Direct Mail in Comparison with Other Media Channels. Date: 9 March 2012
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1 Direct Mail in Comparison with Other Media Channels Date: 9 March 2012
2 Increasing Media Fragmentation 2
3 Survey Objectives To understand: Marketers Survey marketers perception towards different communication channels the role of direct mail as a communication channel the complimentary role of direct mail to other communication channels marketers attitudes towards direct mail Consumers Survey To understand: preferences for receiving different marketing messages and from different industries consumers perception towards different communication channels consumers exposure to different communication channels perspectives from consumers on direct mail 3
4 Survey Methodology Marketers Survey Consumers Survey Methodology Online self-completion with structured questionnaire Respondents Decision makers on marketing/ advertising decisions General Hong Kong population aged Fieldwork period 30 August - 30 September August - 8 September
5 From Consumers Perspectives
6 Direct Mail is Preferred for Receiving Essential Business Communications Consumers Communication channels preferred for receiving Utility bills Financial statements Updated terms & conditions 73% 70% 57% to personal address 40% 44% 48% SMS text messages 16% 16% 13% (Top 3 channels are shown) 6 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
7 is Preferred for Receiving Marketing & Promotional Information Communication channels preferred for receiving Consumers Invitations to special events/ sales Discount offers/ promotions Newsletters Updates on organization New product/ service launch to personal address 54% 55% 61% 53% 54% 38% 32% 33% 32% 28% SMS text messages 22% 25% 17% 13% 17% (Top 3 channels are shown) 7 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
8 Consumers Receive the Most Promotional Materials/ Messages Via Consumers Frequency of receiving promotional materials/ messages in a week Average no. of materials/ messages received in a week to personal address 10% 19% 32% 16% 8% 15% 5 Telephone calls - unsolicited 13% 23% 28% 19% 7% 11% 4 Direct mail unaddressed 27% 37% 23% 9% 3% 3 SMS text message 28% 36% 24% 8% 2% 2 Direct mail personally addressed 25% 42% 23% 8% 2% 2 Telephone calls - solicited 41% 28% 18% 8% 3% 2 <Once a week 1-2 times 3-4 times 5-7 times 8-9 times 10+ times a week 8 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
9 Promotional Mails or s are Usually Read On a Weekly Basis Consumers Frequency of going through the promotional mails received at home Frequency of reading promotional mails delivered to personal address Everyday/ Whenever received 55% Everyday/ Whenever received 63% A few times a week 21% 89% A few times a week 19% 92% Once a week 14% Once a week 9% 2-3 times a month 5% 2-3 times a month 5% Once a month * Once a month 1% Less often 3% Less often 2% Someone at home will go through the mails for me 2% I do not have a personal address 1% 9 *Less than 0.5% Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
10 Personally Addressed Direct Mail Effective in Triggering Responses Consumers Frequency of responding to offers featured in Very/ Somewhat often Direct mail personally addressed 10% 51% 25% 14% 62% to personal address 14% 40% 28% 19% 53% Telephone calls - solicited 6% 34% 35% 26% 40% SMS text message 5% 30% 31% 34% 35% Direct mail unaddressed 9% 23% 34% 35% 32% Telephone calls - unsolicited 9% 19% 22% 50% 28% Very often Somewhat often Not very often Do not respond at all 10 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
11 Consumers are asked to evaluate the various communication channels against 11 attributes Unaddressed mail Telemarketing to personal address Newspaper/Magazine ads SMS text messages Other mobile advertising (incl. mobile apps) Company page on Facebook Online ads Annoying Can read/look at/receive it at my leisure time Difficult to ignore Enjoyable to read/look at/receive Help me in my purchase decisions Informative Keep for future reference Suitable for describing complex product information/concepts Trustworthy Will be concerned without it Will pay attention to 11
12 Top 3 Communication Channels Consumers Attributes Top 3 Communication Channels Trustworthy 48% 26% 23% Difficult to ignore 42% 29% 20% Will be concerned without it 30% 21% 14% Keep for future reference 51% 46% 17% Can read/look at/receive it at my leisure time 46% 27% 27% Help me in my purchase decisions 42% 38% 24% Enjoyable to read/look at/receive 40% 31% 30% Suitable for describing complex product information/concepts 39% 38% 25% Informative 37% 32% 29% Will pay attention to 35% 35% 33% Annoying Telemarketing 64% SMS 26% Unaddressed mail 21% 12 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
13 Comparing Direct Mail with Specifically Channels applied to these statements Consumers to personal address Trustworthy 48% 26% Keep for future reference 46% 51% Difficult to ignore Suitable for describing complex product information/concepts 42% 38% 29% 39% Help in purchase decisions 38% 42% Will pay attention to 35% 35% Will be concerned without it 30% 21% Enjoyable to read/look at/receive Can read/look at/receive it at my leisure time 30% 27% 40% 46% Informative 26% 37% Annoying 15% 19% 13 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
14 Consumers Treat Direct Mail As a Source of Information and a Way to Engage with the Company What consumers say Consumers Customer Engagement After receiving promotional mails from company where I am a customer/ member, I am more likely to use the services/ purchase the products I am more likely to use the services/ purchase the products from the companies that constantly keeps me in touch through mails 57% 53% Channel Perceptions Less intrusive, can read at my leisure time 58% I enjoy receiving & reading relevant promotional direct mail 50% Source of info I do not mind receiving & reading direct mail to stay up to date 50% Provides me with info I won't notice elsewhere 54% % on strongly/ somewhat agree 14 Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen
15 Direct Mail is Effective in Reminding Consumers to Make Payment On Time Channel applied most to the statements Consumers 39% 31% 22% 36% 23% 23% 33% 40% 33% 28% 29% 26% 20% 31% 30% 18% 35% 27% More likely to make payment on time after receiving this Will make payment immediately after receiving this Can get my attention Is a good reminder to pay my bills Will easily forget about it Delivered via mail Delivered via SMS text message Will easily ignore it 15 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
16 From Marketers Perspectives
17 Same question also asked for Marketers, but from Consumers perspective Unaddressed mail Telemarketing to personal address Newspaper/Magazine ads SMS text messages Other mobile advertising (incl. mobile apps) Company page on Facebook Online ads Annoying Can read/look at/receive it at my leisure time Difficult to ignore Enjoyable to read/look at/receive Help me in my purchase decisions Informative Keep for future reference Suitable for describing complex product information/concepts Trustworthy Will be concerned without it Will pay attention to 17
18 Top 3 Communication Channels ~ What do the Consumers Think Marketers Attributes Top 3 Communication Channels Suitable for describing complex product information/concepts 54% 52% 34% Keep for future reference 49% 42% 40% Difficult to ignore 39% SMS 31% 30% Trustworthy 39% 29% 27% Can read/look at/receive it at my leisure time 59% Unaddressed mail 44% Company page on Facebook 39% Informative 56% 44% 43% Enjoyable to read/look at/receive 50% 47% 41% Help me in my purchase decisions 50% 40% 38% Will be concerned without it 25% 25% 11% Will pay attention to 55% 47% 40% Annoying Telemarketing 86% SMS text messages 45% Unaddressed mail 27% 18 Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen
19 Discrepancies are Observed on How Marketers and Consumers Perceive Direct Mail Attributes applied to personally addressed mail Marketers 54% Suitable for describing complex products Consumers 38% Differences 16% 49% Keep for future reference 46% 3% 47% Will pay attention to 35% 12% 43% Informative 26% 17% 41% Enjoyable to read/look at/receive 30% 11% 39% Trustworthy 48% -9% 39% Difficult to ignore 42% -3% 38% Helps in purchase decision 38% -- 36% Can look at/receive it at my leisure time 27% 9% 12% Annoying 15% -3% 11% Will be concerned without it 30% -19% 19 Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen
20 Marketers are then asked to evaluate the same list of communication channels against 13 different attributes Unaddressed mail Telemarketing to personal address Newspaper/Magazine ads SMS text messages Other mobile advertising (incl. mobile apps) Company page on Facebook Online ads Appropriate for my target audience Cost efficient Can measure ROI Effective Engage with consumers Easy to produce Easy to change creative/messages Flexible High production cost High media cost High reach Targetable Infringe privacy 20
21 Top 3 Communication Channels ~ What Do the Marketers Themselves Think Attributes Appropriate for my target audience Targetable Can measure ROI Easy to produce High media cost High production cost High reach Engage with consumers Effective Easy to change creative/messages Flexible Can read/look at/receive it at my leisure time Infringe privacy 55% 50% 32% Unaddressed mail 49% 85% 86% 77% 59% 55% Company page on Facebook 55% Company page on Facebook 49% Company page on Facebook 33% Telemarketing 56% Top 3 Communication Channels 38% 47% 30% SMS 47% 54% 37% 54% 38% 48% SMS 40% 42% 31% SMS 42% Marketers 33% 43% Unaddressed mail 28% Company page on Facebook 43% Online ads 19% Other mobile advertising 19% Online ads 37% 34% 41% Online ads 38% Online ads 37% 31% 36% 21 Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen
22 Personally Addressed Mail is an Appropriate Channel for Their Target Audience and Targetable Channels applied to these attributes Marketers to personally address Appropriate for my target audience 55% 38% Targetable 50% 47% Effective 41% 25% Infringe privacy Easy to produce 36% 35% 35% 40% Engage with consumers Can measure ROI Cost efficient High reach Easy to change creative/messages Flexible 34% 32% 31% 29% 20% 16% 23% 24% 31% 21% 36% 42% High production cost 14% 4% High media cost 9% 3% 22 Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen
23 Direct Mail is Perceived More Effective than /SMS in Eliciting On-Time Payment for Bills & Invoices Marketers Effectiveness of direct mail in eliciting on-time payment for bills and invoices over /sms Very effective 12% Somewhat effective 57% 45% Neither Somewhat ineffective 9% 33% 39% of consumers say they will be more likely to make payment on time after receiving bills/invoices via mail, highest among all communication channels Not effective at all 1% 23 Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen
24 Suggestions on Effective Use of Direct Mail
25 Build Direct Mail as Part of the Campaign Marketers Use of direct mail with other media 67% Direct mail is a secondary medium, supplementary to other media 38% Direct mail is the primary medium, supported by other media 29% Direct mail is used on its own 33% What marketers say Direct mail complements mass media in providing in-depth info about the products/services or the promotion campaigns Direct mail can remind people about the brands/services they have seen advertised on other media Direct mail is a cost efficient alternative to complement mass media Campaigns involving direct mail usually yield better results 85% 82% 73% 64% % on strongly/ somewhat agree 25 Base: All marketer respondents who have used Direct Mail last year or this year Source: Direct Mail Marketers Study 2011 conducted by Nielsen
26 Having a Relationship and Relevancy are Key to Success of Direct Mail Campaigns What consumers say Attitude towards different types of direct mail Consumers Direct mail from companies which I am a customer/member 50% 37% 6% 7% Direct mail from products/services I am interested in 47% 42% 5% 6% Direct mail from companies which I am not a customer/member 8% 46% 34% 12% I enjoy receiving this type of mail I find this annoying I don't enjoy receiving it but might find it useful I don't care either way of it 26 Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen
27 Consumers are More Likely to Buy from Companies of Which They are Customers/Members Consumers After receiving promotional mails from company where I am a customer/ member, I am more likely to use the services/ purchase the products Agree/ Disagree with the statements 10% 47% 34% 7% Strongly Agree/ Agree 57% I am more likely to use the services/ purchase the products from the companies that constantly keeps in touch with me through mails 8% 45% 36% 8% 53% I do not mind receiving & reading direct mail to stay up to date 10% 41% 40% 7% 50% I enjoy receiving & reading relevant promotional direct mail 9% 41% 39% 8% 50% Strongly agree Agree Neither Disagree Strongly disagree 27 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
28 Marketers Could Consider Using Offers or Samples to Encourage Reading of the Direct Mail Pieces Consumers Marketers Factors attracting consumers to read direct mail Type of marketing messages used in direct mail Special offers/discounts 77% New product/service launch 64% With enclosed gifts/premiums 64% Discount offers/promotions 58% Product/Service featured is relevant to me 63% Promote sales 57% Addressed to me personally 53% Invitations to special events/sales 51% The direct mail is from a recognized brand/company 50% Induce trial 28% 28 Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen Base: All marketer respondents Source: Direct Mail Marketers Study 2011 conducted by Nielsen
29 62% Will Keep Direct Mail for Future Reference After Reading Actions taken after reading direct mail by consumers Consumers Keep for future reference Do online search of products/services featured Go to the company website 47% 47% 62% Go to the shops/retailers Respond to direct mail offers Join as a member on their Facebook Call the hotline Pass it onto someone else 34% 28% 22% 17% 16% Follow them on Microblog 6% Ensure the retention value of the Direct Mail pieces 29 Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen
30 Use of Recycled Materials Has a Positive Impact on Consumers Perception of the Companies Consumers Favorability of companies which use recycled materials in direct mail No change 37% More favorable 50% More unfavorable 13% 30 Base: Hong Kong population aged Source: Direct Mail Consumers Study 2011 conducted by Nielsen
31 Though Direct Mail is Welcomed by Consumers, Privacy is a Key Concern % Agree/ Disagree with I value the privacy of mail Consumers Disagree 4% Strongly disagree 2% Neither 25% Strongly agree 27% 69% Agree 42% 31 Base: Hong Kong population aged Source: Direct Mail Consumer Study 2011 conducted by Nielsen
32 Key Takeaways
33 Key Takeaways 1 Marketers Targetable & For my target audience Suitable for describing complex products Complimentary to other media Elicit on-time payment Consumers Trustworthy Keep for future reference Difficult to ignore Less intrusive Relevant Trigger responses: Respond to offers Make on-time payment Online search Go to website/shop 33
34 Key Takeaways 2 Guidelines for Marketers to use Direct Mail more effectively: Maintain a good Customer database Relevant to the recipients Messages: Special offers/discounts, enclosed gifts/premiums Contact details, e.g. company websites, shop locations, contact numbers, etc Special creative or useful information to increase retention value Source of lists: beware of privacy issues Utilize the advantages of Direct Mail (describe complex information, targetable, cost efficient) to compliment other media 34
35 Thank You! 35 Copyright 2012 Nielsen
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