Recycling messages and direct mail Qualitative research commissioned by ONEPOST May 2009
Executive summary Environmental issues are necessarily high on the agenda for an industry which is perceived as generating large volumes of junk. Unfortunately, the direct mail industry is an easy target for a government that is faced with a raft of environmental targets to meet. As an industry we recognise our responsibilities in supporting the environmental challenge. There are a number of ways in which direct marketing best practice can address these challenges and take action before government legislation enforces change namely self regulation rather than regulation. One of these challenges is for recipients of direct mail to recognise the opportunity to recycle the material after use. In 2008 ONEPOST managed up to 25 million mail items per month on behalf of its clients. In developing their own environmental policy and working towards BS EN ISO 14001 accreditation, ONEPOST recognised that very few mail items carried a recycling message. This piece of independently commissioned qualitative research, aimed at both businesses and consumers, looked at awareness of, and attitudes towards, a recycle logo on direct mail packs. The key findings are: Consumers were likely to be less thorough with the recycling of direct mail than with other household items (eg glass) due to a lack of awareness about can / cannot be recycled Consumers did not feel that the use of a recycle logo / message on the outside of a mail piece would make them throw it away more quickly in fact, they felt it would make their attention last a little longer Consumers were surprised that any company would not consider putting a recycle logo / message on their direct mail The inclusion of a supporting strapline to a recycle logo, explaining how to recycle the mailing piece is favoured by consumers and addresses a number of their concerns and barriers to recycling Including a recycle logo / message doesn t have any negative impact on consumers at worst it s neutral and at best it can change their perception of the organisation and the medium as a whole. The businesses perception of no effect was proved false. The importance of environmental issues to customers should not be underestimated, despite difficult economic climes. Businesses are currently lagging behind their customers views. The direct mail industry can have a very positive influence on the public by providing the consumer with a reminder and call to action to recycle their direct mail. A recycle logo / message could, and should, find itself in every household within the UK, serving as a clear sign that the industry is acting responsibly.
Introduction Here in the UK it is increasingly apparent that the Government, business and consumers should recognise the importance of responding to the issues arising from climate change. As of 2010, industry and commerce will face unprecedented environmental challenges. A raft of environmental targets (including the provisions of the EU Landfill Directive and an increase in mandatory levels of household recycling) will come into effect in the UK directed towards improving the country s resource efficiency. This white paper looks at the environmental issues pertinent to the direct marketing industry (including environmental management systems, Defra, data, PAS 2020 and Responsible Mail) and gives you exclusive access to research carried out by ONEPOST, the UK s leading independent provider of postal management and advice. The research provides a unique insight into the views on environmental issues from consumers and businesses. We believe that these findings will give businesses the opportunity to promote their brand whilst at the same time helping to further reduce their impact on the environment.
Background Despite all the best practice efforts, the junk mail tag remains a term used by consumers everyday. This tag reaches a higher position on the agenda when environmental issues are under discussion, largely because of the perception of waste. Whilst preparing the 2007 Waste Strategy, the Government looked at the materials where most could be done to tackle climate change. Paper was high on the list. Every tonne of paper that is not sent to landfill is equivalent to saving more than a tonne of carbon dioxide emissions. Tackling paper waste is therefore a key part of the current waste strategy and much of the finger pointing is done towards the direct marketing industry. Junk mail is an ideal target for prevention in that it is inherently unnecessary and moves to restrict it are likely to be popular with many people. Between 120,000-220,000 tonnes of junk mail could be prevented each year through a combination of policies, saving the taxpayer between 15-30 million in disposal costs. 1 This move, of course, would not be popular within the direct marketing industry and so it is a challenge for organisations such as ONEPOST, to demonstrate responsible actions before government legislation enforces change. One of these actions is for recipients of direct mail to recognise the opportunity to recycle the material after use. It s bad news for the environment if it ends up going into general household waste and then into a landfill site. Back in 2006 the UK had a forecast estimate of only another seven year capacity for landfill. 93% of consumers think businesses should be responsible for their environmental impact 2. The use of a recycling message on direct mail is a key tool for businesses to demonstrate that they are playing their part. In 2008 ONEPOST managed up to 25 million mail items per month on behalf of its clients; whilst developing their own environmental policy and, working towards BS EN ISO 14001 accreditation, they recognised that very few mail items carried a recycling message. A qualitative research programme was commissioned to investigate this further with the following results. 1 Eunomia Research Household Waste Prevention: Policy Side Research 2007 2 Ipsos Mori Survey, 2005
The issues Environmental management systems A relatively small number of businesses have arrived at the stage where they can communicate their environmental position and actions. Those that have reached this stage have enjoyed the benefits of competitive advantage. An environmental management system is a tool designed to evaluate an organisation s significant environmental impacts and provides a structured approach to environmental protection. It also monitors environmental performance and integrates environmental management into a company s daily operations, long-term planning and other quality management systems. BS EN ISO 14001 is an international management standard that specifies a process for controlling and improving a company s environmental performance. Defra Back in July 2003 the Direct Marketing Association (DMA) signed a landmark agreement with the Department for the Environment, Food and Rural Affairs (Defra) to develop a Direct Mail and Promotions Producer Responsibility Scheme 3. The thinking behind this agreement was to help influence long term economic and environmental sustainability for the direct marketing industry. The agreement committed the direct marketing industry to a series of targets over a 10 year period and to a change in behaviour which would reduce landfill, benefit consumers and lead to more effectively targeted direct marketing. There are 3 clear objectives stated within the agreement: 1. Increase collection and recycling of direct marketing materials 2. Publicise MPS, opt-out and selective facilities 3. Improve the targeting of direct marketing. The targets for recycling rates were set as follows: 1. By 2005 30% recycled 2. By 2009 55% recycled 3. By 2013 70% recycled At the time of signing the agreement (2001/2) research showed that approximately 13% of direct mail material was going to recycling. 3 Direct mail and promotions producer responsibility scheme see http://www.dma.org.uk/_attachments/resources/1081_s4.pdf
Data Waste prevention is even better for the environment than recycling. 4 Of the 4 billion items of direct mail sent in the UK each year, almost 100 million are being sent to the wrong person. This equates to a financial waste of over 80million. In addition, 59 million pieces are returned, costing businesses 50million every year 5. The intelligent use of data is vital to increasing the credibility of direct marketing and ridding the industry of the junk mail tag. Enhancement and suppression lies at the heart of this and a number of tools are available to do this including the Mailing Preference Service (MPS) 6. Organisations can become more targeted and efficient, cutting costs and reducing their direct mail volume without harming sales. Direct mail is currently opt out if individuals wish to stop receiving mail from a specific organisation they can contact the company directly and ask them to stop sending information, or they can register with the Mailing Preference Service, which will stop up to 95% of addressed direct mail. Self-regulation is particularly important to guard the direct marketing industry against potentially stringent new legislation. The consequences of opt-in are obvious. Coverage becomes very limited and prospecting less efficient. Opt in also favours well known brands and organisations that have a large existing customer base; working against smaller companies and start ups. If all targeted direct marketing media were to become opt in, advertisers would move back to untargeted channels. This would increase the volume of waste from media such as unaddressed mail, leaflets and inserts, offsetting any progress achieved in targeted media. 4 Joan Ruddock, Minister for Climate Change, Biodiversity and Waste 5 Source: Formscan 6 The Mailing Preference Service (MPS) allows consumers to register, free of charge, their wish to be removed from up to 95% of direct mail lists in the UK. Direct mailers must use this consumer file to clean their lists. This a requirement of DMA membership and of the British Codes of Advertising & Sales Promotion, administered by the Advertising Standards Authority. For further information see www.mpsonline.org.uk
PAS 2020 PAS 2020 7 was officially launched on 21 st January 2009. This is a milestone in the development of direct marketing best environmental practice. Developed by a steering group made up of national and local Government, various trade associations, industry practitioners and consumer groups, this set of environmental objectives, performance levels and indicators for different environmental aspects of a DM campaign embodies two key principles: 1. The recognition of the impact of direct marketing and the criticism of the perceived negative environmental impact of the industry 2. That the direct marketing sector are now taking more evident responsibility, which aims for greater environmental efficiencies, without damaging campaign results and profitability. It is up to the Direct Marketing industry itself to ensure that this initiative succeeds. If it can do so then the industry will be on the way to showing it can deliver its share of the Waste Strategy objectives without the need for additional intervention by Government. The ball is in your court. 8 Responsible Mail The postal industry has also demonstrated a number of environmental initiatives, most notably Royal Mail s Responsible Mail (wholesale) and Sustainable Mail (retail) products which offer discounts based on a mailing item meeting a range of environmentally friendly criteria, including data quality, cleansing, responsible sourcing and recyclability. 9 These criteria are aligned to those set out in PAS 2020. 7 To purchase a copy of the standard visit www.bsigroup.com/pas2020 8 Response to the launch of PAS 2020, by Roy Hathaway, Head of Waste Regulation and Business Waste, Defra, January 2009 9 For further information about Responsible Mail visit www.onepost.co.uk/responsible_mail.html
The research Methodology Independent market research consultancy, The Research Box, was commissioned to complete this piece of qualitative research, aimed at both businesses and consumers. Consumer: To find out whether the presence of a recycling message on a mailing piece is noticed by consumers and whether it encourages them to recycle Does the presence of a recycling message on a mailing piece create any additional consumer response Four consumer focus groups of 8-10 people were conducted. The sessions were each 1.5 hours, following a pre-agreed topic guide. Business: To ascertain why some advertisers are not using recycle logos To find out if there are barriers to implementing the use of recycle logos Ten in-depth (pre-arranged) interviews (telephone or face-to-face) took place with a mix of sectors, including some DM intermediaries. The Waste and Resources Action Programme (WRAP) 10 have produced a 'Recycle Now' logo which can be used with a variety of supporting consumer call to actions statements. This logo was the primary focus of the research: 10 WRAP helps individuals, businesses and local authorities to reduce waste and recycle more, making better use of resources and helping to tackle climate change. See www.wrap.org.uk RecycleNow brand guidelines and logos can be downloaded from www.recyclenowpartners.org.uk
Key findings Consumer attitudes towards direct mail Respondents identified approximately one third of the mail they received to be relevant; something they would keep. Respondents varied in terms of what mailing pieces would be opened upon receipt. Anything solicited, or from a company they had a current relationship with was always opened. Spontaneous examination of a number of direct mail pieces revealed that the first detail noticed is the name of the sending company. Although the term junk mail is used frequently, the consumers were more discerning in how they categorised all the direct mail they received, including transactional and fulfilment packs. Anything whereby the consumer had an existing relationship or had solicited the piece was not regarded as junk, with the exception sometime of cross-selling pieces. Items from financial services (where there was no current relationship) were most likely to be rejected, although car insurance deals did attract attention. Charity mailings were also unpopular unless a relationship existed. Available time was identified as a key contributing factor for the opening of mail. respondents opened more unsolicited mail than younger people. Older Interesting or unusual looking mail pieces were more likely to be opened the intrigue factor that the pack might contain a sample or a voucher were key to this Postcards attracted attention immediately as did bold / strong colour or imagery. Plain cover envelopes with no content clues were also likely to be opened. Recycling and direct mail Focus group respondents felt that their recycling habits were largely enforced by local councils. Whilst consumers were currently recycling a significant amount according to what their local authorities would allow, they were less likely to be as thorough with the recycling of direct mail. A number of reasons for this were given, including a lack of awareness as to whether it could all be recycled - eg window envelopes, very glossy pieces and polywrap. If in any doubt, it would be put in a normal bin. Whilst some people were more knowledgeable and very motivated to recycle direct mail, others behaviour varied according to their mood or levels of energy at the time of opening / dealing with the piece.
There were financial reasons for some other green behaviours - such as buying local, buying ecolight bulbs and paperless billing - but in the main they were not greatly motivated by green issues. They were however annoyed by the idea of waste. The use of polywrap was heavily criticized as this cannot be recycled and was seen as largely unnecessary. If unopened, polywrapped items were more likely to go straight into a normal bin, rather than separated for recycling (of the paper contents). Within the focus groups, there was no spontaneous identification of recycling logos / messages. Once prompted a number noted they had seen information about the use of recycled stock / sustainable source logos. There was no confusion between the two messages. The focus groups were unsure why they did not generally notice the recycle message; opinions concurred that they had not seen it very much and it was too small to make an impact (particularly when printed in black & white). It was felt to have more impact when printed in green and when a strapline was included. They did not believe that the recycle now logo on the outside of a mailpiece would make them throw it away more quickly in fact, they felt it would make their attention last a little longer. Consumers sampled were surprised that any company would not consider putting it on their direct mail; the concept of the recycle logo was considered par for the course in the sense that they felt bombarded with recycle messages and imagined such things were regulated and compulsory. Whilst no effect on changing response levels as a result of including a logo could be ascertained, there was a negative perception towards brands if a recycle logo was not included. Respondents believed that financial services should include a logo as part of their corporate responsibility programme; charities and government were also noted as companies who were expected to include a logo. Respondents agreed that more should be done by companies, if they were going to continue sending direct mail, for example:- Use of recycled paper Reducing duplicates Mistakes on databases (people moved or on multiple mailings) Using postcards Different papers / inks ( glossy production is perceived as bad for the environment) Carbon offsetting (by companies sending mail) The groups felt that a number of actions needed to be addressed by the direct mail industry and that a recycle logo itself would not be enough; it needs to be part of a fuller environmental programme.
Business attitudes towards the recycling logo barriers to use Of those businesses interviewed, intermediaries felt that there had been little demand from clients to look at environmental issues, and therefore they had not pursued this. In about a third of cases it was felt to be merely due to a lack of impetus or inertia and some small push was felt to encourage this. An exception was the home shopping sector where mailing volumes were being reviewed. Any demand had come from charitable and educational sectors, and more broadly on FSC stock availability. Although they suspected consumers were motivated by green issues, they felt they had no demonstrable evidence to confirm this. As a result, few had considered using a recycle logo. The main negatives associated with the recycling logo were also considered to be barriers to usage: It s not my demographic that needs to be encouraged because they are already responsible Creative sensibilities the creative person being concerned about it spoiling the look (size of the logo / lack of space on the envelope) There was a feeling that the logo was a public sector / consumer logo not a B2B brand and that it was too cheery for some sectors Perception of cost - a few thought that you had to pay for the logo and that printing it would cost more Perception of no effect some doubted that it had any effect because they assumed that everyone recycles; there is also a plethora of logos and would this one have longevity? Some felt that there were more fundamental issues for the industry to address before including a logo (eg data targeting and print / production methods)
Conclusion and recommendations The barriers presented by businesses interviewed regarding using a recycle logo has been very much overcome by the findings of the consumer focus groups. Including a recycle logo / message doesn t have any negative impact on consumers at worst it s neutral and at best it can change their perception of the organisation and the medium as a whole. The businesses perception of no effect was proved false. Omission of a recycle logo has a bigger effect than its inclusion - doing nothing has a negative effect on the consumer and therefore requires action by the direct mail industry. The inclusion of a supporting strapline to a recycle logo to explain how to recycle the mailing piece is favoured by consumers and addresses a number of their concerns and barriers to recycling (there is then no confusion as to whether it can / cannot be recycled). Hopefully this consumer feedback will give many businesses the demonstrable evidence they require to include a recycle logo / message. Whilst it is a concept real in the mind of the consumer, the junk mail tag has been very much exacerbated by the media, yet the research shows that, despite this bugbear, some of the respondents did wish to receive direct mail in case they missed anything. Direct mail plays a key and welcome role in existing relationships between businesses and their customers. Both consumers and businesses agree that more needs to be done and the inclusion of a recycling logo / message is only part of a bigger environmental programme of activity. This includes print and production methods as well as data targeting. Whilst the sophistication of data targeting techniques are ever growing, the research demonstrates there is no consumer understanding regarding list building. This contributes to the perception of direct mail as waste. The direct mail industry can have a very positive influence on the public by providing the consumer with a reminder and call to action to recycle their direct mail. A recycle logo could find itself in every household within the UK, serving as a clear sign that the industry is acting responsibly. For a communications medium that is designed to inform, there is still much work to be done. Education is key.
About the whitepaper author and contributors ONEPOST As the UK s leading independent provider of postal management and advice, ONEPOST is a pioneering initiative that has developed since its conception in 2005 in direct response to the deregulation of the postal system. Its aim now, as it was then, is to provide up-to-the-minute postal advice and management. ONEPOST uses a unique, in-house developed software system that enables clients to get the very best value from their postage budgets by accessing the pricing and service profiles of the major licensed operators in the industry. ONEPOST hold membership of the Direct Marketing Association (DMA) and Institute of Direct Marketing (IDM). ONEPOST have also met the requirements for ISO BS EN 9001 and ISO BS EN 14001 accreditations. For further information please contact: Graham Cooper, Managing Director ONEPOST 1 Gordano Court Serbert Way Portishead BS20 7FS 01275 801 000 marketing@onepost.co.uk www.onepost.co.uk The Research Box The Research Box is a market research consultancy established in 1999 by two experienced research professions, Alison Fleming and Hugh Inwood. The consultancy s capabilities are equally strong in qualitative and quantitative techniques. Alison Fleming has a BA (Hons) in Modern Languages from the University of Sussex and an MSc in Marketing from Strathclyde Business School. She has been a qualitative research specialist for over ten years and is an Associate member of the Market Research Society and the Association of Qualitative Research.