The Future of Direct Mail and Integration with Mobile Technology. Coakley Workman United States Postal Service Direct Mail & Periodicals
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1 The Future of Direct Mail and Integration with Mobile Technology Coakley Workman United States Postal Service Direct Mail & Periodicals
2 Value of Mail 80% look at their mail daily as a valuable news source 75% like to see what s in the mail Mail is still highly valued 63% of mail is kept at least 2 days Source: USPS Mail Moment Survey
3 What Value Does Direct Mail Offer? 40% use coupons from the mail* over 90% have a household CEO * 81% of the people in households that collect, sort, and manage the mail also pay the bills and do the shopping * * U.S. Postal Service 2012 Mail Moment Research
4 The Mail Moment Gen X/Gen Y 79% sort the mail at the first opportunity 67% scan the mail looking for important/interesting mail 72% would like to receive more personal mail Source: USPS Mail Moment Survey
5 The Mail Moment Source: USPS Mail Moment Survey, 2012
6 Direct Mail market share 2012 Advertising Market Share Outdoor (incl cinema), 3.8% Directories, 2.4% Direct Mail, 11.4% Radio, 8.7% Magazines, 7.6% TV (Nat'l, Cable & Local), 33.7% Total 2012 media spend = $173 B (estimated) Direct mail represents the third largest channel for media advertising of which $173 billion is projected to be spent in Newspaper, 11.1% Online (Search/Other Digital), 11.7% Digital Media (Online video, mobile, online classifieds, ), 9.7%
7 Direct Mail is Tactical Mailing Formats Strategy Message Integration -Postcard -Self-mailers -Letter/Envelopes -Catalogs -Acquisition -Retention -Loyalty -Win Back What is our offer? -QR Codes -Personalization -PURL -Mobile Tech
8 Direct Mail as effective as ever Acquisition Contact/Retention Other 23% Other 19% Affiliate Marketing 8% SEM 10% Direct Mail 34% Social Media 6% Telemarketing 7% Direct Mail 37% 25% 31% Target Marketing 2012 Annual Media Usage Survey As a B2C channel, direct mail delivers strongest ROI for customer acquisition and retention
9 Direct Mail as effective as ever 40% of consumers say that they have tried a new business after receiving direct mail* 70% have renewed relationships with businesses that they had previously ceased using* *DM Marketing Trends 2012, Ballantine Corp
10 What Value Does Direct Mail Offer? Direct Mail Breaks through the Clutter and is processed!
11 What Value Does Direct Mail Offer? Direct Mail Breaks through the Clutter Avg. person is exposed to 2,904 media messages a day, pays attention to 52, and remembers 4 Avg. household gets 2 pieces of Direct Mail vs s daily Food for Thought: 79% of consumers find reading mail more convenient than going online* * *IOM, August
12 USPS Strategy Embrace technology, encourage mail integration. Strategy Targets Drive long-term product value Relevance Effectiveness Responsiveness Engagement Lead innovation Accecelerate best practices Promote awareness and engagement Marketers and business customers Consumers
13 The Original Mobile Device Portable Easy to transport Fast Delivery in as little as one day Broad Reach Touches every household in the U.S.
14 Mobile Commerce growth Smartphone growth 100 million in 2012, 200 million by 2016 Double-digit growth next 4 years Mobile internet usage increasing 75% by 2016 Mobile sales growth Second fastest growing mobile activity From 5.5% of e-commerce sales 2010 to 11% in 2011 MarketingProfs 2012 Prediction: Within 5 years, 50% of U.S. shoppers will shop on mobile devices ABI Research 2010 emarketer2012 comscore 2012
15 U.S. Market Mobilizing Mobile Growth 64% of owners now use their phones to shop online 82% of year old shoppers (75% overall) would switch brands if offered a mobile coupon for a competing product while shopping 1 8 out of 10 U.S. adults plan to continue to engage in couponing activities. (Coupons.com, Inc.) Source: 1 Fierce Mobile Content. Mobile Promotions Trump Brand Loyalty for Consumers Shopping in Grocery and Drug Stores
16 Tablets The Next Wave We have always capped e-commerce at 10 to 15 percent of total retail sales, but tablets and mobile devices potentially have the capability of expanding e-commerce much beyond that. Forrester ecommerce Analyst Sucharita Mulpuru
17 USPS Products Integration With Mobile What customers have said. We need to bend the curve to slow projected decreases keep mail relevant rebuild the value of a mailbox create Interactivity in the Mailbox recapture market share generate awareness of and good press for USPS define USPS role in the e-commerce ecosystem brand USPS as a technology leader link physical mail to a digital/mobile experience highlight mail as less intrusive than digital noise shape the market accelerate mailers adoption of mobile USPS Products Integration With Mobile Use mobile to drive relevance, thus volume and market share Position USPS as market leader Educate mailers on mobile -themes from stakeholder interviews
18 2012 Mobile Commerce & Personalization Promotion Participation Results Nearly 1,100 customers and over 42,000 mailings 24% of Standard Mail (3.2B pieces) 3% of First-Class presort mail (0.2B pieces) 3% of participating volume paid non-profit postage $14.8 M in discounts Participating Volumes Sat-HD Flats, 26% Sat-HD Letters, 10% FCM, 7% CR, 24% Letters, 23% Flats, 10%
19 2012 Mobile Commerce & Personalization Promotion Survey Results Creating mobile optimized site was biggest challenge 28% of respondents had to make changes to their web site 16% said changes were prompted by promotion Additional 7% said they accelerated their plans 38% perceive USPS as being more innovative
20 2012 Holiday Mobile Shopping Promotion Overview Mobile technology embedded on mailpiece Technology must link to mobile-optimized website Recipient must be able to purchase a product Discount: Upfront 2% postage discount Additional 1% discount for PM fulfillment Registration Period: Sept Nov. 21 Program Period: Nov. 7 Nov. 21
21 2012 Holiday Mobile Shopping Promotion Preliminary Results Over 330 customers participated 1 B mailpieces received discount Over $4.6 M in discounts Few customers have registered for additional 1% discount for PM fulfillment Registration closed December 10, 2012 Promotion survey released week of December 10th
22 The Future The reports of my death have been greatly exaggerated. Mark Twain
23 Good News! The Postal Service is: Adapting to a digital world Promoting innovation Delivering new solutions Making it easier Taking the scary out of mail.. a d a p t...
24 2013 Promotions Calendar 2013 Marketing Mail Promotions
25 2013 Promotions Calendar
26 2013 Promotions Calendar
27 2013 Mobile Coupon & Click-To-Call Promotion Build on previous promotions and continue strategy to encourage integration of Direct Mail and mobile technology Two ways to participate: Direct Mail Mobile Coupon and/or Click- To-Call functionality Eligible Mail: Overview Standard Mail letters and flats Nonprofit Standard Mail letters and flats First-Class Mail letters, flats and cards (presort and automation) Discount: Upfront 2 % postage
28 2013 Promotions Calendar Direct Mail Mobile Coupon Registration Period: Jan. 15 Apr. 30 Program Period: Mar. 1 Apr. 30
29 2013 Promotions Calendar Click-to-Call Registration Period: Jan. 15 Apr. 30 Program Period: Mar. 1 Apr. 30
30 2013 Promotions Calendar
31 Earned Value Overview Earned Value is designed to encourage mailers to continue to use First-Class Mail as a primary reply mechanism for their customers Offered to mailers of First-Class Mail BRM and CRM Participants must register their Mailer IDs and the Permit Imprint account to which future earned credits will be applied Mail service providers cannot register on behalf of mail owners nor can they enroll customers via the auto-enrollment features Credit Amount: $0.02 per mailpiece scanned (BRM and CRM)
32 2013 Promotions Calendar Earned Value Reply Mail Registration Period: Jan. 15 Mar. 31 Program Period: Apr. 1 Jun. 30
33 2013 Promotions Calendar Product Samples Aug. 1 Sept. 30 Coming Soon Mobile Buy-It- Now Nov. 1 Dec. 31 Picture Permit Aug. 1 Sept. 30 Emerging Technology Aug. 1 Sept. 30
34 2013 Promotions Calendar Augmented Reality Emerging Technology Aug. 1 Sept. 30 Near Field Communications Authentication Mobile Buy-It-Now Nov. 1 Dec. 31 Mobile Optimized Shopping
35 Questions?
36 36
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