How To Understand The Power Of Direct Mail

Transcription

1 THE POWER OF DIRECT MAIL

2 55% of Americans read the newspaper 95% have telephones 98% have televisions EVERYBODY HAS A MAIL BOX!

3 DIRECT MAIL GIVES YOU A DECIDED EDGE You determine the best audience for your message. You can personalize each mail piece. You can learn more about your customers by including surveys or questionnaires.

4 DIRECT MAIL GIVES YOU A DECIDED EDGE You have a high degree of financial flexibility by altering formats, quantities and postage options. You decide on the depth of product detail mail is not limited to a 30 second TV spot. You benefit from mails pass-along value recipients can share your communication with like-minded consumers.

5 REASONS WHY DIRECT MAIL IS POWERFUL IT WORKS WHEN YOU RE NOT Whether you are sleeping, vacationing, working, or walking, your direct mail is working for you. It gives your best sales presentation over and over again without you having to be present.

6 REASONS WHY DIRECT MAIL IS POWERFUL IT LEVERAGES YOUR EFFORTS Do you want to know how to waste your time? Give your best sales presentation to one person at a time. Send out thousands of letters and your best sales pitch is being presented to thousands of people simultaneously.

7 REASONS WHY DIRECT MAIL IS POWERFUL ALLOWS YOU TO TARGET WITH PRECISION Instead of sending your message to people who may or may not be interested or even qualified to take advantage of your offer, direct mail allows you to pinpoint the people who fit your psychographic, demographic, and geographic profile.

8 REASONS WHY DIRECT MAIL IS POWERFUL YOU GET AN IMMEDIATE RESPONSE Once you send out your direct mail piece, it doesn t take long to get a response. Within one or two weeks, you ll receive approximately 80-90% of all those who are going to respond.

9 REASONS WHY DIRECT MAIL IS POWERFUL IT S RELATIVELY INEXPENSIVE It s amazing what you can get into a small envelope for $.44 (single piece First-Class). Photos, newspaper articles, letters, special reports and more can be put in business size envelopes. This means you can reach 100 target prospects for only $44.00 comparatively speaking that s a bargain!

10 REASONS WHY DIRECT MAIL IS POWERFUL IT S EASY TO TRACK YOUR RETURN ON INVESTMENT You can t afford to waste a single penny on ineffective marketing. With direct mail marketing you can code your mailpieces to determine the exact number of responses you receive from each campaign.

11 REASONS WHY DIRECT MAIL IS POWERFUL IT GETS ONE-ON-ONE ATTENTION Unlike billboards or radio, and TV commercials that get your attention while two or three other things also have your attention, direct mail is opened one piece at a time and read one piece at a time. This gives you the best chance of catching your prospect s attention and keeping it for a period of time.

12 REASONS WHY DIRECT MAIL IS POWERFUL IT S PERSONAL With direct mail, you can address your customers by name, speak to them individually, and appeal to their interests. Technology now gives you significant customization and personalization options.

13 REASONS WHY DIRECT MAIL IS POWERFUL IT S SOMETHING THAT YOU CAN TOUCH AND FEEL-IT HANGS AROUND You can hold direct mail in your hand. It s not made of electrons that can be deleted with the twitch of a finger. It s not a radio frequency signal that is here and then gone a moment later. It is physical. It is something that can hang around for a period of time. It has lingering marketing effects!

14 TODAY S COMMUNICATION OBSTACLES Privacy Issues Lifestyle Changes Telemarketing no-call lists Anti-spam software

15 TODAY S COMMUNICATION OBSTACLES TiVO recorders/dvrs Clutter 3,000+ images a day Reaching the right audience at the right time

16 THE INTERNET IS NOT REPLACING DIRECT MAIL Today s consumers still need the mail for important information. The internet complements mail in acquiring information and managing in the home. 86% believe mail is more private. 86% believe mail is more personal.

17 THE INTERNET IS NOT REPLACING DIRECT MAIL 70% of consumers prefer mail for receiving unsolicited information from unfamiliar companies. 85% of women ages read direct mail, while only 53% read marketing messages. More than 21% of adult consumers have responded to direct mail by visiting the sender s website, up 14% from a few years ago.the response grew significantly among men ages % compared to 10% during the same time period.

18 THE INTERNET IS NOT REPLACING DIRECT MAIL 73% of consumers prefer mail for receiving new product announcements and offers from companies they do business with, as compared to 18% for . Consumers are less likely to discard unopened mail (31%) than they are to discard unsolicited (53.2%) about new products.

19 TELEMARKETING MEDIA LIMITATIONS Intrusive MEDIA LIMITATIONS The "delete" key HOW MAIL HELPS Welcomed into the home "Do not call" list One-time messaging Frequent hang-ups Spam blockers Low retention Competitive clutter Consumers look forward to the mail Can be kept and referenced Interactive format

20 TELEVISION MEDIA LIMITATIONS Can't be personalized RADIO MEDIA LIMITATIONS Can't be personalized HOW MAIL HELPS Personalized messaging Limited message time Limited message time Accommodates detailed information Channel surfing over commercials Minimal targetability Highly targetable High production costs Low response Low-cost options and higher response rates

21 MAGAZINE NEWSPAPER MEDIA MEDIA LIMITATIONS LIMITATIONS HOW MAIL HELPS Limited measurability Declining readership Short shelf life Low production value Less selectivity than mail Long production lead time Infrequency of message One-dimensional format Measureable and targetable Quick to market Staying power and pass-along value High production value, nearly limitless creative options

22 AMERICANS PAY ATTENTION TO MAIL 98% of all households bring in their mail the day it is delivered. 75% of young consumers (Gen X & Gen Y) rate the mail they receive as valuable. 77% of Gen Y and 63% of Gen X direct mail readers have purchased items promoted in direct mail. Even though they are comfortable searching for products on-line, 49% of Gen X ers and 55% of Gen Y ers keep catalogs for an extended time and browse through them repeatedly.

23 AMERICANS PAY ATTENTION TO MAIL 75% (Gen X) and 73% (Gen Y) of direct mail readers have used mailed coupons. 70% of Gen Y consumers have responded to retail direct mail with a percent-off discount compared to 63% of total adults. Several categories of retail direct mail are especially popular with Gen X consumers: 67% read mail from home improvement retailers, and 56% read mail from office supply retailers.

24 AMERICANS PAY ATTENTION TO MAIL Baby Boomers are highly receptive to receiving promotional messages through direct mail. 85% of Baby Boomers have made a purchase from direct mail. 68% of year olds favor direct mail for receiving unsolicited promotions from unfamiliar companies. Coupons and buy one, get one free incentives are the most effective means of bringing in Baby Boomer business.

25 Why Direct Mail? Discount stores and supermarkets have experienced the greatest success when using mail to target Baby Boomers. 74% of direct mail is read by the consumer. 67% of consumers feel mail is more personal than the internet. Consumers spend an average of 30 minutes reading their mail on any given occasion.

26 Why Direct Mail? Consumers spend 45 minutes with magazines, 30 minutes with catalogs and 25 minutes with direct mail. 24% of consumers said direct mail influenced them to visit a store or website they didn t shop in the past 90 days.

27 Why Direct Mail? 76% of consumers state they read direct mail received from retailers. Women, ages are the heaviest (86%) readers, while men ages 50+ are the lightest readers (65%). Readership of retail direct mail has increased among women of all age groups. As with men, the largest increase is in the age group.

28 Retail direct mail messages that consumers surveyed say they have responded to Vertis customer focus study 28

29 Reasons that make a difference as to what direct mail consumers say they open: Vertis customer focus study 29

30 Catalogs Drive Sales 52% of consumers order products and services based on direct mail advertising. 64% of consumers order from mail received within the last month. More than twice the households order from catalogs than from information received from the internet. On-line consumers who receive a catalog from any given retailer are 75% more likely to make an on-line purchase at the retailer s website.

31 Direct Mail Travels 21% of consumers actually take a direct mail piece with them when shopping.

32 Magazines Consumers Prefer Print 92% of magazine subscribers receive their magazines in a printed format. When asked about delivery channel preference, 90% indicated they prefer the printed magazine to the e-reader or on-line version. 78% of consumers state that relevant personalized content and promotions would increase their loyalty. Source: Marketwire, Consumers Hesitant to Embrace E-Reader Advertising; Opt for Tangible, but Targeted, Experiences in Magazines, May 10, 2010.

33 DIRECT MAIL FORMATS: LETTERS, INVITATIONS, POSTCARDS One of the greatest advantages of direct mail is that it offers countless formats. Letters and invitations are the most personal form of direct mail communication. Well crafted letters create a one-to-one connection and often elicit strong response rates, while invitations involve a focused call to action. STRENGTHS Gives your mailing a personal, intimate feel. Provides an effective way to introduce your business or raise charitable funds. Costs little to produce.

34 Postcards Postcards are the simplest, most cost-effective format available. STRENGTHS Reads fast no envelope Get s customer s attention Inexpensive to produce Postcard Postage Pricing

35 Self-Mailers, Flyers, Newsletters, Brochures Self-Mailers Sent without an envelope No insertion costs Increased space for copy to tell a full story Allows full-color photos Includes options such as a coupon Flyers, Newsletters, Brochures Opens a venue for customer relationship marketing Provides space for in-depth information and product photography Has a longer shelf life Accommodates reply cards and other response devices

36 Catalogs A proven way to generate sales Drives traffic to your website Important branding tools Highly effective way to create awareness among new customers 67% of new customers are influenced by a catalog to visit a company s website. Catalogs have been found to greatly discourage comparison shopping by more than 7%. Catalog recipients are much more likely to shop for holiday gifts at the website than non-catalog recipients.

37 Customized MarketMail Impact in the Mailbox Odd-Shaped, Die-Cut Pieces Conveys messages in unique manner Jumps Out in the Mailbox! Flexible/Creative Cutouts Attachments/Pockets/Coupons Magnets Perforations

38 Repositionable Notes Value: Actionable messaging Lives beyond the life of host piece Repositions to computer, telephone, refrigerator Possibilities: Increased Open-Read Rates Increased Response Rates Increased ROI Applications: Customer Acquisition/Retention Customer Relationship Management Customer Up-Selling See page 84 for FREE Antiques

39 Sticky-type notes Repositionable Notes Flats Provides a significant and flexible marketing tool Enhances Brand Awareness Your message here! Additional Promotional Impact Impact

40 TOP 10 USES FOR DIRECT MAIL Generate New Prospects Leads Produce More Store Traffic and Visibility Respond to Competitive Activity Retain and Reward Customer Loyalty Drive Traffic and Promote Your Website Improve Sales Force Efficiency Improve Customer Service Increase Customers Average Purchase Amounts Generating Higher Sales Announcing Store Hours/Sales/New Locations Expand Media Marketing to Top Prospects and Select Customers Compmatrixdata.com

41 JUNK MAIL VS DIRECT MAIL Terms used interchangeably? There are two different entities IF YOU HAVEN T PUT YOUR PACKAGE INTO THE RIGHT HANDS, YOU VE WASTED MONEY GETTING IT THERE. Junk Mail is nothing that can t be cured with a decent mailing list.

42 USPS SURVEY FINDINGS: Mail reaches business professionals. Business mail doesn t get screened as aggressively as e- mail is filtered. Business people keep useful mail in a mail library a file, drawer, or on a bulletin board. Mail helps people make decisions. When it s time to make a purchase, find a supplier or attend a professional event, professionals may turn to their mail libraries.

43 Sending a direct mailing is like owning a retail store: the longer you keep your potential customer in the store, the more likely he/she is to make a purchase. Example: Publisher s Clearing House they hide the free prize stamps deep in the package the longer you look for them, the more likely you are to find something you like and place an order.

44 Why People Open Mail Percent Need For Product / Service Name on Envelope Package Looks Interesting Special Offer / Discount Looks Important Free Gift or Token Dated Material DMA Fact Book

45 DIRECT MAIL DO S AND DON TS DO explore the option of consulting with a direct marketing agency to strategically add mail to your integrated media campaign. DO consult your USPS Account Manager for tips on how to improve your mailings and maximize savings on postage. DO feature an offer prominently on the front of your mail piece to boost readership and response. DO choose the format, list, and offer for highest ROI, rather than lowest cost.

46 DIRECT MAIL DO S AND DON TS DO track responses to measure the effectiveness of the mail piece. DO test different offers and formats to learn more about your customers and the best response triggers. DO find out how well your other media efforts are doing by mailing a short survey in addition to the offer. DO use mail to achieve your business goals for customer acquisition, relationship building, and stakeholder communications.

47 Use the magic words FREE, NO OBLIGATION, NO SALES PERSON WILL CALL, DETAILS INSIDE, SEE INSIDE, LIMITED TIME ONLY, ANNOUNCING, AT LAST, NEW

48 DIRECT MAIL DO S AND DON TS DON T begin your direct mail campaign without a clear, measureable objective. DON T clutter a mail piece with too much copy or graphics so your offer or call to action gets lost. DON T mistake income for interest just because people can afford your product doesn t mean they want it. DON T assume you know what your customers want or need use your mail piece to ask them directly.

49 DIRECT MAIL DO S AND DON TS DON T mark your pieces urgent when they are not customers feel misled and will likely ignore your message in the future. DON T waste time and costs update your mailing list and eliminate bad addresses before each campaign. DON T think of mail as a one-off rather it s an ongoing customer relationship management tool that picks up where other media leaves off.

50 GREEN IDEAS Update your mailing lists often to eliminate bad addresses. Once your lists are updated, make a continuous effort to keep them clean. Personalize your message to increase relevance and reduce waste. Use recycled paper with as much recycled content as possible. Use chlorine-free paper.

51 GREEN IDEAS Opt for less ink usage/coverage (fewer colors usually mean fewer chemicals). Research different coatings and the impact of each on the environment before using them. Choose vendors who use renewable energy and responsible forestry practices. Recycle as much as possible.

52 EVERY DOLLAR SPENT ON DIRECT MAIL RETURNS AN AVERAGE $10.00 IN SALES A HIGHER RETURN ON INVESTMENT THAN ANY OTHER NON-DIRECT MASS COMMUNICATION METHOD IN THE 2008 EXACT TARGET CHANNEL PREFERENCE SURVEY, RESPONDENTS CHOSE DIRECT MAIL AS THEIR MOST PREFERRED CHANNEL FOR RECEIVING PROMOTIONS FROM COMPANIES THEY ALREADY DO BUSINESS WITH

53 RESOURCES RIBBS A Guide to Move Update Updated April POSTAL EXPLORER Domestic Mail Manual Mailing Standards of the USPS USPS

54 TAP INTO THE POWER OF DIRECT MAIL Don t forget, it all starts with a clean address!

55 For a copy of this presentation log onto: After June 17, 2010 THERESA PETERLEIN MID-MICHIGAN POSTAL CUSTOMER COUNCIL Postal Customer Council Advisory Committee (PCCAC) COMMUNICATION/NETWORKING (616)