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Many direct mail marketing programs are replacing oversized postcards with card mailers. Since card mailers provide a lower cost-per-lead it seems obvious why companies are making the switch, but what is it about card mailers that allows them to increase redemption rates?

In an article by Deloitte & Touche USA LLP entitled, “How Gift Card Service Can Help You,” the success of card mailers is attributed to their ability to result in an impulse buy. Not only do customers use the gift cards that they receive, they usually end up spending more than the card is worth. Along with increasing profits, according to the article, gift cards or card mailers encourage customers to return. If a card has a remaining balance, the customer will return because the money can only be used at that store.

Unlike oversized postcards, card mailers can easily fit into any wallet, much like a credit card. Each time the wallet is opened, the card acts as an advertisement for the product or service. Even if just a few dollars remain on the card, if it goes unused, the customer feels as though they are throwing away money.

Each of these examples helps explain why card mailers are able to provide more ROI than oversized postcards. Though they may cost more upfront, they make up for it in redemption rates.

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