December 21, 2009 
Given all the progress we’ve made in the past 15 years around communications, I wonder why direct mail is still a primary component of communications. Obviously, there are some times when compliance requires a written notification, but considering you can’t tell if someone opened the mail and most companies don’t process return mail, you really have no visibility or ability to audit.
Written communications are also so static unlike a website or an automated call where a response can alter the next step in the communication.
Additionally, there is a time lag on written communications that you don’t have with e-mail or with an automated call.
I’ll break it out more in the table below, but in the end, direct mail costs the most yet gives you the least data, the worst customer experience, and is the least time sensitive. Seems like a problem to me.
| Channel |
Automated Call |
Direct Mail |
|
| Cost |
Low – Medium |
High |
Low |
| Ability to Personalize |
High |
Medium |
High |
| Dynamic Content |
Yes |
No |
No |
| Know if received by consumer |
Yes |
No |
Yes |
| Know how long consumer interacted |
Yes |
No |
No |
| Time from event to consumer |
Minutes |
Days |
Minutes |
| Response Rate |
High |
Low |
Low |
Now, don’t get me wrong, there is a place for direct mail.
- People who don’t respond to automated calls or e-mail.
- People who request more information.
- Communications which require detailed information to make a decision.
But, why is it that so many companies begin their communications to consumers with direct mail. Is it that people are simply stuck in a rut of what they’re used to and can’t embrace decade old technology? Or is it that people don’t believe the facts in front of them?
Enabling Healthy Decisions 
Good point Jared. I’ll elaborate in the next post. People are definitely different.
Timely post as health plans will surely be forced to even more tightly manage their purse strings post-health care reform. Wouldn’t you agree however, that for some population segments that direct mail may be the best option? Many, not all, seniors don’t read email, and may actually open their mail. Just wondering if you agreed that the rules are different for particular population segments.