Direct Mail Chinmay Nagarkar Heajin Bae Rahul Dalai Yeji Kim

Agenda 1. Definition 2. Why direct mail? 3. Benefits of direct mail 5. Role of direct mail in the marketing mix 6. Consumer Behaviour 7. Creativity 8. Problems 9. Solution 10. Suggestions 11. Conclusion

What is Direct Mail?

What is Direct Mail? Direct mail is a form of advertising that allows businesses to communicate straight to the customer Direct marketing by sending an offer, announcement, remind, or other item to a person at a particular physical or virtual address

Why Direct Mail? 98% of consumers bring in their mail the day it is delivered, and 77% sort through it immediately. 98% 77%

Why Direct Mail? 6,400 online shoppers receiving print catalogs buy more often & spend more meaningful time at retail websites The result held regardless of age, income, region, education

Why Direct Mail? On average, those who receive a catalog spend 28% more and buy 28% more items than those who do not receive a catalog.

Benefits of Direct mail Highly targeted Personalize Tangible Cost efficiency

Role of direct mail in the marketing mix Most suitable medium for one to one communication: Ability to give something to the recipient on the spot Able to reach to a person at a particular physical or virtual address One gets updated with a specific offer of service or product

Role of direct mail in the marketing mix One of most measurable forms of marketing It is easy to record the number of mailers that are sent Coupons or codes are used to record response rates Personalize to select geographic, demographic or psychographic target market

Role of direct mail in the marketing mix Highly effective with the incorporation of Technology Marketers now use it by featuring URLs, website links short animated clips, footages Allows viewer to individualize their selection Deliver message at incredible speed and lower costs

Role of direct mail in the marketing mix Using and delivery data effectively Delivers the message and information in concise form Connects and relates with the viewer Generates interest through format

Consumer Behaviour It drives interest and curiosity about the latest offer or scheme of the product or service Plays a key role in purchase decision making process Persuades people through the core information delivered to them Creates needs and requirements

Consumer Behaviour Customers have a range to choose from based on their likes and dislikes Builds loyalty and goodwill among customers Makes consumers do a comparative analysis with all brands Allows customers to give their feedback after purchase is made

Creativity Draws attention by presenting in a unique form. For example, free gift and ask for feedback Vibrant use of colors and photographs to catch the readers attention Creative format compels the consumer to read the message Innovative activity makes readers engage and view the content repeatedly

Problems

Problems Low Response Emphasis of more other channels leads to low response May Offend Potential Customers Many consumers perceive direct mailing to be junk mail A lot goes directly into the garbage

Problems Expensive: The cost of designing effective direct mail advertisement can be high Costs more in hiring photographers, copy writers, artists Paying a printing company to produce fliers or brochures can also be expensive If the direct mail is not sent to the target group the advertising would be wasted

Problems Time: Lots of time taken in direct marketing It is hard to get as immediate impact It takes time to reach consumers. Alienation: Customers get annoyed due to continuous incoming mails Prohibition act against companies takes place to stop the service

Problems Limited Reach: Direct marketing has a limited reach. There is an inherently limited geographic reach to direct marketing involving fliers and street advertising Laws: Distribution of Direct mail often prohibited by law in certain areas. Certain customer bases will be unreachable

Solutions The fact that it is a measurable and discrete medium should make it a hotbed of experimentation Simple direct mail sent to interested customers is much more cost-effective than fancy mail sent to unresponsive addresses KISS: Keep It Simple and Short. Lists and bulleted items help quickly explain main points

Solutions Personalization: Personalization can increase response rates up to 50%. Personalization also includes tailoring the mail to the lifestyle, experience and interests of the customer Budget: Budgeting can be made easy by knowing the quantity to be mailed, using popular formats, anticipating inflation and testing the direct mail campaign with small quantities before sending them all

Solutions Response mechanism: The direct mail should tell people how to respond. AIDA: Overall, direct mail packages should get attention Arouse, Interest, Stimulate Desire and Prompt Action Create an advertising curriculum that teaches as it sells

EDM (Electronic Direct mail) EDM is used to target a large group of prospects, and is focused on building customer relationships and generating leads Consistency is a key Call to Action

Creativity

How to achieve success? Combination with Technology

Combination with Technology. 1. Video 2. QR code 3. Augmented reality 4. Other technologies

Video Direct Mail could suffer as a stand alone When made part of a multichannel strategy, it can become stronger

Video Video has been the hottest technology for years, shows no signs of slowing down

Video

QR Code The most basic and inexpensive way to integrate video into direct mail is through the use of QR codes

QR Code You can create immediate conversions As the user in transported directly a custom landing page on their Smartphone

Augmented reality

Augmented reality Augmented reality (AR) is live, direct or indirect physical view real-world environment whose elements are augmented by computer-generated sensory input such as sound, video, graphics or GPS data

Augmented reality Direct mail will greatly benefit from AR As apps on a Smartphone are being developed at a rapid pace

Other technologies

Conclusion These suggestions can be as inexpensive or expensive, as you choose Direct Mail is not Dead, An advance towards the FUTURE