What is the cost of personalization?

Should I personalize?

If you are using a mailer that can be personalized at no additional cost, or a small additional cost, then of course you should. An example of this is a letter mailer which is personalized in one field (salutation), and can be personalized in others for a small up-charge.

If you are using a product that takes advantage of efficiencies of scale like a large run of post cards, it’s a harder call. Studies show time and again that mailers with personal messages way out perform generic versions. But personalized mailers are printed digitally at a higher cost. Does the return exceed the additional cost?  Difficult to know.

A suggestion is take a segment of your list – maybe 15% – and send them a personalized version, while the balance get the generic one.  A sample of 250 random chosen from your list is statistically valid. Compare the two mailings and see which gives a better ROI.

What is personalized mail?

In essence you are creating a  unique marketing piece for each of your recipients. The piece uses personal data such as name and address. Marketers can go a lot further by highlighting previous behavior, including purchases, amount spent, and so on.

Personalized mail has been around a while, and more recently joined by personal websites (PURLs). A PURL is essentially a response vehicle in the form of a landing page. Each recipient gets their own web address; for example:

colortrend.net/johnsmith

John will be ‘prompted’ to logon to his PURL in the mailer with a special offer of some kind. When John logs-on he will see a personal greeting, a message that reinforces the mailer he’s received, and usually a few questions. (more information on PURLs)

As mentioned personalized mailing pieces require digital printing rather then offset, which is more expensive. However, less can be mailed, and if your list is good and your message relevant, you may get a much higher response than from a broader, less directed piece.

Colortrend provides personalization services and can help with the complete project, or a certain part that is needed.

We would be happy to discuss our experiences and observations. Please contact us for more information.