The Direct Mail Advantage: Delivering Higher Impact at Lower Costs

The Direct Mail Advantage:

Delivering Higher Impact at Lower Costs

June 17, 2014

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Today’s Speaker

Todd Stoker

Vice President of Operations

Anderson Direct Marketing

Moderator

Barbara Pellow

Group Director

InfoTrends

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• Direct Mail Reaching Consumers

• Direct Mail Delivering ROI

• Making Direct Mail Work

– Todd Stoker, Anderson Direct Marketing

• Recommendations and Conclusions

• Questions and Answers

Topics

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• Among mail piece types, postcards are

most likely to be read by recipients

(56%).

• More people respond when a

courtesy-reply envelope is provided as

opposed to a business-reply envelope.

• The overall volume of direct mail went

up slightly in 2013 to 87.3 billion,

accounting for 56.2% of all mail.

• 2.9 billion coupons were redeemed in

2013.

Source: 2014 DMA Statistical Fact Book

The Facts

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Direct Mail Wields Power

Source: Marketing Profs July 2013 #PIGWebinar

Source: Marketing Profs July 2013

It’s How Consumers Make Decisions

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How can your providers improve the business communications they

send you?

1 Make them easier to understand

2 Personalize the content for me

3 Use color to emphasize important information

Listen to the End Customer!

Source: The Future of Multi-Channel Transactional Communications, InfoTrends 2013 #PIGWebinar

0

25

50

75

100

2011 2012 2013 2014 2015 2016

U.S

. D

ire

ct

Ma

il P

ag

es (

Bil

lio

ns

of

A4

Eq

uiv

ale

nts

)

Dramatic Growth in Color

26.6% CAGR ‘11-’16

B&W in Decline

-4.2% CAGR ’11-’16

Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends

Direct Mail: A Move to Color

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Fastest-Growing Applications (Absolute Page Growth)

Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends

0 20 40 60 80 100 120

Labels

Posters, banners, signage

Inserts, coupons

Newspapers/newsletters

Direct Mail

Magazines

Catalogs

Brochures

TransPromo

Books

Billion Impressions (A4)

2012 2017

+ 2.6 B pages

+ 9.9 B pages

+ 12.1 B pages

+ 9.8 B pages

+ 6.8 B pages

+ 14.9 B pages

+ 4.2 B pages

+ 40.4 B pages

+ 11.1 B pages

+ 5.0 B pages

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Mass Marketing (One-to-Many)

37.4%

Segmented Marketing

(One-to-Few) 33.4%

Personalized Marketing

(One-to-One) 29.2%

What percentage of your customer communications or marketing campaigns fit into the following

categories?

Not Just Color… Personalized Color!

N = 1,026

Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar

2.6

3.0

2.9

2.7

1 2 3 4 5 6

No variable data,

text, or images

Low complexity

Medium

complexity

High complexity

How often do your addressable print communications involve personalization/variable imaging? (Means)

Always Never

Definitions

High Complexity includes variable pictures/images,

variable blocks of text, or actual dynamic composition

of all or sections of the piece.

Medium Complexity personalization includes

personalized text phrases within the piece, NOT just

address or salutation. Examples might include

personalized offer details.

Low Complexity personalization includes name,

address, salutation, and/or business card data.

N = 1,026

Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends

With Increased Variability

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The Migration to 100% Variable Data Print (1)

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Source: Pitney Bowes


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1 2 3 4 5


Source: Pitney Bowes #PIGWebinar

Mobile Codes Mobile Messaging

Augmented Reality NFCs

Direct Mail: Driving Interactive Engagement

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All Channels ON!

How many different media types does your company use for a typical communication/marketing campaign?

Key Findings

• Average number media

types used in a campaign: 3

• 47% of printed marketing

materials were linked to

online digital channels in

past 12 months

N = 1,026

Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends

One 8.8%

Two 30.2%

Three 36.4%

Four 13.4%

Five or more 3.7%

Don’t know 7.6%

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Connecting Print to Digital Channels

2.6%

1.3%

14.6%

14.8%

16.1%

17.7%

21.2%

28.0%

29.6%

30.7%

31.0%

33.9%

38.6%

41.5%

52.1%

56.1%

0% 20% 40% 60% 80%

Don’t know

None of the above

Books

Retail store receipts

Outdoor

Directory

Product packaging

Newspapers

Point-of-purchase displays

Catalogs

Inserts

Business cards

Magazines

Bills or statements

Direct mail

Brochures

What types of printed media have included a link or connection to digital media over the past year?

Multiple Responses Permitted

N = 378


Mobile is a Bridge, Linking the Physical with the Digital

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Increased Value to Print

Measurability Interactivity Media Extension

Why Integrate Print and Mobile?

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15%

18%

19%

21%

23%

30%

47%

59%

0% 20% 40% 60%

Make a purchase

Download mobile app

Contact info

Download music

Enter sweepstakes

Testing a code

Coupon/deal/discount

Additional info

Why do you interact with mobile barcodes?

N = 428 Consumers who have interacted with mobile barcodes

85%

24%

88%

43%

0%

20%

40%

60%

80%

100%

Familiar withMobile Barcodes

Interaction withMobile Barcodes

2011 2013

Have you ever seen a mobile code?

Have you ever interacted with a mobile barcode?

Sources: Mobile Technology: Making Print Interactive (2011) and Consumer Media Trends Survey (2013), InfoTrends

Mobile Barcode Use Among Consumers

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Video Websites for Order Entry

Social Media

QR Codes Linked To…

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• Close proximity radio

communications between NFC

devices or unpowered chips (tags)

• NFC tags can be affixed to any

surface

• Enables offline-to-online

engagement

• 1 billion+ NFC-enabled phones by

the end of 2015

Near-Field Communications: Enabling Interaction

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Adding NFC Tags to Casino Direct Mail Promotions

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Christmas Cards Postcards

B2B and Personal Cards Linked to Video

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12%

50%

17%

57%

0%

20%

40%

60%

Familiar (No Examples) Familiar (w/ Examples)

2011 2013

Are you familiar with the concept of Augmented Reality?

2011 N = 1,192 Consumers | 2013 N = 1,126 Consumers

12%

13%

17%

19%

21%

26%

27%

35%

50%

0% 20% 40% 60%

Help make a purchase

Coupon/deal/discount

Testing out AR app

Enter sweepstakes

Access video

Additional info

Find location

Gaming

Fun/Entertainment

Why do you interact with Augmented Reality applications?

N = 159 Consumers who have interacted with AR applications

16%

25%

0%

10%

20%

30%

2011 2013

Have you ever interacted with an AR application?

2011 N = 591 Consumers | 2013 N = 639 Consumers

Augmented Reality is Gaining Awareness

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Augmented Reality: From Catalogs to Direct Mail

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• Direct mail’s sense of

touch is linked to video

testimonials/

demonstrations

• Referrals build a bigger

community

• Social media drives

awareness of an upcoming

direct mail offer

Social Media: Building Brand Advocates

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Blending Postcards and Social Media to Drive Results

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20,000 postcards were sent out, and due to the integration of social sharing, the direct

mail campaign gained a total of 30,068 responses, a 150.58% RESPONSE RATE.

The Power of Social Media (1)

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Direct mail campaign delivered 40% Redemption

The Power of Social Media (2)

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Print

AND

Web Landing Page

AND

e-Mail

27%

37%

45%

Print

AND

Web Landing Page

OR

e-Mail

Print

AND

Web Landing Page

AND

e-Mail

AND

Mobile Marketing

Higher

Higher

Higher

Response Rates Increase When Print is

Combined with Other Channels

N = 1,026


Managing Postal Costs is Key

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Postal Savings

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Gain Visibility into the Mailstream

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Anderson Capabilities Presentation

Direct Mail Advantage—

Delivering higher impact at lower costs

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Founded in 1985

Based in San Diego

170+ associates

Diverse nationwide client base

$38+ million annual revenue

Top 20 DM Agency

The Top Commercial Printer in San Diego

–San Diego Business Journal (2014)

Who We Are

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In today’s connected world, every communication is a direct communication. Our

decades-long expertise in direct, digital, and database marketing provides

unparalleled insight into who your target audiences are, what they need, how to

reach them, and what will inspire them to act.

…Now and in the Future!

Our Vision for the Future

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B2C & B2B

Automotive & Transportation

Biotech & Pharma

Casino & Gaming

Energy

Financial & Investing

Healthcare & Medicine

High-Tech

Insurance

Identity Theft Protection

Manufacturing

Nonprofit & Fundraising

Retail

Telecom/Wireless

Travel & Hospitality

Broad Vertical Expertise

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They all revolve around you

and the success of our

customers’ businesses.

We work to deliver greater ROI by

plugging vertically integrated array

of services—all under one roof.

Alone, each brings great results.

Together, they offer unbeatable

synergy, enabling us to deliver a

return on your investment unlike

any other direct marketing agency.

ROI and you

MARKETING STRATEGY

PRODUCTION CREATIVE SERVICES

MEDIA INTEGRATION

DATA INTELLIGENCE

DIGITAL

Our Best-in-Class, In-House Solutions

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Because we offer agency and production services in-house, we have

developed systems and procedures to ensure a timely, efficient, and

high-quality transition from creative through production.

This is why we have an in-house agency as well as production

capabilities within our vertically integrated model. By having all

services in-house, we are dedicated to and culturally accountable for

the success of our clients.

When we do utilize outside service providers, we employ a modified

version of our internal system to manage the process.

Cross-Functional Efficiency

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The Blue Cross Blue Shield Arizona

Challenge: All Channels On!

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Communicating 1:1

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Mobile Makes a Difference

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Thanks in part to input

from the client’s other

agency partners, the new

Anderson campaign drove

a 24% improvement in

performance and

profitability over the

previous years’ efforts.

It’s All About Results!

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The Challenges

The economy

Increased competition, plus aggressive pricing from other lines

A requirement to meet aggressive growth goals

Crystal Cruises: Dealing with a

Challenging Economy

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The Solution: More Personalization,

More Channels

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Destination: A 94% Increase

in Conversion Rates

• Lifted response by as much

as 77%, and conversion by as

much as 94%

• Continued marketing to non-

converting responders—for a

2,381% ROI

The Results

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Any Questions?

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Recommendations

and Conclusions

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Consumer engagement

and experience

Deliver customer value

Differentiate and promote

effectively through an array

of distribution channels

Develop innovative and

sustainable offerings

Leverage all information and

analysis

Demonstrate performance

and impact

1. Consumers keep evolving and changing

2. Make investments in secure, scalable environments

3. Promote channel synchronization and consistency

4. Online integration, marketing analytics, and determination of customer value

5. Marketers need to be measurable, innovative, and sustainable

It’s a Balancing Act for Businesses Today

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• Targeting and list 40% - 50%

• Offer 30% - 40%

• Creative & media 30% - 40%

The Fundamentals Haven’t Changed!

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4 Get big savings on postage

using automation presort

1 Boost response rates with targeted, relevant

personalization

5 Gain faster, more consistent delivery timing and

visibility by inducting mail closer to its final

destination and leveraging Full Service IMb

2 Lower cost per thousand and increase impact

with variable data, color print

3 Increase results by linking

the physical to the digital

5 Ways to Increase Your Direct Mail ROI

The Direct Mail Advantage Webinar

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The Direct Mail Advantage Webinar

Speak with a Pitney Bowes Direct Mail

Solutions expert to uncover ways to deliver

higher impact direct mail at lower costs:

• Optimize postage and delivery timing

• Add personalization and color

• Lower cost per mail piece

Call 877.406.7704 to arrange for a solution

expert to contact you.

Get started today!

More Questions?

Barb Pellow

Group Director, InfoTrends

[email protected]

585-734-2228

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mailto:[email protected]

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The Direct Mail Advantage: Delivering Higher Impact at Lower Costs

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