SMS VS Direct Mail Coupons

2 replies
I used to be into SMS marketing but now I am looking deeply into direct mail marketing. They are both very similar but each have pros and cons. That being said, let's weigh them out.

SMS is definitely much more affordable. For less than $300 a month you can secure a system and then each text ad that you sell pays for itself and then some; creating your actual profit.

Direct mail, though, requires no initial investment. Everything is paid for by the clientele before you acquire any expenses other than time. Once all funds have been collected (that cover cost to you as well as your profit) is when the work actually begins and you take on expenses.

SMS is virtually instant. Secure payment > send the coupon/message via SMS. No waiting. With direct mail marketing, it is a long and drawn out process. You can't just sell one and send; you must sell all the spots on the postcard before you can make anything happen. Once you do sell all ad spaces, you must then design the postcard, have it printed in mass, shipped, bundled, taken to the post office, do the paperwork, then wait a day or two (max) for them to be mailed. So SMS definitely wins on terms of being easy.

SMS deals are usually very limited time offers. They usually expire at the end of the day. This means that if a potential customer just isn't interested in your product that day then he/she would rather just miss out on the deal. Postcard coupons usually expire 30 to 90 days after being received, so they may not bring in such a mass of customers in one day, but definitely can compare in the long run.

I, personally, praise direct mail. I used to think that SMS was the ****, but now I see that direct mail is much more powerful. Furthermore; direct mail coupon marketing eliminates the subscription process.

This is a main reason that my current interest lies in direct mail.

With SMS you must build a list of subscribers. But if you have no deals to send out then you won't be able to grow very many subscribers and if you have no subscribers you won't be able to sell the service. Getting SMS off the ground is much more difficult. Using direct mail (EDDM), the subscription process is eliminated and you are automatically subscribed just by owning a mail box.



These are just some things you should all consider if you are looking at SMS or direct mail. I've taken an in depth look at both forms and this is what I see. Got anything to add?


(Thanks would be appreciated!)
#coupons #direct #mail #sms
  • Profile picture of the author HypeText
    Originally Posted by Larches View Post

    I used to be into SMS marketing but now I am looking deeply into direct mail marketing. They are both very similar but each have pros and cons. That being said, let's weigh them out.

    SMS is definitely much more affordable. For less than $300 a month you can secure a system and then each text ad that you sell pays for itself and then some; creating your actual profit.

    Direct mail, though, requires no initial investment. Everything is paid for by the clientele before you acquire any expenses other than time. Once all funds have been collected (that cover cost to you as well as your profit) is when the work actually begins and you take on expenses.

    SMS is virtually instant. Secure payment > send the coupon/message via SMS. No waiting. With direct mail marketing, it is a long and drawn out process. You can't just sell one and send; you must sell all the spots on the postcard before you can make anything happen. Once you do sell all ad spaces, you must then design the postcard, have it printed in mass, shipped, bundled, taken to the post office, do the paperwork, then wait a day or two (max) for them to be mailed. So SMS definitely wins on terms of being easy.

    SMS deals are usually very limited time offers. They usually expire at the end of the day. This means that if a potential customer just isn't interested in your product that day then he/she would rather just miss out on the deal. Postcard coupons usually expire 30 to 90 days after being received, so they may not bring in such a mass of customers in one day, but definitely can compare in the long run.

    I, personally, praise direct mail. I used to think that SMS was the ****, but now I see that direct mail is much more powerful. Furthermore; direct mail coupon marketing eliminates the subscription process.

    This is a main reason that my current interest lies in direct mail.

    With SMS you must build a list of subscribers. But if you have no deals to send out then you won't be able to grow very many subscribers and if you have no subscribers you won't be able to sell the service. Getting SMS off the ground is much more difficult. Using direct mail (EDDM), the subscription process is eliminated and you are automatically subscribed just by owning a mail box.



    These are just some things you should all consider if you are looking at SMS or direct mail. I've taken an in depth look at both forms and this is what I see. Got anything to add?


    (Thanks would be appreciated!)
    A few Points...

    SMS is Green

    SMS has a MUCH higher redemption rate

    Expiration Dates on SMS Coupons can be whatever the Business wants them to be...they do not have to be short term.

    SMS allows Business to capture customer data for future "on demand" marketing efforts.

    Over 90% of direct Mail Pieces go directly in the Trash

    Direct Mail has a major Carbon Foot Print

    Direct Mail uses a Shotgun Approach...often referred to as "Spaghetti Marketing", which is why it only gets around a 1% to 2% response rate where SMS has seen Redemption Rates as high as 68% due to it being "Laser Targeted"

    Direct Mail leaves the Business with no effective means of Tracking and Analytics.

    Direct Mail doesnt go Viral

    Direct Mail is much more costly with a much lower ROI for the Advertiser.

    Direct Mail is meant more for Customer Acquisition, where SMS handles not only Customer Acquisition but Customer Retention as well.

    HOWEVER...

    Both means of Advertising have their place in the Marketing world, so why not utilize both?

    SMS is not meant to replace Direct Mail, or any other form of marketing & advertising, however it can increase it's effectiveness by as much as 10X.

    Getting a business to integrate their SMS Campaigns into their Print Media Efforts, or any other form of marketing they might be using, increases the response rates exponentially.
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    • Profile picture of the author bob ross
      Originally Posted by HypeText View Post

      A few Points...

      SMS is Green
      so is direct mail.

      SMS has a MUCH higher redemption rate
      this is too general of a statement.

      Expiration Dates on SMS Coupons can be whatever the Business wants them to be...they do not have to be short term.
      direct mail can have any expiration as well.

      SMS allows Business to capture customer data for future "on demand" marketing efforts.
      Direct Mail has an infinite shelf life, it's hard to compete with physical items you can hold, store, and pass around.

      Over 90% of direct Mail Pieces go directly in the Trash
      Way too general.

      Direct Mail has a major Carbon Foot Print
      paper is recyclable, inks are vegetable based, and online printing shares print runs, there's definitely a lot of green in direct mail.

      Direct Mail uses a Shotgun Approach...often referred to as "Spaghetti Marketing", which is why it only gets around a 1% to 2% response rate where SMS has seen Redemption Rates as high as 68% due to it being "Laser Targeted"

      Sending out one SMS blast is shotgun as well. Effective DM campaigns are repeated. SMS and DM can get any response rate depending on the list/offer/frequency.

      You can laser target direct mail MUCH more than SMS and in much bigger quantities.



      Direct Mail leaves the Business with no effective means of Tracking and Analytics.
      direct mail is primarily known for it's trackability.

      Direct Mail doesnt go Viral
      sure it can

      Direct Mail is much more costly with a much lower ROI for the Advertiser.
      almost any business can focus 100% on direct mail and easily thrive. SMS could not come close to ever doing that.

      Direct Mail is meant more for Customer Acquisition, where SMS handles not only Customer Acquisition but Customer Retention as well.
      Direct mail is meant for customer acquisition, reactivating old customers, spreading messages, and reaching people that could never be reached by any other means.


      HOWEVER...
      Both means of Advertising have their place in the Marketing world, so why not utilize both?
      definitely

      SMS is not meant to replace Direct Mail, or any other form of marketing & advertising, however it can increase it's effectiveness by as much as 10X.

      Getting a business to integrate their SMS Campaigns into their Print Media Efforts, or any other form of marketing they might be using, increases the response rates exponentially.
      yes, agreed!
      ...........
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