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Direct Mail Marketing: The Importance of Holdouts

Dec 12, 2017 10:00:00 AM

TV. Web. Radio. Mobile. Outdoor. Your Medicare audience is showered with marketing impressions every
nanosecond. So, your boss and others may question the value of direct mail. Why should we continue to invest in it? Let's review how direct mail delivers and the importance of the holdout.

3 Ways DM Delivers
To your boss (or any other direct mail skeptics), you can confidently say that:

(1) Direct mail is still considered the #1 acquisition channel by companies engaged in active marketing.

(2) Direct mail is the only outbound medium permitting precise geographic targeting.

(3) Direct mail is the only channel that can be completely isolated.

The last one deserves special attention. Direct mail stands alone in its ability to be totally isolated and statistically proven effective. How? Through what are called holdouts.

Okay, so what's a holdout?
As opposed to the treatment group—people receiving your campaign mail—holdouts are randomly pulled from your marketing universe to receive no mail. Assuming they will still be exposed to other impressions—TV, banner ads, outdoor, etc.—comparing the holdouts’ response rate (RR) to that of the treatment group reveals
the incremental value of your mail campaign.

Incremental Lift for a DM Marketing Campaign

DM Holdout Big.png

Proof Positive: DM Works!

Throughout our 32-year history, Anderson’s marketing experts have proven the incremental value of direct mail for client after client. In the example shown here, our campaign analysis for one of the nation’s largest Medicare brands clearly showed a mail (or treatment) group outperforming the non-mail group by 244% in terms of leads and 131% for conversions.

Interested in seeing more examples of the power of DM in action? Check out some of our work.

Additional Reads:

Scott Hopkins

Written by Scott Hopkins

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