The Marketing Tactic Everyone's Sleeping on Right Now

Introduction

Ryan Ferrier, CEO of Lob, reveals why 82% of marketers plan to increase direct mail investment in 2025 despite rising postal costs. Leading a platform that powers direct mail automation for over 12,000 businesses including L'Occitane and SimpliSafe, Ferrier brings nearly two decades of experience scaling startups and driving revenue growth to explain how AI and automation are transforming physical mail from a legacy cha el into a precision marketing weapon.

Why Direct Mail Is Making a Comeback

The resurgence of direct mail stems from overwhelming digital fatigue. As Ferrier explains, email inboxes have become graveyards while digital ad costs continue climbing with each incremental impression. The physical mailbox, surprisingly uncrowded compared to digital cha els, offers marketers a chance to break through the noise. Most compelling is the generational shift: 85% of Gen Z reads or responds to mail, with 53% saying direct mail feels more special or valuable than digital communications. This younger demographic, overwhelmed by digital brand messages, finds the tactile experience of physical mail refreshing rather than outdated.

The Numbers That Matter

Direct mail consistently outperforms digital cha els in conversion metrics. While email campaigns celebrate 1-3% click-through rates, direct mail achieves 4% conversion on general lists and 9% on curated house lists. These aren't theoretical improvements—they're measurable results that speak the language of ROI-focused CMOs. The cha el's effectiveness comes from its ability to create what Ferrier calls "real world co ections" in an increasingly digital landscape.

Modern Direct Mail Acts Like Email

Today's direct mail operates through APIs and automation, not manual processes. Lob's platform integrates with CRMs, CDPs, and marketing automation tools to trigger physical mail based on digital events. Cart abandonment, website visits, or customer milestones can instantly generate personalized mail pieces. As Ferrier notes, "Any sort of digital triggers, you can send off collateral that shows your products and then gives links back to what's happening online." The platform treats mail pieces like web pages, using HTML and merge variables for infinite personalization possibilities.

Speed and Scale Through Technology

Lob's national network of printers enables on-demand production with mail pieces reaching recipients in 3-5 days from API call. Real-time address verification ensures deliverability while intelligent routing based on recipient geography cuts lead times. The system can handle everything from single triggered pieces to massive campaigns, all while optimizing for either speed or cost based on campaign requirements.

AI-Powered Optimization and Attribution

Artificial intelligence touches every aspect of modern direct mail campaigns. From creative generation and A/B testing through Customer.io partnerships to backend optimization, AI transforms how mail gets created, routed, and delivered. One concrete example: algorithms analyze past delivery patterns to recommend when standard class mail will arrive as quickly as first class, automatically saving several cents per piece. AI also predicts undeliverable addresses beyond USPS databases, potentially saving millions in wasted sends.

Solving the Attribution Puzzle

Attribution no longer relies on guesswork. QR codes with personalized URLs enable direct tracking while providing customized landing experiences. Branch, a home and auto insurer, achieved 25-30% conversion rates by pre-populating compliance documents through personalized URLs triggered by mail pieces. For broader attribution, holdout campaigns measure the incremental lift direct mail provides beyond digital cha els alone.

The Strategic Advantage

Direct mail succeeds by operating as part of an omnicha el strategy rather than a standalone tactic. The most effective campaigns combine mail's tangible impact with digital's immediacy—like LabCorp sending a physical bill followed by a text reminder, driving immediate action. This orchestrated approach transforms what many still perceive as slow and unmeasurable into a responsive, data-driven cha el. As marketers seek new ways to cut through digital saturation while maintaining measurability, direct mail offers a proven solution hiding in plain sight. The cha el's renaissance isn't about nostalgia—it's about results.