Reaching Consumers with direct mail

Mail Marketing

Reaching Consumers with direct mail

Mail Marketing

Contents

• Recent trends in direct marketing and direct mail

• Mail trends in the letterbox

• Reaching the consumer in the information age

• Impact Mail

Mail Marketing

Background - Media Landscape

• Media fragmentation• Hike in media rates while audiences reduce• Changing consumer behaviour

– Know marketing tactics– Discerning, experienced consumers - they interpret brand from their

experience (the moments of truth), not from the brand expression.– Simultaneous media consumption– Time Poor

Mail Marketing

Background - Media Landscape

• Marketers have more confidence in the ability of direct mail to achieve results than any other medium. (Fin Review, Boss Marketing Directions).

• The direct marketing industry is growing at a rate of 17% a year and it now represents over 50% of all media spend CEASA Report, 2002.

Mail Marketing

Source: USPS/Royal Mail

So what are the opportunities for us here in Australia?

Mail Marketing

UK recorded 5% growth in 2002

Netherlands also achieves similar volumes to UK35

190

330

Aus UK USASource: USPS/Royal Mail

Addressed DM Pieces Per Head Per Annum

Mail Marketing

5%

13%

19%

Aus UK USASource: USPS/Royal Mail

Direct Mail as % of Ad Spend

Mail Marketing

26%

47%

55%

Aus UK USASource: USPS/Royal Mail

Direct Mail Vol as % of Total Mail

Mail Marketing

Personally addressed mail has cut through

4%

8%

45%

49%

4%

4%

14%

4%

17%

18%

13%

2%

1%

0%

39%

23%

Throw it away w ithoutopening/reading it

Glance at it

Read it

File it away/keep it

Give it to someone else

Fill incoupon/form/questionnaire

Throw it away afteropen/glance at/reading

Not stated

Addressed mail

Unaddressed mail

Mail Marketing

% likely to respond

8%

18%Percentage ofconsumers whostated they werelikely to respond

to theadvertising mail

they receive

Addressed mail

Unaddressed mail

Mail Marketing

Reaching Consumers In the information age

Marketing and Promotional Communications

Mail Marketing

The Research

•Reaching Consumers in the Information Age

•Independently researched by TNS, 3rd largest marketing information company in the world

•Qualitative & quantitative study surveying 1001 consumers

•Reports on how and when they prefer to receive messages from Australian businesses

Mail Marketing

Research Scope

Customers’ preferred media for receiving business communications

•Marketing & promotional information

•Essential, e.g. bills, annual reports

•Includes preferred frequency of communication

CustomersNon-customers

AcquisitionBusiness process/

billing

Drivecustomerrevenue

Mail Marketing

Research Scope

Preferred media for marketing communications by:

•customers / non-customers

•industry sector

•and demographic information

Includes summary charts and analysis of each of the findings

Mail Marketing

Advertising & Promotional Material

29%

16%

6%

30%

16%

7%

6%

15%

3%

1%

8%

1%

1%

1%

1%

10%

Television

Newspapers

Magazines

Mail (personally addressed)

Unaddressed Mail

Radio

Catalogues

Unaddressed Catalogues

Websites

Telephone

Email

SMS

Outdoor Billboards

Inserts With Bills/Statements

Other

None

Don't Know *

• Mail preferred channel

• 36% prefer mail when addressed catalogues are included

Base sample 1001

Mail Marketing

Loyalty Programmes

3%

3%

1%

71%

2%

1%

1%

1%

2%

9%

3%

11%

2%

1%

Television

Newspapers

Magazines

Mail (personally addressed)

Unaddressed Mail

Radio

Catalogues

Unaddressed Catalogues

Websites

Telephone

Email

SMS *

Outdoor Billboards *

Inserts With Bills/Statements

Other *

None

Don't Know

• Mail clearly preferred channel, by nearly three quarters of consumers

• With many loyalty schemes trying to migrate customers to online channels it’s interesting to note only 9% prefer email and 1% prefer websites

Base sample 1001

Mail Marketing

Club or Membership Newsletters

6%

5%

2%

62%

7%

1%

1%

2%

2%

1%

12%

1%

1%

2%

10%

1%

Television

Newspapers

Magazines

Mail (personally addressed)

Unaddressed Mail

Radio

Catalogues

Unaddressed Catalogues

Websites

Telephone

Email

SMS *

Outdoor Billboards

Inserts With Bills/Statements

Other

None

Don't Know

• Although some organisations may be tempted to send electronic newsletters mail is preferred to email by 5:1

Base sample 1001

Mail Marketing

New Product Announcements

44%

19%

10%

26%

11%

9%

4%

12%

3%

1%

8%

1%

2%

2%

2%

5%

Television

Newspapers

Magazines

Mail (personally addressed)

Unaddressed Mail

Radio

Catalogues

Unaddressed Catalogues

Websites

Telephone

Email

SMS

Outdoor Billboards

Inserts With Bills/Statements

Other

None

Don't Know *

Base sample 1001

• TV preferred but mail cannot be overlooked

• Mail and catalogues combined equals to almost a third of consumers

• Strong argument for integrated campaigns when launching new products

Mail Marketing

In Essence

the consumer is telling us …. Send us mail!

Mail MarketingResearch tells us that….

89% of ad agencies surveyed would increase their use of Direct Mail if they could send non-rectangular pieces

Mail Marketing

IMPACT MAIL

Mail Marketing

Creativity with direct mail shapes enables highly targeted messages that differentiates your mailing with instant impact

DM with Bite

Mail Marketing

Benefits of Impact Mail

Creative Freedom – Colour, shape, size and style are all open to your own interpretation.

Almost anything goes…! Australia Post strongly recommends that only paper based card stock is used. However other material may be accepted subject to approval prior to lodgement.

Mail Marketing

What is IMPACT Mail?

Impact Mail Product Overview

• Impact Mail is a service that will provide for the delivery of customised shaped articles through Australia Post.

• Unlike existing Bulk Letter Services Impact Mail will not require articles to be rectangular or oblong.

• Impact Mail will accept items of any shape up to the maximum permissible dimensions

Mail Marketing

Opportunity

A new service to:

Generate improved response rates

Demonstrates the power of instant shape recognition

- No limits & unique

- Very high readership

- Enable users to go the next step…

Mail MarketingWhy?

• Grow promotional mail

• Improve the ROI by meeting a need for a creative, tactile promotional medium

Mail Marketing

In Summary

• Local and international figures tell us that Mail as a marketing medium is under utilised in Australia

• Promotional mail is enjoyed by the consumer

• More importantly promotional mail has cut through and the consumer wants to receive it regularly

• Now Australia Post have provided Marketers with the opportunity to produce customised shapes through the mail in order to allow for greater creativity as well as an increase in response rates.

Mail Marketing

Thank you

Visit www.auspost.com.au/mailmarketing and download the full research report

Other reports also available as well as further details on the Impact Mail Product.