Rudy Van Halle, DM Consultant
Direct mail, new school
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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
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“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
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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
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
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0
10
20
30
40
50Like
Attract
Irritate
Incite
DM
TV
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
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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
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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)
20
“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
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• 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
33© bpost - DM Discovery 8 - 30.08.2010
The power of hyper-personalisation
34© bpost - DM Discovery 8 - 30.08.2010
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
37
The question is no longer on- or offline. Direct marketing is more aboutdialogue
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TR
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LIF
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LIF
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EV
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EV
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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
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BA
SED
TR
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MO
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LO
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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
51
“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
61
What influences a campaign
Mediamix
Segmentation
Creative execution
Proposition
Timing
62
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
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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
65
Read carefully &
with interest16%
Read28%
Other11%
Dnk1%
Skimmed through it
44%
66
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?
67
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
83
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Card mailing (DtD)
85
Card mailing (DtD)
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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
• …
87
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
90
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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
102
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
104
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
105
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?
108
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
113
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
114
DM 2.0
Behavioural targeting
Beta coefficient of DM
115
Behavioural targeting
116
DM 2.0
Media-mix improvement based on segmentation
Behavioural targeting
Beta coefficient of DM
117
Media evolution leading to new segmentationnecessities on the level of media-mix
DigitalIlliterates
DigitalImmigrants
DigitalNatives
118
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
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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
Media-mix improvement based on segmentation
Behavioural targeting
Beta coefficient of DM
123
Purl’s
124
QR
125
Augmented reality
126
127
DM 2.0
Integration of technology
Web to print
Variable data personalization
Media-mix improvement based on segmentation
Behavioural targeting
Beta coefficient of DM
128
Web to print
129
Variable data personalization
130
Segmentation
131
DM 2.0
Integration of technology
Web to print
Variable data personalization
Cross-media
Media-mix improvement based on segmentation
Behavioural targeting
Beta coefficient of DM
132
DM 2.0
Integration of technology
Web to print
Variable data personalization
Cross-media
5 senses
Media-mix improvement based on segmentation
Behavioural targeting
Beta coefficient of DM
133
DM 2.0
Integration of technology
Web to print
Variable data personalization
Cross-media
5 senses
Media-mix improvement based on segmentation
Branded content : customer magazines
Behavioural targeting
Beta coefficient of DM
134
DM 2.0
Integration of technology
Web to print
Variable data personalization
Cross-media
5 senses
Media-mix improvement based on segmentation
Branded content : customer magazines
The art of sequencing
Behavioural targeting
Beta coefficient of DM
135
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
137
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
138
Rudy Van Halle
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