Direct mail stats & best practices 2013

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Direct mail statistics and best practices. Talking about response rates, creativity, targeting, offers, etc.

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  • So now that we’ve looked at reach and access you may be thinking that those factors don’t really matter to my business. As long as the piece stands out from the other advertisers, we should still be able to obtain high awareness and response rates.
    Well, as indicators of a messages’ ability to “stand out”, we then looked at the frequency that Canadians receive promotional messages by media to better understand the “clutter” that they’re experiencing.. We also looked at the the volume of messages received on an ongoing basis to see which channels are being used more intensively.
    Based the volume of promotional messages Canadians said they received on a daily basis, the results suggest that there is definitely less clutter in the mailbox. Only 7% of Canadians said they were receiving promotional mail daily compared to 41% who said they received promotional emails daily and 24% who said they received advertising on a daily basis through their social networking site.
  • 5% of Change rate of new address or occupant moving per year on 13 Million Households. (Kvb)
  • 13 Million Addresses, 35 Million Citizens in Canada we have 13 million plus names and addresses. Change to 15 Million Households if Lettermail used.
  • Trust slide at all regarding proof points as to Secure, Private Network for delivery online and offline.
    Highly Sensitive information vs Low Sensitivity
  • Move bar up highlighted area to emphasize.
    Privacy commissioners and security commissioner coming to CPC Ottawa around our traceable government mail.
  • This first slide shows the results of the following single response question: ‘What is the one media you would prefer a company or brand use, to send you a promotional message?”
    We see from the results that, by far, physical mail with a net of 36% is considered the most preferred method for communicating promotional messages, second only to email at 14%.
    I also would like to mention that we often are asked about whether or not we have information that compares flyers in the mailbox to flyers in the newspaper or to TV and Radio for brand building communications. Here we also see that consumer preference for flyers in the mailbox is 7% higher than for receiving promotional messaging on TV or through newspaper flyers, 10% higher than newspaper ads and 15% higher than promotions on the radio.
  • MAIL GIVES THEM THE CAPABILITY OF TARGETING THE SMALL BUSINESS CUSTOMER. ASK RESPONSE RATE???
    Targeting small business segment -
    And I’m confident that if we do this, we have a huge opportunity.
    DM does things that online channels just can’t – Even Google knows it! The search giant is famous for its DM campaigns.
  • NEED RETENTION RATES FOR DM VERSUS OTHERS= REPLACE this with example like CBSA , CRA campaign on going to my account – Byron Vineau;
    So what about DM? Is there life left in it?
    This chart presents the results of the DMA (the Direct Marketing Association) 2012 benchmark study of media response rates – it is the compilation of millions of data points for both physical and digital media.
    This first chart presents the average response rates for various media used for customer acquisition. What you can clearly see on the left-hand side of the screen is that direct mail – yes direct mail – provides the highest response rate when compared to digital media such as email, display ads and paid search.
    The three bars on the left-hand side represent the average response rates for various format of direct mail, the first being standard letter-size mail, the second is oversize mail and the last is for the postcard format.
    It’s interesting to note that from an impact perspective, size matters, and so does format.
    These numbers actually measure purchases, not opens of clicks, so if you are used to seeing average open rates of 20-30% and a 5-7% click rates, the 1.2% per thousand may seem low. But when you consider the actual number of people who buy once they reach the website, the numbers make a lot of sense.
    So for DM used in customer acquisition, you find an average response rate of 1.2% and for email, it’s 0.3 per cent of 3 per thousand.
  • Delete this one. Replace with Read and open rate on FI Research for Inserts and Bills. Ours VS TV NEWSPAPERS vs digital (Don Bougie thinks Newspaper key target) ANI and Nadia to explore research we have.
    CMA DATA NADIA To f/U
    Now let’s look at campaigns for existing customers, and we again find similar results, with direct mail coming out ahead. And obviously there are no results for display and search since these are essentially customer acquisition tools.
    So now, you’re looking at an average 3.4% response rate for mail, and a 0.12% response rate for email.
    Companies are realizing that there is strength in physical and that digital is not the silver bullet that many imagined.
    Digital is still important and that’s why Canada Post is in that space. We’ll hear more from Kerry about that tomorrow.
  • Direct mail stats & best practices 2013

    1. 1. The Power of Direct Mail November 27, 2013 1
    2. 2. Attention Deficit World-Order
    3. 3. Why Mail? A question of clutter.
    4. 4. A question of clutter Only 2 ads on average per day in mailbox
    5. 5. Break-through the clutter. % of Canadians that receive advertising / promotional messages DAILY email text mail Q: How often do you receive personally addressed advertising mail in your mailbox/ promotional emails / promotional text messages on your cell phone or mobile device / promotional messages on social networking sites / promotional phone calls to your home phone? Base: Total respondents receiving advertising from each method (n=Varies)
    6. 6. Why Mail? A question of reach.
    7. 7. Canadian Perspective – Reach Effectiveness SourSource : BBM / PMB / Nadbank - Courtesy of Publicis advertising agency ce: BBM RTS Canada, Fall 2010 (as cited in Canadian Marketing Association’s Marketing Facts: 2011 Edition)
    8. 8. 35 MILLION Citizens per Year 400,000 180,000 New Addresses (To Speak To) Move People per Year
    9. 9. % of Population in Multi-dwelling Buildings CANADA …………………24% Ontario……………………26% Quebec……………………27% Alberta…………………….18% B. Columbia………………26% Toronto…………………...61% Montreal…………………. 52% Calgary……………………20% Vancouver………………..55% Ottawa…………………….31% …And only the mailman has the key !
    10. 10. Why Mail? A question of consumer preference.
    11. 11. Canadians’ Preferences Source: Epsilon Channel Preference Study – Dec 2012
    12. 12. Canadian Channel Preferences Source: Epsilon Channel Preference Study – Dec 2012
    13. 13. A question of consumer preference. Advertising mail (net) = 36% Q: What is the one media you would prefer a company or brand use to send you a promotional message? Base: Total respondents (n=800) (Note: One answer only accepted))
    14. 14. Why Mail? Canadians Mail
    15. 15. Canadians Love Mail Look forward to what’s in the mailbox
    16. 16. Canadians Love Mail Receiving mail is a real pleasure.
    17. 17. Why Mail? It works. It gets results.
    18. 18. Mail just works. Read their mail as soon as they receive it. Read their mail later that same day.
    19. 19. Mail just works. Read mail that is personally addressed to them. Will open mail from a company/organization that they know.
    20. 20. “ There are reasons why a company that controls nearly 70% of internet traffic still sends direct mail.” – Accurateleads, prweb.com http://www.prweb.com/releases/2011/8/prweb8729840.html
    21. 21. Great Results with Direct Mail.
    22. 22. Citizens Respond to Direct Mail
    23. 23. Print Advertising Reach and Recall The mailbox has a greater recall than other paper-based delivery methods. % of Canadians who remember receiving at least one piece of doorstep print advertising in… Mailbox 88% Community Newspaper Insert 49% Daily Newspaper Insert 42% Publisac / Adbag / Other Not stated 27 Source: Canada Post Marketing Research Study, CP 11-217 43% 1% CONFIDENTIAL | 27
    24. 24. Trust & Recommendation .
    25. 25. +14% WITH DIRECT MAIL WITHOUT DIRECT MAIL Post campaign research conducted by ICOM: Global package goods brand survey 29
    26. 26. +16% WITH DIRECT MAIL WITHOUT DIRECT MAIL Post campaign research conducted by ICOM: Global package goods brand survey 30
    27. 27. Why Mail? Touch the Senses .
    28. 28. “Greater emotional processing is facilitated by the PHYSICAL MATERIAL than the virtual.” Source: Millward Brown: Case Study Understanding Direct Mail with Neuroscience, 2009 THE IMPACT OF physical
    29. 29. 33
    30. 30. GETTING TO 1.2% or 3.4 AND BEYOND! %
    31. 31. Direct Mail Best Practices
    32. 32. Know Your Consumer.
    33. 33. traditional
    34. 34. Customer Journey
    35. 35. relationship
    36. 36. need share learn diversify choose deepen prepare use THE CUSTOMER journey
    37. 37. The Exquisite Importance of Timing.
    38. 38. Campaign Scheduling Month ranking response rates:     First - December Second - June Third - September Fourth - January Canada Post High Volume Months:  March, April, May, Sept, Oct, Nov 44
    39. 39. Create Synergy.
    40. 40. 46
    41. 41. Dm Dm + Em Em = ROI ROI 47
    42. 42. DM EM Instant Long shelf life Can involve all 5 senses Low cost Allows more frequency Tangible Trusted
    43. 43. Synergy Improves Results Direct Mail Only Direct Mail and E-mail 100% 100% Received 51% 53% Read (Net) 11% 16% 6% Read and kept as a reference for later 16% Saved for later Made a purchase Source: Canada Post Marketing Research Study, CP 11-217 2% 6% x3
    44. 44. SEM/SEO video newsletters display Image courtesy of email
    45. 45. direct mail email series online interactive brochure retargeting
    46. 46. DIRECT MAIL & EMAIL EMAIL ALONE DIRECT MAIL ALONE lift in total sales
    47. 47. +30 % INCREASE IN SALES OVER PREVIOUS YEAR
    48. 48. Target
    49. 49. HOUSE FILE RESPONSE LISTS COMPILED LISTS + OVERLAY COMPILED LISTS UNADDRESSED list types
    50. 50. Targeting: Ease vs. Effectiveness Ease of Targeting Effectiveness Most Effective Toughest Psychographic Demographic Geographic Easiest Least Effective Source: Canadian Marketing Assn and Canada Post Corp 56
    51. 51. Target by Group Classifications 57
    52. 52. Creative
    53. 53. Role of Direct Marketing Creative • Your direct marketing package must pass four levels: 1. 2. 3. 4. • Get Noticed Get Opened Get Read Elicit a Response Each level demands a greater customer commitment. 59
    54. 54. the formats
    55. 55. postcards
    56. 56. selfmailers
    57. 57. foldouts
    58. 58. Personalized with Contact’s Name Image courtesy of booklets
    59. 59. Image courtesy of package
    60. 60. Image courtesy of dimension al
    61. 61. Images courtesy of Information Packaging specialty
    62. 62. CUSTOM indicia
    63. 63. stimulate interactio n
    64. 64. QRcodes Personal URLs Photo courtesy of Creative Marketing Solutions USB keys
    65. 65. A
    66. 66. Example: Surprise with Pop-Ups A flat Addressed Admail piece will create an impact when it becomes DIMENSIONAL upon opening Sample Courtesy of Innovative Graphics
    67. 67. tell a story
    68. 68. Image courtesy of
    69. 69. The BMW M6 Creates Its Own Direct Mail | Co.Create: Creativity Culture Commerce Image courtesy of Co.Create
    70. 70. Copywriting for Direct Mail If someone says “That is a great mailing.”, then you’ve gone in the wrong direction. What you want to hear is “That’s a great product (or service). I’d love to have it.”
    71. 71. create relevance
    72. 72. WIIFM?
    73. 73. benefits
    74. 74. Image courtesy of right for me!
    75. 75. 30,240 UNIQUE VARIATIONS 84
    76. 76. Image courtesy of
    77. 77. Image courtesy of
    78. 78. create urgency
    79. 79. Image courtesy of
    80. 80. Ten Rules for Effective Letters 1. Use a one-to-one conversational style. 2. Personalize with correct name & address. 3. Choose an easy to read typeface (12 point min). 4. Make the offer in the first paragraph. 5. Use action words throughout your letter. 6. Repeat the offer, repeat the offer, repeat the offer. 7. Offer a min of three response options: phone, BRM, email/web, walk-in. 8. Offer incentives for early responders: include an expiry date. 9. Use an actionable “P.S.” 10. It’s about the benefits to the customer, not about you.
    81. 81. Offer
    82. 82. Types of Offers • • • • • • • • Free gifts Free shipping Free consultation Free trial Samples Introductory offer Pre-order Loyalty programs • • • • • Guarantees Deadline dates Limited stock Payment terms Contests & sweepstakes • Friend-get-a- friend promo • Discounts • Special privileges
    83. 83. Great Offers are Key
    84. 84. Image courtesy of
    85. 85. Test!
    86. 86. Increasing Response Rates 1 Static, B&W 2 Plus Personalization 44% 3 4 Plus Colour Personalization Plus Colour 45% 135% Source: Romano & Broudy 5 Plus Variable Content 500%
    87. 87. The Power of Direct Mail November 27, 2013 97

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