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Marketing Automation with Direct Mail

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Marketing Automation is a hot topic these days but most implementations use only online marketing channels. All the benefits of direct mail, including personalization enabled by variable data digital printing technologies, highly targeted, a long shelf life, and standing out from the crowd by placing your marketing piece literally in your prospect's hands, are not leveraged in most automated marketing programs.

It doesn't need to be this way. It is actually pretty easy to add a direct mail channel to a marketing automation program.

This presentation dispels four direct mail myths and illustrates why you should consider adding direct mail to your marketing automation program.

Published in: Marketing
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Marketing Automation with Direct Mail

  1. 1. MarketingAutomation withDirectMail Automated1:1DirectMailMarketing Presented byTod Cordill
  2. 2. Four Direct Mail Myths 1. Direct mail is dead. 2. Direct mail is too expensive. 3. Online is the only place to do digital marketing. 4. Direct mail is too hard.
  3. 3. Myth #1 Direct mail is dead.
  4. 4. It takes a lot of touches to make a sale: First Contact 2% Second Contact 3% Third Contact 5% Fourth Contact 10% Fifth toTwelth Contact 80%
  5. 5. They won’t buy right away... …so reach out frequently. Nurture. Be top-of-mind when they’re ready. Ready for more information, or ready to buy. But the problem is…
  6. 6. Information Overload
  7. 7. Every day: 294 billion e-mails are sent 2 million blog posts are written 4.7 billion minutes are spent on Facebook 864,000 hours of video is uploaded toYouTube It is hard to stand out in the digital world. Credit: digitalbuzzblog.com: 24 hours on the internet infographic
  8. 8. With the adoption of online marketing, annoying marketing has changed… email overload and spam junk mail from to Direct mail has become a novelty.
  9. 9. A printed message is the easiest way to differentiate yourself in today’s digital world.
  10. 10. Why direct mail? QUALITY experience. Works in MULTI-CHANNEL marketing campaigns and programs. HighlyTARGETED. PERSONALIZABLE… tailored to be RELEVANT.
  11. 11. Why direct mail? More Facts. Has a LONG SHELF LIFE. 65% of consumers have made a PURCHASE as a result of direct mail. PROVEN EFFECTIVE for LEAD GENERATION and customer RETENTION. - DMA, 2013
  12. 12. Integrated Campaigns with Direct Mail Studies consistently show that direct mail is effective, particularly when combined with other channels. 81% of direct mail recipients read or scan their mail daily. – USPS Household Survey 22-24 year olds are most likely to respond to a direct mail piece. - DMA 2013 Statistical Fact Book Among mail piece types, postcards are most likely to be read. 52.5% are read by recipients. - DMA 2013 Statistical Fact Book 62% of digital campaigns are seeing an increase in return on investment when combined with direct mail. – Omnicon Media Group
  13. 13. Direct Mail isTrusted… but not as much as Family & Friends 52% 22% 18% 16% 14% 11% 8% 0% 10% 20% 30% 40% 50% 60% Friends and Family Company Websites Brochures/Flyers/Direct Mail Television Radio Email Facebook Source: Epsilon Consumer Survey
  14. 14. Response Rate IncreaseWhen Print is Combined with Other Channels 45% 37% 27% 0% 10% 20% 30% 40% 50% Print & Landing Page & E-mail & Mobile Print & Landing Page & E-mail Print & Landing Page or E-Mail Source: UnderstandingVertical Markets: Enterprise Communication Requirements - InfoTrends
  15. 15. Direct mail performs as a trusted personalized outbound channel.
  16. 16. Myth #2 Direct mail is too expensive.
  17. 17. It’s about ROI Focus on the return on your marketing investment. Don’t just look at costs. The ROI on direct mail outperforms every medium except emailing to an engaged house list.
  18. 18. Direct Mail Performs $0 $50 $100 $150 Direct Mail (letter sized) Catalog (print) Postcard Email Paid Search Internet Display Cost per Lead (or Order) by MediaType House List Prospect List * Source: Direct Marketing Association Statistical Fact Book 2013 Results not provided, but emailing to an engaged list likely has by far the lowest cost/ order.
  19. 19. ROI of B2C Channels Source:Target Marketing 2013 Annual Media Usage Forecast 17% 31% 52% Acquisition Email Direct Mail All Others 29% 38% 33% Retention Which one media delivers the strongest ROI?
  20. 20. ROI of B2B Channels 40% 19% 12% 29% Acquisition Email Direct Mail Telemarketing All Others 53% 14% 14% 19% Retention Source:Target Marketing 2013 Annual Media Usage Forecast Which one media delivers the strongest ROI?
  21. 21. Direct Mail Performs 0% 20% 40% 60% Postcard Larger than Letter Envelope Letter Sized Envelope Flyers Catalog (1) Newspapers / Magazines Read the Piece Perceived as Useful Source: 2012 USPS Household Diary Study (1) Catalog not enclosed in envelope
  22. 22. Integrating Direct Mail and Email channels achieves positive results for both Acquisition and Retention marketing programs.
  23. 23. Myth #3 Digital = Online
  24. 24. Personalization
  25. 25. “My digital agency message has always been that digital marketing outperforms traditional marketing.” Does this sound like you?
  26. 26. Digital marketing effectiveness is based on providing a highly relevant message at the right time.
  27. 27. Print is digital. Digital variable data printing enables personalization that provides a targeted, highly relevant message. Personalization can be based on demographic and behavioral data.
  28. 28. Personalization Direct Mail Email Online Leverage your CRM and Marketing Automation data to craft a highly relevant message in your channels, including:
  29. 29. Personalization is about being RELEVANT. Studies consistently show that personalized messages have a tremendous impact on the bottom line. “Personalizing an email marketing campaign can improve response rate by 45%.” - Gotomarketing “Personalized direct mail pieces increase response rates by more than 500% over a basic, non-personalized piece.” - The Digital Printing Council “Marketers reported an average improvement of close to 50% for personalized multichannel campaigns over traditional campaigns.” - InfoTrends “74% of online consumers become frustrated when websites offer promotional content and ads that have no relevance to them.” -Janrain’s 2013 Online Personal Experience Study
  30. 30. Personalization Gets Results 0% 5% 10% 15% 20% 25% Non-profit Manufacturing / Technology Financial / Insurance Education Printing / Publishing Retail Response Rates for Static and Personalized Campaigns Personalized (PODi) Static (DMA) Source: Caslon analysis of PODi and DMA data 2010 Caslon Response Rate Report
  31. 31. VetCentric Customer Retention Caslon Response Rate Report, 2010 OWNER NAME BASED ON DATA PET NAME BASED ON DATA TREATMENT BASED ON DATA OFFERS BASED ON DATA EXPIRATION BASED ON FREQUENCY CLINIC BASED ON PREFERENCE CONTENT BASED ON DATA ADDRESS BASED ON DATA IMAGE BASED ON DATA
  32. 32. VetCentric Results Automated processes reduced marketing labor from 8 hours/week to 15 minutes per week 14% response rate Over $9,000 annual postage savings Caslon Response Rate Report, 2010
  33. 33. Auto Dealer Retention Program Credit:
  34. 34. CONTENT BASED ON BEHAVIOR IMAGE BASED ON CURRENT CAR IMAGE BASED ON PREFERENCE IMAGE BASED ON DATA HEADER BASED ON FREQUENCY HEADER BASED ON LOYALTY OFFERS BASED ON DATA LOGO BASED ON PARTICIPATION PROGRAMS BASED ON PARTICIPATION ADDRESS BASED ON DATA CONTENT BASED ON PREFERENCE CONTENT BASED ON PREFERENCE QR BASED ON PARTICIPATION IMAGE BASED ON GENDER CONTENT BASED ON DATA
  35. 35. 1.5% visit rate 34.2% conversion rate You can even mail personalized map directions. Source: PODi Partou Childcare Case Study, 2013
  36. 36. Don’tBeCreepy Provide personalized messages but...
  37. 37. Don’t Be Creepy: B2C Personalization Prospects Without an established relationship, minimize obvious personalization. Name. Address.That’s it. Use all data you do have to create a message that is relevant. Existing Customers Use data they’ve provided – via previous orders, via forms – to show you’re paying attention. Also use publicly available information on their company. Provide relevant information based on individual need and interests.
  38. 38. Don’t Be Creepy: B2B Personalization Prospects The more you show you know about their company, and can provide relevant information, the better. Show that you’ve done your homework and aren’t going to waste the prospect’s time.. Existing Customers Use data they’ve provided – via previous orders, via forms – to provide relevant information. Show you’re paying attention.
  39. 39. IntegratingDirectMail
  40. 40. A FewWords About Email Marketing Provides INEXPENSIVE NURTURING communications. HIGHLY EFFECTIVE with an engaged audience. Emailing to a HOUSE LIST provides the LOWEST COST PER LEAD, maximizing your marketing budget. Capture email addresses!therefore
  41. 41. Example Marketing Programs Revive Disengaged Prospects Nurture HighValue Leads Prospecting Programs Event Marketing Campaigns
  42. 42. Prospecting Purchase highly targeted and accurate consumer list. Create a compelling offer and send out a relevant direct mail piece. Capture email addresses for prospects that respond and drop them into your existing marketing automation nurturing program.
  43. 43. Prospecting Send offer via direct mail Purchase targeted list Landing page / Microsite Confirmation email Direct mail #2 (if no response) Marketing Automation Nurturing Complete the Offer
  44. 44. Reviving Disengaged Prospects Problem: Prospect that fits your ideal customer profile has stopped engaging. Goal: Resurrect a dormant prospect with a direct mail offer.
  45. 45. Reviving a Dormant Prospect Landing page Follow Up Email (if no response) Marketing Automation Nurturing or Sales Follow-Up Send offer via direct mail Prospect has Stopped Responding Print and mail on a regular schedule. It can be weekly, monthly, or even quarterly.
  46. 46. HighValue Lead Campaign Useful for Customer Acquisition and Upsell Use any mix of email and direct mail, and other mediums such as phone calls and remarketing online advertising. Mix low cost postcards with higher value dimensional packages. Exit lead from campaign once target score or other criteria reached.
  47. 47. HighValue Lead Campaign Dimensional direct mail Marketing Automation or Sales Follow-Up Lead Enters Cross Media Campaign Email Email Post Card Email Score Reached
  48. 48. Event Marketing Events lend themselves to marketing campaign templates that are reused for each event. Create multiple campaign templates. Simple campaigns for lower value prospects or small events. Elaborate campaigns for high value prospects and major events. Refer a friend techniques are a particularly effective in event marketing.
  49. 49. Event Marketing Day of Event Direct mail #1 Create Targeted List Landing Page / Microsite Confirmation email Direct mail #2 (if no response) Event Reminder email #1 SMS text message reminder Follow up survey microsite Mail thank you gift Marketing Automation Nurturing Save the date email Refer a Friend email Follow up email Reminder email #2
  50. 50. Print can be an integral part of your marketing automation program.
  51. 51. Myth #4 Direct mail is too hard.
  52. 52. Actually, Direct Mail is Easy. Let your print / direct mail service provider do the heavy lifting.
  53. 53. 1. Set up the program  The printer creates the direct mail template using your creative assets and customer data fields.  Create a marketing automation or CRM report or outbound object that contains the personalization data for your segment.  Set up and automated process to move the report to your direct mail service provider using FTP, email, webhooks, or APIs.
  54. 54. 2. Run the report  Automatically run the report on the predetermined schedule. Marketing Program Suggested Mail Schedule Prospecting Dependsing on marketing objectives, anywhere from weekly to annually. Reviving Dormant Leads Weekly, Monthly or Quarterly HighValue Leads Daily or weekly if based on a user event, otherwise quarterly or even annually might be fine. Event Marketing Based on the event date
  55. 55. 3. Mail it  Your direct mail service provider will clean the data for optimal mail delivery.  The direct mail is printed on a digital press. Each piece has personalized copy, images, and offers depending on the data you have for each person.  The mail is delivered to the post office on an agreed upon schedule.
  56. 56. When planning an integrated marketing program, use channels where they excel. DIGITAL Fail fast Build Audience Grow Reach MOBILE Extend the Brand Engage Customers Extend real-world into the virtual world PRINT Longer form Deeper content Stand out Credit: Andrew Davis, Author: Brandscaping
  57. 57. In Summary 1. Direct mail is alive and well. 2. Direct mail provides a compelling return on your marketing investment. 3. Digital printing technology enables highly personalized and relevant direct mail. 4. Direct mail can easily be integrated into your marketing automation programs.
  58. 58. www.modernostrategies.com Tod Cordill tod@modernostrategies.com @todcordill Sign up for our monthly email newsletter for modern marketing ideas delivered to your inbox.

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