Innovation and technology in direct mail – case studies

from Europe and Asia!

Mark Harrison!Head of Markets!

International Post Corporation!

Agenda!1.  Debunking myths about mail!2.  Connecting better with todayʼs global consumer!3.  Best-in-class international case studies!4.  Deep dive: big data case study!

Debunking myths about mail!

Myth #1!

POST“POST”"

DIGITAL EXPONENTIAL "

WE ARE IN A !POST- “POST”!WORLD!

Myth #2!DIGITAL CHANNELS !DRIVE DIGITAL!BEHAVIOUR!

“TECHNOLOGY INNOVATIONS OF THE PAST TWO YEARS…DID MORE TO RADICALLY CHANGE E-COMMERCE THAN ANYTHING WE WITNESSED OVER THE PRECEDING FIFTEEN YEARS” CTO, MARK CARGES

Xbox live engagement direct mail!

Google sends books in the mail!“ THE INTERNET, THAT'S

FOR EVERYONE. BUT SOMETHING SPECIAL TO HOLD, WELL, DEAR CUSTOMER, THAT'S ONLY FOR YOU.” –THE ATLANTICs"

“ OFFER ʻA BREATHING SPACE IN A BUSY WORLDʼ ”-THE GUARDIAN"

“ AT A TIME WHEN DATA IS PROLIFERATING FASTER THAN EVER, GOOGLE IS PLAYING DEVIL’S ADVOCATE.” – NY TIMES"

Google sends direct mail!

Myth #3!EFFECTIVENESS IS!MEASURED BY!ABILITY TO DRIVE!SALES!

Birchbox sends samples in the mail!

Connecting better with todayʼs global consumer!

Generation world!

GENERERATION WORLD AGELESS, BORDERLESS, DIVERSE,CONFLICTED – MORE IN COMMON THAN NOT !

CONSUMERS EXPECT INDIVIDUAL ENGAGEMENT

Russia + 32%

Australia + 64%

Brazil + 46%

Chile + 21%

Japan  +  63%  

UK + 58%

Switzerland + 40%

France + 44%

Spain + 28%

Poland + 69%

Colombia + 51%

Singapore + 29%

South Africa + 51%

Canada + 46%

Percent  Convergence  of  Leadership  Brands  Among  18-­‐29  &  50+  Audiences

Canada 1997: 46% 2010: 49%

US + 60%

WE SEE A SIGNIFICANT INCREASE IN THE NUMBER OF LEADERSHIP BRANDS IN COMMON FOR 18-50+"

1990 v TODAY!

Life in constant beta!

Designed digitally sent physically!

#LookWhatIGot!

Best-in-class international case studies!

Australia – consumer electronics!

•  88% redemption rate of the 7,000 boxes mailed out!

•  7,000 photos uploaded to the PHOTO 5 website!

•  Exhibition attracted over 400 visitors per day!

•  Canon EOS market share rose to 54% during the campaign period!

Client – Canon!Agency – Leo Burnett Sydney!Award - Cannes Lions 2010 – Bronze!Media – Website, online banners, direct mail, PR, exhibition, blog, print!

Australia - automotive!

Media – website, online banners, direct mail, inserts!

Innovation – augmented reality in DM pack!

•  3,500 direct mail packs sent!•  7,497 online interactions in 1st week !•  Average online interaction 4.35 mins!•  Dealer enquiries doubled!•  Reached 29 orders per week –

equivalent to orders for 2 months!•  Generated sales of $15.7m in 2 months!

Spain – automotive!

Client – Audi!Agency – CP Proximity Barcelona!Award - Cannes Lions 2010 – Silver!Media – Website, direct mail, social media!

•  Mailing sent to 200,000 clients!

•  76,000 updated their data (38% of total)!

•  15,540 e-mail addresses acquired (21% of those Audi didnʼt yet have)!

•  85% of clients downloaded their music!

•  27% of the music went viral on Facebook!

India – FMCG!

•  Coupons made of leaves and petals with text becoming unreadable in 48 hours!

•  70% coupons redeemed in time!

•  Company recorded highest ever sales of near-expiry stock, in less than 5 days!

Client – R I Ayurveda Research Labs!Agency – Mudra Communications!Media – Door drops, inserts, direct mail!

“This coupon will self-destruct in 48 hours”!

Belgium – apparel!

Client – Leviʼs!Agency – Mortierbrigade!Award – CCB Awards 2011 - Gold!Media – Online, direct mail!

•  Leviʼs Europe wanted to promote new collection to fashion magazines!

•  Each editor sent a personlised, handwritten, gigantic pop-up closet!

•  100% of the magazines wrote an article on the new collection!

•  90% of the magazines still have the closet at their office!

•  Closet got a lot of online exposure – people all around the world have requested one!

Malaysia – business services!

Client – IBM!Agency – OgilvyOne Worldwide Malaysia!Media – Direct mail!

•  A ʻclassicʼ mailing shining with originality!

•  Whatever your organization, we have a solution that fits!

•  For the lead generation event the target was for 600 registrations!

•  A total of 900 people registered, a 150% response!

•  421 companies were represented, and 60% of attendees were from Small and Medium-size companies!

Canada – business products!

Client – GGRP!Agency – Grey Vancouver!Award – Canned Lions 2010 - Gold!Media – Direct mail!

•  GRP, a premium sound house wanted to re-establish their creative credibility!

•  Nobody has a player anymore so sent vinyl in a cardboard record player!

•  Direct response over 90%!

•  Became an internet phenomenon with over 500 blogs !

•  YouTube views for promotional video >20,000 in uneder a week!

•  Traffic to website grew from 50 visits/week to >70,000!

Croatia – FMCG!

Client – Nestlé!Agency – Imago advertising agency!Award – Davey Awards USA Gold medal!Media – Direct mail!

•  Nestlé wanted to increase sales of its Nescafé office vending machines!

•  Office managers of 100 successful Croatian companies were targeted!

•  Sent a CV of the machine as “Nes coffee”!

•  A new call centre was opened to answer every inquiry!

•  The final business outcome has exceeded results!

South Africa – non-profit!

Client – Unicef!Agency – Y&R South Africa!Media – Online and direct mail!

•  Africa has the worldʼs highest population of child soldiers!

•  1,000 packs were mailed out!

•  All the “toy soldiers” were children – reading books, riding bikes!

•  Immediate rise in both volunteer applications and donations!

•  Campaign appeared on over 15,000 websites in over 50 countries, transcending borders and languages!

Deep dive: big data case study!

Norway – consumer electronics!

How Norway Post turned a threat into one!of their largest and smartest customers!

Age profile for inserts and unaddressed mail vs.customers buying electronics!

The Elkjøb challenge: maintain advertising spend – reduce direct marketing spend!

2009/2010! 2013/2014!

Revising the distribution areas!

•  Customer warranty registration data analysed to establish customer density!•  Weekly distribution where customer density is greatest!•  Circulation reduced and frequency increased at the same cost!•  Secondary area covered on special occasions!

Visualize customer density! Revised distribution areas!

Target relevant offers to maximise ROMI!

•  Market share in West Oslo was the same as East Oslo!•  Major difference in products bought depending on where customer lived!•  Profit margins much larger in West Oslo !

Market share! Profit margins!

Vary the products on the cover of the DM depending on the group the customer belongs to !

•  Customers in West Oslo want a bargain – but on more expensive products!•  In areas defined as “families with children – wealth and culture” the product

illustrated on the cover is changed to a more expensive brand!•  Response analysis carried out to determine campaign effectiveness!

Maintaining coverage and increasing the value of physical DM!

Available on web, iPad and iPhone!

Thank you!

Mark Harrison!Head of Markets!International Post Corporation!

mark.harrison@ipc.be!