Hogeschool kortrijk 201111

Rudy Van Halle, DM Consultant

Direct mail, new school

3

Media MailDM consultancy

Multi sectorial approach

> 250 projects/year

Fact based insights (>100.000 interviewsB to C & B to B)

Strategical support

Impactstudies

4

“PAPER IS THE DIRECT MARKETING MEDIUM OF THE FUTURE.”

5

DM is new school !

6

Impact

Source: Mindshare - Henley Centre (and TNS Media & Post survey)

200 TV ads

150 radio ads1000’s of ambient ads ...

Weekly number of advertising messages per capita

20 e-mail ads

3 cinema ads

400 press ads/inserts

350+ outdoor ads

2+ DM pieces

Opportunity for Direct !

More than 3.000 messages / day52 get attention

4 are positively remembered

8

“Overall, which advertising media do you like the most ?”

Source : Mediaxim 2010 ; Media preference study – Market probe -dec 2010 n=1006

8,6

45

5,3

28

35,1

1530,0

9,93

6,34,2

13

11

0,6

Advertisers Investments Consumer preferences

Growing discrepancy between media investments and consumer media preferences

DMD2D

TV

Press

RadioOutdoorInternet

CinnemaSocial Networks

DM

D2D

TV

PressRadio

Internet

0,0

9

Zooming into generations attitudes

Source : Market Probe

Digital Natives

(15-24 years old)

Digital Immigrants

(25 – 44 years old)

Late Adopters

(above 45)

10

Addressed DM remains the preferred advertising medium

Source : Market Probe 2010

“Overall, which media do you like the most for advertising messages?”

29%

14%

21%

4%

7%

10%

7%

AddressedDM

UnaddressedDM

TV

Press

Email

Internet

Radio

In het algemeen, via welk medium ontvangt u het liefst reclame?De manière générale, sur quel média préférez-vous la publicité ?

29%

22%

12%

7%

6%

5%

4%

33%

27%

12%

8%

4%

1%

2%

Digital Natives Digital Immigrants Late Adopters

11

0

10

20

30

40

50Like

Attract

Irritate

Incite

DM

TV

E-mail

Social Networks

Radio

J’aime recevoir de la publicité via ce canal - Ik ontvang graag reclame via dit medium La publicité via ce média m’irrite souvent - Reclame via dit medium irriteert me vaak La publicité via ce média m’incite à réagir - Reclame via dit medium spoort me om dan te reageren

La publicité via ce média retient souvent mon attention - Reclame via dit medium houdt vaak mijn aandacht vast

DM is the media that incites the most Digital Natives to react

12

Beta value per category

0

10

20

30

40

50

60

70

80

90

Automotive Bank &Insurance

FMCG Retail Telecom &utilities

Other

Avg=67,4%

Campaign recall % per category

13

DM = second best beta value

Medium Format Avg beta value Source

Cinema 30" 0,700 GRP La mesure des médias/Het meten van de media

DM DM shot 0,674 bPost

TV 30" 0,220 GRP

Newspapers 1/4 p 0,200 GRP

Magazines 1/1 p FC 0,210 GRP

Internet Banner 0,110 www.journaldunet.com 11/10/2002

Radio 30" 0,070 VAR 2004

Outdoor 2 m² 0,041

Decaux 2008

8 m² 0,058

16 m² 0,085

20 m² 0,079

21 m² 0,123

36 m² 0,182

38 m² 0,184

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Hype technologieën Heb ikOverweeg ik

aan te kopen

Overweeg ik

niet aan te

kopen

Ken ik niet

E-reader 1.5% 4.3% 67.7% 26.5%

iPad 1.4% 8.0% 71.3% 19.2%

3D-TV 0.6% 5.9% 80.0% 13.5%

Google-TV 1.5% 3.3% 69.1% 26.1%

WebTV 4.3% 4.9% 66.6% 24.2%

Source : ibbt, digimeter

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“PAPER COMMUNICATION IS AN IMPORTANT DRIVER FOR FUTURE BUSINESS.”

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Brand perception

Sales activation

Boosting of ROI

Loyalty building

DM is a strong sales activator

Integrated with other media DM increases the ROI of your campaigns

with at least 20%

DM builds strong long term relations with your customer

DM improves brand perception

High recall rate

DM gets high recall rates even of complex messages

1 2 3 4

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FACT: Integrated with other media DM increases the ROI of your campaigns with at least 20%

15% to 200% extra

sales>25% more

loyal customers

Source: Post – 15 DM pilot surveys N: > 25.000

2 to 20 times better recall

>50% of brand

attributes improved

Consumers are strongly being activated by Direct Mail

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Totaal aantal eclairs voorzien : 4.000Aanvragen : 6.000

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97% opens

mailbox every day

… but receives only 2

DM/ week

78% is

opened

Consumersspend

1’52’’ per mail

… and behind every letterbox

is a unique person

you can target

The MAIL MOMENT…

Source: Study Mailmoment, bpost, MAS 2005

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Involvement

Source: Synovate-Censydiam, 2007

… to be appreciated as a customer

… to have a connection with the brand

…to be appreciated

… to be important to the brand

… to be unique

73%19%

63%8%

52%8%

57%7%

51%7%

DM gives me the feeling …

DM

Other media

(average)

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“DIRECT MAIL IS EXPENSIVE”

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“ONLINE IS THE NEW DIRECT MARKETING MEDIUM BUT WITH A LOWER COST.”

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DM is an ROI driven mediumDM vs e-mailing

Email marketing benchmarks 2010 IAB

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If not relevant

This is spam

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If not relevant

this is spam

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•Recall having received it

• Opened it

•Recall content•(content or

message)

•Intent to act

“Do you remember receiving a DM?”

“What did you do with the DM?”

“Can you describe the DM?”

“Do you have intention to react?”

•Read it

* Conversion rate average is an average of different conversion rates and doesn't correspond to conversion rate between average

Impact DM

•Average•Based on 90 cases 71 43 40 2649

•Conversion rate average*•Based on 90 cases

68 9088 65

DM B2C

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Response rates by sector

% Internal

addresses

% External

addresses

Retail 8,22% 6,69%

Services 10,48% 4,08%

Catalogues 6,72% 4,33%

Press 5,07% 4,82%

Direct Mail works

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E LOVES P

• DM + E-mail

• E-mail only • 100 30 42

Media recall Clicked Intentions OpenedReceived

70

• 100 34 60 93

• + 255%• 113% • 161%

Source: DMix survey Mail order (2007)

• 34 • 21 • 23

• 30 • 13 • 9

E-mail and Direct Mailing are complementary

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Direct mail vs email

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“DIRECT MAIL IS EEN BELANGRIJK TOUCHPOINT”

32© bpost - DM Discovery 8 - 30.08.2010

Dbase mgt combined to the power of hyper-personalisation


The power of hyper-personalisation


1 to 1 personalisation increases results

1 to 1 Lab Global Conversion Funnel

Traffic creationx10

Communication Recall = 74%

Want to act = 39%

POS traffic = 15-20%

POS conversionx3

Offers = 12%

Source: 1 to 1 Lab – Xerox – Stratégies - bpost

Sales profit+++

Sales = 6%

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Case : POSTPURCHASEThe quality of invoicing has an impact on both the customer experience as on cross and upselling

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Traffic/Recruitment After sales Loyalty

D2D (socio demo)

121

Common practices

Database/Lifecycle management

welcome

seasonal

technical control

magazines

Vip/privileges

accessories

assistance

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The question is no longer on- or offline. Direct marketing is more aboutdialogue

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http://www.youtube.com/watch?v=jy57TBz3l_I‘Magical Christmas Cards’

http://www.youtube.com/watch?v=jy57TBz3l_I

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MO

OD

BA

SED

TR

IGG

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BA

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CA

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AS

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Dynamise the brand by usingtriggers

Install & support

the brandOn-going brand presence

Targetedinteractive

media

Broad media, POS,

website, …

Life Stagetriggers

Purchase /Transaction

triggers

Locationbased

triggers

Eventtriggers

Mood

BRAND

Consumer lifecycle

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“PAPER MARKETING HAS MORE IMPACT ON THE ENVIRONMENT THAN E-MARKETING.”

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FACT: When customers talk about green, there is a paradox

Of all customers 85% prefer paper for admin mail and/or commercial offers

45% perceive paperas polluting

while 51% of all e-mails and e-invoices are being printed

Companies and consumers will have to solve this paradox together

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Google = 1,5 mio servers

(2% op wereldschaal)

7 gr CO2 per search

2 google searches =

CO2 nodig om waterketel

op te warmen

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The DM Carbon meter and the life cycle of a DM

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DM Carbon Meter: purpose

• Calculate carbon (CO2-equivalent) emissions of a standard mailing

• Propose low-carbon alternatives

• Collect easy comparative benchmarks

•

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Input screen

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Result screen

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De keuze van papier en de gebruikte inktkan een positieve invloed hebben op de ecologische impact

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Het resultaat : Van 227 naar 135 g CO2 per mail. Winst 41% !

yy/mm/dd - title presentation - author - qualifier 60

10 golden rules

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What influences a campaign

Mediamix

Segmentation

Creative execution

Proposition

Timing

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What influences a campaign?

The right offer at the right person at the right time

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The screening process

The screening process takes 20 seconds and consists of 3 phases

1) Screening of the mailing = 7 seconds

- Front side of the envelop (3 seconds)

- Back side of the envelop (4 seconds)

2) Content check = 3 seconds

- What’s inside the envelop?

- Letter, magazine, coupons, etc.

3) The scanning of the letter (10 seconds)

- Eye tracking systems show that the eyes follow a fix scanning path (anchoring points)

After this screening process, the person decides to read or to throw away the letter

Average time to scan a DM

0’20 ’’

Average reading time per DM

1’52 ’’

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The screening of the letter …

• Mr. …

• Park

Street,17

• 78750

Jouy

• Dear …,

• P.S.:

• H.

Kydrink

1a1a

1b1b

2222

22

33

444444

Source: Das Verkaufs-gespräch per Brief und Antwortkarte (S. Vögele), Verbeter uw direct mail brieven

R. Woelinga, W. Van der Mark), Secrets of successful direct mail (R. V. Benson), Team analysis

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Read carefully &

with interest16%

Read28%

Other11%

Dnk1%

Skimmed through it

44%

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Wie schrijft mij?

Waarvoor is het?

Waarom naar mij?

Waarom moet ik dit lezen?

Ben ik hierin geïnteresseerd?

Wat kost het?

Wat moet ik doen?

Rule 1: WIIFM?

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NAL

Socio demo (generation!)

Transactional

Lifestyle,

Lifestage

Purchase intention

Impact on cost

Impact on creation

Impact on impact

Rule2 : segmentation & personalisation

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Rule 3: customer benefits

• No product features

• Your message should offer one key benefit the reader just can’t resist this benefit is the main reason why someone should buy your product or service

• This key benefit has to be unique & credible

• Use visuals to explain / to visualize the offer

Dankzij microgaatjes in de rubberbuitenzool kan voetzweet naar buiten.

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Rule 4: data quality

• Wrong data can cost a lot of money• Average moving rate in Belgium = 10%

• Bad data quality irritate as well

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Rule 5: think out of the box

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Creative use of the envelope increases impact

© bpost - DM Discovery 8 - 30.08.2010

1. Size: + 52%

2. Material: + 21%

3. Color / Messageoffers an added value for the memorisation and the opening

Envelope opening rates(index versus standard)

0

50

100

150

Size Material C5 vs.US

White vs.Colored

2windows

vs. 1

Basis Test

Source: Response Rate Database - bpost

84

Card mailing (DtD)

85

Card mailing (DtD)

86

Rule 6: create interaction

• Objective of a direct mailing is evoke reaction

• Create a dialogue with the reader

• Readers have to so something: • They have to call a 0800 number

• They have to visit a site

• They have to fill and send back a response card

• They have to subscribe for a seminar

• …

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Reponses par canal:

SMS: 10%

Web:28%

Call center: 11%

MaxiResponse: 51%

Cout par réponse

SMS: 0.31€

Web: 0.18€

Call center: 5.25€

MaxiResponse: 0.71€

88

Interact

Bon terugsturen

Fax

Internet site

89

Ga langs

Maak afspraak

Bel naar

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Rule 7: KISS

• Your message should be designed according to the KISS principle : Keep It Simple and Stimulating

• No abstract concepts but simple and accessible language

• No complicated jargon

• Tell the reader clearly what he has to do

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Rule 8: test

• Test different offers• Different target groups• Different creative approaches• Different address files• Different incentives• Different call to actions• Different response methods• …

• But test one variable at the time!

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Rule 9: e loves p

• Integrate ‘on-line’ and ‘off-line’ communication

• The future is not on-line only, the future is direct

• Objectives of both media are different

• A good combination of both always results in a higher impact

96

One day …

97

Same day

98

2 weeks later

99

2 weeks later

100

With adapted visualsAn Didie

r

101

Few weeks later

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Rule 10: evaluation

• Evaluate every mailing you send• Number of reactions?• Number of new clients?• ROI?

• What went well? What went wrong? What can be improved next time?

• Without objectives, you will never know if your action was a success or a failure

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7 ideas

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The presenter

• Who can present the argument

• A testimonial of a satisfied customer

• Someone who’s job is relevant (endorsement)

• A appropriate celeb whose values match yours

• Someone who’s dead

• Icons

Dove : ordinary

people that match

Mrs Devries oldest

Client 92

How australian are

you

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The demonstration

• Show what your product does

scottex

106

Problem/solution

• What problem can your product solve

• Are you paying more bills than you need to?

107

The analogy

• What is your brand/performance

• What does it look like

• Is your car as faithful as a hound

• Will your decision com back to bite you

• Paper billing the way of the dinosaurs?

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Inversion

• Take your proposition – flip it

• Instead of writing households to the mosquitos write to the mosquitos

• Reverse the expected

109

Slice of life

• Tell it like it is

• Powerful observations

110

Borrowed interest

• Connect to something

• Happening right now

• Top topicals

yy/mm/dd - title presentation - author - qualifier 111

DM 2.0

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DM 2.0

Beta coefficient of DM

http://www.google.be/imgres?imgurl=http://totalfootballleagues.com/files/2010/06/400px-Greek_lc_beta.svg_.png&imgrefurl=http://totalfootballleagues.com/&usg=__fJxCC86xRssnHOEfuO8YLQAEYQ8=&h=400&w=400&sz=7&hl=nl&start=40&zoom=1&tbnid=NWwrw4ZiR_veNM:&tbnh=124&tbnw=124&prev=/images%3Fq%3Dbeta%26start%3D20%26um%3D1%26hl%3Dnl%26sa%3DN%26tbs%3Disch:1&um=1&itbs=1

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Media in the future…

See more – remember less

Number of media is proliferating

3 screen convergenceAttention fragmentation is increasing,

2 senses

Clutter is increasing

Scanning & skimmingNo time to go in depth

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DM 2.0

Behavioural targeting



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DM 2.0

Media-mix improvement based on segmentation




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Media evolution leading to new segmentationnecessities on the level of media-mix

DigitalIlliterates

DigitalImmigrants

DigitalNatives

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Gap between consumers’ channel preferences and marketing spendings

18-34 year olds prefer to learn about marketing offers via postal mail and newspapers

Epsilon/Icom august 2010

High level of trust!

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Profile of Digital natives

• Generation Y• Born 1979 - 1997• Accessibility/skills to digital

technologies• Interaction/infuence with/by peers,

viral !• Extensive disclosure of personal data• Consumerism• Culture of sharing• Children of baby-boomers• Oldest starting families, youngest in

school• Listen to me, respect me• Generation Z• Born mid 90’s• Children of generation X

“ 15 – 24 years old are highly receptive to DM, greater

Tendency to buy items in shops -“they want it now”attitude

Less access to credit cards”

Experian

120

Profile of Digital immigrants

• Generation X• the baby busters, indifferent

generation• Born 1965 – 1980• grew up with recessions, single-parent

households, cable TV, the Internet and other personal technology, skeptical, cynical

• Technically savvy, initial computer generation

• “people sleeping together before they got married, were not taught to believe in God,no respect for the parents”

• According to a study conducted by InnoMedia, NuStats, and Vertis, 68% of Gen X retail direct mail readers have used coupons received in the mail. Gen X consumers rate 75% of the mail they receive as valuable. !Combine with internet

• evaluate their choices and reach their own purchasing decisions

• Buying because they want it

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Profile of Digital “illiterates”

• Baby boomers• Born 1946 - 1964• Committed to social causes• Greater access to public education and

college• Independent thinking and

experimentation• Look and feel young, nostalgia• Buying because they needed it• Value for money• Communicate the experience, not the

age.• Powerwords : mature, experienced,

invest in your future• Readability, contrasting colours, white

spaces• No timepressure• “Ambiance”

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DM 2.0

Integration of technology




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Purl’s

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QR

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Augmented reality

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DM 2.0


Web to print

Variable data personalization




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Web to print

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Segmentation

131

DM 2.0


Web to print


Cross-media




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DM 2.0


Web to print


Cross-media

5 senses




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DM 2.0


Web to print


Cross-media

5 senses


Branded content : customer magazines



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DM 2.0


Web to print


Cross-media

5 senses


Branded content : customer magazines

The art of sequencing



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Viral DM : the art of sequencing, integrating social media

Segmentation basedon profile

PersonalizedDM including PURL

Microsite includingcoupon

Like, push to socialmedia

Register

Response rate >200%

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WAT HEBBEN WE VANDAAG GELEERD

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Summary

Paper has a strong impact on the performance ofbusinesses due to its proven communication qualities:

• Excellent reach via the mailbox• Willingness to read and respond

Paper in combination with OTHER MEDIAreinforces your ROI

Paper does not have the environmental impact asgenerally stated

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Rudy Van Halle

Hogeschool kortrijk 201111

Business

Transcript of Hogeschool kortrijk 201111