Updated April, 2017 – Direct mail response rates rose sharply in 2016, so we updated that and many of the other stats…
Delivering your coupons and ensuring higher restaurant coupon redemptions is a specialty at Valpak. We offer three resources to include into your direct mailing envelope to help increase your restaurant redemptions, drive higher ROI rates, and target the right audience for your business. The three resources include: standard inserts, loyalty cards, and On-Envelope (On-Pak) premium exposure ads. Valpak’s direct mailings reach nearly 39 million households each month in the U.S. and Canada. Direct mail is the easiest advertising medium to track and measure and yields the lowest cost-per-lead (CPL) and highest conversion rate of all media. This post will discuss the three marketing tools and how to get more redemptions from your coupons.
In 2016, more than 1.88 billion dining, food, and beverage ads were mailed by Valpak. One of the most frequently used marketing tools available is the standard insert that measures 8.25” x 3.5” to fit inside the Blue Envelope. Standard inserts promote lead offers and specific promotions. In addition, including supplementary offers alongside your lead promotions can encourage repeat business, enable you to highlight additional products or services you offer and increase coupon redemptions.
Examples of lead and supplementary restaurant offers:
- BOGO: Buy one entree, get the second one free; buy one pizza, get the second pizza free
- $5 off any purchase of $25 or more
- Buy one entree, get one 1/2 price
- $10 off dinner for two
- 15% off any wine or beer purchase
- BOGO lunch offer: Buy one lunch entree, get one lunch entree free
- $5 off buffet for two adults
- 20% off entire check
- Free dessert or free fries with purchase of burger and soft drink
- $2 off your draft beers
Of the 39 million households targeted in the U.S. and Canada, 82% of households that receive the Valpak Blue Envelope open and look through it, with 73% looking at every coupon. Since 90% of people have looked for restaurant coupons at least once (and 81% look for them all the time), you can be sure that your offer is being seen.
Direct mail response rates took a tremendous leap in 2016 with a 5.3% response rate to house lists and 2.9% to prospect lists. These are the highest levels the DMA has tracked since 2003. For comparison, in 2015 the rates were 3.7% and 1.0% respectively. With unique tracking and ROI tools, Valpak offers personalized analytic reporting to help you measure the success of your direct mail advertising campaign and assures you are getting redemptions from your offers.
Valpak also offers in-house custom design services for your ads. We can also use your own designs to reach your target audience and increase conversions.
Cardstock and Loyalty Cards
Valpak includes loyalty cards as a marketing tool, which gives you the opportunity to make different kinds of offers like the ever-popular BOGO deals. The cards are printed on high quality cardstock and include up to two vertical perforations for a tear-off card or coupon (i.e. a punch card — buy 4 burgers, get 5th free). There are two sizes to choose from — standard or oversized — and four different finish choices (satin, matte, gloss, or uncoated). Using sturdy card stock ensures your loyalty cards will retain their usability, as 80% of customers hang onto their loyalty cards for up to three months.
Each perforated coupon includes a unique, imprinted code in QR, alphanumeric, or bar code format to help track restaurant coupon redemption rates via geographical locale. These unique codes also help to prevent fraud by protecting consumer information and ensuring each coupon is used only once, when applicable. Loyalty cards can offer incentives for customers to keep coming back. 69% of customers surveyed in 2015 reported that their choice of retailer/brand is influenced by where they can earn points from a loyalty or rewards program.
The Blue Envelope is the most recognized piece of direct mail with 89% of receiving households acknowledging they know about and recognize it. On-Envelope advertising enhances your promotions by giving your restaurant premium exposure on the outside of each envelope. Each outside ad includes a call-to-action (CTA) directing customers to “see inside for details/savings/offer.” This premium exposure is more affordable than single-mail advertising and offers double the impressions, with external On-Pak advertising and a coupon inside the Blue Envelope.
With 76.8% of Valpak customers reporting they used a restaurant/dining coupon from a direct mail campaign in the last 12 months, your business has a great opportunity to provide the best deals to current and potential customers via standard inserts, loyalty cards, and/or On-Pak advertising. Your next direct mail campaign could arrive in the Blue Envelope recognized by so many across the U.S. and Canada.
Get Inside the Blue Envelope
Do you want to get more restaurant redemptions and increase your customer conversions? Contact us to learn how a customized direct mail campaign might benefit you and your restaurant/food business. Write down two to three of your best offers or promotions for local customers, and think about what reward or points system you could realistically use. Our design team will work with you to design the perfect inserts, loyalty cards, and premier On-Envelope display to reach your target audience.