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How Royal Mail support Charities
DMIFG
26th March 2009
Chris Frow
Mary Alcock
Judith McLelland
2
Supporter Strategies
MarketingActivity
Get More Supporters Grow the 28 million UK donors
Reduce the costof doing business
Drive to web 55% confident web users like to be contacted by mail
Get Donors to stay longer 9% of customers leave due to a
competitor 67% leave because of no contact
Get Supporters to Donate more
Increase the frequency of the median gift from
£11.00
3
Many more ‘channels’…
Sources: TGI, Ofcom, NMA, BARB
2007
125%
500+
88%
59%
32%
66%
66%
HOME OWNERSHIP
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GAMECONSOLEPEN
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A
COMPUTERS
YEAR
1999
40%
7634
%
2672 100,000
222
2600
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22%
29%29%
65%
MULT
I SET
HO
MES
39%
57%
NA
TION
AL
NEW
SPAPER
S
18
19
Media choice
1985 - 2007
244,0008300
3400
276
22
Mobile
The role of mail in the 21st Century
5
Overview of Mail in 21st Century
6
Mail in the 21st Century• Mail consumers notice
• Busy mums
• How mail acquires customers
• How mail organises people
• Young adults
• How mail is consumed
• How mail complements on-line
7
Key Challenges identified by DMIFG
• Direct Mail is an expensive channel and is becoming less effective
• Recruitment of committed givers is proving harder than ever
• How to get the best out of offline and online media
8
Where does Royal Mail come in?
• New ways to enhance Direct Mail and Door to Door channels
• Launch of Sustainable MailTM
• Extensive Direct Mail research centre
• Media and Data consultancy
9
expert dataRoyal Mail
Delivering intelligent integrated marketing
Mary Alcock
10
A reminder of what we are about
SMEOur solutions are built around the four key stages of the customer lifecycle. Our ability
to tailor these solutions to the customer needs and their market, ensures a consistent return on client investment.
11
expert dataRoyal Mail
Delivering intelligent integrated marketing
Data Consultants:
Developing New supporter audiences
Supporter Journey Mapping
Maximising your DM return
Managing suppressions
12
expert dataRoyal Mail
Delivering intelligent integrated marketing
Door to Door
13
Door to door
• Before
•Profile of supporters to find MOSAIC profile
•MOSAIC profiling of postal sectors
•Overlays of TV regions etc
•Select postal sectors with best match against supporter profile
• Now
•TGI profiling available
•Microvision and CAMEO software in addition to MOSAIC
•Penetration, Prospect and Potential (PPP) ranking
14
Penetration, Prospect & Potential (PPP) Ranking
The PPP ranking is the most sophisticated ranking technique and will enable you to look at three factors:
1. How well you are penetrating certain postal sectors by the number of households you have as existing supporters
2. How well a postal sector matches the profile of your supporters
3. Which postal sectors offer the greatest prospect potential, based on a combination of the above factors.
This ranking methodology is ideal for clients with a large supporter base.
15
Penetration, Prospect & Potential (PPP) Ranking
16
Royal Mail Door to Door data offer
• Charity Discount = following provided free
Sector ranking reports using Mosaic or Cameo, including Cameo Income, Cameo Financial and Cameo Investor
Profiling of your existing supporter database
• PPP profiling for £750 and from £750 - £1,500 to do the sector ranking report
17
expert dataRoyal Mail
Delivering intelligent integrated marketing
Direct Mail
18
Over 50’s – a new segmentation
• Improvements in healthcare and living standards mean that people can look forward to many years of healthy, active life until they are well into old age
• The over 50’s represent 40% of the total adult population in Britain (17m)
• By 2011, there will be 21.3m over 50’s – increasing at twice the rate of all adults
• This group of people have wide-ranging wants, capabilities, desires and wealth who will respond differently to marketing approaches
premier.mintel.com
19
Charity type by TGI lifestage
FledglingsFlown TheNest
Nest Builders
PlayschoolParents
Primary School Parents
SecondarySchool Parents
Mid-life Independents
UnconstrainedCouples
Hotel Parents
Senior Sole Decision Makers
Empty Nesters
Non-standardFamilies
Total Sample 100 100 100 100 100 100 100 100 100 100 100 100Poppy Day Appeal 65 46 45 70 102 91 114 97 126 125 143 92Visually Impaired 10 29 31 41 58 95 90 114 160 196 163 80Cancer Research 65 68 85 90 106 110 94 106 98 124 121 84Age Related 21 54 56 55 67 96 74 105 115 209 155 77Heart Disease Research 54 30 56 57 66 65 134 120 110 154 163 76Mental Health 51 58 85 80 109 129 165 119 103 122 105 91AIDS Research 170 85 170 34 127 124 108 197 68 87 47 139Other Health Related Topics 72 125 109 75 77 112 121 104 111 123 107 67Children 66 71 73 140 138 119 90 96 100 98 92 66Animal Welfare 50 48 73 72 81 100 101 157 119 147 114 103Wildlife/Conservation/Envir 60 62 72 69 82 98 86 145 101 148 126 76The Disabled 39 53 57 85 106 92 106 99 155 140 123 55Overseas Relief 40 69 86 91 68 96 129 106 106 145 126 115Hospitals & Hospices 22 28 50 58 79 87 92 111 118 184 166 58Human Rights 74 89 121 129 137 110 90 195 76 108 55 50Religious Groups 47 50 70 74 85 96 73 76 130 156 149 65The Underprivileged 60 62 62 94 93 100 127 129 115 122 101 149Voluntary Emergency Services 49 20 35 58 68 100 82 111 103 136 191 57The Arts/National Heritage 48 100 56 41 47 80 192 164 100 154 152 26Other 69 79 100 108 92 109 102 111 100 96 115 66
Source: TGI Q4 2008
20
Top 10 sectors volume of mail in 2008
Volumes of Mail in 2008 top ten sectors
020,000,00040,000,00060,000,00080,000,000
100,000,000120,000,000
16 to24
25 to34
35 to44
45 to54
55 to64
65 orOver
Age range
Nu
mb
ers
of
ma
ilin
gs
Mail Order
General Insurance
Charities
Cards
Destinations
Life Insurance
Loans
Stores - Other
Services
21
Solution
• Many companies tend to treat over 50’s as one mass market based on their biological age
• Royal Mail has brought together many different variables to identify ‘Life Begins at 50’ - 21 segments in this age range who have personal, household, wealth and geo-demographic characteristics and different preferences in the way they do business and their hobbies
• You can use these segments to differentiate your approach, channel and message to maximise ROI
22
High Affluence Low Affluence High Affluence
Age 50-64Prime of Life
Age 75+ Later Life
Age 65-74Retirement Years
Visualising the Segments - affluence
Shows nearest neighbour
Self Sufficient
Solos
Prosperous Pensioners
Elderly Comforts
Family Fortunes
Wealthy Empty
Nesters
Accomplished Families
Educated Elders
Diligent Duos
Thrifty Twosomes
Single Minds
Comfortable CouplesFamily
Values
Cosy Companions
Lone Souls
Penniless Pensioners
Pound-stretching
Pairs
Growing Old
Together
Credit Hungry Families
Hard-up Households Scrimping
Singles
Struggling Alone
Comfortable PoorCharmed
23
High Affluence Low Affluence High Affluence
Age 50-64Prime of Life
Age 75+ Later Life
Age 65-74Retirement Years
Visualising Channel Preference
Shows nearest neighbour Online/PhonePhone Face to FaceIndifferent
Self Sufficient
Solos
Prosperous Pensioners
Elderly Comforts
Family Fortunes
Wealthy Empty
Nesters
Accomplished Families
Educated Elders
Diligent Duos
Thrifty Twosomes
Single Minds
Comfortable CouplesFamily
Values
Cosy Companions
Lone Souls
Penniless Pensioners
Pound-stretching
Pairs
Growing Old
Together
Credit Hungry Families
Hard-up Households Scrimping
Singles
Struggling Alone
24
Group 1: Prosperous Pensioners UK Volume: 709k Mailable Hhd Universe: 338k % of Life Begins at 50: 4.1%
Description:
Age: 65-74 years Length of Residency: 10+ years (74%)
Household type:Married Couples (60%), Single Male (18%). "Contemporary Elders"
Property: Council Tax Bands E+ (79%)
Still Parenting: No Director/Investor: Yes/Yes
Savings:64% Sophisticated Savers, 27% Tax Free Cash Savers
Investments & Pensions: 95% Sophisticated/Portfolio/Active
Attitude: 79% Financial Nous Credit behaviour:93% Credit Savvy (use credit to their advantage)
Leisure:
Food & Wine, Gardening, Charity donors, Racquet Sports, Theatre, Worldwide Travel, Voluntary Work, Outdoor Pursuits, Sewing, DIY
Preferred Channel: Remote (Phone)
Newspapers:The Guardian, The Independant, Financial Times, Sunday Telegraph, Sunday Times
Supermarkets:Waitrose, Marks & Spencers, Sainsbury's
Wealthy and financially astute, these former professionals have provided well for their retirement years and are now living a charmed life either with their partners or alone.
Key Demographics
Prudence
Behavioural Indicators
25
Group 20: Scrimping Singles UK Volume: 1.1m Mailable Hhd Universe: 814k % of Life Begins at 50: 6.3%
Description:
Age: 65+ years (75+ dominant) Length of Residency: <10 years (59%)
Household type:Probably Single (67% female, 33% male). "Penny-wise Pensioners"
Property: Council Tax Bands A-B (79%)
Still Parenting: No Director/Investor: No/No
Savings: 58% Seldom Savers Investments & Penisons: 87% Non Investors
Attitude:59% Limited Financial Options, 26% Spend & Save to Your Means
Credit behaviour:
79% Credit Diffi culties (no non-secured credit products or financial plans), 7% Doorstop Credit (regular home collected credit and no financial plans)
Leisure:Bingo, Gambling, Charity Donor, Glossy Magazines
Preferred Channel:Face to FaceDM Responsive
Newspapers:Daily Mirror, The Sun , The Observer, News of The World, Sunday Post
Supermarkets: Aldi
With little in terms of an income other than a state pension these single mainly female households are struggling to get by and live quite a meagre existence.
Key Demographics
Prudence
Behavioural Indicators
26
Royal Mail data offer for direct mail
• Profile your supporter base for just £500 and this returned if order made for 30k+ names
• Charity Discount on standard list rental rate = 10%
27
expert dataRoyal Mail
Delivering intelligent integrated marketing
New Select Audiences:
Life Begins at 50 ‘He Men’
Heidi’s Busy Mums
Mass Affluence Young Attainers
Sustainable Mail™
Chris Frow
29
I make a conscious effort to recycle - UK
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
All Adults
Definitely Agree
Tend To Agree
Neither Agree NorDisagree
Tend To Disagree
Definitely Disagree
Source: TGI 24,311 UK Adults &
21,356 Charity Givers
I make a conscious effort to recyle - Charity Supporters
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Yes
Definitely Agree
Tend To Agree
Neither Agree NorDisagree
Tend To Disagree
Definitely Disagree
77.39%
84.17%
30
Background
• Currently less than 29% of direct mail materials are recycled by households - this accounts for 2% of household landfill*
• DEFRA has set a 55% recyclable target for 2009 and 70% by 2013
• Failure to hit these targets could result in Government intervention
• Options being considered include legislation for a landfill tax on mail or a compulsory opt-in for DM
*Source: DEFRA, 2005
31
Background
The use of direct mail as a marketing tool has also come under increased pressure
In a recent customer survey 60% of respondents believed that mail advertising had a negative environmental impact, compared with 23% for newspaper advertising*
Yet direct mail only accounts for 2% of landfill compared to newspapers’ 9%**
Source: *GfK NOP, 2008 **Defra, 2007
32
The future•Royal Mail believes that all mail can be sustainable
• Mail that is created using sustainable resources and materials and can be easily recycled
• Our initial focus has been on defining sustainable mail for direct mail
33
PAS 2020
• Royal Mail, along with ISBA, Acxiom, TPS and the DMA, have championed the development of a new industry standard (PAS 2020) for improving the environmental performance of direct marketing with the BSI and government
• PAS 2020 is a tool for establishing environmental objectives that can be used by advertisers to demonstrate a commitment to responsible DM practices
36
Benefits for youGood for your customers - because it's easy to recycle and will help increase recycling levels to over 80%
Good for the environment - because it supports sustainable practices reduces landfill, and reduces the environmental impact of Direct Mail
Good for your brand - because over 60% of recipients will consider your brand more responsible
Good for your postal costs – because it offers lower postal prices to help offset any additional costs associated with an environmentally-friendly approach
Good for PAS2020 – because it’s aligned directly to the new standard, it can support you in your journey towards PAS2020 certification
37
What is Sustainable Mail™
• A specification offering lower postal prices for direct mail that meets the newly developed environmental standards (ie PAS2020)
• Available on Mailsort® (letter and large letter) from 6 April 2009*
• Offered at two levels available - entry and intermediate
• Rewards you with lower postal prices compared to standard Mailsort, 2% lower for Entry level and up to 4.7% lower for Intermediate level
• Available on direct mail campaigns (first box on questionnaire)• *subject to the outcome of PostComm’s consultation
38
Improving targeting
1. Where the data is not from a consent-based file, a documented procedure for suppressing customer and prospect data against the Mail Preference Service (MPS), including MPS deceased, must be in place and files checked 30 days or less before the item that uses the data is delivered to the recipient.Onsite visit to undertake data health-check
2. Keep and maintain an internal suppression file to ensure that customers and prospects who request to opt out of your mailings are properly logged and check this data 30 days or less before the item that uses the data is delivered to the recipient.Onsite visit to undertake data health-check
3. Ensure all items are fully and accurately addressed and postcoded in accordance with Royal Mail’s Postcode Address File (PAF®) and to the levels determined in the Mailsort User Guide. Address Accuracy listed on CPR / line list. May also include onsite visit to
undertake data health-check
Meeting the Sustainable Mail™ Specification: Entry Level
39
Meeting the Sustainable Mail™ Specification: Entry LevelSustainable resources and materials
4. All paper products used must contain recycled fibre from recovered waste paper and/or virgin fibre sourced under a certified chain of custody conforming to a certification scheme approved by the Defra funded Central Point of Expertise on Timber Procurement (CPET).Declaration, certificate or invoice from supplier confirming adherence to criteria above. Eg FSC certification
5. All paper products must be produced using non-chlorinating bleaching methods: Elemental Chlorine Free (ECF), Processed Chlorine Free (PCF) and Total Chlorine Free (TCF) including oxidizing and reductive bleaching.
Declaration, certificate of invoice from supplier confirming adherence to criteria above
40
Meeting the Sustainable Mail™ Specification: Entry LevelSustainable resources and materials
6. All paper products used in the mailing must be sourced from paper mills that operate an environmental management system conforming to BS EN ISO 14001 and/or the Eco-Management and Audit Scheme (EMAS)
Certification from paper mill
7. Printers, mailing houses or in-house mailing facilities used to produce the mailing must have:a. A documented commitment to environmental management and baseline for
environmental performance;b. Identified appropriate environmental legislation and other environmental
requirements (e.g. standards, codes of practice and/or guidance) and have controls in place to ensure compliance to them
c. Developed environmental objectives, targets and programmes.Environmental management policy which incorporates elements above
41
Meeting the Sustainable Mail™ Specification: Entry Level
Recyclability
8. All paper elements of the mailing, including window and padded envelopes, must be recyclable.
9. No brown paper or brown paper envelopes (including manilla).
10. No plastic envelopes (including polywrap).
11. No laminate finishes must be used in the mailing.
12. The item must have less than 90% ink coverage.
Declaration, report from supplier (eg creative agency/ printer) indicating ink coverage percentage. NB PAS 2020 provides further guidance on ink coverage and software available to check percentage
13. All items must display a statement and/or logo (such as Recycle Now) on the outside of the mailing that encourages the recipient to recycle it.
42
Meeting the Sustainable Mail™ Specification: Intermediate Level
Improving targeting
14. Customer and prospect data used in a mailing must be checked against one or more commercially available deceased and gone away suppression file (including business gone away suppression files) 30 days or less before the item that uses the data is delivered to the recipient.Onsite visit to undertake data health-check
15. Each item must clearly incorporate information as to how the addressee can register to unsubscribe preference options relating to any or all of the sender’s legal entity brands and/or products for a period of one year.
16. Any items returned from previous mailings as deceased, gone away or requesting opt-out must be recorded and removed from future mailing lists within 3 months of receipt.Onsite visit to undertake data health-check
17. Ensure at least 95% of items are fully and accurately addressed and postcoded in accordance with Royal Mail’s Postcode Address File.Address Accuracy listed on CPR / line list. May also include onsite visit to undertake data health-check
43
Meeting the Sustainable Mail™ Specification: Intermediate Level
Sustainable resources and materials
18. All printers, mailing houses or in-house mailing facilities used to produce your mailing must have an environmental management system conforming to BS EN ISO 14001.
Copy of ISO certification for printer / mailing house/ in-house mailing facility
Recyclability
19. No ultraviolet varnish finishes must be used in the mailing
Declaration, certification confirming adherence to criteria above – eg printer
20. No use of rubber-based adhesives.
Declaration, certification confirming adherence to criteria above- eg printer, envelope manufacturer,
44
How much is it ?
45
Royal Mail sustainable mail offer
• Like Mailsort, you can request Sustainable Mail via your account handler, who will support you through the set-up process
• We have a short questionnaire for you to complete and return to us today so that you can see how many of the criteria you already meet.
How offline and online work together
Judith McLelland
47
Do charity supporters use the Internet ?
Source : 15,749 Charity Givers
All UK Adults 76%
Age Concern 66%
British Heart Foundation 72%
British Red Cross 70%
Cancer Research UK 78%
Children in Need 84%
Comic Relief 90%
Macmillan/Cancer Relief 75%
NSPCC 80%
Oxfam 83%
RSPCA 73%
Save The Children 76%
Shelter 81%
Sport Relief 95%
WWF 77%
Have you used the
Internet at home
or elsewhere
in the last 12 months ?
49
2 in 3 people refer to mail when searching for a new product or service online
70% of consumers refer to the URL provided in mail when searching online
This works to minimise dependence on Search and decreases the chances of users visiting competitors first
33%
67%
DM can drive traffic directly to your website
Refer to postal information when searching for a new product/service
online
Refer to a letter, brochure or leaflet when searching for a particular
company online
30%
70%
Sample: 802 16-64 M&F
50
They relate to mail and email differently
4
6
15
20
30
36
37
37
41
43
43
46
47
48
49
53
87
82
68
64
53
32
43
12
20
17
7
14
19
20
14
8Gives me better impression of the company
More professional means of communication
Easy to take in information
Likely to really grab my attention
I’m likely to spend a lot of time reading it
It makes me feel more valued
I am more likely to do something as a result
Appropriate if I’m not already a customer
I enjoy receiving and reading it
Better for sending reminders
More appropriate if a customer already
Easy to file so I can go back to it later
Better for confirmation / follow-up messages
Easier to respond to
Better at communicating brief messages
Better for the environment
Direct Mail % E-Mail %
Source: Quadrangle DM & Email 2007 DM & Online 2007
› DM & Digital
Using this insight, we’ve developed a model to help integrate DM and digital
52
Starting with the supporter journey…
Acquisition
Development
Retention
Winback
When and where should mail and digital be used along the supporter journey?
• Generating prospects• Enquirer conversion process• Previous enquirer model• Previous supporter model
• Welcome phase• Second donation• Getting to know you• Up/x-sell models
• Staying in touch• Managing problems
53
For mail and email…• Cold Acquisition - when
approaching supporters for the first time email is considered inappropriate
• Spam is a growing problem
• 60% have started ignoring email
• Consumers consider mail more appropriate for carrying detailed and important information on brands
• Email does have an important role to play in the acquisition process – particularly around follow-up activity e.g converting enquirers
Acquisition• Generating prospects• Enquirer conversion process• Previous enquirer model
› DM & Digital
54
For mail and email…• Email is perfect for confirmations
eg, that a donation has been received or is being processed
• Mail is also valuable to supporters at this stage in the journey for thanking and welcoming, encouraging future business
• Getting to know supporters is key – including their channel preference
• Surveys can be conducted via mail and/or email
Development• Welcome phase• Second donation• Getting to know you• Up/x-sell models
› DM & Digital
55
For mail and email…• Mail is up to 8 times more likely than
email to make supporters feel valued, although it does cost more
• A segmented approach to supporter communication is appropriate – not only based on channel preference but also profitability and potential
• Arguably both email and mail should be used to handle complaints
• Email provides an opportunity to confirm receipt/ explain the complaints handling process without delay
• Mail is perhaps more appropriate for more important/sensitive messaging
Retention• Staying in touch• Managing problems
› DM & Digital
57
MMC
• The latest fact, figures and consumer insights
• Major research studies about how and why direct mail works
• Expert advice and thought leadership
• Extensive library of case studies showing successful international campaigns
• Examples of some of the best direct mail and cross channel creative
• Downloadable video clips, data charts and quotes for your presentations
• Access to Royal Mail Media Consultants
mmc.co.uk
58
MMC portal run VT
59
mmc.co.uk
60
Media Consultant Support
• Competitor mailing reviews
• Creative reviews
• Supporter journey workshops
• Access to Charity Insight and Research
61
ContactChris Frow - Media Consultant
07702 161790
Mary Alcock - Data Consultant 07841 567761
Judith McLelland - Media Consultant
07872 816011
