QUESTION: Do you think it is better to send direct mail or send a mass email to attract new customers?
ANSWER: A number of factors must be considered and one size won't fit all.
In general, direct mail/e-mail solicitations will be no more successful than the quality of your prospect list. Unless the targets live within your service area for the type of product featured, the whole campaign is a waste of time and money. Also screen potential targets, if possible, to determine suitability of the product (i.e.-home equity promos would be wasted on non-homeowners).
If good lists are available and both options still look attractive, consider the effectiveness of the response mechanism you are offering. With paper communication, you can include an acceptance form and prepaid return envelope. With e-mail, you'll most likely want the customer to click a link in the message and jump to your website to close the deal--assuming your site can handle online account opening. If your site doesn't provide an immediate response mechanism, customers may give up and click away.
Direct mail has proven itself over the years, and the volume of financial product spam suggests that e-mail must be working, too. Study both options carefully, start small, and be prepared to adjust your approach when you see what works and what doesn't.
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