The hidden side of Direct Mail


           Relationship Marketing Congress
                                07 05 2009
Which side ?




               1
DM has a proven direct impact


But non response is even important to generate sales


Effect of DM goes far beyond respon...
DM has a proven direct impact


But non response is even important to generate sales


Effect of DM goes far beyond respon...
We continuously build a “DM impact database” in order
to provide benchmark measures




                    40 DM Baromete...
“What is the average response rate ?”




                                    5
And the answer is




            6,2 %
        Own database   External database
           8,9%              5,4%


N=200...
Common sources of failures (   and successes)




                   Average response rate =




Source: DMA
             ...
Some elements of response drivers


What drives response the most ?

          Database                  Internal         ...
Adding Direct Mail to media campaign will drive the
   response
Percentage of respondents

                         Media ...
Direct Mail is proven to boost ROI of most campaigns




Source: Omnicom UK – Brand Science 2008
                         ...
DM has a proven direct impact


But non response is even important to generate sales


Effect of DM goes far beyond respon...
What do you want ?




                     12
Are the promotions the only sales arguments ?




                                                13
Are the promotions the only sales arguments ?



     Awareness     Familiarity   Consideration      Sales


             ...
DM has a proven direct impact


But non response is even important to generate sales


Effect of DM goes far beyond respon...
#1. Lot of people remind Direct Mail

         100%
                              Max 93%




                            ...
#1. Direct Mail captures their attention

 Part of a unique, expected & privileged Mail moment:
    97% open letterbox eve...
Example of DM with high recall




 Lucille




                                 18
#2. DM boosts brand awareness

 Brand X Top of mind awareness (FMCG sector)


                                            ...
TOM Awareness:
                    Surprise about your brand




       11% of the target group went online and
placed an ...
TOM Awareness
Launching a new brand with a
clear promise




                               21
#3. Direct Mail is proven to have an impact on brand
'To which extend do you agree with the following statements concernin...
#3. DM improves brand perception because


 Possibility to give more personalized content involving the customer

 Possibi...
Impact on brand perception:
Demonstrate your benefit on a more persuasive way




                    Increased brand fami...
Impact on brand perception:
Demonstrate your benefit on a more persuasive way




                    Increased brand awar...
#4. DM allows to better explain product or services
   benefits




Source: Royal Mail
                                   ...
Explain:
       Dramatize the benefits




Up to 5% test drives, depending on the
list.




                              ...
#5. DM makes people move across the marketing
funnel




                                                28
Moving across funnel:
Change consideration of a destination for holidays




    43% of respondents visited the website
  ...
Moving across funnel:
Exploit the consumer insights




                                30
#6. Custom publishing reinforces the brand appeal and
   affinity




Source : APA advantage study                        ...
Reinforces brand appeal:
Make the brand part of everyday life




                       The number of unique visitors to
...
Reinforces brand appeal:
Reinforce interactions and ‘intimacy’ with consumer




                     Each euro invested g...
#7. DM makes your target really involved with your
   brand



          This media can give me the feeling of   ..   DM  ...
Involves:
Building an intimate relationship




     Of those who have read the mailings, more than
     70% say they have...
Involves:
Be relevant




   Traffic: 120.000 unique visitors (obj 80.000)
   Sales: Up to +300% (in function of segments)...
Involves:
Reinforce relationship




                         37
Involves:
“Reward”




            38
#8. Real response is often higher than measured




  “The actual return on a mailing was eight times higher:
  recipients...
#1. Lot of people remind Direct Mail

#2. DM Boosts brand awareness

#3. DM is proven to have impact on brand perception

...
When developping a campaign plan, consider DM for
its ROI driven performance, but also for branding and
‘long term’ impact...
Thank you




            42
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The hidden side of Direct Mail

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Transcript of "The hidden side of Direct Mail"

  1. 1. The hidden side of Direct Mail Relationship Marketing Congress 07 05 2009
  2. 2. Which side ? 1
  3. 3. DM has a proven direct impact But non response is even important to generate sales Effect of DM goes far beyond response 2
  4. 4. DM has a proven direct impact But non response is even important to generate sales Effect of DM goes far beyond response 3
  5. 5. We continuously build a “DM impact database” in order to provide benchmark measures 40 DM Barometer 200 response rate benchmarks 20 ‘pilot surveys’ 4
  6. 6. “What is the average response rate ?” 5
  7. 7. And the answer is 6,2 % Own database External database 8,9% 5,4% N=200 6
  8. 8. Common sources of failures ( and successes) Average response rate = Source: DMA 7
  9. 9. Some elements of response drivers What drives response the most ? Database Internal External Promotions Contests Gifts Discount Enveloppe Size Matter Stamps Components Letter Flyer Folder Channel Free Order Payment Free ‘advantages’ by phone conditions delivery 8
  10. 10. Adding Direct Mail to media campaign will drive the response Percentage of respondents Media funnel Media Recall Purchase Media recall received content intention “Do you remember “Can you describe the “Have you already seeing and ad/ ad/mailing commercial purchased PRODUCT / receiving a mailing for for the PRODUCT/ BRAND X? / Do you PRODUCT/BRAND X BRAND X ?” intend to buy PRODUCT Media received recently?” / BRAND X ?” Media mix + DM * 100 69 69 70 48 59 29 + 61% of purchase intention for ** the media Media mix 100 54 54 65 35 51 18 mix with DM * Recall of TV, Press, POS OR DM amongst Media mix + DM group (n=500) ** Recall of TV, Press OR POS amongst Media mix only group (n=500) 9 Source: Market research on 1000 customers, September 2006
  11. 11. Direct Mail is proven to boost ROI of most campaigns Source: Omnicom UK – Brand Science 2008 10
  12. 12. DM has a proven direct impact But non response is even important to generate sales Effect of DM goes far beyond response 11
  13. 13. What do you want ? 12
  14. 14. Are the promotions the only sales arguments ? 13
  15. 15. Are the promotions the only sales arguments ? Awareness Familiarity Consideration Sales Response rates for coupons, “Pre-sales”: Discounts Trial offers put your brand / product in the short list of your target 14
  16. 16. DM has a proven direct impact But non response is even important to generate sales Effect of DM goes far beyond response 15
  17. 17. #1. Lot of people remind Direct Mail 100% Max 93% • 78% of DM are 61% opened and read • Non response Min 18% doesn’t mean 6% no impact received recall response N = 50 Measures, B2C, direct Mail 16
  18. 18. #1. Direct Mail captures their attention Part of a unique, expected & privileged Mail moment: 97% open letterbox every day DM breaks through the advertising clutter on average only 1 DM / 3 days Power of paper 17
  19. 19. Example of DM with high recall Lucille 18
  20. 20. #2. DM boosts brand awareness Brand X Top of mind awareness (FMCG sector) 14% 8% Media Mix Media Mix + DM Source: Market research on 1000 customers, September 2006 19
  21. 21. TOM Awareness: Surprise about your brand 11% of the target group went online and placed an order. The French President received well over 100 letters asking him to declare that small patch of France to be Belgian 20
  22. 22. TOM Awareness Launching a new brand with a clear promise 21
  23. 23. #3. Direct Mail is proven to have an impact on brand 'To which extend do you agree with the following statements concerning brand A? Rating on a scale 1 to 10*; % Agree completely or to great extend (% of score 8 to 10) FMCG case Makes my life easier Control group (1-2) (1-3) 80 DM Modern and attractive Is expert in its field (1-2) 60 packaging (1-3) 40 20 Innovative and modern Really cleans 0 brand (2-4) (1-2) (1-3) Easy to use Has complete product range giving best results for each need (1-3) Brand continuously improves products (1-3) *1: I completely disagree, 10: I completely agree Based on all respondents knowing the brand and having a dishwasher, except for people who answered ‘don’t know on each statement’ Source: Market research on 1500 customers, October 2007 22
  24. 24. #3. DM improves brand perception because Possibility to give more personalized content involving the customer Possibility to explain in-depth brand values and key benefits Possibility to provide a long media exposure Possibility to add high eye catching and strong emotion if right creative approach 23
  25. 25. Impact on brand perception: Demonstrate your benefit on a more persuasive way Increased brand familiarity and consideration 24
  26. 26. Impact on brand perception: Demonstrate your benefit on a more persuasive way Increased brand awareness and sales 25
  27. 27. #4. DM allows to better explain product or services benefits Source: Royal Mail 26
  28. 28. Explain: Dramatize the benefits Up to 5% test drives, depending on the list. 27
  29. 29. #5. DM makes people move across the marketing funnel 28
  30. 30. Moving across funnel: Change consideration of a destination for holidays 43% of respondents visited the website and 22% entered their details to go through to specific walk pages 29
  31. 31. Moving across funnel: Exploit the consumer insights 30
  32. 32. #6. Custom publishing reinforces the brand appeal and affinity Source : APA advantage study 31
  33. 33. Reinforces brand appeal: Make the brand part of everyday life The number of unique visitors to Persil.com in the first two weeks was 26,053, 32
  34. 34. Reinforces brand appeal: Reinforce interactions and ‘intimacy’ with consumer Each euro invested generates about 2 euro extra turnover 33
  35. 35. #7. DM makes your target really involved with your brand This media can give me the feeling of .. DM Avg other media. rewarding me as a customer 73% 19% being connected to the brand 63% 8% acknoweldgement / appreciation 57% 8% being important for that brand 57% 7% being unique 51% 7% Source : Synovate Censydiam 34
  36. 36. Involves: Building an intimate relationship Of those who have read the mailings, more than 70% say they have taken, or plan to take, action as a result 74% of those who recall the ‘Touching Brands’ campaign say that it has made them feel more positive about Royal Mail 35
  37. 37. Involves: Be relevant Traffic: 120.000 unique visitors (obj 80.000) Sales: Up to +300% (in function of segments) 36
  38. 38. Involves: Reinforce relationship 37
  39. 39. Involves: “Reward” 38
  40. 40. #8. Real response is often higher than measured “The actual return on a mailing was eight times higher: recipients to the mailing were buying the product without bothering to redeem the voucher” Rory Sutherland, Vice chairman Ogilvy Group 39
  41. 41. #1. Lot of people remind Direct Mail #2. DM Boosts brand awareness #3. DM is proven to have impact on brand perception #4. DM allows to better explain product / service benefits #5. DM makes people move across the marketing funnel #6. DM – Custom publishing reinforces brand appeal and affinity #7. DM makes your target really involved with your brand #8. Real response is often higher than expected 40
  42. 42. When developping a campaign plan, consider DM for its ROI driven performance, but also for branding and ‘long term’ impact Response measurement is key – non response as well (eg. DM Barometer Post: dmspecialists@post.be) 41
  43. 43. Thank you 42

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