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The Direct Mail Advantage: Delivering Higher Impact at Lower Costs


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Marketing service providers must continuously look for innovative ideas and new ways to help their clients achieve even stronger direct mail results while maintaining their bottom line. This webinar will discuss how direct mail can deliver the best results for your business including ways to deliver higher impact at lower cost; how to create more engaging, personalized communications; and how to use technology to increase efficiency.

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The Direct Mail Advantage: Delivering Higher Impact at Lower Costs

  1. 1. The Direct Mail Advantage: Delivering Higher Impact at Lower Costs June 17, 2014 A special thank you to: Thank you for joining us – we will be starting at 2:00 PM ET/11:00 AM PT If you are unable to hear music at this time, please make sure that your computer speakers are turned on and that your system has not been muted. #PIGWebinar
  2. 2. Today’s Speaker Todd Stoker Vice President of Operations Anderson Direct Marketing Moderator Barbara Pellow Group Director InfoTrends #PIGWebinar
  3. 3. Tips for Webinar Attendees • Technical difficulties? Let us know by using the “Q and A” box, or trouble-shoot by clicking the “Help” widget below → Quick tip: Common problems (like loss of sound and/or stall in the slides) can often be fixed by a quick refresh of your browser. • Have a question for today’s speaker? Submit via the “Q and A” box • Please disable pop-up blockers • See what this console can do! Click on the “Tips for Attendees” widget for the complete rundown. Don’t forget to “share” this webinar! #PIGWebinar
  4. 4. • Direct Mail Reaching Consumers • Direct Mail Delivering ROI • Making Direct Mail Work – Todd Stoker, Anderson Direct Marketing • Recommendations and Conclusions • Questions and Answers Topics #PIGWebinar
  5. 5. • Among mail piece types, postcards are most likely to be read by recipients (56%). • More people respond when a courtesy-reply envelope is provided as opposed to a business-reply envelope. • The overall volume of direct mail went up slightly in 2013 to 87.3 billion, accounting for 56.2% of all mail. • 2.9 billion coupons were redeemed in 2013. Source: 2014 DMA Statistical Fact Book The Facts #PIGWebinar
  6. 6. Direct Mail Wields Power Source: Marketing Profs July 2013 #PIGWebinar
  7. 7. Source: Marketing Profs July 2013 It’s How Consumers Make Decisions #PIGWebinar
  8. 8. How can your providers improve the business communications they send you? 1 Make them easier to understand 2 Personalize the content for me 3 Use color to emphasize important information Listen to the End Customer! Source: The Future of Multi-Channel Transactional Communications, InfoTrends 2013 #PIGWebinar
  9. 9. 0 25 50 75 100 2011 2012 2013 2014 2015 2016 U.S.DirectMailPages(BillionsofA4Equivalents) Dramatic Growth in Color 26.6% CAGR ‘11-’16 B&W in Decline -4.2% CAGR ’11-’16 Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends Direct Mail: A Move to Color #PIGWebinar
  10. 10. Fastest-Growing Applications (Absolute Page Growth) Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends 0 20 40 60 80 100 120 Labels Posters, banners, signage Inserts, coupons Newspapers/newsletters Direct Mail Magazines Catalogs Brochures TransPromo Books Billion Impressions (A4) 2012 2017 + 2.6 B pages + 9.9 B pages + 12.1 B pages + 9.8 B pages + 6.8 B pages + 14.9 B pages + 4.2 B pages + 40.4 B pages + 11.1 B pages + 5.0 B pages #PIGWebinar
  11. 11. Mass Marketing (One-to-Many) 37.4% Segmented Marketing (One-to-Few) 33.4% Personalized Marketing (One-to-One) 29.2% What percentage of your customer communications or marketing campaigns fit into the following categories? Not Just Color… Personalized Color! N = 1,026 Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
  12. 12. 2.6 3.0 2.9 2.7 1 2 3 4 5 6 No variable data, text, or images Low complexity Medium complexity High complexity How often do your addressable print communications involve personalization/variable imaging? (Means) AlwaysNever Definitions High Complexity includes variable pictures/images, variable blocks of text, or actual dynamic composition of all or sections of the piece. Medium Complexity personalization includes personalized text phrases within the piece, NOT just address or salutation. Examples might include personalized offer details. Low Complexity personalization includes name, address, salutation, and/or business card data. N = 1,026 Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends With Increased Variability #PIGWebinar
  13. 13. The Migration to 100% Variable Data Print (1) #PIGWebinar
  14. 14. Source: Pitney Bowes The Migration to 100% Variable Data Print (2) #PIGWebinar
  15. 15. Source: Pitney Bowes The Migration to 100% Variable Data Print (3) #PIGWebinar
  16. 16. Source: Pitney Bowes The Migration to 100% Variable Data Print (4) #PIGWebinar
  17. 17. 1 2 3 4 5 The Migration to 100% Variable Data Print (5) Source: Pitney Bowes #PIGWebinar
  18. 18. Mobile Codes Mobile Messaging Augmented RealityNFCs Direct Mail: Driving Interactive Engagement #PIGWebinar
  19. 19. All Channels ON! How many different media types does your company use for a typical communication/marketing campaign? Key Findings • Average number media types used in a campaign: 3 • 47% of printed marketing materials were linked to online digital channels in past 12 months N = 1,026 Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends One 8.8% Two 30.2% Three 36.4% Four 13.4% Five or more 3.7% Don’t know 7.6% #PIGWebinar
  20. 20. Connecting Print to Digital Channels 2.6% 1.3% 14.6% 14.8% 16.1% 17.7% 21.2% 28.0% 29.6% 30.7% 31.0% 33.9% 38.6% 41.5% 52.1% 56.1% 0% 20% 40% 60% 80% Don’t know None of the above Books Retail store receipts Outdoor Directory Product packaging Newspapers Point-of-purchase displays Catalogs Inserts Business cards Magazines Bills or statements Direct mail Brochures What types of printed media have included a link or connection to digital media over the past year? Multiple Responses Permitted N = 378 Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
  21. 21. Mobile is a Bridge, Linking the Physical with the Digital #PIGWebinar
  22. 22. Increased Value to Print MeasurabilityInteractivity Media Extension Why Integrate Print and Mobile? #PIGWebinar
  23. 23. 15% 18% 19% 21% 23% 30% 47% 59% 0% 20% 40% 60% Make a purchase Download mobile app Contact info Download music Enter sweepstakes Testing a code Coupon/deal/discount Additional info Why do you interact with mobile barcodes? N = 428 Consumers who have interacted with mobile barcodes 85% 24% 88% 43% 0% 20% 40% 60% 80% 100% Familiar with Mobile Barcodes Interaction with Mobile Barcodes 2011 2013 Have you ever seen a mobile code? Have you ever interacted with a mobile barcode? Sources: Mobile Technology: Making Print Interactive (2011) and Consumer Media Trends Survey (2013), InfoTrends Mobile Barcode Use Among Consumers #PIGWebinar
  24. 24. Video Websites for Order Entry Social Media QR Codes Linked To… #PIGWebinar
  25. 25. • Close proximity radio communications between NFC devices or unpowered chips (tags) • NFC tags can be affixed to any surface • Enables offline-to-online engagement • 1 billion+ NFC-enabled phones by the end of 2015 Near-Field Communications: Enabling Interaction #PIGWebinar
  26. 26. Adding NFC Tags to Casino Direct Mail Promotions #PIGWebinar
  27. 27. Christmas Cards Postcards B2B and Personal Cards Linked to Video #PIGWebinar
  28. 28. 12% 50% 17% 57% 0% 20% 40% 60% Familiar (No Examples) Familiar (w/ Examples) 2011 2013 Are you familiar with the concept of Augmented Reality? 2011 N = 1,192 Consumers | 2013 N = 1,126 Consumers 12% 13% 17% 19% 21% 26% 27% 35% 50% 0% 20% 40% 60% Help make a purchase Coupon/deal/discount Testing out AR app Enter sweepstakes Access video Additional info Find location Gaming Fun/Entertainment Why do you interact with Augmented Reality applications? N = 159 Consumers who have interacted with AR applications 16% 25% 0% 10% 20% 30% 2011 2013 Have you ever interacted with an AR application? 2011 N = 591 Consumers | 2013 N = 639 Consumers Augmented Reality is Gaining Awareness #PIGWebinar
  29. 29. Augmented Reality: From Catalogs to Direct Mail #PIGWebinar
  30. 30. • Direct mail’s sense of touch is linked to video testimonials/ demonstrations • Referrals build a bigger community • Social media drives awareness of an upcoming direct mail offer Social Media: Building Brand Advocates #PIGWebinar
  31. 31. Blending Postcards and Social Media to Drive Results #PIGWebinar
  32. 32. 20,000 postcards were sent out, and due to the integration of social sharing, the direct mail campaign gained a total of 30,068 responses, a 150.58% RESPONSE RATE. The Power of Social Media (1) #PIGWebinar
  33. 33. Direct mail campaign delivered 40% Redemption The Power of Social Media (2) #PIGWebinar
  34. 34. Print AND Web Landing Page AND e-Mail 27% 37% 45% Print AND Web Landing Page OR e-Mail Print AND Web Landing Page AND e-Mail AND Mobile Marketing Higher Higher Higher Response Rates Increase When Print is Combined with Other Channels N = 1,026 Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
  35. 35. Managing Postal Costs is Key #PIGWebinar
  36. 36. Postal Savings #PIGWebinar
  37. 37. Gain Visibility into the Mailstream #PIGWebinar
  38. 38. Anderson Capabilities Presentation Direct Mail Advantage— Delivering higher impact at lower costs #PIGWebinar
  39. 39.  Founded in 1985  Based in San Diego  170+ associates  Diverse nationwide client base  $38+ million annual revenue  Top 20 DM Agency  The Top Commercial Printer in San Diego –San Diego Business Journal (2014) Who We Are #PIGWebinar
  40. 40. In today’s connected world, every communication is a direct communication. Our decades-long expertise in direct, digital, and database marketing provides unparalleled insight into who your target audiences are, what they need, how to reach them, and what will inspire them to act. …Now and in the Future! Our Vision for the Future #PIGWebinar
  41. 41.  B2C & B2B  Automotive & Transportation  Biotech & Pharma  Casino & Gaming  Energy  Financial & Investing  Healthcare & Medicine  High-Tech  Insurance  Identity Theft Protection  Manufacturing  Nonprofit & Fundraising  Retail  Telecom/Wireless  Travel & Hospitality Broad Vertical Expertise #PIGWebinar
  42. 42. They all revolve around you and the success of our customers’ businesses.  We work to deliver greater ROI by plugging vertically integrated array of services—all under one roof.  Alone, each brings great results.  Together, they offer unbeatable synergy, enabling us to deliver a return on your investment unlike any other direct marketing agency. ROI and you MARKETING STRATEGY PRODUCTION CREATIVE SERVICES MEDIA INTEGRATION DATA INTELLIGENCE DIGITAL Our Best-in-Class, In-House Solutions #PIGWebinar
  43. 43. Because we offer agency and production services in-house, we have developed systems and procedures to ensure a timely, efficient, and high-quality transition from creative through production. This is why we have an in-house agency as well as production capabilities within our vertically integrated model. By having all services in-house, we are dedicated to and culturally accountable for the success of our clients. When we do utilize outside service providers, we employ a modified version of our internal system to manage the process. Cross-Functional Efficiency #PIGWebinar
  44. 44. The Blue Cross Blue Shield Arizona Challenge: All Channels On! #PIGWebinar
  45. 45. Communicating 1:1 #PIGWebinar
  46. 46. Mobile Makes a Difference #PIGWebinar
  47. 47. Thanks in part to input from the client’s other agency partners, the new Anderson campaign drove a 24% improvement in performance and profitability over the previous years’ efforts. It’s All About Results! #PIGWebinar
  48. 48. The Challenges  The economy  Increased competition, plus aggressive pricing from other lines  A requirement to meet aggressive growth goals Crystal Cruises: Dealing with a Challenging Economy #PIGWebinar
  49. 49. The Solution: More Personalization, More Channels #PIGWebinar
  50. 50. Destination: A 94% Increase in Conversion Rates • Lifted response by as much as 77%, and conversion by as much as 94% • Continued marketing to non- converting responders—for a 2,381% ROI The Results #PIGWebinar
  51. 51. Any Questions? #PIGWebinar
  52. 52. Recommendations and Conclusions #PIGWebinar
  53. 53. Consumer engagement and experience Deliver customer value Differentiate and promote effectively through an array of distribution channels Develop innovative and sustainable offerings Leverage all information and analysis Demonstrate performance and impact 1. Consumers keep evolving and changing 2. Make investments in secure, scalable environments 3. Promote channel synchronization and consistency 4. Online integration, marketing analytics, and determination of customer value 5. Marketers need to be measurable, innovative, and sustainable It’s a Balancing Act for Businesses Today #PIGWebinar
  54. 54. • Targeting and list 40% - 50% • Offer 30% - 40% • Creative & media 30% - 40% The Fundamentals Haven’t Changed! #PIGWebinar
  55. 55. 4 Get big savings on postage using automation presort 1 Boost response rates with targeted, relevant personalization 5 Gain faster, more consistent delivery timing and visibility by inducting mail closer to its final destination and leveraging Full Service IMb 2 Lower cost per thousand and increase impact with variable data, color print 3 Increase results by linking the physical to the digital 5 Ways to Increase Your Direct Mail ROI The Direct Mail Advantage Webinar
  56. 56. Question & Answer Session Enjoying this webinar? There’s so much more where this came from! Click the IPG widget below to sign up for a FREE subscription to In-Plant Graphics magazine. If you haven’t done so already, please take this time to submit questions to our speakers using the “Q&A” box on your console. #PIGWebinar
  57. 57. 57 Use this slide for a Full-bleed image The Direct Mail Advantage Webinar Speak with a Pitney Bowes Direct Mail Solutions expert to uncover ways to deliver higher impact direct mail at lower costs: • Optimize postage and delivery timing • Add personalization and color • Lower cost per mail piece Call 877.406.7704 to arrange for a solution expert to contact you. Get started today!
  58. 58. More Questions? Barb Pellow Group Director, InfoTrends 585-734-2228 #PIGWebinar
  59. 59. Thank you for taking the time to attend our Webinar today. For additional information about our Webinar series, please visit Please take a moment to fill out our feedback survey. (It will open in a new browser window/tab momentarily!) Thank You! #PIGWebinar