“ Tactility is a quality I envy in DM. We know that TV can stimulate physiological responses – people wanting to lick the telly or feeling thirsty, for instance – but it’s a bit of a tease. DM can satisfy those appetites that TV provokes”
Tess Alps, Chief Executive of Thinkbox
“ As a component of experiential activity, direct mail has an enormous amount to offer when used well. If anything, it has more power to express a brand’s values than any other medium.
Jon Ingall ,managing partner of Archibald Ingall Stretton
“ Good direct mail should be used in conjunction with intelligent and modern e-commerce. That should be on the agenda of every marketer who sees the internet as an increasingly important sales channel.”
Greg Grimmer, partner at Hurrell Moseley Dawson & Grimmer
In 2010 an average of 91% of prospect direct mail was opened, including 96% for personal banking and 95% for stores mail.
Open rates for acquisition email 11% (Ebiquity Rapport 2010) (DMA)
And It Is Getting More Effective Direct Mail prospect opening rates have increased from 88% to 91% since 2007 (Ebiquity) Email acquisition open rates have fallen from 21% to 11% since 2007 (DMA).
Direct Mail helps other media work harder Base: c500 studies, UK campaigns, 2005-2008 Source: OMD / Brand Science (2009)
The TV component of campaigns pays back 37% more when direct mail is in the mix.
£ revenue ROI by channel (based on econometric campaign evaluation)
Direct Mail has seen its ROI level rise steadily over the last three years, a trend credited to improved targeting Source: OMD Brand Science (2010) Analysis of average ROIs achieved by direct mail component of campaigns (2006-2009)
“ Improved targeting and usage is benefiting the channel [Direct Mail].
Accurate data on target audiences is almost instantly available
Personalisation of the creative is becoming relatively easier too.
The combination of these factors leads to a more effective media channel.”
Paul Sturgeon, OMD Brand Science
While the efficiency of Direct Mail has been improving, Online has been moving in the opposite direction, with rising costs eroding levels of ROI Source: OMD Brand Science (2010) Analysis of average ROIs achieved by Online component of campaigns (2006-2009) Online
Customers still prefer their service providers to contact them by Mail rather than E-mail. e.g. BT 46% Mail 22% E-mail e.g. Virgin Media 44% Mail 21% E-mail e.g. Lloyds TSB 52% Mail 13% E-mail e.g. Churchill 50% Mail 20% E-mail Source- Ebiquity Rapport 2010 The customers of 60 of the top 61 Direct mailing companies would prefer to be contacted by mail than e-mail.
Base: c2,000 UK adults Source: BMRB 2010 I welcome mail that gives me useful information I welcome mail that rewards my loyalty I welcome receiving direct mail from companies I’m already a customer of I like being informed of special offers or promotions by post Mail is welcomed, particularly when it is relevant and rewarding
Base sizes: All product holders (by market) Source: GfK FRS, 6 months ending December 2009 Customers recruited by Direct Mail are more loyal
Comparing customers with savings accounts, 32% recruited via the internet and 18% by direct mail are considering switching in the next 12 months.
For credit cards, 20% of those recruited via the internet and 16% via direct mail are looking to switch.
New product holders considering switching – by information used to choose provider
The approach was to tell the most vocal members of MyWaitrose about the new weekly recipes and encourage them to try the first one for themselves – then share it with the rest of the MyWaitrose community online.
They were sent a special hamper explaining Waitrose’s reasons for choosing Delia and Heston. Included were all the ingredients for the first recipe (a rhubarb and ginger brulée).
Results The hamper was warmly welcomed by all recipients. More importantly, 50% of them chose to feed back to the MyWaitrose community Waitrose sold 14 weeks’ worth of rhubarb in four days.
Mercedes case study B2B-18 April 2011 Mercedes-Benz created a piece of direct mail in the form of a job application to promote its Sprinter van to businesses.
Mercedes case study B2B-18 April 2011 Results 400 prospects have been identified. So far 120 letters have been mailed out. The campaign is still in its early days. Editor’s Comment This is a great example of direct mail and digital media working together to be more effective than either could on its own . The idea of the van writing its own letter is ingenious enough. But then the way it gets fleet managers to go online to watch a demo of the van at work writing it is the key to what I am sure will be a great business success.
Direct Mail is the most successful partner for email DMA 2010 Annual Client Email Report
Direct Mail is best for explaining your message in more detail Gives me better impression of the company More professional means of communication Easy to take in information Likely to really grab my attention I’m likely to spend a lot of time reading it It makes me feel more valued I am more likely to do something as a result Appropriate if I’m not already a customer Better for sending reminders I enjoy receiving and reading it More appropriate if a customer already Easy to file so I can go back to it later Better for confirmation / follow-up messages Easier to respond to Better at communicating brief messages Better for the environment Direct Mail % E-Mail % Source: Quadrangle: DM & Email 2007. DM & Online 2007
Direct mail to potential customers enables you to explain your message in more detail as they are free to read and absorb the information at a time and location they choose.
48% of customers felt that information received by direct mail was easy to take in compared with 20% by email. (Quadrangle DM & Email )
But Don’t forget the digitally disenfranchised
10.9m Adults have not used the internet in the past 12 months
Source: TGI 2010
But Don’t forget the digitally disenfranchised
The people with all the money
Source: TGI 2010
Major UK Online Bank Case Study: DM is a clear ROI champion
The greatest driver of the business was the DM campaign that prove effective in drive both off-line and on-line applications. With an ROI over double that of search.
DM was found to be the most efficient channel with a ROI of £4.60. Affiliates and Search are a distant second and third with ROIs of £2.15 and £2.00 respectively
The key recommendation There was no evidence of diminishing returns to DM spend suggesting that there was room to increase spend on the channel without compromising efficiency
OMD Brand Science Findings Recommendations
Savvy advertisers recognise all of this and are reacting accordingly
Direct Mail industry spend has started to increase again Source: AA/WARC Media Spend Summary
There is still strong usage of Direct Mail in the media mix
464 companies have increased their direct mail spend by more than £100k in the past 12 months
682 companies carried out direct mail campaigns in the past 12 months who did not use direct mail in the previous year
88 Large advertiser started to use Direct Mail for the first time last year thanks to Royal Mail consultancy