Canada Post Smart Mail Marketing Story

Solutions Portfolio 41
Awareness 44
Consideration 45
Purchase 46
Retention 47
Advocacy 48
2
1. Marketing Today 2. New Canada Post 3. Science Behind the Solution 4. Smartmail Marketing 5. Solutions Portfolio
TABLE OF CONTENTS
Marketing Today 4
The New Canada Post 13
Science Behind the Solutions 17
Breaking Through the Noise 19
Consumer Engagement
with Advertising Mail 22
A Bias for Action 26
Connecting for Action 29
Smartmail Marketing 34
Physicality 37
Data 38
Connectivity 39
Appendix 49
Canada Post Neighbourhood Mail™
50
Canada Post Personalized Mail™
51
Postal Code Targeting 52
Mini-catalogues 53
Case Studies by Marketing Objective 54
Industry Trends 59
Case Studies by Industry 67
Sources 75

3
WHAT WE’RE GOING TO DISCUSS TODAY
•
•
•
current media landscape
digital trends
new canada post

1
MARKETING
TODAY
4

5
ADVERTISING IS A
INDUSTRY
1
$16 BILLION

6
WITH THE PROLIFERATION
OF NEW CHANNELS,
IT’S GETTING HARDER
FOR MARKETERS
TO MAKE CHOICES
DIGITAL CHANNELS ARE TAKING
OVER TRADITIONAL BROADCAST TV
By 2018, Internet advertising is poised to
overtake TV as the largest advertising platform.3
Canadian Advertising Spend Trend by Category4
We have gone from
8
marketing channels to over
50
2
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Spend($CAD)
Year
Television
Internet Daily Newspaper
Radio
Direct Mail

7
IT’S A DIGITAL WORLD – AND IT’S CLUTTERED
• The Marketing Industry is at a pivotal point
of digital reassessment as it catches up with
consumer behaviour.
• With more digital channels than ever,
marketing has become increasingly complex –
while decreasing in effectiveness.
• The focus on digital has led to over-investment
in interaction while under-delivering on action.
Digital is no longer “new media”.
It’s everywhere.

• Phishing scams have made people more suspicious
of email marketing. Average clickthrough rates for
email have steadily declined 10% per year for the
past six years.6
• Digital targeting is limited. Geo-targeting by
province is only 60% accurate and drops below
50% for city targeting.7
Demographic targeting by
cookie is 70% accurate for one criteria and drops
to 48% for two.
• Canadian Anti-Spam Legislation (CASL) has
impacted how marketers can communicate with
customers and reach new prospects via email.
• Mass social channels no longer allow organic
interactions with customers. Facebook’s organic
reach for brand posts has nosedived to 6%,
down by 63% in two years.8
Twitter is
to implement a similar algorithm in 2015.
The average clickthrough rate for standard banner ads has plummeted to
CONSUMERS HAVE BECOME BANNER-BLIND
AND IT’S GETTING HARDER TO REACH THEM
8
0.07%
5

50%
Marketers are paying for ad
impressions that are never seen.
of digital display ads are
rendered outside the
viewable browser area.9
• Click fraud artificially inflates
cost of paid search campaigns.
As much as 36% of SEM
budgets are wasted on invalid
clicks from bots and click farms.
11
• Half of all mobile clicks are
accidental. 50% of mobile
clickthroughs are a result of
user attempts to close the ad.
12
of all Web traffic
is non-human10
DIGITAL ENGAGEMENT IS BEING SCRUTINIZED
9
56%

are spent online per
month by Canadians
15
3 out of 4 Canadians
own smartphones
13
of all Canadians
watch video online
16
of Canadian internet
users shop online
14
EVEN SO, EVERYTHING IS MORE
CONNECTED THAN EVER
10
80%
34.6
hours
74%

• Shopping behaviour is no longer linear.
• Consumers have more options than ever, and
can bypass things of little value or interest.
• Closing the loop between awareness and
purchase has become more complicated.
CONSUMERS NOW CONTROL
THEIR OWN PURCHASING PATH
11

IN THE NEW
CONNECTED WORLD,
WE NEED TO CHANGE
HOW WE REACH OUR
CUSTOMERS.
12
Other: Marketing Best Practices and Videos DM Blog

2
THE NEW
CANADA POST
13

14
WE ARE BOLDLY
TRANSFORMING
TO MEET THE
CHANGING NEEDS
OF CANADIANS IN
THE DIGITAL AGE.

• Next Generation
Physical Mail
• Convergence Solutions
• Digital Complements
• Enhanced Data Targeting
and Analytics
• Mini-catalogue
• Postal Code Targeting
• Expert Marketing Partners
• Marketing Industry Education
• Customized Solution
Development
• Human Factors White
Paper: Breaking
Through the Noise
• Consumer Engagement
with Advertising Mail
• Neuromarketing
White Paper:
A Bias for Action
• Neuromarketing
White Paper:
Connecting for Action
Innovation New Products Solution Focus Research
FIRST WE TRANSFORMED E-COMMERCE. NOW,WE ARE INVESTING IN…
15
Appendix INCITE Case Studies

WE BELIEVE THAT
THE SCIENCE BEHIND
HUMAN BEHAVIOUR
DRIVES SUCCESSFUL
MARKETING.
16
Other: canadapost.ca DM Blog

3
THE SCIENCE BEHIND
THE SOLUTION
17

MAXIMIZE CONSUMER
IMPACT AND YOUR
BUSINESS RESULTS
WITH INSIGHTS
FROM OUR GROUND-
BREAKING RESEARCH.
18

Canada Post Corporation | Breaking Through the Noise | June 30, 2015 | 24
Direct mail drives store traffic
When it comes to store traffic, print outperformed digital across almost all formats:
The only exception was promotional mail from retailers, where digital (24%) outperformed physical (23%) by 1%.54
Store traffic: print vs digital advertising
Flyers
from grocers
(45% vs 14%)
and other retailers
(39% vs 12%)
from fast-food
restaurants (31% vs 16%)
and other products/
services (12% vs 9%)
Coupons
(14% vs 4%)53
Catalogues
Questions:55
- In the past year, have you visited a retail store in person as a result of advertising materials you have received in the mail?
- In the past year, have you visited a retail store in person as a result of online/digital advertising?
0%
10%
5%
20%
30%
40%
45%
35%
25%
15%
Flyers from
other retailers
Flyers from
grocery stores
Coupons for
fast food
Coupons for other
products/services
Catalogues Promotional mail
from retailers
Physical Digital
Canada Post Corporation | Breaking Through the Noise | June 30, 2015 | 7
3 4
1 2
We live in a world of pervasive digital interactions – a world so awash in noise that the
average consumer’s attention has been compressed to just 8 seconds.
Consumers are absorbing content in a constant, fluid, channel-agnostic way, and
brands vying for share of their limited attention spans have more competition than ever.
To understand how direct mail can help them break through this noise, Canada Post
commissioned a major ethnographic study that explored how it factors into the lives
of today’s consumers, examining its visibility, longevity and overall impact in relation
to digital mail.
Through this study, and reinforced by a series of additional Canadian consumer
surveys and global research into the topic, they found that by combining the intimacy
of ritual, the impact of physicality and the power of data-driven relevance:
Direct mail...
IDEA IN BRIEF
inspires
It’s so engrained in life that consumers
ritualize it. In the process, they imbue
it with emotionally charged meaning,
making them more susceptible to
inspiration from brands.
persists
Consumers keep mail, display it in highly
visible areas of their homes, and even
share it with others. This creates multiple
opportunities for a brand to be seen and
engaged with.
gets noticed
Consumers are far more likely to notice,
open, read and enjoy mail than digital
forms of advertising. They consider it less
intrusive, more memorable, and the best
way to make them feel valued.
persuades
Whether it’s to drive a store visit or
purchase, mail delivers a call-to-action
that resonates.
19
Canada Post commissioned a major
ethnographic study that explored
how direct mail factors into the lives
of today’s consumers and influences
the purchase journey.
BREAKING THROUGH THE NOISE
17
June 30, 2015
BREAKING
THROUGH
THE NOISE
How direct mail combines the intimacy
of ritual, the impact of physicality and
the power of data-driven relevance to
send a signal that resonates.

20
FINDING #1
2-5
FINDING #2
Direct mail inspires.
It’s so engrained in life that that consumers
ritualize it. In the process they give it
emotionally-charged meaning, making them
connect more deeply with brands.
minutes
is the time it takes
consumers to sort mail
read mail the same
day they receive it
17
Consumers are more likely
to notice and read
Direct mail gets noticed.
Consumers are more likely to notice, open, read
and enjoy mail than digital forms of advertising.
They consider it less intrusive, more memorable,
and the best way to make them feel valued.
Mail
Email 26%
53%
85%

21
FINDING #3
32%
26%
22%
FINDING #4
Direct mail persists.
Consumers save mail, display it in highly visible
areas of the home, and even pass it along to
others. This creates multiple opportunities
for a brand to be seen and engaged with.
Direct mail persuades.
Whether it’s to drive a store visit or purchase,
mail delivers a call-to-action that resonates.
17
ordered a product
online in reaction
to direct mail
Direct mail ads
Email ads
Social media promotions
were passed along to someone else by customers
have purchased a product in
store over the past six months
as a result of a direct mail ad

CONSUMER ENGAGEMENT WITH ADVERTISING MAIL
18
22
• How do people engage with
advertising mail?
• Is engagement consistent across
delivery methods and age groups?
• Does engagement differ according
to the type of mail?
Following up on its research findings,
Canada Post commissioned an in-depth
quantitative study to answer common
marketing questions:
OPENED
DISPLAYED
KEPT
NOTICED
READ
SHARED

23
FINDING #1 FINDING #2
Collecting the mail is part of our lives
75% of Canadians retrieve their mail three times
a week or more.
Advertising mail engages
Engagement with advertising mail is high,
regardless of age or delivery method.
18
16%
43%
6%
10%
Frequency of mail collection
More than ﬁve times a week
Three times a week
Five times a week
Four times a week
7 in 10 3 in 10
7 in 10 8 in 10
Read the advertising
mail they receive
Save the advertising
mail they read
Share advertising mail
within their households
Display advertising mail of
interest in their households

24
Advertising mail gets noticed
Consumers are paying attention
to the mail they receive.
Consumers prefer certain types
advertising mail
Among the advertising types tested, readership
was highest for samples, coupons and catalogues.
85%open mail that looks
interesting.
An engaging, relevant message
makes your message more likely
to be seen.
74%always or sometimes
notice advertising in direct mail.
People pick up and sort their mail,
giving it attention that other media
can’t provide.
18
72%
76%
69%
29%
Advertising Mail Readership - By Type
Samples
Credit Card Solicitation
58% Donation Solicitation
Coupons
Catalogue

25
FINDING #5
Millennial engagement is high
Millennials are more likely than average to read, save and share advertising mail.
73%read
direct mail.
Readership is
particularly high
among those aged 18
to 29, at 73%.
39%save the mail
they read.
When customers save
your message, your
brand has a lasting
impact in the home.
77%share
direct mail.
Millennials are even
more likely than
average to share
advertising mail, with
77% doing so.
18

26
Canada Post teamed up with the
market-leading neuromarketing experts
at True Impact Marketing to launch a
major study aimed at understanding
direct mail and digital advertising’s
relative impacts on the brain.
A BIAS FOR ACTION:
The neuroscience behind the response-
driving power of direct mail
19

27
Direct mail is easier to understand and
more memorable than digital media.
Direct mail is far more persuasive
than digital media.
A BIAS FOR ACTION
19
A BIAS FOR ACTION
Canada Post set out to understand if direct mail still hold up in today’s connected world and how direct mail and digital impact the brain.
Direct mail is...
EASIER TO UNDERSTAND AND MORE
MEMORABLE THAN DIGITAL MEDIA1
VISUALLY PROCESSED IN LESS TIME
THAN DIGITAL MEDIA3
FAR MORE PERSUASIVE THAN
DIGITAL MEDIA2
MORE LIKELY TO DRIVE
BEHAVIOR THAN DIGITAL MEDIA4
less cognitive effort is required
to process with direct mail than
digital media
higher brand recall for a
direct mail piece than a
digital ad
A motivation score of 20% far exceeds the
2%–5% positive difference considered a
predictive indicator of future behavioural change.
unaided brand
recall for direct mail
21% 70%
20%
neuromarketing
benchmark
Motivation Score:
THE NEUROSCIENCE BEHIND THE RESPONSE-DRIVING POWER OF DIRECT MAIL
DirectMail
DigitalMedia
75%
unaided brand
recall for digital44%
A BIAS FOR ACTION
Canada Post set out to understand if direct mail still hold up in today’s connected world and how direct mail and digital impact the brain.
Direct mail is...
THAN DIGITAL MEDIA3
DIGITAL MEDIA2
digital media
digital ad
unaided brand
21% 70%
20%
neuromarketing
benchmark
Motivation Score:
THE NEUROSCIENCE BEHIND THE RESPONSE-DRIVING POWER OF DIRECT MAIL
DirectMail
DigitalMedia
75%
unaided brand

28
Direct mail is visually processed
in less time than digital media.
Direct mail is more likely to drive
behaviour than digital media.
A BIAS FOR ACTION
19
Results
THAN DIGITAL MEDIA3
DIGITAL MEDIA2
digital media
digital ad
The amount of time spent on areas
of interest was less than digital.
Quick glance
Low cognitive load
High motivation
unaided brand
21% 70%
20%
neuromarketing
benchmark
Motivation Score:
Optimal visual processing:
Motivation-to-cognitive load ratio:
Direct mail:
Envelope with scent1.75
DirectMail
DigitalMedia
Direct mail’s motivation-to-cognitive load ratio
exceeded both the threshold and digital media’s
score across all three age groups.
Direct Mail
0.871.31 Digital Media
75%
unaided brand
Results
THAN DIGITAL MEDIA3
DIGITAL MEDIA2
digital media
digital ad
The amount of time spent on areas
of interest was less than digital.
Quick glance
Low cognitive load
High motivation
unaided brand
21% 70%
20%
neuromarketing
benchmark
Motivation Score:
Optimal visual processing:
Motivation-to-cognitive load ratio:
Direct mail:
Envelope with scent1.75
DirectMail
DigitalMedia
Direct mail’s motivation-to-cognitive load ratio
exceeded both the threshold and digital media’s
score across all three age groups.
Direct Mail
0.871.31 Digital Media
75%
unaided brand

29
Following on our ground-breaking
neuromarketing and ethnographic
research, we wanted to dig deeper
to understand how direct mail works
with digital advertising in integrated
campaigns to maximize consumers’
attention, emotional engagement
and brand recall.
CONNECTING FOR ACTION
20
Canada Post | Connecting for Action | June 30, 2016 | 18
Direct mail’s impact on consumer
attention, emotions and memory is
extended and multiplied when we
consider its lasting effect in their
surrounding environments. That is,
they save it for future reference, share
it with others and even display it in
prominent areas of their homes.9
I always think it is important and give it a keen
eye because it is for me and they probably know
something about me. It makes me feel special
and valued.
I usually read it more thoroughly. I feel like the
company has taken the time to get my address
and label the mail.
I feel more valued as a customer – feel less that
I am just one amongst the ‘masses’.
WHAT PARTICIPANTS
SAID ABOUT DIRECT
MAIL ADVERTISING:
PERSONAL
SPECIAL
KEEN EYE
CUSTOMER
EMOTIONS
IMPORTANT
ABOUT ME
GIVE
ABOUTINTERESTED
NOTICE
ATTENTION
POSITIVE
READ
AROUSAL
MOTIVATION
Quotes from participants
about direct mail advertising
INDEPENDENT EFFECTS
B:11”
CONNECTING
FOR ACTION
A neuromarketing look at how direct mail works with
digital advertising in integrated campaigns to optimize
consumer attention, emotional engagement and brand recall.
Canada Post | Connecting for Action | June 30, 2016 | 19
When opened, EMAIL enforces key marketing messages and encodes them into
memory. In this study, offer recall for email was on par with direct mail (57%), 39%
higher than for display, and 27% higher than for pre-roll.
Consumers read email advertisements
fairly quickly. In the integrated media
study, participants spent 26 seconds
with the email advertisements (30%
less time than they spent with direct
mail, but more time than with display
and pre-roll). Engagement with this
checking their inboxes repetitively as
they move through their day .10
Email attracts a less exploratory,
and more focused, form of visual
engagement than direct mail. When
exposed to email in this study,
participants’ attention was drawn
primarily towards the product and
copy elements (e.g., call-to-action and
offer), suggesting this medium can
be an effective way to enforce key
promotional messages.
Once read, email marketing messages,
such as offers, are easily remembered.
In the post-survey, participants
exposed to the email campaign
had the highest offer recall, at 57%
(on par with direct mail) and the
second-highest brand recall, at 60%
(trailing only direct mail).
Email enforces messaging
Participants exposed to email in the
eye-tracking study focused their attention
primarily on the product and copy elements
(content, call-to-action and offer).
EYE TRACKING
INDEPENDENT EFFECTS
B:11”

30
FINDING #1
Media matters
Media format can have a deep influence on the way consumers engage with
brands and advertising messages. Each media has its own strengths and weaknesses.
20
Email:
When opened,
email enforces key
marketing messages
Digital advertising:
When noticed, display
advertising can stir
brief sparks of excitement
and motivation
Pre-roll advertising:
When reviewed, pre-roll
advertising can create
excitement and positive
brand association
Direct mail:
Direct mail creates
a personal, sensory
experience that’s
effective at triggering
emotions and actions

31
FINDING #2
20
Integrated campaigns drive action
Integrated campaigns that include direct mail boost attention,
emotional engagement and brand recall over single-media campaigns.
Mail
Integrated
campaigns elicit
39% more attention
Brand recall of
direct mail and
digital campaigns
is 10% higher
Direct mail and
digital combined
trigger 5%
more arousal
39% 5%10%

32
FINDING #3
Getting the order right
Media sequencing matters. Our research suggests direct mail’s impact on consumer engagement
with integrated campaigns may be strongest when it follows digital advertising.
20
Pre-Roll + Direct Mail
3% better for motivation
Display + Direct Mail
26% better for emotional
engagement
Email + Direct Mail
40% better for recall
+ + +

33
TURNING
INTERACTION
INTO
ACTION
Other: canadapost.ca/breakthrough canadapost.ca/smartmailmarketing DM Blog Research Deep Dive

4
SMARTMAIL
MARKETING
WATCH VIDEO
34

INTRODUCING CANADA POST SMARTMAIL MARKETINGTM
:
A MORE INTELLIGENT APPROACH TO DIRECT MAIL
35
1. Marketing Today 2. New Canada Post 3. Science Behind the Solution
• Physicality
• Data
• Connectivity
Smartmail MarketingTM
brings together three powerful elements to
get your brand directly into a customer’s hands:
In a connected world, physical matters more than ever. Smarter
marketing allows you to get more action out of your marketing mix.
It’s a potent mixture that makes marketing more relevant and engaging.

THERE ARE THREE ESSENTIAL ELEMENTS THAT CAN DRIVE RESPONSE.
USED TOGETHER,THEY CAN EVOKE A POWERFUL HUMAN REACTION.
Smarter targeting balances reach with
precision to deliver relevance, value and
personalization that increases interest
and activation.
In a digitally connected world physical is essential to
smarter activation. Delivering physical brand experiences
has a stronger impact on emotional memory and
motivates behaviour because it puts the brand
directly in the customer’s hands and drives action.
The ability to create stronger connections across
media touch-points with the power of physical
to amplify activations and drive an overall
positive brand and customer experience.
DataPhysicality Connectivity
36
1. Marketing Today 2. New Canada Post 3. Science Behind the Solution1. Marketing Today 2. New Canada Post 3. Science Behind the Solution 4. Smartmail Marketing 5. Solutions Portfolio

Comprehension
Smartmail Marketing requires
less effort from the brain
compared to other channels
making it easier to understand.
2
37
Emotional Connection
Smartmail Marketing is the only
channel that delivers the best brand
experience through all senses.
Motivating Memorable
Smartmail Marketing is persuasive
and gets customers to take action.
Innovative Formats
Smartmail Marketing has the ability
to deliver a unique brand experience.
Impact and Lasting Effect
Smartmail Marketing is noticed, opened, read, shared, kept and displayed.
The likelihood that a reader will take action is 20% higher18
than with digital media.
PHYSICALITY
1
4
5
3

Targeting
Smartmail Marketing offers the most
accurate, up-to-date and complete
data intelligence to reach all
Canadians, leveraging demographic,
and psychographic data, as well
as our unique e-commerce data.
38
Reach
Smartmail Marketing offers access
to all Canadians, both consumers
and businesses – over 15.7 million
addresses in total. It’s the only
marketing platform that can do this.
Personalization Relevancy
Smartmail Marketing offers the ability
to tailor the right communication
based on data intelligence.
Measurability
Smartmail Marketing allows tracking
and a variety of measurement points.
DATA
21
43

Amplification
Smartmail Marketing amplifies the
full potential of the marketing mix.
2
39
CONNECTIVITY
Better Together
Smartmail Marketing maximizes
digital marketing effort to deliver more
action (visits, purchases, donations, etc.).
Seamless Experience
Smartmail Marketing completes
the Omni-channel experience.
Collective Intelligence
Smartmail Marketing offers data
intelligence that combined with other
data sets (retail, digital, social, etc.)
that gets you closer to your consumers.
1
43

40
ONLY SMARTMAIL MARKETING GETSA
BRAND DIRECTLY INTOA CUSTOMER’S
HANDS BY INTELLIGENTLY BRINGING THE POWER OF
PHYSICALITY, DATA,AND CONNECTIVITY TOGETHER TO
DELIVER MORE ACTION FOR MARKETERS.
Other: Testimonials

5
SOLUTIONS
PORTFOLIO
41

WHAT ARE YOUR
MARKETING
OBJECTIVES?
42

43
Awareness Consideration
Purchase
Retention
Advocacy
No matter where your customer is in the purchase cycle,
Smartmail Marketing can strengthen the sales process by
using the power of physicality, data and connectivity to
drive the right purchasing behaviour.
SMARTMAIL MARKETING
CAN PLAYA PIVOTAL ROLE
THROUGH EVERY PHASE
OFTHE PURCHASE CYCLE.
CUSTOMER

44
• Competing with much larger brands means
Primus must work hard to build brand
awareness and acquire new customers.
• The direct mail campaign targeted the
right clients with the right message and
the right offer: fast unlimited internet
and home phone for $44.95 a month for
a guaranteed two-year term.
• The campaign was a tremendous
success. At 578 per cent, ROI was well
above the 200 per cent target, and
marked an all-time-high ROI for Primus’
unaddressed programs.
AWARENESS How Primus created awareness
• Direct mail ensures that your message
or product gets noticed by creating an
emotional pull that inspires and resonates
with the target.
• It puts the brand directly in the customers’
hands and lets brands control their own
message.

• In the competitive restaurant industry,
“getting the word out” is critical for
survival. The Park Kitchen Bar was able
to target a campaign to households within
a specific radius of the restaurant.
• The campaign consisted of two mail
drops and included coupons that
recipients could redeem for extra savings
at the restaurant.
• The campaign resulted in a 17 per cent
lift in sales, proving that Canada Post
Neighbourhood MaiTM
is a key ingredient
for success.
CONSIDERATION How The Park Kitchen Bar
increased consideration
45
• Being relevant to consumers and inspiring
their curiosity is essential to driving
more action.
• This is the phase when consumers begin to
consider and validate their potential choices.
• The key is getting the right message at the
right time to the people you need to reach.
TM
Canada Post Neighbourhood Mail is a trademark of Canada Post Corporation

• World Gym Canada frequently advertises
simple and easy-to-afford membership
options to acquire new clients.
• While social media forms of advertising
can act as effective door openers, the DM
campaign helped the brand stand out as
consumers are more likely to read direct
mail than other forms of advertising.
• The Neighbourhood MailTM
campaign
generated a response rate of more than
4.5 per cent attracting 40,000 new
members to the 30 facilities.
• Direct mail drives action by inciting the
right behaviour.
• Use of offers strengthens the purchase
decision.
• It increases organic reach and creates
multiple opportunities for a brand to be
seen and interacted with.
• 35% of promotional mail is passed along
to others, in shared households.
21
PURCHASE
46
How World Gym turned
interaction into action
TM
Neighbourhood Mail is a trademark of Canada Post Corporation

• One of Canada’s most exciting retail
and fashion brand needed to effectively
promote a new Toronto store and the
company’s website.
• Using information from its own database,
Frank Oak scheduled two mailings – one
to a list of active customers, the other to
inactive customers. They offered 25 per
cent off online and in-store purchases of
$100 or more.
• The campaign generated an impressive
ROI: 200% from inactive clients and 350%
from active clients.
• The key to building a long-term sustainable
brand is to bring customers back time and
again, through repeat purchase, cross-sell
and up-sell initiatives.
• 80% of future profits come from 20%
of existing customers.
22
• Increasing customer retention rates
by 5% increases profits by 25% to 95%.
23
RETENTION
47
How Frank Oak
improved retention

48
• Princess Auto provides an uncompromising
commitment to customer service which
distinguishes it from competitors.
• Princess Auto tapped its extensive
database of loyal customers and mailed
400,000 postcards.
• For every dollar spent on the campaign,
they got more than six back in sales.
“Those who redeemed the offer ended
up spending close to three times their
normal spend,” Trevor Rempel,
Marketing Analyst.
• Connect with your best customers and make
them champions for your brand.
• 57% of consumers are more likely to feel
valued when brands contact them through
direct mail than email (17%).
24
• 55% of consumers have a better impression
of a company if they contact them by mail
than email (25%).
25
ADVOCACY How Princess Auto
supported advocacy

APPENDIX
49
1. Marketing Today 2. New Canada Post 3. Science Behind the Solution1. Marketing Today 2. New Canada Post 3. Science Behind the Solution 4. Smartmail Marketing 5. Solutions Portfolio

50
Appendix
(formerly Unaddressed Admail™)
• Zero in on specific neighbourhoods with your marketing message.
• Target best areas, using geodemographic profiles like age, income, marital status and
much more.
• Reach every home and apartment in a specific neighbourhood – or the entire country.
• Items are delivered with regular addressed mail, so your catalogues and flyers are more likely
to be viewed and read.
Target potential customers, in specific areas such as neighbourhoods, zones or
FSAs and find the right customers for your business, large or small.
CANADA POST NEIGHBOURHOOD MAIL™
TM
Trademarks of Canada Post Corporation

Appendix
(formerly Addressed Admail™)
• It lets you engage one-to-one with your customers and prospects, delivering messaging
with the most personal level of relevance.
• It’s ideal for addressed mailings that attract new customers, launch new products, create
loyalty with your customers, fundraise and open doors for your sales force.
• If you already have household or business information, use Personalized Mail to deliver
your message to the people who matter most to your business.
Personalized MailTM
is the best way to speak directly to the people you
want to reach.
CANADA POST PERSONALIZED MAIL™
TM
Trademarks of Canada Post Corporation
51

Appendix
• Target campaigns based on family composition, household income, age, education,
building type, geography and more.
• Use insights around who is shopping, frequency, seasons and even the categories of
products shoppers buy.
• Remove existing customers from acquisition campaigns and promotions. Make sure only
potential customers receive your message.
Postal Code Targeting is an acquisition solution targeting your high value
customers within a defined geographic area and at every point of call (houses,
apartments and businesses) for a postal code.
POSTAL CODE TARGETING
52

Appendix
• These eye-catching visual pieces have a high impact and are easily scannable –
so with just a quick read, today’s busy shoppers will know your products and your story.
• Mini-catalogues have a long in-home life, and are more likely to be passed along
to new readers.
• Thanks to their unique machineable format, mini-catalogues have lower postage and
production costs, and a quick time to market.
• Mini-catalogues are proven to drive shoppers online, and can be incorporated into any
cross-channel, integrated campaign.
Mini-catalogues display your products beautifully, offer a personal,
tangible experience and most importantly, they drive results.
MINI-CATALOGUES
53

54
Kontor Entertainment
developed a mailing that included a
vinyl disc of the music, and an envelope
that served as a turntable. A unique
smartphone app played the music when
it was activated by the QR code on the
turntable. In addition to 71% downloading
the app and playing the record, 42%
followed the link to the online store.
71%response rate
FROM INCITE MAGAZINE – V1.01, PAGE 15
Kontor Entertainment developed a mailing
that included a vinyl disc of the music, and an
envelope that served as a turntable. A unique
BMW Switzerland customers received a
Christmas card with a sound chip that played
an a cappella group (trying) to sing carols
CONNECTIVITYAMPLIFIES
YOUR IMPACT.
AWARENESS – GETTING YOUR MESSAGE NOTICEDAppendix

55
Nokia
recognized that there are two decision
makers in a company who must work
together to select a mobile service provider:
the IT director and the managing director.
This campaign brought these two people
together for a discussion by sending them
each other’s personalized mug.
64%response rate
Nokia recognized that there are two decision
makers in a company who must work
together to select a mobile service provider:
VES EFFECTIVENESS.
CONSIDERATION – DRIVING MORE ACTIONAppendix

Fiskars Silhouette Scissors
demonstrated the incredible cutting
precision of their scissors by using
them to cut the complete text of the
mailing out of the paper.
19%increase in sales
Fiskars Silhouette Scissors demonstrated
the incredible cutting precision of their scissors
Karate Bushido magazine sent each
of their subscribers a wooden plank
Research confirms that printed messages are more easily understood
than digital messages, and are remembered for longer. As you’ll see
in these examples, smart marketers worldwide harness the power of
physicality to deliver the best brand experience and generate results.
FROM INCITE MAGAZINE – V2.01 P.29 FROM INCITE MAGAZINE – V2.01 P.29
56
PURCHASE – DRIVING CONSUMER BEHAVIOURAppendix

57
Tesco
reached out to customers who had
been inactive for three months with a
personalized message and coupon printed
on a receipt. When customers used the
coupon in store, the cash register recognized
them and rewarded them with another
personalized message and coupon.
$228,000uplift in sales
The Sun Dream Team used data to support
both insight and execution of this campaign.
Fans received a mailing designed like their
Direct the right message to the right person, and benefit from accurate,
up-to-date data intelligence. By tracking campaign results, you can
calculate your ROI, and develop learnings to apply in future marketing
initiatives. These examples show how marketers worldwide use data to
tailor precise and powerful communications.
Tesco reached out to customers who had
been inactive for three months with a
personalized message and coupon printed
Appendix RETENTION – BUILDING A LONG-TERM SUSTAINABLE BRAND

58
BMW Switzerland
customers received a Christmas card with a
sound chip that played an a cappella group
(trying) to sing carols while riding in a racing
BMW. The card drove people to a website
where they could watch the making of the
song, and send their own e-card to a friend.
5,000 mailings generated
1.2M YouTube views
BMW Switzerland customers received a
Christmas card with a sound chip that played
an a cappella group (trying) to sing carols
TIVITYAMPLIFIES
PACT.
Appendix ADVOCACY – CREATING BRAND CHAMPIONS

59
Appendix
53% of fast food coupons and 49%
of restaurant menus are kept for a
month or more. They’re posted on the
fridge or kept in kitchen drawers for
easy access when someone’s hungry.27
The QSR industry in Canada spent
$934M on ads in 2014.26
INDUSTRY TRENDS - QUICK SERVICE RESTAURANTS
• Fast casual restaurants are growing in popularity.
• Customers continue to look for healthier options.
• Customers are developing a taste for higher
quality products – and they’re willing to pay
a premium price.
The quick service restaurant industry
is increasingly complex and faces tough
competition. How can you grab your
customers’ attention and appetites?
Drive new and existing customers online and in your restaurants
with targeted promotions and offers.

60
Appendix INDUSTRY TRENDS - FINANCIAL INSTITUTIONS
The Financial Services industry in
Canada spent $1.4B on ads in 2014.28
Reach the right people.
Keep mail they consider useful.
Use demographics and phychographics
to find people who are interested
in your product.29
66%
Generate brand awareness and maintain relationships with existing
customers by promoting new products and services.
• Millennial demographic demands new
digitally driven customer experiences.
• The drive for cost-savings pushes FIs
to find new cost-effective models of
delivering services.
• Despite digitization, customers still want
branches for key activities such as complex
financial issues, problem resolution.
Today’s customer moves easily
between many channels in a single
purchase journey.

61
Appendix
The Retail and E-commerce
industry in Canada spent
$2.4B on ads in 2015.33
INDUSTRY TRENDS - RETAIL AND E-COMMERCE
Turn awareness into action.
In response to Direct Mail:
64% of consumers visited a website and 54% engaged
in social media after receiving a direct mail piece.
32
Website
Social Media 54%
64%
E-commerce sales is experiencing
significant growth.
• From 2014 to 2018, Canadian
ecommerce sales are expected
to grow 15.3% annually (compared
with 2.1% for total retail).
30
• Canadian online sales projected to
double between 2013 ($19 billion)
and 2019 ($40 billion).
31
Drive potential customers online for information about Retail and
E-commerce services and maintain contact with past customers
to promote repeat purchases.

62
Appendix INDUSTRY TRENDS - AUTO DEALERS
Auto Dealers in Canada spent
$613M on ads in 2014.37
Unaided brand recall for a
physical piece of advertising
is 75% versus 44% for digital.38
Physical
Digital 44%
75%
The consumer path to purchase is changing.
This is especially true when researching
a vehicle.
• 90% of surveyed dealers say more customers are choosing
a vehicle brand and model before visiting a dealership.
34
• Canadians service their vehicles up to 4 times per year,
and 70% of them use the same service centres each year.
35
• 66% of people buy a new car within 12 months
of moving house.
36
Use a physical direct mail piece with Canada Post data (drive by POLK)
to conquest more effectively and encourage prospects to go online
to book a test drive.

63
Smartmail Marketing can drive measurable results at every point
on the path to purchase of a new vehicle.
Advertisers
1. Manufacturers (OEMs)
2. Dealers
3. Dealer Associations
3. Dealer Groups
Retention
• CRM Marketing
• Repurchase campaigns
• Recall campaigns
Acquisition
• Conquest campaigns
• Lead Management
Servicing
• Service scheduling
• Service retention loyalty
• Replacement parts
and accessories
Automotive
Marketing
Cycle
Appendix INDUSTRY TRENDS - AUTO DEALERS

64
Appendix INDUSTRY TRENDS – NOT-FOR-PROFIT
Not-for-profit organizations in
Canada spent $394M on ads in 2014.39
Show appreciation
57% feel more valued
when brands contact
them through mail
40
57%
Let your customers know you truly
appreciate their business.
• Increasing needs in communities
are stretching limited resources
and the demands on non-profits.
• New frontiers for technology
and data management can help
organizations maximize their
impact and increase efficiency.
Non-profits are competing for
consumers’ dollars and it’s crucial
to stand out.
Maintain contact with past members and promote
repeat donations and volunteer opportunities.

65
Appendix INDUSTRY TRENDS - TELCO
The telecommunications industry in
Canada spent $791M on ads in 2014.41
It’s more persuasive
20% higher motivation
response to direct mail
than digital media.42
• Canadians benefit from some of
the most advanced and efficient
wireless and broadband Internet
services in the world.
• Canada ranks 3rd in smartphone
market penetration – 81% of its
mobile subscribers use smartphones.
The telecom industry continues
to experience positive and
sustainable growth.
Inform potential customers about new products and services and
maintain contact with existing customers to promote renewals.

66
Appendix INDUSTRY TRENDS - TRAVEL AND TRANSPORTATION
• There are more Millennials
travelling than ever before.
• Travellers of all ages are looking
for travel in niche markets:
– wellness
– adventure and experience travel
Canada continues to be
a draw for local and
international travellers.
The travel and transportation
industry in Canada spent
$716M on ads in 2014.44
Turn awareness into action.
In response to Direct Mail:
64% of consumers visited a website and 54% engaged
in social media after receiving a direct mail piece.
43
Website
Social Media 54%
64%
Drive potential customers online for information about
travel services and maintain relationships with past customers
to promote repeat purchases.

67
Denny’s Restaurant
printed The All-Night menu onto pillowcases,
which were then distributed around universities.
Students were the perfect target audience, as
they hated having to cook for themselves, and
would love some new bedding, especially
if it was free.
FROM INCITE MAGAZINE ISSUE 7, PAGE 26
11%increase in regional sales
Appendix CASE STUDIES BY INDUSTRY - QUICK SERVICE RESTAURANTS

68
American Express
executed a campaign intended to engage
emotionally (which is the exact opposite of
most financial services mailings). The campaign
used a letter to tell the “incredible but true
story” about one Corporate Platinum Card
member’s unusual request – demonstrating
the benefits of the card and just what it can
do for members.
13%response rate – more than
150% higher than usual
Appendix CASE STUDIES BY INDUSTRY – FINANCIAL INSTITUTIONS

69
Frank Oak
wanted to find the optimal marketing mix in order to
connect with new potential customers. They worked with
Canada Post to see if direct mail would effectively promote
their newly opened Toronto store and the company’s
website. The promotion offered discounts for online and
in-store purchases.
FROM CANADA POST TESTIMONIALS, 2015.
350%ROI from active clients
200%ROI from inactive clients – with
response rate 26% higher than target
Appendix CASE STUDIES BY INDUSTRY – RETAIL

70
Hyundai
wanted to get South Africans to rethink what they knew
about luxury cars by using teaser ads in TV and print that
showed the Sonata with its badge replaced by a question
mark. Motoring journalists were mailed a box containing
a large image of the new car printed on fabric, together
with Mercedes and Lexus emblems. Journalists were invited
to the launch to learn what the car really was.
Vehicles sold outacross country
– and a waiting list created
Appendix CASE STUDIES BY INDUSTRY - AUTO

71
The Red Cross
needed to address the lack of awareness about
the work of the organization and its volunteers
beyond just disaster relief. They enlisted 300
storytellers who had been helped by the Red
Cross’s five lines of service and mailed them a
simple kit with a video camera to depict their story
– with no director and no script.
Over two dozen stories
turned into TV and print advertising,
driving traffic to website
Appendix CASE STUDIES BY INDUSTRY – NOT-FOR-PROFIT

72
Kao Australia
wanted to engage hair stylists, as well as the end
users of their products. The mailed key influencers a
shaggy-haired doll, encouraging receivers to restyle
the doll’s hair with Kao Australia product and share
the results on Instagram.
60%immediate response rate
95%response rate after
follow-up phone call
Appendix CASE STUDIES BY INDUSTRY – LOYALTY

73
Fido
wanted a creative and personal way to thank
their loyal customers in celebration of their 15th
anniversary.
They engaged their loyal consumers in a fun and
interactive manner. Customers were sent a DM
piece enclosed with a balloon and instructions on
how to create the iconic Fido dog, along with a
special loyalty reward.
1,336 YouTube hits
Appendix CASE STUDIES BY INDUSTRY – TELCO

74
Tourism Ireland
Wanted more people to think of Ireland as a
holiday destination. They developed a mysterious
and engaging approach by mailing prospects
a beat-up old map – Treasure Ireland – with a
message stating, “It is time for this map to pass
to you.” The reader was then invited to request a
brochure and enter a competition.
10.71%response rate from
56,000 maps mailed
Appendix CASE STUDIES BY INDUSTRY – TOURISM

75
SOURCE LIST
Marketing Today
1 Statistics Canada, 2014.
2 eMarketer 2015.
3 Chief Marketing Officer (CMO) Council
http://www.cmocouncil.org/facts-stats-categories.php?category=marketing-spend
4 Interactive Advertising Bureau of Canada
https://iabcanada.com/files/Canadian-Internet-AdRev-Survey_2013-14.pdf
5 Sizmek, 2014.
6 DMA Response Rate Report, 2014.
7 comScore, 2015
8 Social@Ogilvy (Ogilvy Mather)
http://www.slideshare.net/socialogilvy/facebook-zero-white-paper-31934430
9 https://www.thinkwithgoogle.com/infographics/5-factors-of-viewability.html
10 Imperva Incapsula
https://www.incapsula.com/blog/bot-traffic-report-2014.html
11 Interactive Advertising Bureau
http://digiday.com/platforms/advertising-fraud-iab/
12 GoldSpot Media. Cited in eMarketer.com.
http://www.emarketer.com/Article/Measuring-Fat-Fingers-Problem/1009470
13 eMarketer, 2015.
14 Ipsos-Reid, 2014.
15 CIRA – Canadian Internet Registration Authority, 2015.
16 Media Technology Monitor (MTM), 2015.
Science Behind the Solutions
17 All stats from: Canada Post, Breaking through the Noise
18 All stats from: Canada Post, Consumer Engagement with Advertising Mail, June 2015
19 All stats from: Canada Post. A BIAS FOR ACTION:
The neuroscience behind the responsedriving power of direct mail
20 All stats from: Canada Post. Connecting for Action
Solutions Portfolio
21 Canada Post. Breaking through the Noise
22 Forbes.com/Gartner Group
http://www.forbes.com/sites/jerryjao/2014/11/19/why-customer-retention-is-king
-the-evolution-of-retention-marketing-part-1/
23 Harvard Business Review
https://hbr.org/2000/07/e-loyalty-your-secret-weapon-on-the-web
Appendix: Industry Trends
26 Canadian Marketing Association, Marketing’s Influence in Canada, 2012.
27 Canada Post and Phase 5, Mail Management: A Human Factors Based Approach, 2015.
28 Canadian Marketing Association, Marketing’s Influence in Canada, 2012.
29 Royal Mail MarketReach, “The Private Life of Mail,” January 2015.
30 Canadian Online Retail Forecast, 2014 to 2019, Forrester Research Inc.
31 Canadian Online Retail Forecast, 2014 to 2019, Forrester Research Inc.
32 Canada Post Research, Breaking Through the Noise, 2015.
33 Conference Board of Canada / CMA, “Marketing’s Influence in Canada,” December 2012,
Canada Post revenues for Personalized Mail and Neighbourhood Mail, FY 2015.
34 Unlocking the value of digitization in automotive sales and distribution, PwC, 2013. Report was
originally published by Booz Company in 2013.
35 Canada Post 2008.
36 Canada Post research, September 2011.
37 AC Nielsen, Digital estimated from CMA data.
38 Canada Post Research, A Bias for Action, 2015.
39 AC Nielsen, CPC data 2014. Includes government spending.
41 CMA 2012, CPC data 2014.
42 Canada Post Research, A Bias for Action, 2015.
44 CMA 2012, CPC data 2014.

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