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Direct Mail Audit Netflix
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Direct Mail Audit Netflix



To purchase a printed version of this marketing plan email info@kulinmarketing.com.

To purchase a printed version of this marketing plan email info@kulinmarketing.com.



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Direct Mail Audit Netflix Direct Mail Audit Netflix Document Transcript

  • Direct and Database Marketing 321 Assignment #2 By: Elizabeth Kulin June 2009
  • Introduction Direct marketing can be carried out through various Medias and is sent from the marketer to the consumer. In the case of a direct mail piece, it can be created in the form of a postcard, catalog, package or self-mailer. Strategic choices of form, design, and matching the direct mail piece list and offer to the appropriate target market, can increase the chance that the direct mail piece will be opened by the recipient. These strategies can also increase the chances that the desired response is taken by the recipients. Another advantage of direct mail is the rate and types of responses provide testable data for the marketer. However, from a negative standpoint, recipients who receive an abundance of
  • mail can over look direct mail and it is an expensive marketing medium to execute. Nonetheless, it is noted by the Winterberry Group that this media is expected to grow at a rate of 7.5% annually over the next few years (p.411), which means it is still an important piece of a direct mail portfolio. The first requirement of a direct mail campaign is to decide who the recipients should be (for example, potential or currant customers). Once decided, marketers must obtain the names and addresses from an in-house database or list renting. As Vice Present of Direct Marketing for Netflix, with the goal of targeting a direct mailing campaign towards potential new customers, it is important to strategically analyze how the marketing team will obtain the prospect list. Details about the list vendor, and what types of consumers will be on the list, is important to gather and analyze. Ideally, the list would include consumers whose characteristics matched the Netflix target market. This will increase the chance that the recipients will be interested in the direct mail piece, and respond to the offer. These chances could be increased by obtaining a list that possibly includes people who own a DVD player, actively rent movies and have busy
  • lifestyles (a busy lifestyle could translate to an affinity for mail order services). To learn if consumers on the list hold these characteristics, the marketing team will have to communicate with the list owner prior to rental purchase. The company “Experian” is a list provider that offers marketers the ability to buy segmented lists based on different consumer attributes. Out of the 8 types of list available for rental, the most appropriate one for this Netflix direct mail campaign is the Behavior Bank Database (lifestyle data). This list claims to include information on customer behaviors and buying trends such as hobbies, brand preferences, product usage, frequent travelers and computer owners (Experian website). Therefore, this list will offer the best insight to whether the people on the list reflect the target market of individuals who rent movies as a hobby, own a DVD player, and have a busy/travel lifestyle. Once the goal of renting an appropriate list of recipients is completed, the offer must be strategically created and analyzed. The offer of this direct mail piece is a “free trial” membership. Its objective is to entice recipients to respond, experience the Netflix service and by doing so
  • acquire membership that will create monetary sales for the company. The use of the experience-marketing tactic could help to acquire a high volume of new customers because it will allow responders to try the service and learn the benefits first hand. For example, respondents who fall under the busy lifestyle target market may become dependent on the benefits of the mail order service that offers no postage requirements of late fee penalties. By becoming an integrated part of people’s lives, Netflix can increase chances of conversion post the free trial. However, this is a soft premium offer that could obtain high response rates, which can help to grow the in-house database list, but not obtain quality responses from recipients who are truly interested in becoming future paid customers. To measure the results of the response, first the recipient must initially open the mail piece itself. A strategic designed outer envelope can increase this occurrence. The outer envelope of the direct mail piece is a teaser that is used to capture the attention of the recipient and encourage opening in an engaging way. Marketers can convey the mail piece’s concept, offer and brand, using colors and
  • exciting copy formats to attract attention. The Netflix free trail outer envelope integrates the company brand, uses design copy to attract attention, and conveys the offer details (type, response method, and time expiration). The copy provides the recipient insight to the direct mail piece’s sender and purpose, while the style and design add to the attention attraction. The actual copy includes the word “FREE” in large text font, is bright and loud in design style, and announces to the recipient that this is an offer letter. It also provides response instructions and timing expiration information. This enables the recipient to learn about the offer details and response requirements before opening the letter, practically illuminating the need to open the letter. Unfortunately, this could counteract the objective of the outer envelope, which is to get the recipient to open it. It is important that the outer envelope pushes recipients to open because the internal letter is another strategic element to the mail piece that has information for the recipient. The goal of the letter is to connect with the reader, tell a story and claim mail validity (p.416). This Netflix letter is a classic package that incorporates
  • personalization; by using the words “you” and “you’re” throughout the copy. It asks recipients to respond by internet, which requires recipients to have access to a computer and internet service. However, since Netflix targets individuals with such access (its service is partially web based) this requirement should be convenient for the recipients of this direct mail piece. The letter also states that there is an expiration date for the free trail, however it is about 1 month in duration post receipt (Jan received this letter in November and the expiration is December). This duration could be to long of a span to really create a sense of immediacy among recipients, which could negatively affect response rates. Additionally, the copy within the letter has been designed using bold and underlined text at various points. Such specific text stands out and enables the reader to learn about the offer, response method, and time expiration without reading the entire copy. Also, the PS, research shows 79% of people who open a direct mail piece will read the P.S. first (National Mail Order Association, http:// www.nmoa.org/articles/dmnews/Postscripts407_RJ.htm), emphasizes the main offer and incentive in effort to encourage the reader to become interested and
  • take action. Finally, the letter design includes an interactive device card that attempts to attract interest to become hands on and involved with the letter. Also, this card is printed with the offer and response methods details. This means that if the reader tares off the card, and discards the letter, they will still have a reminder and the necessary information to take action and respond. These design tactics of the letter are used to encourage the recipient to not only respond, but also grow interested in Netflix by translating their unique attributes into customer benefits the response rate could be more successful. For example, Netflix has a large library of movies, which is most likely a benefit to the target market that often rents movies. To portray this selling point the copy of this letter states that Netflix has, “over 100,000 DVDs – we’ve got everything”. By stating this, the letter is speaking to the active movie renter target market and illuminating an attribute, which they find beneficial. The letter reinforces this visually with images of popular DVDs at the bottom of page 1, and verbally on page 2 with a list of DVD titles. A second selling point and unique attribute of Netflix is it mail order
  • service. The letter points out that Netflix makes life easier by stating that it has no due dates, no late fees, and free postage (both ways!). This attribute is a benefit that speaks directly to the busy lifestyle target market customer. By translating selling points into customer benefits this letter seems to be attempting to convince readers that going beyond the free trail, and becoming an active member of Netflix, is beneficial. This tactic might be implemented to attempt and offset the soft offer. A direct mail piece is strategically written with the campaigns objectives in mind. A classic format to follow is the AIDA formula. This letter attempts to follow the AIDA formula as it implements each of the 4 criteria. Its color, design and the repeated capitalized word “FREE” attract attention at the outer envelope level. Second, the letter sparks the reader’s interest and offers beneficial information describing the Netflix customer benefits. Finally, the letter should leverage the user’s interest to create a desire to obtain the offer and a sense of urgency in responding. This letter does attempt to ignite these feelings in the reader by associating emotional elements of relaxation and fun to the action of
  • watching movies. However, it does not portray a real sense of critical urgency to take action. Furthermore, this letter has included a buckslip brochure that also does not convey a sense of urgency. A buckslip is a visual element that includes shorthand description of the letter. It requires less reading time and attention from the recipients. In this case, the Netflix buckslip restates the membership benefits through copy and image that details its DVD library and easy mail order service. It also includes the free trial offer information. However, the offer information is not incorporated into the main scene of the imagery, but in text below it. Recipients who do not take the time to investigate the entire 1 page could overlook this lower section area. In this case, the offer would not be communicated to the recipient. The marketing team has decided that the bulk of the space should display information about the Netflix membership service instead of the free trail offer. This could be in efforts to offset the soft offer, but also entails risk for the direct mail piece and its objective of acquiring new customers.