Get The Max Out Of Your Mix (Dm Discovery 3, 2007)
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Transcript of Get The Max Out Of Your Mix (Dm Discovery 3, 2007)
GET THE MAX OUT OF YOUR MIX
SOME NEW DM INSIGHTS FROM BELGIAN POST
SOLUTIONS
Brussels february 9th 2007
DM DISCOVERY BREAKFAST MEETING
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TOPICS
Fast changing market & media landscape
Belgian Post Solutions as a DM facilitator
Some key DM Insights
Belgian Post Solutions direct mail services offering
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THE MARKET AND MEDIA LANDSCAPE IS CHANGING FAST …
- Products / services ( proliferation , sophistication and premium-discount polarization)
- Additional offline and online sales channels
- Additional marketing power of retailers (data base driven)
- Increasing media diversification & fragmentation with resulting decreasing power of traditional media
- More & finer segmentations ( socio-demo + lifestage + lifestyle + shopping)
- Complex consumer attitudes ( ao less brand loyalty, hybrid shopping )
Increasing pressure to increase ROI of marketing communication investments
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OFFER SIDE :
DEMAND SIDE :
SHAREHOLDER SIDE :
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Increasing media diversification
1920 1930 1940 1950 1960 1970 1980 1990 2000
Radio
Television
Cable
PC
GSM
CD
Internet
VCR
1G gaming consoles
Satellite TV (DBS)Broadband Internet
DVD
PDAs
DVR
Entertainment robots (Sony Aibo)
Electronic ‘e-ink' books
Tablet PCsEmerging
Digital cable
Home wireless networksHDTV
MP3
VOD
2010
Sources:Veronis Suhler Communications Industry Forecast, 7/03; TVB; Kagan; eMarketer; Jupiter
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DIRECT MARKETING IS A PRIVILEGED TOOL TO RESPOND TO THIS CHANGING ENVIRONMENT
Changes in market & media landscape Direct Marketing is well suited for :
- Products / services ( proliferation , sophistication and premium-discount polarization)
- Additional online and offline sales channels
- Increasing media diversification & fragmentation with resulting decreasing power of traditional media
- Raising brand awareness and inspiring consumers- Explaining complex messages
- Activating sales - Triggering consumers to appropriate sales channels
- Improving communication recall rate and brand perception
Complex consumer attitudes (ao less loyalty, hybrid shopping) & finer segmentations (socio-demo + lifestage + lifestyle+ shopping)
-Addressing each consumer individually with the appropriate language and offer - Increasing brand loyalty
Increasing pressure to increase ROI of marketing communication investments
- Avoiding communication & promotion waste and increasing effectively net ROI
- Allowing more accurate / analytical ROI measurement
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ANIMATION
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TOPICS
Fast changing market & media landscape
Belgian Post Solutions as a DM facilitator
Some key DM Insights
Belgian Post Solutions direct mail services offering
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BELGIAN POST SOLUTIONS AS A FACILITATOR
MISSIONMISSION
Consultative selling"Media House""New business" Data (Select Post)
Mail Media offer Data Quality
To increase the usage of Mail Media by facilitating the ‘mail’ experience for the advertisers together with intermediaries (agencies, routers, printers, associations)
To help advertisers build strong and lasting relations with their customers & prospects
To increase quality of current products
To innovate eg :
– Non standard formats
– PubliPack
– New Distripost
To understand the media market and your needs
To provide you with industry relevant benchmarks & fact-based evidence of DM specific added value
To position clearly added value of unaddressed and addressed mail versus (in support of) other media
Pro-active approach for understanding communication challenges in order to better integrate unadressed & addressed mail in the mediamix
To provide solutions with the support of an experienced Direct Marketing Consultancy team
To increase the ROI of your campaigns by reducing mail wastage
To save costs via reduction of manual handling and better use of postal returns
To provide you with new powerful prospect data
To reduce waste by sending mailings only to those interested
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TOPICS
Fast changing market & media landscape
Belgian Post Solutions as a DM facilitator
Some key DM insights :– The Mail Moment
– The power of DM unveiled
Belgian Post Solutions direct mail services offering
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THE MAIL MOMENT
2 X WEEK
97 %
80 %
1’52
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TOPICS
Fast changing market & media landscape
Belgian Post Solutions as a DM facilitator
Some key DM insights :– The Mail Moment– The power of DM unveiled
Belgian Post Solutions direct mail services offering- The power of DM unveiled
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THE POWER OF DIRECT MAIL UNVEILED
• The Post has developed with McKinsey a methodology to assess the added value of Direct Mail to several media-mixes in terms of :
– Media recall rate– Brand awareness and perception– Sales activation– Brand loyalty– ROI
• Several pilots have been run in several sectors , with different sales & marketing objectives and using different media-mixes
• In-depth market research was run by independent research companies. – 15’-20’ minute telephone interviews were made in samples of minimum
1500 to 3500 persons representative of the relevant target groups– Sanitized results are presented in the next slides
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THE POWER OF DIRECT MAIL UNVEILED
Brand perception
Sales activation
Boosting of ROI
Loyalty building
DM is a strong sales activator
Integrated with other media DM increase the ROI of your campaigns
DM builds strong long term relations with your customer
DM improves brand perception
High & better
recall rate
DM gets high recall rates even of complex messages
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DIRECT MAIL GENERATES HIGHER AND BETTER RECALL RATES THAN ATL Sector Objective DM recall rate
index 100 (= 42% on average : min 17%- max 83%)
Daily Press /Magazines
TV Radio Internet /E-mail
FMCG Case 1 Case 2 Case 3
RecruitmentRecruitmentRecruitment
100100100
57-
86
--
108
-41-
6--
Retailing Case 1 Case 2
LoyaltyLoyalty
100100
--
37-
--
-72
Car Recruitment 100 14 46 3 1
Utilities Case 1 Case 2 Case 3 Case 4
Cross-sellingCross-sellingCross-sellingCross-selling
100100100100
37241855
142-
61118
16-5
11
57-25
Bank Cross-selling 100 15 48 4 -
11
15
Percentage of respondents
Source: Market research on 1533 primary customers, November 2005; Team analysis
"Do you remember having seen or heard over the past month an ad concerning product “X”? Where?" "Do you remember having received over the past 2 weeks a letter concerning product “X” ?“ “The letter / ad showed …. Do you remember it now?“
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4
5
7
13
6
14
0
DM
TV
Poster
Press
Radio
Internet
Media recall rate
(x) Total sample
size
(1054)
(836)
(1533)
(1533)
(1533)
(1533)
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Unaided recall (no content description)
Aided recall (content description)
Aided recall not tested for these media
BANK - INSURANCE SECTOR CASE
DIRECT MAIL GENERATES HIGHER RECALL RATES THAN ATL11
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Source: Ask market research on 2000 customers, October 2006
Percentage of respondents recalling medium
None70%
At least one30% None
47%
At least one53%
Recall content of ATL ad = 100% Recall content of DM mailing = 100%
Number of correct elements mentioned Number of correct elements mentioned
n = 471** n = 310*
* DM read amongst ‘ATL+DM group’ & ‘DM only group’
** ATL recall amongst ‘ATL+DM group’ & ‘ATL only group’
Description of correct ad elements is by 77% higher for DM than for ATL
UTILITY SECTOR CASE
DIRECT MAILING GENERATES ALSO BETTER RECALL (CONTENT) THAN ATL
Percent of respondents recalling medium
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Media funnel
DM 100 2749 5555
Received DM / E-mail
Recall DM / E-mail
Read DM / E-mail
Correct recall content
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Email 100 1628 5757 12
4949
2828
8181
7575
“Do you remember receiving a DM / email from advertiser X?”
“What did you do with the DM / email from advertiser X?”
“Can you describe what the DM / email from advertiser X was about?”
Direct Mail is more effective throughout the media funnel leading to an 83% higher content recall rate compared to e-mail
Source: Market research on 1800 customers
+83%+83%
UTILITY SECTOR CASE
11 DIRECT MAILING GENERATES ALSO BETTER RECALL (CONTENT) THAN ATL
Percent of respondents recalling medium
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WHY DO DIRECT MAILINGS GENERATE HIGH RECALL RATES ?
DM captures high attention:
Part of a unique , expected & privileged Mail moment:
– ‘Expected’ moment 97% opens every day their letterbox
– Immediate attention 74% read their post right away
– Preferred media 50%-60% prefer DM vs. other media for advertising communication
DM breaks through the advertising clutter:
– No advertising clutter Per household, only 1 DM every 3 days
– Getting attention 63% is fully focussed ;78% opened; readership 1’52”
– Targeting power Relevancy of target group ensures higher response
Power of paper :
– Convenience & especially appreciated for long & complex information
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MULTITASKING : DIRECT MAILINGS CAPTURES MORE FULL ATTENTION
Full attention 53% 26% 52% 63% 63% 52%
Also listening the radio
1% 32% 27% 22% 24%
Watching TV 1% 10% 3% 6% 5%
Also other activities
29% 73% 6% 7% 8% 19%
Wat
chin
g TV
List
enin
g
the
radi
o
Read
ing
daili
es
or m
agaz
ines
Rea
din
g M
ail
Surfi
ng o
n
Inte
rnet
Read
ing
e-m
ails
“Last time you watched TV , listened to the radio, read a magazine ….etc , did you had another activity ?
Source : MAS search – La Poste – 1100 interviews -June 2005
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THE POWER OF DIRECT MAIL UNVEILED
Sales activation
Boosting of ROI
Loyalty building
DM is a strong sales activator
Integrated with other media DM increase the ROI of your campaigns
DM builds strong long term relations with your customer
DM improves brand perception
DM gets high recall rates even of complex messages
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High & better
recall rate
Brand perception
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DIRECT MAIL IMPROVES BRAND PERCEPTION
Sector Objective Average number of measured brand attributes : 10
Index 100
% brand attributes where DM (integrated with ATL or stand-
alone used ) scores significantly better than ATL only
FMCG Case 1 Case 2 Case 3 Case 4
RecruitmentRecruitmentLoyaltyRecruitment
100100100100
45100870
Car Recruitment 100 33
Utilities Case 1 Case 2 Case 3
Cross-sellingCross-sellingCross-selling
100100100
00
17
Bank Insurance
Cross-selling 100 60
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DIRECT MAIL IMPROVES SIGNIFICANTLY BRAND PERCEPTION
'To which extent do you agree with the following statements concerning brand x?' Percentage of respondents
0
20
40
60
80
Rating on a scale 1 to 5; % Completely or somewhat agree (% of 4 or 5)
Professional service
Good reputation
Original advertisement
Wide range of insurance products
Products easy to understand
High compensation level
Excellent value for money
Flexible payment options
Products customized to my needs
Easy to contact
TV only
TV +Direct Mail
0
20
40
60
ATL + Direct Mail
Control group ( ATL only )
Makes my life easier
Has modern and attractive packaging
Is an innovative and modern brand
Is convenient to use
Is dedicated to continuously improve its products
Offers a complete range of products to deliver the best results for each need
Is an expert in its field
Rating on a scale 1 to 10; % Completely or somewhat agree (% of 8+)
EXAMPLE IN FMCG SECTOR EXAMPLE IN BANK- INSURANCE SECTOR
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WHY DO DIRECT MAILINGS IMPROVE BRAND PERCEPTION ?
DM improves brand perception because :
- Possibility to add high eye catching and strong emotion if right creative approach
- Possibility to give more personalized content involving the customer
- Possibility to explain in-depth brand values and key benefits
- Possibility to provide a long media exposure
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THE POWER OF DIRECT MAIL UNVEILED
Boosting of ROI
Loyalty building
DM is a strong sales activator
Integrated with other media DM increase the ROI of your campaigns
DM builds strong long term relations with your customer
DM improves brand perception
DM gets high recall rates even of complex messages
11 22 33 44
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High & better
recall rate
Sales activation
Brand perception
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DIRECT MAIL IS A STRONG SALES ACTIVATOR
Sector Objective DM sales activation index 100(= % of respondents recalling DM with intention to buy product ,visit store .. )
Above the Line sales activation (% of respondents recalling mass-media with intention to buy, visit store etc ) Indexated versus DM
FMCG Case 1 Case 2 Case 3 Case 4
RecruitmentRecruitmentLoyaltyRecruitment
100100100100
78538062
Retailing Case 1 Case 2
LoyaltyLoyalty
100100
8876
Car Recruitment 100 77
Utilities Case 1 Case 2 Case 3 Case 4
Cross-sellingCross-sellingCross sellingCross-selling
100100100100
61764572
Average DM sales activation rate vs mass-media
42 % (Min +8% - Max + 78%)
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9333547
16465365
Percentage of respondents
Direct Mail only
E-mail only
Recall having received it
Opened it Read itStimulates visit to store
82 86 35
75 95 27
Base = Received DM only (n=307)/ Received e-mail only (n=311)/ Received DM + e-mail (n=310)/ Control group (n=151)
Source: Market research
+78%
• Which addressed DM l email,do you recall having received recently?
• Did you open it ?
• Did you read it : rapidly , read it carefully ?
• Did you decide to go to the store ?
DIRECT MAIL IS A STRONG SALES ACTIVATOR33
RETAILER SECTOR CASE
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WHY DO DIRECT MAILINGS ACTIVATE SALES ?
DM is a strong sales activator because:
By design , it’s first objective is to call the customer/prospect to act : visiting a store, receiving a brochure , getting an offer etc.
It explains in-depth the value proposition of the brand , its differentiation versus competition .
It prompts the urgency to decide now
It engages the advertiser and is trustful
DM activates best when:
The activator offers high perceived value for money ( More is sometimes less )
The call to action is clear, unambiguous, re-assuring
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THE POWER OF DIRECT MAIL UNVEILED
Boosting of ROI
DM is a strong sales activator
Integrated with other media DM increase the ROI of your campaigns
DM builds strong long term relations with your customer
DM improves brand perception
DM gets high recall rates even of complex messages
11 22 33 44
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High recall rate
Brand perception
Loyalty building
Sales activation
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SERIES OF DIRECT MAILINGS BUILD BRAND LOYALTY
Sector ATL + regular DM *Index 100 = Consumers declaring buying always/most often brand A , B , C , D
ATL only*
FMCG Case 1
Case 2
Case 3
Case 4
100
100
100
100
62
69
80
77
* Customer profile and brand awareness is identical in both groups
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DIRECT MAIL BUILDS BRAND LOYALTY
Percentage of respondents
Source:Market research, 2005; Team analysis
Awareness Familiarity Consideration TrialRegular use
Purchase funnel
92.192.1 89.4 98.698.6 62.9
92.392.3 87.6 100100 49.4
ATL + Series of DM (>5 over 2 years)
Control group (no DM – ATL only)
Media received
94.594.5 59.4
90.890.8 44.8
Loyalty
56.4
71.399.5 97.0
96.9 94.9
97.597.5
97.997.9
88.1
87.6
Series of direct mails drives higher regular use (+27%) and ultimately
customer loyalty (+33%)
FMCG SECTOR
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WHY DO DIRECT MAILINGS BUILD BRAND LOYALTY ?
Regular Direct Mailings
= Regular appointments
with your key customers
Consolidation
of
Brand intimacy
Brand preference
at
the Moment of Truth
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THE POWER OF DIRECT MAIL UNVEILED
Boosting of ROI
DM is a strong sales activator
Integrated with other media DM increase the ROI of your campaigns
DM builds strong long term relations with your customer
DM improves brand perception
DM gets high recall rates even of complex messages
11 22 33 44
55
High recall rate
Brand perception
Sales activation
Loyalty building
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DIRECT MAIL YIELDS A HIGH ROI
Several ROI calculation models have been designed according sector,
sales & marketing objectives and media-mixes
Elements to consider when calculating ROI :
A) Revenu :
- Short term impact : net incremental margin on addtional sales versus baseline sales
(ie sales which would have occured in any case (without media)
- Long term impact : net incremental margin on lifetime sales
(average number of loyalty years x purchase frequency X average purchase)
+ net margin on cross-selling sales
B) Costs :
- Data base (address hiring / data base set-up)
- Creation
- Production
- Media
- Fulfilment (eg coupon redemption)
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DIRECT MAILING YIELDS A HIGH ROI
Active customers
Source:Market research; Media agency; Team analysis
Indexated cost per useful contact of TV campaign :
Cost of TV campaign per reachable customer
Fraction of correct add
recall
Loyalty card penetration
138
Fraction of respondents recalling TV
add
Increase in respondents
knowing retailer's
offering versus no media
Indexated cost per useful contact of DM campaign :
Cost of DM per customer
Fraction of recipients
recalling DM
Increase in recipients knowing retailer's offering
versus no media
100
Fraction of correct PM
recall
RETAIL SECTOR CASE
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COMMERCIAL RETURN: PROVEN IMPACT OF MAIL
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
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2 to 20 times better recall
>50% of brand attributes improved
15% to 200% extra sales
>25% more loyal
customers
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TOPICS
Fast changing market & media landscape
Belgian Post Solutions strategy
Some key DM insights :– The Mail Moment– The power of DM unveiled
Belgian Post Solutions direct mail services offering
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BELGIAN POST SOLUTIONS DIRECT MAIL SERVICES OFFERING
Distripost
DM Consultancy
ONE -TO-ONE
ONE -TO- ALL
Addressed Mail
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UNADDRESSED (DOOR TO DOOR) DM : ONE-TO-ALL
PubliPack (Deltamedia)
Week promotion related timing : distribution on Monday & Tuesday
High selectivity : NIS 9
High visibility : “Post” branded blister pack or “encartage”
Quality distribution ( controls )
Low gross cost per contact + only invoicing of effectively distributed items
Distripost
Distributed every weekday with regular mail : possibility to fix distribution day
High selectivity : NIS 9 ( planned)
High visibility ( “Mail Moment” + max 2 pcs per day + no direct competition )
Quality distribution (100% postmen)
High impact and attractive net cost per contact
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ADDRESSED DM : ONE TO ONE
Benefits : - High targeting (minimum waste)
- High involvement ( personalised content )
- High visibility (“Mail Moment” )
- High opening, reading rate & reading duration (average of 1’52” per mail)
- High recall rate ( medium + content ) & brand equity improvement
- Sales activation
- Loyalty tool ( when repeated DM’s)
- High demonstrable ROI
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SELECT POST :
Consumers Advertisers
Preferences
Mail theyWant
Data
BetterResults
Today feb 2007 : 450.000 fully qualified addresses available
Target dec 2007 : 800.000 fully qualified addresses available
THE SHORTEST WAY TO RECRUIT PROSPECTS
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SELECT POST : INFOREQUEST
InfoRequest is a special section in the Select Post survey where you can ask up to 1,5 mio consumers if they want to receive your mail.
Benefits:Visualization of your logoor product/service about 4mio timesExclusivityReady to use addresses
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SELECT POST : SPONSORED QUESTIONS
Thanks to Select Post, you have the opportunity to start a dialogue with your prospects with a question “made by you”.
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BELGIAN POST SOLUTIONS MAIL MEDIA OFFERING
Distripost
DM Consultancy
ONE -TO-ONE
ONE -TO- ALL
Addressed Mail
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DM Consultancy
Jacques Bruyneel
Xavier Degraeve
Elke Quatacker
Claude Verstraete
Laure Helfgott
Ann Schuurmans(agencies)
In-depth know-how in several sectors : FMCG , Bank-Insurance , Distance Selling, Publishing, Retailing , Consultancy
Know-How in several DM related disciplines :
- strategic marketing - campaign management - data warehousing - call center - loyalty programs - market research - DM organisation
Martine Moors
BELGIAN POST SOLUTIONS MAIL MEDIA OFFERING
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Response & Results
DataCreationPrinting
Mail Handling
•ROI metrics & tools
•Impact research
•Response rates benchmarks
Services:• Muta Data• Select Post
• Franking solutions
• e-Masspost• e-Shop• Exbo• Special format
DM Consultancy :
•Do’s & dont’s (DM « rules »)
Delivering mailPreparing mail
ReplyUnaddressed Addressed ROI
Imp
act
Selectivity
UNADDRESSED DM
“One to All” “One to One”
Ave
rage
Hig
h Speed: D+1, D+2, D+4
Formats: • normalised & non- normalised,• special,• very special
Promo tariffs
Type: • Twin (max 2 per day – Distripost),• Bundle (max 8 per day – Deltamedia)
Formats: • standard & non- standard • special, • very special
ADDRESSED DM
RESPONSE TOOLS
Imp
act
Selectivity
UNADDRESSED DM
“One to All” “One to One”
Ave
rage
Hig
h Speed: D+1, D+2, D+4
Formats: • normalised & non- normalised,• special,• very special
Promo tariffs
Type: • Twin (max 2 per day – Distripost),• Bundle (max 8 per day – Deltamedia)
Formats: • standard & non- standard • special, • very special
ADDRESSED DM
RESPONSE TOOLS
AREAS OF DM CONSULTANCY
•Audit of current DM practices
•Alternative media mix test set-up
•Market segmentation & data base set-up
•Loyalty program •Overall DM organisation
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QUESTION TIME
ANY QUESTION ?
Get the MAX out of your MIX with Direct Mail
For more info , surf on www.post.be/dm or call your key account manager
THANK YOU AND SEE YOU AT THE
MARKETING DAY – MARCH 22 !
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DIRECT MAILING GENERATES ALSO BETTER RECALL (CONTENT) THAN ATL
Percent of respondents recalling medium
Recall content of TV ad = 100%
Number of correct elements mentioned
Recall content of DM mailing = 100%
Number of correct elements mentioned
41
59
At least one
None
57
43
At least one
None
Source: Market research on 3000 households, August 22nd – 29th; Team analysis
Description of correct ad elements is by 39% higher for DM than for TV
RETAILER SECTOR CASE
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