Power of print ‘E loves p’

30/09/2010, Elke Quatacker

Subtitle: Verdana 22pt.

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How true are these 5 statements?

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“PAPER COMMUNICATION IS NOT THE MAIN DRIVER FOR FUTURE BUSINESS.”

Statement 1

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

Statement 2

5

“E-MAIL IS THE NEW DIRECT MARKETING MEDIUM BUT WITH A LOWER COST.”

Statement 3

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“CONSUMERS AND B2B COMPANIES PREFER INCREASINGLY ELECTRONIC INVOICING.”

Statement 4

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

Statement 5

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Some answers based on facts & figures

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Update on facts and figures of 4 business issues

Communication impact of paper:“Why paper remains an important communication pillar?”

Impact of e-communication on paper:“Why bpost considers electronic a friend of paper?”

Environmental impact of paper:“Why paper does have a limited impact on the environmentif it is managed in a responsible way?”

Economical impact of paper:

“Why paper communication is a driver for your business?”

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““WHY PAPER COMMUNICATIONWHY PAPER COMMUNICATIONIS A DRIVER FOR YOUR IS A DRIVER FOR YOUR BUSINESS?”BUSINESS?”

First business issue

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FACT: 60 billions of sales are directly related to Direct Mail

colruyt

Source: BDMA – Size of the direct marketing market in Belgium (2009)

Direct Mail drives 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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230 clients

360 results

253 results

for Direct Mailing

107 results

Door-to-door

FACT: Our database of test results

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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 Mailings work

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““WHY PAPER REMAINS AN WHY PAPER REMAINS AN IMPORTANT COMMUNICATION IMPORTANT COMMUNICATION PILLAR?”PILLAR?”

Second business issue

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Addressed Direct Mail represents 10% of gross media spending

3169

349,1

3169TV; 39,3%

Dailies; 23,0%

Radio; 11,3%

Poster; 8,9%

Free press; 4,8%

Internet; 4,0%

Magazines; 7,8%

Cinema; 0,8%

Mass Media(CIM MDB)

Direct Mail(Pige DM)

Sources (03/02/2010): CIM-MDB, Mediaxim (Mass Media); DM Pige Mediaxim-Post (Direct Mail)

9,9%

Gross Media investments 2009 (in mio eur)

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Direct Mail and e-mail marketing gain popularity

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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 strength of direct mail, the MAIL MOMENT…

Source: Study Mailmoment, bpost, MAS 2005

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E-Mailbox Potential Reach*

67

38

33 33

21

8

57%

No

Yes

Total

Daily

Weekly

Less often

Frequency

Frequency of consulting e-mail is less intensive than paper mail

*Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007**Source: Study Mailmoment, bpost, MAS 2005

100%Total reach

Letterbox reach**

Frequency 97% daily

3% weekly

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67% of the Belgian population has access to e-mail & 100% could be reached by paper

Available e-mails due to opt-in rules ? & +90% addresses available (Robinson list / no pub)

Spam, fishing, virus…into e-mails & You are the manager of your mail

Source Insites Consulting (2009)

FACT: Not everyone has e-mail, not everyone reads their e-mails

Direct mail reaches more consumers than e-mail

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67% potential reach by e mail, about 1/3 email users have more than one private email address

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51

61

42

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45 22 2 2 1

Mean = 1.4 Mean = 0.58

Private Professional

1 2 3 4 5 6 1 2 3 4 5 6

%

00

OPT - IN !

Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007

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“Do you feel you receive too many Direct Mail?”82% say no, only 18% say yes

Only a few do not want free unaddressed publicity in their mailbox.

FACT: Consumers ask for more paper communication

People like paper as medium

13,6%

Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007

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Direct mail is the number 1 information medium across all industries

FACT: DM scores as the preferredcommunication channel

“Which channel do you prefer to receive advertising messages?” 

29%

34%

36%

38%

43%

9%

13%

10%

5%

7%

10%

8%

14%

7%

11%

19%

13%

13%

22%

8%

10%

15%

13%

12%

13%

0% 20% 40% 60% 80% 100%

Hifi, video, cell phone, computer (n=144)

Telecom, internet, TV operators (n=184)

Automotive (n=158)

Home equipment: furniture, DIY, garden (n=127)

Beauty products (n=120)

DME-mail

Print

D2D

TV

Radio

Internet

Other

Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007

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“Via which channel a company should inform you as a loyal customer?”

FACT: Consumers feel valorized when approached by Direct Mail

Direct Mail makes a relation personal

DM: 57%

@: 14%

Source: study ‘E loves p’: bpost – TNS Dimarso, n=1150, 2007

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18% would be angry at their supplier, if they were forced to switch to electronic invoices. 31% of people interested in e-invoicing still want a paper copy by the post and 10% would print their invoice themselves. 51% of the current e-invoice users print their invoices.

Source: Invoice survey – N=1.000 – 2009 – Ask

Paper remains a tangible asset procuring a sense of reliability

FACT: For invoices, the power of paper is so strong that…

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FACT: New generation color printed invoices have a 30% faster payment term

Today, physical invoices are more than figures and account numbers

Color increases the understandabilitywith 73%. Readability increases with 14% when high-lighted colors are used instead of bolds. Reduce inbound calls with 73% Customers are 2,5% more willing to pay the full amount if color print is used.

Source: Invoice survey – N=1.000 – 2009 – Ask

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Digital printing support also Direct Mailings

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““WHY bpost CONSIDERS WHY bpost CONSIDERS ELECTRONIC A FRIEND OF ELECTRONIC A FRIEND OF PAPER?”PAPER?”

Third business issue

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FACT: Site visits increases where mail is introduced to the mix

51%63% 68% 72%

35%

30%27% 23%

14%7% 4% 5%

Have Not ReceivedCatalogue

Received CatalogueWithin Past 12 months

Received CatalogueWithin Past 6 months

Received CatalogueWithin Past 3 months

“How often have you visited the web site in the past 12 months?”

+12%+5%

+4%

Between Once A Month And Once Every 6 Months

Less Than Once Every 6 Months

Greater ThanOnce a Month

Source: Quadrangle: DM & Email 2007. DM & Online 2007

Paper support also web sales

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How DM supports e-business?

Source: UNITED STATES POSTAL SERVICE (USPS) – results tests

% of orders on the website supported by

catalogues

% of orders on the website with e-

mails

% of orders on the website supported by

a flyer

15%

13%

8%

31Source: Market research on 1800 customers, utility sector case

Received DM/Email

Recall DM/Email

Read DM/Email

Correct recall content

Paper mail 100% 49 49 55 27 81 22%

E-mail 100% 28 28 57 16 75 12%

Direct mail is more effective throughout the media funnel leading to

an 83% higher content recall rate compared to e-mail

FACT: Paper Mailing generates a better content recall than e-mail

Paper mail has by far more effect on the long run

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E-mail has a much stronger impact when combined with a physical mail

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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E-mail lovers are also paper lovers…

Despite the attention paid to online and e-mail advertising, households with Internet access receive more advertising mail than those without access. This is reflective of household characteristics such as income and education -- Internet access is closely tied to income and education.  Households with broadband access average 18.4 pieces of direct mail a week; dial-up households average 15.8 pieces a week, and homes without Internet access average 11.1 pieces of direct mail per week.

The Household Diary Study: Mail Use & Attitudes in FY 2008 at USPS (United States Postal Services).

Average of 16,4 direct mails / week

Broadband Internet Access (ADSL)

No Internet Access

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““WHY CAN PAPER HAVE LIMITED WHY CAN PAPER HAVE LIMITED IMPACT ON THE ENVIRONMENT?”IMPACT ON THE ENVIRONMENT?”

Fourth business issue

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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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Other59%

Industry41%

29,2% Combustion installations

3,6% Cement, clinker, lime

2,8% Production of pig iron orsteel3% Mineral refineries

0,6% Pulp and paper

0,4% Coke ovens

0,4% Manufacture of glass

0,4% Metal ore roasting, sintering

0,3% Manufacture of ceramic

0% Other activityPulp and paper 0,6%

Source of greenhouse gas

emissions in Europe

FACT: In Europe the paper industry contributes to only 0,6% of greenhouse gas emissions

0,6% is 3 times less than the contribution of the IT sector (2%)

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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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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 electronic communicationsreinforces your ROI

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Summary

Paper does not have the environmental impact asgenerally stated

It is comparable or often less than the impactgenerated by the IT industry

Author Name - Muntcentrum - Centre Monnaie1000 Brussel - Bruxelles

Thank you

Presentation available on www. dmplaza .be

[email protected]

0474/98.20.40