THE CRUCIAL ROLE OF DIRECT MAIL IN EFFECTIVE CROSS
CHANNEL MARKETING
Direct Mail
Presented by Erik HaugSenior Account [email protected]
On any given day, the average customer will be exposed to 2,904 media messages, will pay attention to 52 and will positively remember 4.
Direct Mail is Not Dead
US Businesses spent $45.2 billion dollars on Direct Mail in 2010 and generated $702 billion in increased sales.
Direct Mail spending is expected to increase by $25 billion by 2015.
Direct Mail response rates are consistently 2 to 3 times higher than email response rates.
Direct Mail is Environmentally Responsible
70% of direct mail is printed on recycled paper.
Only 11% of cut forest trees are used by the paper industry. The paper industry plants three times more trees than it cuts.
There are more forests in the U.S. today than there were 50 years ago.
An average person wastes 2.4x more electricity powering a single computer than on the energy used to produce the paper they use in a year.
Email Pros and Cons
Pros Fast Inexpensive Great testing medium 79% of consumers click on a link from a known
organization to learn more
Cons 73% treat email as Spam if not subscribed to or requested Spam blockers Consumer short attention span requires short messages
and limits creativity Opt in lists are often poor quality
Pros and Cons of Social Media
Pros There will be 221 million internet users by 2013 84% of Gen Y users report noticing social network
ads 19% believe the ads are relevant to them 48% join a brand or fan pageCons Overall online participation noticeably declines
with increasing age demographics Users who “like” a brand or fan page often block
notifications from that page
Direct Mail Pros and Cons
Pros Proven, measurable results Ability to version by audience segmentation Provides space to convey complex messages Ability to reach virtually all consumers and
businessesCons Cost Perception of relevance by age Potential for failure if poorly planned, designed,
executed
Four Massive Strengths of DM
Endurance Acquisition ImpactSense
Attributes of Direct Mail
Targetable Measurable
Ability to convey complex messages
Personal Proven ROI Creates impact
FlexibleAccountableReliablePrivacySecurityAbility to drive
online trafficAbility to retain
and grow customer relationships
Recipient Advantages of Direct Mail
ConvenienceStudy and re-read materialsWritten recordReview quickly – only 45% of
consumers believe email is faster to read than traditional printed communications
Show information to others
Statistics Prove Effectiveness
50% of consumers prefer direct mail to email
60% enjoy checking their mail
98% bring in their mail the day it is delivered
77% sort through their mail immediately
3.4% was the average response rate for letter size mail in 2010
75% say they receive more email than they can read
Email response rates are down 57% since 2004
The 18-34 preference is 2-3x higher for health products information via direct mail than online sources such as social media
Direct Mail Response Rates
Typical Direct Mail campaigns bring in around 1-4% response rate
Personally relevant campaigns can achieve 10-20% response rates
The highest response rates are generated by relevant, personalized, unique mail pieces such as boxes, tubes, and dimensional mail sent to a narrowly targeted audience
Keys to Effective Cross Channel Marketing
Use mail to drive traffic to landing pagesUtilize personalized URLs (PURLs)Email before mailing to raise awareness
and build anticipationUse email as a call to action, to persuade
target audience to register to receive more enticing information through a direct mail piece
Keys to Effective Cross Channel Marketing
Use social media to let customers know about an upcoming exclusive direct mail offer
Print and electronic media should share a complementary design to produce a unified emotional connection
A rich online experience driven by direct mail with a consistent message will get a customer’s attention
Keys to Effective Cross Channel Marketing
Integrate digital channel analytics with your direct mail response data for more customization and micro segmentation
Utilize variable data driven digital printing to create mail pieces with more customization and relevance
The Beginning…
Every successful marketing program begins with one important question:
“What do your customers want?”
The 9 Human Wants
Acceptance Adventure Community Creative Expression Freedom Growth Interchange Responsibility Security
Definition of “Good Mail”
Tangible, personal communicationConnects with the recipient in a
striking wayCompelling feel, look, line of copy,
etc. that makes the recipient feel important
Provides an experience
Lists
Many say that the LIST accounts for as much as 40% to 60% of the success of a mailing
40-40-20 rule
The Wrong List
Great OfferBeautiful CopyStunning DesignStrong “Call to
Action”
The Wrong List
The Right List
The Right List… Has the right geographic location Has the demographics that fit the
best potential customer profile Has the quantities available to
satisfy marketing needs
Types of Lists
House ListsResponse Lists
Subscription Lists Contributor Lists Inquirer Lists
Compiled Lists Consumer Lists Business Lists
House Lists
A list of current customers and prospectsThis is the real value of a businessIts important to capture as much
information as possible Baseline info
Name, address, zip+4 Purchasing History Additional Demographics
Birthdays, family status, housing, etc.
Types of Response Lists
Buyers Subscribers Expires Inquiries Members Change of Address Attendees Donors
Response Lists
Customer Lists People that have responded to specific
direct mail programs and offers Victoria’s Secret, L.L. Bean
Subscriber Lists Subscribers to magazines, newsletters and
subscription services Subscribers to People Magazine, Golf Digest, etc.
Response Lists
Warranty / Registration Lists People that have bought and
submitted warranty or registration cards for specific products Owners of appliances, Dell PCs,
Sony TVs, etc.
Response Lists
Advantages Highly targeted Higher response rates on related products
and services Lists available to cover virtually any
product or service
Response Lists
Disadvantages High cost of rental (7.5 to 15 cents per
name – or more) Requires approval of mailing piece
You probably cannot use to market a competitive product
Difficult to purchase for very specific geographic areas
Most lists do not have sufficient counts to satisfy demand
Compiled Lists
Business ListsConsumer ListsCompiled from
multiple public domain records Telephone books Government records Census Data
Compiled Consumer Lists
Occupant lists Full saturation – no name, just “Occupant”
or “Resident” (Also known as OCC/RES lists)Consumer lists
Includes name
Current Resident
1124 Elm St S
Evanston, IL 60606
John Adams
1124 Elm St S
Evanston, IL 60606
Compiled Business Lists
Always include business name and mailing address
Contact names Necessary when mailing to large businesses Outdated data can hurt your response rate Title or function is often just as effective Business demographics
Include type of business, sales $, number of employees, etc.
Business Lists
Often don’t have contact names Most lists are compiled Available universes are smaller than
consumer lists (about 15,000,000 total establishments)
Major Suppliers Acxiom Dun & Bradstreet Experian InfoUSA Trans Union Business Information Services
Information Contained on Business Lists
Company Name and AddressJob TitlesBusiness Type (NAICS Codes –
formerly known as SIC Codes)Business Size
Number of employees Sales volume
Compiled Lists
Benefits Wide coverage Easy to obtain Low price - $.02 - $.05 per name Volume discounts
Disadvantages Not as highly targeted as response lists
Design Considerations
Who’s the audience?
What’s the budget?
Is our message clear?
Are we providing an easy response method?
Data Processing
CASS (Coding Accuracy Support System)
A USPS testing program offered that evaluates and certifies the accuracy of addresses through postal coding software.
Data Processing
CASS What will it do for the customer…. Address matched to National Address listing of
USPS, verifies deliverability Standardizes address block (removes
punctuation, abbreviates, zip correct) Appends +4 to zip, creates delivery point
barcode If address does not match:
Kicked out with code detailing reason
Address Hygiene
NCOA - National Change of Address:An address correction service provided
to mailers through USPS licensees
Required for presorted mailings 4 years of Data - updated every 10 days Includes reporting options for customer Eliminates back end cost and data
entry of ancillary endorsement service
Address Hygiene
NCOA - National Change of AddressWhat will it do for the customer….
Update movers on data file Mail piece gets delivered to the correct
address the first time, no delays Important address updates available for
customer to update their list Eliminates cost of address correction fees
and data entry costs
Mail Classifications
First Class Automated Mail 500 or more pieces (average .37 cents per piece up to 2
ounces, letter size) Usually delivers in 1 - 3 days local, 4 -7 days national
Standard Automated Mail 200 or more pieces (average .26 cents per piece up to
3.3 ounces, letter size) Usually delivers in 4 - 7 days local, 7 – 14 days national
Non-Profit Requires Non-Profit authorization from Post Office
(average .15 cents each, letter size)
Sources
DMA 2010 Statistical Fact Book Epsilon Consumer Channel Preference Study Printing Industries of America Winterberry Group Using Neuroscience to Understand the Role of Direct Mail –
Bangor University, October 2010 International Data Corp Info Trends DM News USPS – Deliverables
Questions & Answers