right audience.

• Action Point: Analyze your customer data to identify patterns and characteristics of your best clients. Use this information to refine your mailing list for more effective targeting.

The Importance of Follow-Up Systems

The success of any direct mail campaign, whether EDDM or targeted mailing, heavily depends on your follow-up system. A strong follow-up process ensures that potential leads are nurtured and converted into customers.

• Action Point: Before launching your campaign, establish a robust follow-up system. This could include automated emails, phone calls, or additional mailings to engage recipients who show interest.

Targeting New Movers for Landscape Lighting

Targeting new homeowners can be particularly effective for businesses like landscape lighting. New movers often undertake home improvement projects shortly after moving in, making them a prime audience for your services.

• Action Point: Consider purchasing a mailing list that includes new homeowners in your target areas. Tailor your messaging to address their immediate needs and interests.

Combining Both Approaches

Some professionals recommend testing both EDDM and targeted mailing to see which works best for your business goals and audience. Different strategies may yield varying results depending on factors like location, demographics, and the nature of your services.

• Action Point: Run pilot campaigns using both methods. Track the performance of each to determine which provides a better return on investment (ROI).

Utilizing Automated Tools and Radius Marketing

The benefits of using tools like direct mail automation platforms for targeted mailings are notable. These platforms allow you to focus on specific neighborhoods and demographics and automate the mailing process. Additionally, sending mailers to neighbors of recent customers (neighbor mailings) can leverage social proof and generate interest in your services.

However, it’s important to note that some tools may have pricing models that aren’t cost-effective. Exploring alternative platforms that offer similar features at a lower cost could enhance your marketing efficiency.

• Action Point: Research and compare automated direct mail tools to find one that fits your budget and needs. Implement neighbor mailings to capitalize on recent projects.

EDDM for Broader Reach with Specific Parameters

EDDM can be effective when combined with specific parameters like household income and home value. While EDDM doesn’t inherently offer demographic targeting, you can select postal routes in areas that match your desired audience profile.

• Action Point: When using EDDM, choose postal routes in neighborhoods that align with your target demographics. This approach can help you maximize the effectiveness of your broad-reach campaign.

How to Choose Between EDDM and Targeted Mailing

Considering both the general features and expert insights, here’s how you can decide between EDDM and targeted mailing:

1. Assess Your Business Goals

• Brand Awareness: If your goal is widespread brand recognition in a local area, EDDM may be suitable, especially when focusing on neighborhoods that match your target demographics.
• High-Quality Leads: For generating leads likely to convert, a targeted mailing list refined from your existing customer data can be more effective.

2. Evaluate Your Budget and Resources

• Limited Budget: EDDM offers a cost-effective way to reach a large audience but may require additional efforts to filter for the right neighborhoods.
• Investment in Quality: If you can allocate more funds, investing in a targeted mailing list and follow-up system can yield higher ROI through better engagement.

3. Understand Your Audience

• Broad vs. Niche Market: Determine if your services appeal to a broad audience or a specific niche. For specialized services like high-end landscape lighting, targeted mailing to higher-income households or new movers is advisable.
• Leverage Existing Data: Use insights from your current customer base to inform your targeting strategy, as recommended by industry experts.

4. Implement Strong Follow-Up Strategies

• Critical for Success: Regardless of the mailing method, a robust follow-up system is essential. Ensure you have processes in place to engage and convert interested recipients.
• Automate Where Possible: Utilize CRM systems or marketing automation tools to streamline follow-up communications.

5. Consider a Hybrid Approach

• Test and Learn: Combining both EDDM and targeted mailing allows you to test different strategies and measure their effectiveness.
• Adjust Based on Results: Use the data collected from initial campaigns to refine your approach, focusing on the methods that deliver the best results.

Conclusion

Choosing between EDDM and targeted mailing isn’t a one-size-fits-all decision. By integrating industry insights and considering your specific business needs, you can develop a direct mail strategy that maximizes your marketing efforts.

• EDDM is suitable for businesses seeking broad exposure in specific geographic areas, especially when combined with strategic selection of postal routes.
• Targeted Mailing is ideal for reaching a specific audience with personalized messaging, which can lead to higher engagement and conversion rates.

Remember, the success of your direct mail campaign also hinges on strong branding, compelling messaging, and effective follow-up systems. By carefully planning and executing your strategy, you can make direct mail a powerful tool in your marketing arsenal.