Role of Direct Mail in developing the Mail Order business. by Raquel Ferrari Project Manager, Direct Mail

Transcription

1 Role of Direct in developing the Order business by Raquel Ferrari Project Manager, Direct Moscow, September 2002

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3 Direct Value Chain Direct plays a key role in the mail order business. It is still the main source of information for mail order customers!

4 Direct Value Chain Business Case Direct Select Targeted Names Print Direct Distribute Direct Fulfill Orders Manage Customer Relations

5 Direct Value Chain 1 Business Case

6 Direct Value Chain 2 1 Business Case Direct

7 Direct Value Chain Business Case Direct Select Targeted Names

8 Direct Value Chain Business Case Direct 3 Select Targeted Names Print Direct

9 Direct Value Chain Business Case Direct 3 4 Select Targeted Names Print Direct Distribute Direct

10 Direct Value Chain Business Case Direct Select Targeted Names Print Direct Distribute Direct Fulfill Orders

11 Direct Value Chain Business Case Direct Select Targeted Names Print Direct Distribute Direct 6 Fulfill Orders Manage Customer Relations

12 Direct Value Chain sub-processes Business Case Direct Select Targeted Names Print Direct Distribute Direct Fulfill Orders Manage Customer Relations Take Orders Fulfill Orders Collect Payments

13 Process categories Planning Production/Distribution Customer Service Business Case Direct Print Direct Select Targeted Names Distribute Direct Fulfill Orders Manage Customer Relations

14 Planning process: key barriers Planning Processes Business Case Limited information Limited experience Not routine process Direct Lack of awareness about direct mail benefits Lack of universal, credible associations Tendency to translate local messages rather than design to market Limited financial incentive for agencies Negative image of direct mail Little information on consumer preferences

15 Production/distribution process: key barriers Production/Distribution Process Select Targeted Names Data not available Privacy concerns Address hygiene and associated software Little address support from Posts High cost for good, credible lists Misuse of lists Print Direct High quality consumables often have to be imported Import duty structure Availability of advanced printing capabilities High costs, especially for small volume orders

16 Production/distribution process: key barriers Production/Distribution Process Distribute Direct Fulfill Orders Heavy dependence on Posts Limited number of tailored services High postage costs in some countries Limited knowledge of delivery alternatives Inconvenient order processing operations Limited payment options Low credit card penetration rates Understanding customs, tariffs, regulations Security of contents Late deliveries; damaged merchandise Poor quality merchandise Consumer reluctance to purchase by mail order

17 Customer service process: key barriers Customer Service Process Manage Customer Relations Handling returns Providing product information/support Handling billing problems

18 Direct barriers Business Case Direct Select Targeted Names Print Direct Distribute Direct Fulfill Orders Manage Customer Relations Lack of awareness regarding direct mail benefits Limited incentives for advertising agencies Lack of address lists and support systems Increased privacy laws and regulations Lack of direct mail postal products and services Unreliable postal delivery systems Inefficient fulfillment operations Skeptical customers

19 Benefits of Direct Marketing Business Case Direct Print Select Direct Targeted Names Distribute Direct Fulfill Orders Manage Customer Relations

20 order and postal services Traditional printed media like catalogues and direct mailings continue to be the centerpiece of information for the consumer, enabling him or her to freely decide, online communication giving supplementary information and possibility to order. The growing penetration of e-commerce will need careful fulfillment of the orders received, and the delivery of parcels.

21 order and postal services Therefore, the issue to enable RELIABLE, AFFORDABLE and MARKET-ORIENTED postal services is and remains of the utmost importance. Postal administrations must therefore listen carefully and respond adequately and creatively to the needs and wishes of this sector. (EMOTA)

22 The multiplier sheet Each Direct piece generates a number of other mail pieces!

23 ResponseAbility Consumer Research Australia Post recently sponsored an independent research study into business people's and consumers' attitudes to different marketing media. And the results make very interesting reading. Direct mail, it was found, is the topperforming medium in all sorts of areas.

24 ResponseAbility Consumer Research Percentage of consumers who purchase as a result of receiving media Solicited Personalised 61% Unaddressed News & Mags 55% 55% TV 50% UPM - Prior Relationship 34% UPM - No Prior Relationship 24% Radio 14% 5% 0% 10% 20% 30% 40% 50% 60% 70%

25 ResponseAbility Consumer Research Besides, 98% of consumers believed that: Direct contains information that helps them understand the nature of the product being promoted. Direct helps them through the decisionmaking and purchasing process The sender is trying to provide good service.

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27 UNIVERSAL POSTAL UNION Raquel Ferrari Project Manager, Direct UNIVERSAL POSTAL UNION International Bureau 3000 BERN 15 SWITZERLAND