Looking to cut costs amid the recession, Alicia Settle initially thought it would be a good idea to eliminate her company's annual direct mailing.
Spending about $20,000 on the personally signed letters, which offered customers a discount on early orders, seemed indulgent for Per Annum Inc., which sells city diaries, albums, and planners in the struggling corporate gift market. But after swapping snail mail for email last year, Ms. Settle saw a 25% drop in early orders compared with the same period the previous year.
"We realized we had made a huge mistake," says Ms. Settle, president of the New York firm.
The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies like Per Annum to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.
However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it's not so easy to dismiss.
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