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Direct Mail GoToMarket Strategy .pptx
1. Direct Mail Program Overview
Scott Shapiro
Sr. Category Merchant
Office Depot CPD Merchandising Team
2. What is Direct Mail?
• Traditional
─ Postcards, letters advertising sales or
special events
• Electronic
─ Emails with links to special offers
• Blend
─ Takes advantage of the behaviors,
preferences, and trends of target
audiences
2
3. Why is Direct Mail effective?
• Tangible, eye catching
• Response rates are impacted by:
─ Relevance (personalized and/or sent
to a targeted audience)
─ Messaging and offer
─ Design
─ Type of list
1. “House” lists – 9%
2. Third-party lists – 4.9%
3. Qualified leads – 30% or more
─ Frequency
3
4. Why Office Depot for Direct Mail?
• One-stop shop
• Client system integration
• Skills and experience
• Integrate direct mail into overall
marketing
• Partnership with Pitney Bowes
4
5. 5
Office Depot is in the Direct Mail Business
• We are actively pursuing this
business
• Direct Mail is core to Office
Depot’s business
• We are developing technology,
infrastructure and skills
Goal: To become a preferred Direct Mail services provider for our
medium and enterprise clients
6. 6
Value Proposition for Direct Mail
Value Proposition:
We will provide a cost-effective, targeted, and simplified Direct Marketing
solution to further solidify Office Depot as a one-stop-shop with a breadth of
graphic communications products and services. Our dedicated team helps
customers create customized approaches to quickly distribute relevant
marketing messages to attract their target audience and generate higher
returns on their marketing spend.
Adding Direct Marketing services to our portfolio to strengthen
our one-stop solution for Mid-Market and Enterprise clients
7. 30%
Retail &
Restaurant
($3.0B)
24%
Finance,
Mortgage,
Insurance
20%
Nonprofit
Orgs/Education
($2.0B)
12%
Telecom &
Cable Service
($1.2B)
8%
Healthcar
e & Other
($0.8B)
6%
Trave
l
CHART TITLE
Direct Mail Market Sizing (US)
Source: The Direct Marketing Association; Datatargetingsolutions.com; Keypoint Intelligence|Infotrends; IBIS World.
[CELLRANGE]
Full Direct
Mail Services
Print &
Fulfillment
$5.3B
[CELLRAN
GE]
Lettershop
Svcs
$0.9B
[CELLRANGE]
Mailing Support
Services
[CELLRAN
GE]
Other
Services
$1.1B
…and our internal CPD capabilities will
allow us to wholly address the needs of
70% of our targeted vertical segments
The total US Direct Mail market is $10.3B.
Our vertical focus of Retail, Finance, and
Nonprofits makes up 74% (or $7.6B) of this
market…
Our addressable market of $5.3B presents a large
opportunity to grab share
7
8. Targeting Mid-Market and Enterprise
• Focus on National Full Service and
National Retail Office Super Stores
• Secondary On-line Providers
• OD can attract mid-market clients with
cost-effective smaller scale jobs
• Distribute digital print network
• OD enable clients to compete with
bigger companies
• Integrated one-stop shop for a variety
of solutions
8
Our addressable market of $5.3B presents a large
opportunity to grab share
…and our internal CPD capabilities
will allow us to wholly address the
needs of 70% of our targeted vertical
segments
The total US Direct Mail market is $10.3B.
Our vertical focus of Retail, Finance, and
Nonprofits makes up 74% (or $7.6B) of this
market…
9. 9
Addressing Client Business Challenges
OD Program
Challenge
• Visibility of the effectiveness of their
marketing campaign spend
• Seek better, easier ways to stand
apart from local competitors
• Execute and create campaigns
across multiple suppliers
• Less effective campaigns due to poor
targeting and engagement strategy
• Integrated tools and tactics to make
client campaigns measurable via
dashboard and digital add-ons
• Effective blend of print and digital
channels driven by campaign
scheduling and journey mapping tools
• Consolidate spend & leverage OD
economies of scale and supplier
network under one roof
• Provide targeted mail-lists,
personalized marketing offerings,
data efficacy tools
12. The Office Depot Direct Mail Offering
• Print & mail
• Data services for mail lists (through a
third party)
• Basic design of applications
(mostly through templates)
• Specialized design support
• Response tracking
“A la carte” or highly customized
12
13. Our Platform
Clients can use the platform to:
• Use design templates “as is” or edit
them
• Buy, upload, and manage mailing
lists
• Create scannable bar codes (QR) and
personalized landing pages
• Incorporate geomapping
• Build multichannel campaigns
13
14. Pitney Bowes Partnership
• Simplifies the postage process
• Improves client cash flow
• Discounted flat rate per piece
• One rate per mail class and category
• Pitney Bowes handles preparation for mailing
• Pitney Bowes transports the mail to where it
enters the mail stream
• Visibility, using Intelliview
14
15. Marketing
15
• Email to existing clients
• Targeted OD postcard campaign
• Sample Kit – on demand
• BSD Direct Mail landing page
• Prospecting email templates
• E-mail blasts, catalogs, inserts, prism/trigger
play
• Utilize the Source
• Email to all stakeholders and select 3rd party
suppliers
• On going quarterly articles via Weekly
Highlighter
16. Benefits to our Clients
OD’s Direct Mail Services provide a way for
our clients to:
• Build, establish, and maintain their brand
• Easily obtain professional marketing
materials and content to promote their
products and services
• Design a campaign to take advantage of
quick changes or trends in their local
markets
• Achieve better results from their
marketing spend
• Benefit from a one-stop integrated
solution that blends print and digital
marketing
16
17. 17
• Why Office Depot is in the Direct Mail
business
• How Direct Mail is created
• Office Depot’s Direct Mail products and
services
• Office Depot’s target markets for direct
mail
Summary
20. New Customers via BSD
Need to add Direct Mail
To the drop-down?
Print Services | Office Depot Business
Do you want to highlight Direct Mail on
the Print Services Page?
Click Path One – From the Main Page click LEARN MORE
Click Path Two – Under Services, Click Print Services to get to Print Main Page
21. New Customers via BSD
Leads routed to ISO Acquisition Team
Search Salesforce to confirm no account
exists. If there is an existing account
then it’s routed to Account Owner
(General Line).
The Account Owner engages assigned
Print Support Team resource.
• Field Print Team (Dan, Ron, Bill
G.)
• ISO if account owner is ISO
If NET NEW, lead is assigned to
Acquisition
Sales Rep for vetting, account set-up and
then
engagement by ISO Print Specialist Team.
22. Opportunities for OD to Capitalize
DM segments: Targeting Mid-market and Enterprise
22
• Programs between $50K and $300K
• Digital runs competitive up to 10,000 pieces (static artwork with address only)
• Variable data applications of any size. (1:1, Geomapping, PURLs)
• Client integrations (SFTP, salesforce, trigger campaigns)
• Dedicate client portals with technology-based solutions for document distribution
• Aggregated marketing solutions within one portal (print, promo, proprietary)
• Ideal products include flat cards, bi-fold and tri-fold self mailers, inserts into
windowed envelopes up to 6” x 9”
• Applications include awareness campaigns, retention campaigns, lead generation,
statements, invoices, notifications
• Wholesale opportunities for print providers looking for competitive advantage over
toner based digital print
• Converting client’s traditional offset campaigns to inkjet
23. 23
Industry Trends
Direct Mail is a proven and effective
method for businesses to reach customers
• DM has a healthy response rate of 5%
to 9% (vs 1% for digital e-mail and
social channels)
• DM solutions that incorporate multi-
channel marketing tactics show
superior client results
o Purchasing frequency 250% higher
than single channel
o Retention rates 90% higher than single
channel
o Engagement rate: 19% vs 5% on single
channel
Source: The Direct Marketing Association; Datatargetingsolutions.com; Keypoint Intelligence|Infotrends;
IBIS World, (Omnichannel marketing automation statistics for 2019), Statista
• Digitally-printed page volume will
grow 44% annually over the next 3
years
• 4 out of 5 businesses plan to maintain
or increase their usage of DM in 2021-
2022
• Investment in ink jet is increasing
speed-to-market and lowering print
costs
Office Depot’s RPC network, plus investment in ink-jet
equipment, positions us to capitalize on these trends
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