This document discusses the evolving role of direct mail in the telecommunications marketplace. It provides an overview of trends in the telecom sector, including market growth predictions, dominance of major players like BT and Sky, popularity of bundled services, and growth of multi-device households. The document also discusses attitudes and preferences of consumers regarding bundles, including desire for flexibility. It analyzes direct mail and door drop usage patterns among major telecom providers and notes that direct mail makes up 13% of telecom advertising spend. Finally, it touches on new technological trends like growth of video on demand and Sky AdSmart targeted TV advertising.

1. MAIL’S EVOLVING ROLE
IN TODAY’S
TELECOMS MARKETPLACE
Date
Audience

2. WHAT WE WOULD LIKE TO TALK ABOUT TODAY
 The Telecoms sector and the role for direct mail
 The new news about mail
 Why use mail now
 Our products and services
2

3. TELECOMS
AND THE ROLE OF DIRECT MARKETING
3

4. THE TELECOMS MARKET IS PREDICTED TO CONTINUE
GROWING IN VOLUME TERMS BUT IS STARTING TO
SEE FLATTENING OF REVENUE GROWTH
(m)
7.9
Best case (m)
20.5
Worst case (m)
12.2
Mintel forecast (m)
16.3
0
5
10
15
20
25
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Marketvolume(m)
95%
Confidence intervals
90%
70%
50%
Actual Forecast
Est.
0
 Total operator-reported telecoms revenues
fell by £0.6bn (1.7%) to £38.6bn during
2013
 Mainly as a result of declining retail mobile
revenues (down £0.3bn) and fixed voice
revenues (down £0.1bn)
 These falls were partially offset by a £0.3bn
increase in revenues from fixed internet
services during the year
 Growth opportunity will continue in
bundling fixed telephony and broadband
with TV and mobile
Source: Ofgem Technology Tracker, Ofgem, August 2014 4

5. 0%
20%
40%
60%
80%
100%
Total Male Female 16-24 25-34 35-54 55+ AB C1 C2 DE
BT Sky Virgin Media
Talk Talk/Carphone Warehouse Orange Plusnet
THE MARKET IS DOMINATED BY THREE MAIN
PLAYERS BUT NEWER ENTRANTS ARE STARTING
TO HAVE AN IMPACT
Question - Which supplier do you use for bundled services?
Source: Ofcom Technology Tracking Survey, nVision, 2014
Base: 2,253 respondents with a bundle service, who receive any of these services as part of an overall deal or package aged 16+, UK
 BT, Sky and Virgin Media control 80% of the
total telecommunications bundle market place
 However the market place has become much
more competitive with many new entrants in
the last few year like the PO, Tesco and
Plusnet
 TalkTalk has captured a good market share in
the last 2 years and is catching-up on the big 3
 BT has a strong uptake in older affluent
audiences with Sky more appealing to the
younger more mass market
5

6. THE BUNDLED MARKET CONTINUES TO GROW
WITH OVER 63% OF HOUSEHOLDS HAVING AT
LEAST TWO SERVICES FROM THE SAME PROVIDER
 Just over 63% of households bought at least two of
their communications services together in a bundle
in Q1 2014, a slight increase on the previous year’s
figure (60%)
 A dual-play package of landline and broadband was
the most popular, taken by 28% of households,
followed by a triple-play package of landline,
broadband and TV, taken by 23% of households
 Take-up of bundles varied by socio-economic group,
with 78% of those in AB households having at least
one bundle (up from 70% in Q1 2013), compared to
48% of those in DE households
 28% of adults state bundles as being the most
important consideration when choosing a supplier
Source: Ofgem Technology Tracker, Ofgem, August 2014 6

7. WE ARE NOW LIVING IN MULTI DEVICE HOUSEHOLDS
WHICH OPENS UP NEW OPPORTUNITIES FOR
TELECOMS SECTOR
Take-up of communications/AV devices: 2003-2014
Source: Ofcom Residential Postal Tracker Q2 2013-Q1 2014, Ofcom, 2014
 With the digital switchover now complete, most households
now have digital TV and 34% of households now have high
speed fibre optic broadband
 Multi-screening within households is having a big impact on
usage with over a quarter of adults (27%) now having
access to four screens at home. We are seeing the biggest
increase in smartphone and tablet devices – both of which
require internet connections.
 Nearly six in ten (57%) said they personally used their
mobile phone to access the internet
 Almost all UK adults who have mobile phone internet
access also have access via fixed broadband
 There is an opportunity for highly targeted communications
to specific users and multi-screen households to cross and
upsell multi household licences and go anywhere services
7

8. BUNDLES ARE IMPORTANT TO PEOPLE’S
LIVES, CUSTOMERS ARE LOYAL TO A PROVIDER
WITH ONLY 14% SWITCHING LAST YEAR
Less than £10 a
month
5%
£11-20 a month
19%
£21-30 a month
24%
£31-40 a
month
16%
£41-50 a month
12%
More than £51 a
month
16%
I don’t
know
8%
 Most households pay over £20 a month for
their telecommunications bundle. With a
growing proportion now spending over £40 a
month.
 Most households now see having
broadband and TV packages as a necessity
and could not live without a broadband
connection
 Even though there are many offers and
incentives in the market place, only 14% of
households switched supplier last year
 Clearly an opportunity exists to build and
reward loyalty with existing customers
How much do you pay for your bundle
service/package each month?
Source: GMI / Mintel, Bundles
Communications Services, January
2014
8
% of people who have switched landline
0% 2% 4% 6% 8% 10% 12%
Overall
16-24
25-44
45-64
65-74
75+
AB
C1
C2
DE
Source: Ofcom Switching Tracker, Ofcom, 14th July to 16th August 2014

9. MOST HOUSEHOLDS ARE LOOKING FOR
INCREASED FLEXIBILITY FROM PROVIDERS
 People are increasingly looking for more flexibility from providers – so they can change packages to reflect their
consumption changes e.g. switching services on and off
 People are becoming more confused with what bundles mean and are looking for simplicity and clarity
 There is a feeling that no one provider really stands out from the others
 There is an opportunity with a medium like mail to tell more of a story and explain products and services in
more simple terms
Source: Ofgem Technology Tracker, Ofgem, August 2014 9

10. MOST HOUSEHOLDS ARE LOOKING FOR
INCREASED FLEXIBILITY FROM PROVIDERS
Attitudes to Bundled Communications, November 2013
37
29
29
26
26
16
13
12
12
11
7
14
0 5 10 15 20 25 30 35 40
I dislike paying for line rental when I hardly use my landline phone^
I do not think that any one provider has a standout offering
I do not have a bundle package as I like to get the best prices from different
suppliers^^
I would only be interested in having superfast/fibre internet instead of having the
traditional broadband
I would be interested in a bundle that allowed me to ‘switch off’ individual services
month to month
I would be interested in a landline service which allows me to use any included
minutes to make free calls from other devices (eg PC, smartphone)
I would be unlikely to purchase/repurchase a TV subscription as part of a future
bundle, since there is so much content available online (eg iPlayer, Netflix)
It is worth paying more for a bundle that allows viewing TV channels on any device at
any time
I would be interested in a landline phone that came with similar features to a
smartphone (eg apps, the ability to browse the internet)
When choosing an internet package, the amount of data included is more important
to me than speed or price
I picked my bundle specifically because I was attracted to the mobile offer
available^^^
None of these
%
Source: Ofgem Technology Tracker, Ofgem, August 2014 10

11. ADULTS WHO RATE THE IMPORTANCE OF BEING
OFFERED A TELECOMS BUNDLE, RESPOND TO MAIL
Source: TGI, Kantar Media, October 2012 to September 2013
Of 62% of adults who rate the importance of having their telecoms bundled have done something in the last
12 months as a result of the direct mail they’ve received...
Of 72% of adults who rate the importance of bundling as key when deciding which carrier to use always
look out for special offer and…
 17% more likely to be heavy mail responders
 29% kept it for later use
 11% paid more attention to an ad
 23% visited a store
 15% passed it on
 14% tried a new product or service
 44% bought or ordered something
 14% made an enquiry or asked for more
information
 38% used a coupon
11

12. DIRECT MAIL MAKES UP 13% OF ALL TELECOMS
ADVERTISING SPEND
Telecoms share by media - 1 November 2013 to 31 October 2014 (%)
 The top telecoms bundles suppliers sent 182m
direct mail pieces in 2013-14
 Virgin Media are the biggest users of mail sending
33.5% of the mail sent in the sector
 TalkTalk sends 30% of the door drops in the sector
and Sky use door drops more heavily than mail
Mail volumes by provider - 01 November 2013 to 31 October
2014 (%) Door Drop volumes by provider - 1 November 2013 to 31 October 2014 (%)
Source: Nielsen Ad Dynamix, November 2013 to October 2014
Cinema, 3 Direct Mail,
13
Door
Drops, 3
Internet, 4
Outdoor,
13
Press, 25
Radio, 4
TV, 35
Virgin Media,
33.5
BT Ltd, 29.8
TalkTalk
Group, 17.6
British Sky
Broadcasting
, 16.3
EE
Everything
Everywhere ,
1.4
TalkTalk
Group, 30.35
Virgin
Media, 29.34
British Sky
Broadcasting
Ltd, 18.66
BT Ltd, 18.52
Hutchison
3G Uk
Ltd, 1.65
Vodafone
Ltd, 1.15
12

13. DIRECT CHANNELS HAVE DIFFERENT SEASONAL
PATTERNS AND ARE USED IN DIFFERENT WAYS
Door Drop Volumes – Telecom Sector (Nov 13 to Oct 14)
% of door drops sent in the past year by month
Direct Mail Volumes – Telecom Sector (Nov 13 to Oct 14)
% of DM sent in the past year by month
BY THE MAIN PROVIDERS
Source: Nielsen Ad Dynamix, November 2013 to October 2014
9.8
5.4
9.9
8.3
5.4
8.0
6.9
9.1 8.7
7.5
10.5
10.6
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
9.6
5.5
8.6
9.4
7.0
9.0
7.5
7.0
9.4
9.8
8.1
8.9
5.0
6.0
7.0
8.0
9.0
10.0
11.0
 Direct Mail has a much more seasonal pattern
than door drop
 Direct Mail peaks in the pre and post Christmas
period when offers and incentives to switch are
most prevalent
 Door drop is used as more of a constant,
always on presence for brands especially
TalkTalk, Virgin and Sky
 Virgin Media direct marketing and CRM
Director, Chris Bibby says door drops allow
them to target prospective customers in the
specific areas in which they are rolling out
broadband services. He adds: “Door drops can
be an efficient way to communicate with
consumers and a good cost per response rate
is attractive.”
13

14. NEW TECHNOLOGICAL TRENDS
IN THE SECTOR
14

15. SOME TECHNOLOGIES LIKE DIGITAL TV ARE AGE
NEUTRAL BUT MANY DIFFER BY AGE
Source: Ofcom Media Tracker, Ofcom, November 2014
 The 35-44 age group exhibits very high take-up of
the newer digital devices; they have the highest
take-up of tablets (55%), smart TVs (17%) and
computers (89%), which may reflect both
confidence and available income.
 Younger audiences are most likely to use
smartphones and MP3 players
 Take-up of most of the services and devices drops
significantly for the 65+ age group; 19% report
using a smartphone and only about half have a
computer or broadband in their household (52%
and 49% respectively).
 In fact, latest OFGEM research shows that a
person’s digital confidence peaks at the age of
 14-15. With the lowest being in the 75+ age group.
 This opens up opportunities for targeted lifestage
marketing offering different products and bundles
15

16. IN RECENT YEARS THERE HAS BEEN RAPID GROWTH
OF VOD AND GO ANYWHERE SERVICES
 Investment in rights & commissioning means a
greater amount of content (both free and paid-for)
is now available to stream or download
 BBC iPlayer remains the most popular VOD
service overall, with 38% of viewing
 Netflix had the largest increase in Q1 2014 with a
six percentage point increase, making it the most
popular VOD service outside those provided by
Public Service Broadcasters
 We have also seen growth in UKTV and Google
Play as well as Virgin and Sky offerings
 The reasons for using VOD include missing
programmes and wanting to watch programmes
when it is convenient
Source: Decipher mediabug - Wave 4 report.
Source: Ofcom Media Tracker, Ofcom, November 2014 16

17. SKY ADSMART OFFERS NEW OPPORTUNITIES
TO TARGET CUSTOMERS THROUGH TV
 Sky’s tailored advertising service, AdSmart, is offering
revolutionary targeting on TV for broadcasters and advertisers
alike
 The ability to tailor ad breaks based on a household’s profile
and location is right on-message for the trend in marketing to be
inextricably linked to flexible, personalised content
 Available in more than one-fifth of UK households at launch,
Sky believes AdSmart has the ability not just to compete with
existing TV budgets but increase the size of the marketplace in
general
 It offers a new opportunity to complement targeted 121
communications which can also be highly targeted and
regionalised
Source: Campaignlive , 30th January 2014
17

18. MESSAGING AND ADVERTISING USED
BY PROVIDERS
18

19. DIFFERENT ATL APPROACHES TO MAIN
TELECOMS BRANDS
Sky focus on key series, films
and sport programming
BT Focus on broadband speeds and
capacity through Infinity – featuring
characters to tell the story
Virgin Media has a more holistic
approach to the effect of communicating
through broadband phones and devices
– featuring Usain Bolt
19

20. ACQUISITION MAIL
Switching incentives Money off bundled packages
Price led
Free programming as part of bundled package
20

21. RETENTION – CROSS AND UPSELL
21

22. TRIGGER MESSAGING: TELECOMS CAN TARGET
Data is profiled using top 10 Cameo
clusters
e.g. It can be segmented by ‘affluent
singles, couples and families etc’
PEOPLE MOVING HOME VIA ROYAL MAIL’S HOME
MOVER DATABASE
 1.2m records added per annum
 Updated weekly
 100k approx. records added each month
 4 years historical data available
 Name, address and exact move date available
 Anniversary and Multiuse data available
 Includes personalised “moved to” , un-
personalised “moved from” and Royal Mail Just
Built data
22

23. CASE STUDIES SHOWING HOW
EFFECTIVE MAIL IS FOR TELECOMS
23

24. VIRGIN USED MAIL AS PART OF A MULTI-MEDIA
CAMPAIGN TO BRING THEIR FASTEST BROADBAND
Background:
Whether you have 10Mb or 50Mb, fast broadband is just fast broadband
until you demonstrate the tangible benefits.
Solution:
When Ofcom said that Virgin’s broadband was twice as fast as everyone
else's, Virgin knew they had a story to drive sales and upgrades. They
used an integrated campaign with mail as an integral part to illustrate that
Virgin Media fast broadband is really fast!
Results:
The campaign achieved three times as many customers for their top level
XXL Broadband as previous campaigns and sales increased 14% year
on year. New customers taking mid or higher tier broadband increased
by 150%.
TO LIFE
Source: DMA, Gold Winner, 2011
24

25. ORANGE REACHED YOUNGER FAMILY
MEMBERS VIA THE DOORMAT
Background:
Orange wanted to sell the benefits of pre-packed phone deals to
parents of young children who may now have phones of their own.
Solution:
Data profiling helped to unpick the characteristics of parents of 8-16
year olds and from this a highly targeted mail pack was created. The
creative was a scratched vinyl record entitled “can you top-up my
phone Mum/Dad” and offering a pre-packaged phone deal.
Results:
“Excellent” results and evidence showed that the mail piece was
retained. The campaign also won a DMA Gold Award.
Source: DMA, Gold Winner, 2011
25

26. O2 COMBINED MAIL AND TELEMARKETING
FOLLOW-UPS FOR B2B ACQUISITION
Background:
O2 wanted to drive sign-up from Councils for its Local Government
Future Fund.
Solution:
A key audience for O2 is local government, and knowing that this
audience are facing stringent budget cuts, they wanted to portray the O2
Fund. An integrated campaign including mail and email built awareness
around the Fund.
Result:
41 councils applied – over 10% of the UK Local Government sector.
62 additional meetings were booked for O2 sales managers. The
campaign also won a DMA Bronze Award.
Source: DMA, Bronze Winner, 2012
26

27. SKY INTEGRATED DOOR DROP ACTIVITY WITH ATL
ADVERTISING TO MAKE EVERYTHING WORK HARDER
Background:
Sky wanted to offset the alienation that sport-specific advertising can
create, by reinforcing and driving deeper engagement with specific target
audiences.
Solution:
A door drop ran simultaneously to the TV advertising during the launch of
the Sky Sports football season. Data modelling revealed three key groups
to target – sports viewers, family groups, and regional sports areas.
Imagery and messaging on the door drop was adapted to suit each
audience.
Result:
“Stunning results”, response outperformed its target by 20%. The
campaign also won a DMA Bronze Award.
Source: DMA, Bronze Winner, 2012
27

28. DOOR DROPS HAVE THE LOWEST CPA FOR
TALKTALK
Background:
TalkTalk were looking for better CPA in all their media channels and so
decided to test door drops as part of their media mix.
Solution:
Door drop was identified as being the most cost-effective channel. A postcode
sector ranking model was developed incorporating three key attributes:
 Proximity to TalkTalk exchanges
 Competitor presence
 Strength at live exchanges and geo-demographics
Results:
Door drops now have the lowest cost per acquisition of any channel.
Investment has increased from 1.5m to circa 6m packs every month.
TalkTalk head of direct marketing,
Michele Lockwood says that for
companies with a broad appeal, it
offers an “economically efficient way
to geo-demographically target
products and messages.”
Source: DMA, Silver Winner, 2010
28

29. CARPHONE WAREHOUSE REVOLUTIONISED THEIR
BUSINESS WITH CRM USING RELEVANT MESSAGING
Background:
A campaign was needed to persuade customers to come to
Carphone Warehouse rather than go to the network provider for
upgrades.
Solution:
Research showed that customers were more likely to come back if
Carphone Warehouse talked to them at exactly the right time.
They mapped out the customer journey of owning a new handset
through to upgrade and devised relevant messages throughout
that journey.
Results:
Results showed a doubling in response rates at renewal.
ACROSS THE CUSTOMER JOURNEY
Robert Kent, CRM programme manager at Carphone
Warehouse commented on the effects of the CRM
programme:
“Sales on some marketing campaigns have doubled the
response and beyond revenue customers now
experience a higher level of service. With better data we
can target communications more effectively ”.
Source: A Connected Life, Marketing Agencies Association Case Study 215
29

30. Background:
EE had multiple business challenges at launch: to launch a new brand; to launch a new
technology (4G); to differentiate against four established brands; and to acquire new
customers, in a category where customers are typically locked into contracts for 18+
months.
Solution:
The core product feature; “4G the fastest mobile internet in the UK" made it relevant to
what people actually want to do with their mobiles. This campaign worked across every
channel. Everything from Direct Mail to retail experiences enabled the audience to
interact with EE and 4G.One of the important tasks was to talk to the existing 27 million
customers (Orange and T-Mobile), focusing on business customers as well as
consumers. The mail piece used augmented reality so existing customers could bring
the 4G EE message to life themselves.
Results:
Consideration figures showed appeal to a much wider audience than EE customers. In
fact, by week five considerations were at the same level as T-Mobile. By month three,
EE had drawn level with Vodafone in second place for communications awareness and
won a DMA Gold award.
EE USED MAIL TO LAUNCH 4G
Source: DMA, Gold Winner, 2013
AND NEW BRANDING
30

31.  It’s been proven to be the most emotionally engaging media
 People still enjoy receiving it
 It has increasing standout in a digital world
 It is highly valued by people
 It is omnipresent in people houses
 It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
31

32. THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME,
HEART AND HEAD

33. 33

34.  12 Ethnography households
 14 Focus groups
 99 Depth interviews
 213 Neuroscience / biometric participants
 401 BrandScience’s ‘Results Vault’ cases
 416 IPA Effectiveness Databank cases
 1,000+ Academic articles reviewed
 9,504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
34

35. DEVELOPED IN 8 STRANDS
 Ethnography
 Post ethnography survey
 Multisensory Communications: review of academic literature
 Tactility
 Values: Best Mail
 Mail and Digital 1 & 2
 Neuroscience
 ROI/Effectiveness metrics
35

36. MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
36

37. 37

38. MAIL GETS OPENED – AT HIGH RATES
Statement, bill or information update
Brochure from a company they have ordered from before
Letter – promotion or special offer
Letter – about a product/service they don’t have
Leaflet without an address about a product/service
Leaflet without an address about a promotion/offer
Brochure from a company not ordered from before
83%
71%
69%
60%
59%
54%
54%
OPEN
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 38

39. MAIL’S JOURNEY ISN’T OVER WHEN
Adults read their mail on average for 22 minutes a day.
IT HITS THE DOORMAT
1.15PM: Collects mail and brings it into the
home with other bags and belongings
1.30PM: Opens mail whilst doing other jobs
2.15PM: Opens parcel
2.30PM: Uses laptop to get details on a piece
of mail received
5.30PM: Uses laptop again to get further
details on the piece of mail from earlier
8.30PM: Brings catalogue into lounge to read
Source: IPA Touchpoints 5 (Data based on Monday – Saturday morning); Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 39

40. PEOPLE GIVE MAIL TIME
Mail is kept for extended periods, creating a constant presence in the home.
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 40

41. AND SPACE
80% of adults kept some mail that
companies had sent them in the last four
weeks.
 ‘The Holding area’ where it is kept
before being dealt with
 ‘The Pile’ for mail that has been read
and will be revisited
 ‘The Display area’ for useful or
important items (local information,
time limited offers)
Display Area
Pile
Holding area
Source: TGI, Kantar Media, 2014; Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 41

42. MAIL GETS DISPLAYED
39% of people have a dedicated display area for mail in the home
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 42

43. MAIL IS SHARED
An average of 23% of mail is shared within a household.
Brochure from a company I have ordered from before
Statement, bill or information update
Letter – about a product/service they don’t have
Brochure from a company not ordered from before
Leaflet without an address about a promotion/offer
Letter – promotion or special offer
29%
24%
25%
23%
22%
21%
SHARE
Average of 23%
of mail shared
within a household
Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 43

44. MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70%
“I feel that I
receive too
many
emails”*
*Source: Royal Mail MarketReach, Mail and
Digital Part 1, Quadrangle, 2013
**Source: Litmus Email Analytics, 2013
Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Mail stands out due to the proliferation
of digital messages
3%
3%
22%
72%
48%
18%
19%
15%
0% 20% 40% 60% 80%
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a
day?
Email
Mail
51%
of emails are
deleted within
two
seconds**
44

45. INCREASINGLY MAIL IS DRIVING PEOPLE’S
43%
download
something
54%
engaged in
social media
87%
influenced to
make online
purchases
92%
driven to online
or digital activity
86%
connected with
business
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked(S4Q1): How often have you done each of the following online as a direct
result of receiving mail from a business or organisation. Base: All (n=2,375)
DIGITAL BEHAVIOUR
As a direct
result of
receiving
mail
45

46. MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
46

47. 47

48. 48

49. TOUCH CREATES A POWERFUL
 When people can both see and
touch something, they value it
24% more highly than if they
can only see it.
 Over a third of people say that
the physical properties of mail
influence how they feel about
the sender.
EMOTIONAL RESPONSE
+22% +24%
2.75 2.73
3.36 3.38
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale.
Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009
IPA Touchpoints 5, 2014 49

50. PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63%
57%
55%
18%
17%
25%
(% True of Mail vs. True of Email)
MAIL EMAIL
Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 50

51. MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
51

52. 52

53. 53

54. THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV.
TO MAIL THAN TO TV OR EMAIL
Source: Royal Mail MarketReach, Neuro-Insight, 2013
168
202
172
127
165
130
105
113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Indexvs.'Normal'restingbrain
MAIL EMAIL TV
54

55. IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source: Royal Mail MarketReach, Neuro-Insight, 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term Memory
Encoding
Indexvs.responsefromfirstexposure
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
55

56. MAIL IN THE WALLET
HOW MAIL MAKES MONEY
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57. MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mail
Source: Royal Mail MarketReach BrandScience, 2014
0
2
4
6
8
£
RROI (Revenue ROI)
57

58. Total ROI increased 12% when mail was included in the mix.
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source: Royal Mail MarketReach, BrandScience 2014; advertiser cases including mail versus cases without mail.
4.22
4.63
5…
4.73
4.93
6.31
1
2
3
4
5
6
7
Total Comms TV Print
RROI
RROI-NO MAIL RROI-WITH MAIL
58

59. MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences. When mail is
added to the schedule
versus email on its own
Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 59

60. INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were:
 27% more likely to deliver top-
ranking sales performance
 40% more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013
+27% +40%
45%
30%
57%
42%
0%
10%
20%
30%
40%
50%
60%
Sale Acquisition
%Clientslistingtopperforming
improvements
RROI - NO MAIL RROI - WITH MAIL
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61. WITH MAIL IN THE MIX, MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers.
2.9xMarket share growth
for all clients
3.4xMarket share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail.
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013 61

62. MAIL IN ACTION
EDF
62

63. EDF USED TARGETING AND CHARM TO
MAKE CONSUMERS FEEL ZINGY ABOUT ENERGY
Background:
EDF Energy was facing many challenges. Operating in a low interest commodity
category, the industry had the lowest amount of switching since records began. When
EDF Energy stopped face to face selling, they lost their largest acquisition channel. They
therefore needed to maximise the potential of other channels.
Solution:
EDF wanted to reach people who had not switched from their competitors and shake
them up. But a new angle was required to engage the audiences.
EDF had launched a new ATL brand positioning ‘Feel Better Energy’ with the brand
character ‘Zingy’. This offered the perfect opportunity for a radical change in direct
marketing.
Launching its biggest ever direct campaign, EDF used Zingy to persuade people to open
and engage with the new brand messages. Direct mail , door drops, inserts and direct
response print were deployed to convert awareness into action.
Sources: AIS London, IPA Effectiveness
Bronze Award 2014, Marketing Week
Engage Award Gold 2013,
63

64. EDF REACHED KEY AUDIENCES AND
Results:
This was the most successful campaign EDF Energy had ever run, giving
them a new route to a previously unresponsive audience.
EDF reached their 2012 year-end sales objective three months early. The
campaign achieved a record breaking 43,000 calls and19,500 direct sales,
exceeding sales targets by 30%.
Short term incremental gross profit showed that every £1 spent on the
campaign generated £2.36. Cost of sale was 23% lower than target,
making direct marketing a feasible acquisition channel for the first time.
EDF won c.25% of all market switchers making EDF the fastest growing
B2C energy supplier in the UK. 55% of sales came from customers who
had never switched before. 73% of consumers who responded to the
direct campaign said they wouldn’t have switched if they hadn’t received
the direct marketing.
The long life of mail was proved by the fact the it was still generating calls
three months later.
CHANGED BEHAVIOUR
Sources: AIS London, IPA Effectiveness
Bronze Award 2014, Marketing Week
Engage Award Gold 2013,
64

65. IN SUMMARY
 Mail brings a brand into the home where it is kept, displayed, and/or shared
 Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
 Mail makes your message more memorable
 Mail drives successful return on investment
 When used in integrated campaigns, it can provide a measurable media multiplier effect
 Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible, motivated and connected partner to you and your
marketing agencies.
Media and
Data
Planning
Bespoke
Research
and Insight
Data
Provision
Distribution
65

66. 66

67. BIG DATA IS DRIVING MORE 121 DIRECT
 Data is driving more 121 and personalised interactions.
 Trigger based communications based on actual and future behaviour change.
 There is a strong role for highly targeted personals mail in this space.
 Less short termism and more longer term ROI.
COMMUNICATION
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68. ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality: Online / offline
integration
VideoPaks
Sensory Mailings: Taste & smell
increases tangibility
Interactive print
Digital templating: cheaper, faster
& more personalised
QUICKER, CHEAPER & MORE IMMERSIVE MAILINGS
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69. NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for
machine readable
Business, Advertising and
Publishing Mail
Technology
Sorting machines that
read the new barcode
and collect mail data
Reporting
Mail Analytics that reports
on volume, compliance,
predicted delivery and
overall performance
Ultimately generating more efficiency, greater transparency and
measurement for your mail campaigns
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70. WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
• Best case for mail
• Test matrix
• ROI
• Contextualise within
the media mix
• Addressed/
unaddressed mail
1. Review your
competitive set.
2. Understand the key
dynamics of your
sector,
3. Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues.
• Acquisition
• Loyalty
• Retention
Understand the key
issue
Sector experts gather
insight
Recommendation
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71. Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd.
Royal Mail Group Ltd 2014. Registered Office: 100 Victoria Embankment, London EC4Y 0HQ.© Royal Mail Group Ltd 2014. All rights reserved.
THANK YOU
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