York University and Canada Post Direct Marketing Presentation November 10th 2010 CONFIDENTIAL.

York University and Canada Post Direct Marketing Presentation

November 10th 2010CONFIDENTIAL

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Topics for discussion

The DM Advisor role at Canada Post

Direct Mail in the Marketing Mix• Why DM – research highlights

• Case Study

• New Products and Services

• CPC Resources

Q&A

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What’s new?

CPC’s organizational structure Canada Post placed a greater importance on Direct Marketing.

Canada Post realigned to build a dedicated direct marketing group to support

— Product innovation

— New product solution take to market strategy

— DM Case Study library across all industries and other online tools

Canada Post Corporation

Transaction Mail

- LetterMail

Direct Marketing

- AdMail

Parcels

Strategic initiatives

Canada Post Advisor

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Why Direct Mail?

The Top 3 Direct Mail Advantages…

93% Canadians read their mail the same day

You can be creative, including sending oversized postcards for awareness building to complement your media mix

You can reach 100% residences and businesses, including all multi-unit business buildings with your Executive Program Message

Source: Household Mail Preference Telephone Study, Pitney Bowes, 2005.

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Research: Consumer Attitudes towards Direct Marketing

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Consumers attitudes towards Direct Marketing – Study Overview

Objectives•To continue to measure consumer attitudes towards direct mail for advertising purposes.•To track any significant changes from previous waves of research.•To obtain feedback on potential Canada Post mail management services.•New for 2009 was the addition of;

•Emerging media such as social networking sites (SNS) and mobile/text messages (SMS) •Traditional media such as radio, television, newspaper, magazine, outdoor and yellow pages •Additional questions about receiving promotional emails.

Methodology•Questionnaire completed by 1,048 Canadians during the period November 13th to December 7th, 2009.  •Close to half completed it online (501) and the rest (547) completed a mail back questionnaire

Consumer Attitudes towards Direct Marketing

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Welcomeness of Direct Marketing – By Age and Income

Age Household Income

Net: Welcome (very/somewhat)

Total(%) 18-34 35-54 55+

Under $35K

$35K -$80K $80K+

Direct Response Television 36 49 39 23 33 38 44

Addressed Direct Mail 32 34 37 26 31 32 37

Shopping Channel 31 39 34 22 29 33 34

E-Mail 22 28 23 15 20 23 26

Unaddressed Direct Mail 20 22 22 15 20 19 21

Banner Ads 20 27 22 10 19 19 23

Ads on social networking sites 15 22 19 6 13 19 14

Text messages/ Voice mail 4 8 3 1 6 3 4

Telemarketing 3 5 4 2 5 2 4

Base: Total Respondents (n=1,048)

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Attitudes Towards Direct Mail

Net: Agree strongly/somewhat 2007 2009

Most Direct Mail ads I receive don’t offer anything that interests me 69 69

I wish it were easier to unregister from mail offers 69 67

I only like Direct Mail when I am looking for something specific 57 56

I am more likely to read DM from companies that inform me of changes and upgrades to products and services that I have purchased

52 53

I enjoy receiving Direct Mail for products and services that interest me 44 48

I enjoy receiving Direct Mail about additional products and services from companies that I already buy from

43 47

I read most mail promotions just in case something catches my eye 43 45

I am more likely to read Direct Mail if I have seen the same concept on TV or heard about it in another promotion

41 44

Direct Mail is a great way to find out about new products or promotions

40 41

I always browse through my Direct Mail 39 40

I receive too few mail offers and promotions 18 18

I often buy things advertised to me through mail 9 12

Q: Please indicate to what extent you agree or disagree with each of the statements below.Base: Total Respondents (n=1,048)

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32

70

73

84

85

89

89

93

93

32

72

76

87

89

90

90

91

94

95

0 20 40 60 80 100

It looks like advertising

It has your address on it

It carries a postage stamp

It has your name and address on it

It looks interesting or intriguing

You recognize the sender

Have a loyalty card with the company

It looks official or important

You do business with the company

You have asked for it

20092007

Q: How likely are you to open an item that comes in the mail if...?Base: Total Respondents (n=1,048)

Likelihood of Opening an Item by Mail Feature or Relationship

% Very/somewhat likely

Not asked in 2005 and 2007

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Case Study - Thompson Rivers University

http://www.canadapost.ca/business/campaigns/sorted/sortednews/stories_09feb/thompson_rivers-e.asp

Thompson Rivers University, Open Learning

Test: Targeted unaddressed admail to cities across Canada

Results: DM brought in 24 per cent of all marketing-driven inquiries--one of the top three vehicles for driving inquiries with an overall response rate of 1.43%

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Case Study - Thompson Rivers University

"The sheer volume and ability to geo-target by postal code keeps my cost per inquiry low and helps to build brand awareness.“

- Jennifer Read, director of marketing, Open Learning Division, Thompson Rivers University

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Case Study - Thompson Rivers University

The direct mail pieces are direct-response driven which means that the call to action includes a toll-free number and website

Thompson Rivers University, Open Learning is able to track responses and vary quantity depending on response activity

"We are then able to measure results [and] then dial up or cull back quantities depending on what markets we determine to be successful," says Read.

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Mail Ranks #1 Among Alumni for Information, Solicitations from and Universities

Alumni also have a strong preference for regular mail (54%) versus e-mail (23%) as a communications channel

Only 5% of graduates chose the phone and 1% of respondents chose social networking sites.

Another key survey finding is that graduates are less likely to discard or ignore mail (27%) versus phone (38%), social networking sites (34%) and e-mail (30%).

Above results are consistent to Research Study conducted by SEEC which found that 51% of participants gained awareness of the program through the Brochure (either directly or indirectly passed along)

Source: Commissioned by Pitney Bowes - surveyed approximately 1,100 college graduates and post-graduate school respondents about their preferences for receiving information from the school they attended.

US Based, STAMFORD, Conn., September 29, 2009

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Driving Mail Channel EffectivenessDelivering to the Intended Recipient!

Acquisition Admail™

How is works:

•Once you identify the Postal Codes you want to reach AND ONLY THOSE YOU WANT TO REACH, we can use them to select addresses for your mailing list.

•For every Postal Code targeted, we’ll provide the addresses included in that Postal Code.

•You have the ability to exclude current customers addresses from your list for greater efficiency and ROI and to protect your existing customer relationships or addresses which could have sensitivity to receiving your offer.

•Reach prospects living in condos or apartments!

If you don’t have your own list, we can help you identify those that best match your customer profile

From anywhere… to anyone

•70% of Canadians are more likely to open mail if it has their address on it.*

•Reach prospects who share a similar geo-demographic profile as your best customers

•Access more than 12 million Canadian Urban addresses (including multi-dwelling units)

* CP March 2008 Consumer Attitudes Towards Direct Mail Study

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Acquisition Admail – York University Opportunity

•Test Acquisition admail to target the neighbors of best customers based on new student enrollments

•For example:

•York University to supply Canada Post with 5,000 names of newly enrolled students

•CPC to leverage Point of Call database to match the list to neighboring addresses of those customers – targeting at the postal code level

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Acquisition Admail

Semi-addressed mail at the Postal Code level for acquisition campaigns

Over 12 million urban addresses available

List service with mailing option as below

Acquisition List Acquisition List PlusMinimum rental quantity 5,000

Customer defines mailing quantity

One-time mailing; valid for 6 months

Suppression of lists for a fee

Delivery at applicable Addressed Admail prices

Minimum rental quantity 20,000

Customers must mail 80% of file

One-time mailing; valid for 90 days

Suppression of lists included

Delivery at special postage rates

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New Address list service

Tap into one of the most comprehensive mailing lists for new Canadian addresses

They’re out there and they could represent profitable revenue opportunities for your company. What are they? They’re the more than 100,000 new residential addresses that are registered in Canada every year. Now there’s a way to make a direct connection with these households: The New Addresses List from Canada Post.

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New Address list service

Addresses of recently build residences

One Year Aggregate and Most Recent Month

National and Regional

Annual and One Time use contract terms

Movers spend from 6 months prior to 12 months after a move with the highest levels of the “spending frenzy”, occurring in the first 3 months and again 9 to 12 months following the move. • Source: Mover Behaviour in Canada, CP06-16, July 2007

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You can improve your mailings through cleaner data

Clean data is good for your business…

• Reach your intended recipients by ensuring addresses are complete and accurate

• Keep track of movers to ensure your piece is sent to the appropriate location

• Save money and reduce customer irritation by removing duplicate mail pieces

• Lift response rates by excluding undeliverable addresses and deceased individuals

Canada Post now offers a powerful online tool to help mailers improve the cleanliness of their files

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Pre-mail cleansing through Smart Data Cleaner is the first step in the mail hygiene process

Pre-Mailing: List cleansing up front Mailing

Occurs

Post-Mailing: Gain insight through

Returns

Internal Mailer: apply learnings & leverage

data

CPC Smart Data Cleaner

CPC SmartFlow RecoverCPC Licensed Data Products

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Cleansing benefits are demonstrated right on your actual file

CPC will assess your mailing file and demonstrate the impact of all possible data hygiene offerings

Best practice recommendations are included in your report to help you improve your ROI

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Case Study demonstrates bundled Pre-Mail and Return solution

List Cleansing

20.5% addresses corrected2.6% correction for movers0.4% movers with no forwarding address

40% reduction due to dupe-elimination

Mailing Occurs

Returns

77.6% of returns due to moversReturn rates reduced by 29%

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The benefits of reducing Undelivered Mail

Improve campaign metrics• Improve response rates and cost per order

Reduce costs• Eliminate Direct costs; minimize Indirect

Become more green• Reduce waste

Be a privacy leader• Respect and protect your customers’ information

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Coming Soon …

For advertisers …• A powerful, multi-functional, interactive utility

that empowers advertisers to geo-target and time-define their online advertising.

• Low risk … Pay for Performance• Easy to use … allows you to build locally targeted

offers in just minutes.• FREE TRIAL for our pre-launch advertisers.

Canada Post presents CentrSource• Shopping/search site that facilitates publication of “fresh” offers• Customers can find RELEVANT products/services available to them

locally and currently.

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Resource Library

Canadapost.ca/DMResources

Case Studies/Success Stories (75)

Webcasts (7)

Market Research Studies (11)

Environmental Tips

Privacy Tips

Campaign Management tools

Other articles and tutorials

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