Direct Mail QR Codes for Marketing Managers: A Handbook for Higher ROI

Direct mail marketing has been declining since 2004. But QR Codes in direct mail have been on the rise.

What’s exactly happening?

Well, multiple stats affirm direct mail’s high response rates and ROI. But if you speak to your network of marketing heads (like we have), you’ll discover some common sentiments:

1. Direct mail is a high-cost initiative
2. Measuring the ROI (lead/sales attribution) of direct mail is complex
3. The risk of fines and reputation loss due to non-compliance with GDPR and CAN-SPAM regulations is always lurking
4. Personalization is a pain due to the lack of data
5. Mail fatigue leads to low response rates

Thankfully, it’s not 2004 anymore, and technology is on your side. So, you can turn all of the above in your favor with QR Codes in direct mail.

Once you create a QR Code for direct mail, you can:

1. Track direct mail data from your platform’s analytics dashboard and prevent data silos
2. Ensure campaigns are compliant with GDPR and CAN-SPAM to avoid fines and lawsuits
3. Personalize your direct mail QR Code campaigns with deep demographic, device, and first-party data points
4. Improve response rates with attractive designs and faster information capture (through scans)
5. Prevent additional print materials and save costs

Read more to discover how to create direct mail QR Code campaigns, how they can improve your ROI and response rates, and if they fit your industry and use case.

What is a direct mail QR Code?

A direct mail QR Code is a digital integration to your physical mail assets that takes the recipient to a specific digital destination through a mobile device scan. The destination can be a landing page, feedback form, GPS location, or any digital content.

Adding QR Codes in direct mail bridges the gap between physical (flyers, letters, postcards, catalogs) and digital(landing pages, forms, videos, GPS) worlds, creating a cohesive customer experience.

How QR Codes work in direct mail (and why must you use dynamic QR Codes)

A direct mail QR Code works in four steps:

1. Design and printing: Create, design, and print the QR Code on a direct mail
2. Scanning: The recipient scans the QR Code with a mobile device
3. Redirecting: The recipient is redirected to a specific digital destination
4. Data collection: Gather the user and scan data in the backend

The easiest way to own the process is using a professional QR Code generator like Uniqode.

You’ll need to create dynamic QR Codes that are editable, trackable, scalable, and secure (I’ll show you how later in this post). Plus, they also integrate with your existing tools, which you will need to measure the ROI of your direct mail campaigns. An ROI Calculator can further help you analyze the effectiveness of your campaigns by providing clear insights into costs, conversions, and overall return on investment. This allows you to optimize future campaigns for better performance.

Here’s how dynamic QR Codes elevate your direct mail marketing workflow:

1. Make static direct mail more interactive

Traditional direct mail is static and often results in passive recipients, prolonging the gap between receiving it and converting.

With dynamic QR Codes, recipients can perform any action (watch a video, go to a landing page, check a map location) you want them to in seconds, right from the physical material.

For instance, if your marketing strategy requires a mail recipient to check out a PDF, you can direct them with a dynamic QR Code to a PDF. This is something direct mail without a QR Code is incapable of.

Read more: Create a QR Code with CTA

2. Bridge multiple marketing channels

Previously, you needed to complement your direct mail marketing efforts with other channels, such as phone calls or emails. Additionally, you’d need to rely on other channels, such as outdoor advertising.

With dynamic QR Codes, you can do omnichannel marketing from your direct mail. For example, you can connect your offline audience to any other online channel, such as a landing page, YouTube video, or social media channel.

As a result, you have fewer channels to manage and a lower customer acquisition cost (CAC) to account for.

Read more: Omnichannel vs. multichannel marketing

3. Transform direct mail into a direct response tracking tool

Direct response is a form of marketing designed to drive the recipient into an action, such as making a call (if it’s offline, like direct mail) or clicking a URL (if it’s a website).

In legacy direct mail, this response is either limited to some offline activity, or there is no way to attribute if someone takes an online action from a direct mail piece. This is where dynamic QR Codes act as a direct response tracking tool for offline mailers.

You can turn direct mail into a tangible digital touchpoint and an accurate attribution source. For example, if you create a dynamic QR Code unique to each mailer sent, you can track specific data points, such as the number of scans, time of scans, demographics of scanners, and website visits from the mailer. With the data in, you can attribute them directly without relying on secondary touchpoints.

Read more: QR Code tracking

4. Improves the customer experience

Think of this from a customers’ perspective. They receive direct mail with a QR Code, but the latter is off-brand (perhaps made from a simple QR Code tool or seems added as an afterthought).

Next, they consume the information from the physical mail. And if they have to take any action, they must use their mobile device (for example, type a URL). Sounds like too much work? It is.

Dynamic QR Codes are customizable and easy to mold into the overall branding. You can give your customers an uninterrupted customer experience with better brand recall when your QR Code contains your brand’s logo, for example.

Moreover, a QR Code reduces the interaction cost to obtain more product information, offer feedback, or purchase, which is otherwise a manual task from direct mail.

Read more: Create custom QR Codes

5. Make direct mail marketing more personalized

Imagine the data collection scenario from a direct mail campaign: sorting through prospect lists, direct mail action data, and parsing through other native or third-party prospect data to find common metrics. Unsurprisingly, you’ll be left with inaccurate and incomplete data even after so much work.

Dynamic QR Codes offer a single source of data with accurate attribution. This helps cut through data silos and do away with incomplete data. Additionally, use specific QR Code features to make your campaigns more personalized.

Reliable data can help you make more strategic decisions. Additionally, you can send more personalized campaigns based on device, time of day, location, and demographics. You can also customize stuff at the campaign level for greater control.

Read more: QR Code campaign personalization

How to use direct mail QR Codes for your industry and business goals (based on Uniqode’s internal data)

Source

Keypoint Intelligence’s 2023 survey found that using digital links in direct mail leads to a 9% surge in response rates. And guess the most popular digital links for marketers: QR Codes (30% personalized and 18% static QR Codes).

At Uniqode, we’ve been researching how our prospects use QR Codes for various marketing and advertising use cases for over a year.

We studied over 8,000 businesses using our services in a year. Direct mail is a popular use case amongst 79% of them.

Once we delved deep into specific use cases for these businesses, it led to intriguing revelations.

Here’s a breakdown of our findings:

How to create a direct mail QR Code

You can create a QR Code for direct mail in four simple steps. Along the way, you’ll find several helpful features to customize your direct mail QR Codes as per your need.

Before you proceed…

Most of the features for direct mail marketing campaigns are available with dynamic QR Codes. To create a dynamic QR Code, you must sign up for a 14-day free trial of the Uniqode platform (no credit cards required) and start building your campaign.

Step 1: Click “+ Create” and choose “QR Code”
You’ll find the blue button on the right-hand corner of your dashboard.

Step 2: Choose your campaign type
Choose which QR Code type you want to proceed with based on your industry and business goals.

In this example, we’re choosing a Website QR Code.

Copy your destination URL and paste it in the box under “Enter URL.”

📝Note:
Considering tracking is one of your main goals, you can add a UTM parameter in this step.

Choose “Parameters” below the white box where you pasted the URL.

To add a new parameter, choose “+ Add New Parameter”. Select the blue and red icons to edit or delete existing parameters.

You can preview your URL, including the UTM parameters at the top.

Adding UTM parameters will let you unearth data such as the number of scanners (total and unique), the time of the scan, the location of the scan, the device used to scan, the source of the scan, and the actions taken after scanning.

In short, a world of data at your fingertips! Click “Next”to continue.

Step 3: Customize your direct mail QR Code
Align your QR Code to the rest of your direct mail design.
Customize each aspect of your QR Code, such as templates, logo, eyes, and colors. You can also use the Auto design feature to save time (and create stunning designs).

To ensure branding alignment, add a logo. If you have any saved QR Code templates, you can also use that—another smart way to speed up your workflow.

Click “NEXT” once done.

Step 4: Download your direct mail QR Code
Once you’ve finished customizing, it’s time to download your QR Code. Click the “Download QR Code” button to proceed.

You’ve options to download your QR Code in various file formats. For a direct mail use case, JPG will be an ideal choice because
1. It’s compatible with most printers and software
2. It has a smaller file size, which will make it easy to transfer and print your QR Code
3. Because your direct mail will be small in size, JPG will offer good enough clarity

Two other helpful options you can choose for your direct mail marketing campaign:
1. Add your QR Code to Watchlist: This will help you monitor your QR Codes regularly and receive notifications on any scan activity
2. Add notes to your QR Code campaigns: With this feature, you can add specific information to your QR Codes, such as campaign purpose, target audience, or any other details.

What tech stack do you need for direct mail QR Codes?

Ready to deploy your QR Codes? We have listed out some essential tech stack you need to complete your campaign below.

1. QR Code generator with analytics

Obviously, this is the most important tool for a ROI-positive direct mail campaign. You must invest in a QR Code generator with in-depth tracking capability.

2. UTM Builder

Like most marketers, you would probably use Google’s campaign builder to create UTM parameters for your direct mail campaign URL.

3. Graphic design software

You’ll need design software, such as Adobe Illustrator, Photoshop, orInDesign, to design your direct mail and integrate your QR Code.

4. Printing and distributing services

You’ll need to find a service provider to physically print, post, and mail your direct mail. Many printers help with both the printing and mailing parts. Several all-in-one companies provide end-to-end services.

5. Customer relationship management (CRM software)

You’ll need a CRM to manage your lead-capturing and nurturing process and customer data.

6. Landing page builder

Will you be directing your direct mail QR Code scanners to landing pages? You’ll need a landing page builder to create professional-looking landing pages.

7. Email marketing platform

Planning to collect email addresses through your QR Codes? You’ll need an email marketing software. 

How to boost your ROI with direct mail QR Codes?

By their “phygital”(physical and digital)nature, QR Codes contribute to marketing ROI and help you collect zero-party and first-party customer data to drive conversions.

Here’s how QR Codes can contribute to direct mail marketing ROI:

1. Attribute business impact to each QR Code action

Without QR Codes, it would have been difficult to tie the dots between user activity (such as visiting a webpage) from your direct mail and business impact.

For example, if most of your scans come from a specific location and lead to a particular webpage, you can ascertain the ROI from that location and the associated webpage.

2. Pinpoint your target audience

You can build an accurate customer profile from your scan data.

From scan data, you can determine your customers’ demographics, the devices they use, the time of day when they are most active, and the geographical locations they scan from. You can use this data to fine-tune future direct mail campaigns.

3. Create more personalized campaigns

Once you understand your target audience, you can craft even more personalized direct mail. Try A/B testing different customer profiles you unearth from QR Code scan data and measure their effectiveness in future campaigns.

🔥If you use Uniqode, you can use the Smart Rules feature to launch specific actions for specific conditions when users scan a QR Code.

For example, if you’re a real estate business, you can set smart rules to take users to specific properties based on their geographic location of scans.

4. Retarget users who didn’t convert

If your users have scanned the direct mail QR Code but have not taken any action, you still have a chance to nurture them.

With QR Code retargeting, you can reach out to these prospects through ads and convert them into full-time customers.

5. Save manual efforts with automation

Previously, you would need to start nurturing direct mail leads from sales calls. With QR Codes, you can land higher up on the funnel. The leads can come from a product comparison or a free trial page.

This saves human hours in qualifying leads through the entire funnel. A QR Code reduces interaction costs for your customers because they can self-serve with a click or browsing and convert faster.

5 handy formulas to calculate ROI from direct mail using QR Codes

Now that you know which areas to focus on for boosting ROI from your direct mail marketing campaigns, it’s time to move on to specific key performance indicators (KPIs).

These are the few formulas you’ll need to track to measure your direct mail ROI using QR Codes:

1. Response rate

📈Industry average: 2-5%

Calculate your direct mail response rate to determine the success of your campaign. A higher response rate is an indicator of success.

How to calculate:

Direct mail response rate = Number of responses/ number of direct mail sent

Where:

1. Number of responses: the total number of scans (previous + new) received
2. Number of direct mail sent: the total number of direct mail pieces sent

Example:

If you’ve sent out 1,000 direct mail and received 20 scans, your response rate will be:

(20/1,000)*100 = 2%

2. Conversion rate

📈Industry average: 0.5-2%

Let’s say your direct mail pieces take readers to a specific landing page. How would you calculate the number of actual customers from the ones who visited?

How to calculate:

Direct mail conversion rate = (Number of customers/ number of visitors)*100

Where:

1. Number of customers: the total number of paying customers
2. Number of visitors: the number of people who landed on the page

Example:

If 100 people visited your landing page and 2 of them became paying customers, your conversion rate will be:

(2/100)*100 = 2%

You can replicate this for digital metrics other than landing pages, such as website visits, phone calls, or form submissions.

3. Cost per acquisition (CPA)

📈Industry average: Depends on campaign costs and conversion rates

What’s the cost of turning a prospect into a customer? You can measure your campaigns’ effectiveness in $ with cost per acquisition (CPA). A lower CPA indicates a more cost-effective campaign.

How to calculate:

Direct mail CPA = Total cost of campaign/ number of new customers acquired

Where:

1. Total cost of campaign: all direct mail expenses, such as platform, printing, postage, staff, mailing, and any other associated costs
2. Number of new customers acquired: total number of direct customers from the campaign

Example:

If you spent $500 on a direct mail campaign and acquired 50 customers, your CPA will be:

$500/50 = $10

4. Customer lifetime value (LTV)

📈Industry average: Depends on specific niche and product/service

To ensure the overall profitability of your direct mail campaigns, you must compare your CPA to your customer lifetime value (LTV). This is a crucial metric to understand your ROI of acquiring new customers and their long-term value.

A higher LTV indicates you have a loyal customer base.

How to calculate:

Customer lifetime value = average order value (AOV)*purchase frequency*customer lifespan

Where:

1. Average order value: the average amount a customer spends in a single transaction
2. Purchase frequency: the average number of purchases a customer makes in a specific period (e.g., a year)

Customer lifespan:the period during which a customer is active with your business

Example:

If your AOV is $50, your customer purchases twice a year, and the average customer lifespan is 4 years, your LTV is:

$50*2*4 = $400

5. Return on investment (ROI)

📈Industry average:18-20%. The median ROI is 29%. Anything above is good

The holy grail of your direct mail marketing campaign is its return on investment (ROI), which measures its revenue effectiveness.

How to calculate:

Direct mail ROI = (total revenue from campaign – total cost of campaign)/ total cost of campaign)*100

Where:

1. Total revenue from campaign: the total income generated from your campaign
2. Total cost of campaign: your total direct mail campaign expenses

Example:

If your direct mail campaign generated a revenue of $1,000 in revenue, with a total expense of $500, your ROI will be:

($1,000-$500/$500)*100 = 99900%

Case study: How DRMG drove higher engagement by using QR Codes in direct mail

Adding digital integrations (like dynamic direct mail QR Codes) in direct mail can impact the bottom line. Case in point: Direct Response Media Group (DRMG), a renowned direct mail agency in Canada

The problem:

1. Traditional direct mail touchpoints (like phone calls) offered limited scope for conversions
2. Direct mail attribution was inaccurate and insufficient in most cases
3. The workflow was not flexible because no changes could be made once the campaign was live.

The solution:

1. Dynamic QR Codes in direct mail led to more conversion-friendly touchpoints such as a location, landing page, PDF, video, or email.
2. Dynamic QR Codes offered better attribution owing to first-party data such as location, time, device, and demographics
3. Owing to their editability, dynamic QR Codes offered better flexibility and personalization.
4. Changing the QR Code destination according to the campaign goals became possible

The results:

1. 68,000 QR Code engagements
2. 28,000 unique users across 200 cities in Canada

Drive higher ROI by creating direct mail QR Codes with Uniqode

Hopefully, this article will help you view direct mail marketing in a new light. With QR Code’s innovations and the power of a digital push, you can drive better ROI with every campaign.

Once you sign up for a professional QR Code generator suite such as Uniqode, you will realize that your workflow is not limited to QR Codes. Uniqode will be a trusted companion at every stage of your campaign. Dynamic QR Codes by Uniqode will give you greater control over every aspect of your campaigns.

Take the next step and sign up for a free trial today!