At Royal Mail we’ve always believed in using the power of 1 to 1 communications to build customer relationships.
However, technology has transformed marketing communications. The development of email and the rapid adoption of smartphones and tablets have changed the way
we connect with customers forever. When you want to talk to customers directly you now have many different tools at your disposal and that’s a good thing.
So we’ve conducted extensive research to find out how customers prefer businesses to talk to them. You have this research in front of you and we think the results are fascinating.
It shows that the core strengths of mail have endured and in some cases grown even stronger, often by driving customers online. Mail is still opened, still valued, still kept and still drives response. Digital has transformed marketing but it hasn’t replaced mail for one simple reason. Customers don’t want it to.
Customers are very clear about what they prefer to receive by mail. They prefer to receive items of substance that they can spend time with and keep. Equally, there are some communications like quick updates that customers prefer to receive via email.
So, complementarity pays. A recent meta-analysis by Peter Field on the IPA Databank reveals that 27% more of the campaigns which delivered high sales performance included mail than did not.
He also looked at campaigns which drove high acquisition levels. And 40% more of these included mail than those that didn’t. Campaigns with mail achieved over twice (104%) the market share growth when measured against campaigns without mail in the mix.
3. A LOT HAS HAPPENED IN 7 YEARS
3
1. Ofcom, The International Communications Market, 2007
2. Compete, Millward Brown Digital
3. Facebook User Stats, July 2009
4. Ofcom, Communications Market Report, 2012
5. Ofcom, Communications Market Report, 2013
6. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
7. TGI, Kantar Media, 2013
8. IPA Touchpoints 5, 2014
9. Twitter.com, May 2014
4. 4
THE AMOUNT OF MONEY SPENT ON DIGITAL
HAS GROWN ENORMOUSLY
Many consumers are feeling overwhelmed by email
1. IAB/PwC, Digital Adspend study, 2014
2. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S3Q4): Please tell me which of the following apply to the way you manage your inbox. “I receive too many emails”. (Base: all respondents n=1,000)
£6.3bnUK digital advertising
spend 20131
70%say “I feel that I
receive too many emails”2
5. 5
CONSUMERS ARE BECOMING LESS
ENGAGED WITH EMAIL
1. DMA National Email Benchmarking Report, 2013
2. Litmus Email Analytics, 2013
21%open acquisition emails1
51%of emails are deleted within
two seconds2
29%open retention emails1
7. MAIL AND EMAIL HAVE VERY DIFFERENT
7
Mail is good for substance and email for speed.
CHARACTERISTICS
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked (S3Q10): Please choose the words that you most associate with the different ways that [industry sector] communicate with you? Base: All respondents n=2375
Email
Quick 302
Spontaneous 244
Informative 217
Smart 214
Informal 209
Interesting 223
Mail
Formal 360
Official 321
Important 274
Considered 288
Informative 235
Personal 214
Believable 278
Reliable 253
Numbers = Index
(Average 100)
8. 8
MAIL MAKES RECIPIENTS FEEL MORE
VALUED THAN EMAIL
Helping you earn time with your target audience.
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base:
all respondents (n=1,000)
9. 9
AS DIGITAL USAGE HAS GROWN, THE CORE
STRENGTHS OF MAIL HAVE INCREASED
% Growth
2007 – 2013
+31
+22
+20
+3
Royal Mail, D Loves E, Quadrangle, 2007
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base: all
respondents (n=1,000)
10. AND THEY NOT ONLY OPEN MAIL, THEY
10Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity McQueen, 2014
Question asked: What did you do with [Item type]? (Base: all receiving item described, n=192-463)
Advertising
mail is kept for
17 days
on average
INTERACT
69%
56%
55%
43%
43%
43%
43%
INTERACT WITH IT AND KEEP IT TOO
Statement, bill or information update
Brochure from a company they have ordered from before
Letter – promotion or special offer
Letter – about a product/service they don’t have
Leaflet without an address about a product/service
Leaflet without an address about a promotion/offer
Brochure from a company not ordered from before
83%
71%
69%
60%
59%
54%
54%
OPEN
11. EMAIL IS A MEDIUM OF CONVENIENCE
11
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S4Q6): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion?
(Base: all respondents n=1,000)
It is easy to respond to.
12. 12
CONSUMERS KNOW WHEN THEY WANT
MAIL AND WHEN THEY WANT EMAIL
Preference for mail versus email
21%
Brochures and catalogues
Welcome packs
Bills or statements
Loyalty rewards
Issues or complaints
Information from companies
not used before
Other products and services
Confirmation or follow-up messages
News and updatesReminders
63%
62%
53%
49%
40%
23%
26%
27%
42%
36%
43%
54%
57%
62%
39%
26%
22%
21%
17%
Email Mail
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S4Q2): How do you prefer to hear from companies that you have/have not used before for [item] (Base: all respondents n=1,000)
13. THEREFORE MAIL AND EMAIL WORK ON
13
But in ways which complement each other
Quick Informal
Good for
follow-up
Easy to
respond to
Email
Grabs
attention
Considered
and
informative
Gives a
better
impression
Makes
recipient feel
valued
Mail
DIFFERENT LEVELS
15. BOTH MAIL AND EMAIL HAVE THE POWER
15
Despite this being seen more recently as email’s domain
44%say this of email
42%say this of mail
“I am more likely to do something as a result of it”
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion?
Base: all respondents (n=1,000)
TO DRIVE CONSUMERS TO ACTION
16. SENDING OUT MAIL DRIVES
16
And mobile is making it easier than ever for people to do this
43%
download
something
54%
engaged in
social media
87%
influenced to
make online
purchases
92%
driven to
online or digital
activity
86%
connected
with business
As a direct
result of
receiving mail
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked (S4Q1): How often have you done each of the following online as a direct result of receiving mail from a business or organisation. Base: All (n=2,375)
CUSTOMERS ONLINE
17. 17
THE DIGITALLY ACTIVE1 ARE MORE
RESPONSIVE THAN AVERAGE TO MAIL
1.People who browse throughout the day
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked (S2Q1a): On average, how often do you use the internet for personal reasons (i.e. not for work) (Base: all respondents – n= 2375)
Question asked (S4Q1): How often have you done the following online? (Base – frequent browsers, n=711)
84%
driven to the
sender’s new
products and
services
(Index vs. population =
101)
35%
‘followed’ the
sender on
Twitter
(Index vs. population =
142)
46%
shared
information on
social media
(Index vs. population =
126)
73%
sent an email
to the sender
(Index vs. population =
107)
50%
downloaded
the sender’s
‘app’
(Index vs. population =
129)
As a direct
result of
receiving mail
19. 19
CONSUMERS DON’T LIKE THE IDEA OF JUST
ONE COMMUNICATION CHANNEL
A combined approach resonates best
1.Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013;
Question asked (S4Q1): Overall, thinking generally about the communications you receive, would you say you prefer to be contacted by post, email or a combination of both? (Base: all
respondents n=2375)
2.People who browse throughout the day
3.Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014;
Question asked to people who browse the internet throughout the day (S2Q6-9): Which communication method do you feel applies to the following: 'it makes me feel valued'? (Base: all browse
internet throughout day n=711)
4.Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013
Question asked (Q12): Please now indicate the extent to which you agree with each of the following statements (Base: All Respondents n = 1000)
51%prefer companies to use a combination
of both mail and email1
65%like to browse through both the
catalogue and online before
making a purchase4
56%of the more digitally active group2
say that “mail makes me feel valued”.
Only 40% say “an email
makes me feel valued”3
20. 20
ADDING MAIL TO THE MIX OPENS UP NEW
RESPONSIVE AUDIENCES
when compared to using email on its own
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Question asked (S2Q5): In the last 6 months, have you taken any of the following action in response to the post you have received? (Base: All Respondents n=1,000)
Question asked (S3Q5): In the last 6 months, have you taken any of the following action in response to the email you have received? (Base: All Respondents n=1,000)
13%more consumers visited
sender’s website
35%more consumers redeemed
coupons or vouchers
21%more consumers
made purchases
21. 21
CAMPAIGNS THAT INCLUDE MAIL
ARE MORE EFFECTIVE
Campaigns with mail Campaigns without mail
Percentage difference between successful campaigns using mail vs without mail
+27% +40% +104%
IPA Databank meta-analysis conducted by Peter Field, 2013
23. DELIVER ACROSS THE CUSTOMER JOURNEY
23
Interest
The
Customer
JourneyAll Customers – Use Both
Short reminder email and
follow-up with detail via mail
All Customers – Use Both
Send automated email to
acknowledge complaint and
follow up with a letter
(personalise for high value)
Win Back – Use Mail
Send a mail pack saying ‘We’re
sorry that you left’ and include a
voucher to encourage returning
All Customers – Use both
Send statements by mail, and for
cross selling; otherwise allow
customers to choose
Welcome – Use Both
Use email for confirmation and
login details, and mail for
registration forms, further
information and to showcase
other services
Influence – Use Mail
Use mail to send catalogues,
vouchers or discounts to cut
through and drive action
Set-up
& join
Statements
Decide
Updates &
Promotions
Renew
Leave
Complaints
All Customers – Use Email
Account updates and reminders
All Customers – Use Mail
Vouchers, coupons, minilogues
Prompt – Use Both
Use email for ‘pulse’ reminders and
mail for nudging specific action
24. CONCLUSIONS
24
The real conclusion from the research is that you create the greatest
value when you combine mail and email. By doing this you take
advantage of their very different but highly complementary strengths.
Combine the time that mail earns you with your customers with the
speed of email.
Give customers something to think about.
Show them that you care.
Make it easy for them to act.
25. CONCLUSIONS
25
In fact, adding mail to campaigns improves performance substantially.
Figures taken from an IPA Databank meta-analysis conducted by
Peter Field show that, of campaigns delivering high sales
performance, 27% more included mail than those that didn’t. Also,
when looking at campaigns that drove high acquisition levels, 40%
more included mail than campaigns which didn’t. Campaigns with
mail achieved over twice (104%) the market share growth than
campaigns without mail in the mix.
It all adds up. Mail and email together build better, more valuable
relationships.
“The use of Direct Mail as part of a multi-channel campaign
significantly boosts the short-term effectiveness and efficiency
of campaigns”
Peter Field, 2013
26. RESEARCH SOURCES
26
Compete, Millward Brown Digital
DMA, National Email Benchmarking Report, 2013
Facebook User Stats, 2009
IAB/PwC Digital Adspend Study, 2014
IPA Touchpoints 5, 2014
IPA Databank meta-analysis conducted by Peter Field, 2013
Litmus Email Analytics, 2013
Ofcom, The International Communications Market, 2007
Ofcom, Communications Market Report, 2012
Ofcom, Communications Market Report, 2013
Royal Mail MarketReach, D loves E, Quadrangle, 2007
Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity
McQueen, 2014
Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013
TGI, Kantar Media, 2013
Twitter.com, May 2014
Our insights are based on the findings from a number of sources
27. APPENDIX I
27
Mail and Digital Part 1
We used an online survey to ask a panel of 1,000 individuals about the way they perceived
mail and email, and how they preferred companies to use the two media to communicate with
them. The results are representative of the UK population as a whole.
Mail and Digital Part 2
We used an online survey to ask a panel of 2,375 individuals a series of questions about their
digital activity, their attitudes to different media, the way they preferred different kinds of
organisation to communicate with them at different times, and the things they have done
online in response to mail. The results are representative of the UK population as a whole.
Print Catalogues in a Digital World
We used an online survey to ask a panel of 1,000 individuals about the way they interacted
with catalogues and how it affected the way they browsed and ordered online. The results are
representative of the UK population as a whole.
Meta-Analysis of IPA Effectiveness Database
We gained access to the database of campaign results submitted to the IPA for its
effectiveness awards. We analysed 416 such campaigns, comparing those that used direct
mail (97) with those that did not (319), comparing them on a wide variety of reported metrics.
For each metric, only campaigns with directly comparable data were selected.
28. APPENDIX II
28
Media Moments Ethnography Quantitative
We asked a panel of 1,312 individuals a series of questions online about their actions around
mail, looking specifically at behaviours observed in the qualitative stage of the research.
Knowing that actual and stated behaviours differed, we made sure we were asking about the
former by instructing respondents to think about the mail they had in the house at the time of
answering – either mail from that day’s delivery or items that had been kept in the house for
some time. We asked them what they had done, or intended to do, with that specific day’s
mail. The results are representative of the UK population as a whole.
DMA, From letterbox to inbox: Building customer relationships, fast.MAP 2013
fast.MAP asked a panel of 1,232 UK consumers 28 questions about their attitudes to
different media via an online questionnaire. The results are representative of the UK
population as a whole.
Litmus Email Analytics 2013
Litmus are a monitoring company offering tracking and analytic services for users of email
marketing. They periodically collate the statistics generated from their clients in this way into
general reports.
Royal Mail conducted a research project in 2007 called D loves E (Mail and Digital) to understand what the digital revolution meant for mail.
This was just before the first iPhone was launched, and when email was just becoming a mainstream marketing channel.
What this showed us was that mail and email naturally complemented each other when it came to communicating with customers.
But as the digital revolution has since grown to affect so much of our everyday lives, has this changed consumer attitudes to mail and its relationship with email?
That's what we set out to discover.
Fast forward seven years and a lot has happened.
Between 2007 and 2014, we've witnessed the revolution of the smartphone and tablet industry.
We now do far more on screens and when we're physically on the move.
So what impact has this had on consumer beliefs and behaviours – in particular in relation to mail and email?
In 2002, less than £200 million was spent on internet advertising.
By 2013, advertisers spent a record £6.3 billion on digital advertising (including paid for search and display).
More and more, marketers have turned to email for their 1 to 1 communications because it is easy to produce and easy for consumers to respond to.
As a result, a vast majority of people now feel they receive too many marketing emails.
A study of email analytics in 2013 revealed that over 50% of emails are deleted within two seconds of being opened. And the actual open rates were only 21% and 29% for acquisition and retention respectively.
There is a strong suggestion that, as more and more content is being consumed on the move (and as people feel they are getting too many emails), the vast majority of emails are not even being opened. And those that are being opened get deleted with little more than a glance.
This begs the question, who are you not reaching?
Whilst technology has changed so much, when it comes to how consumers think of mail and email not much has changed.
The headline conclusion from the research is that what was true in 2007 is still true today.
Mail is still highly valued.
Consumers see mail and email as having different characteristics, which complement each other.
So mail is better for some communications. And email is better for others.
Which means consumers don't want companies just moving everything into digital. They want to continue to get both.
As you can see people associate mail and email with very different characteristics.
But if you’re putting together a marketing plan these characteristics can also be seen as complementary:
Email is seen as being quick and informal. A simple piece of information or news that people can glance at and get in a moment.
Mail is believable and reliable. In fact all of the top associations show that it is a medium of authority. This makes it perfectly suited for communications that are formal and official.
What’s also interesting is that mail is seen as ‘personal’ in a way that email is not – even though both are targeted and personalised.
Consumers are perhaps being influenced by the high volume of emails they are now receiving. Alternatively, it may be the physical nature of mail and the tactile way people interact with it that gives it a higher status.
NB: An index is a measure of how much more, or less, than the population as a whole an audience is doing / feeling something. For example, if a target group has an index of 120 on a statement it means that they are 20% more likely than the population as a whole to agree with that statement. If the index is 80 it means that they are 20% less likely than the population as a whole to agree with that statement.
So if you want to demonstrate to your customers that you value them, sending mail is considerably more likely to achieve this than just email on its own.
You will earn significantly more time with them and create a better impression.
The core story from our research clearly shows that the best strategy is to combine mail and email.
We've also discovered that if we compare perceptions from the findings of our two research projects (2007 and 2013), the core strengths of mail have not just endured, they have grown even stronger.
Nowadays, 56% of us say mail grabs our attention, up from 47% in 2007, and 10% more of us say we spend time reading it, compared to in 2007.
The biggest increase though is in the number of us who say receiving mail makes us feel more valued which is now 57%, around a third higher than in 2007.
Grabbing attention, creating a good impression and making consumers feel more valued. These are three things that every brand and organisation strives for. They’re also three things that mail is even better at delivering than it used to be in the days before superfast broadband access, before the smartphone and mobile internet.
The perceived value and authority of mail translates into physical interactions.
Understandably, we engage more with organisation’s we’ve already dealt with. But even when mail is received from businesses we haven’t used before, more than half of communications are opened. Of those opened pieces, 43% lead to some kind of interaction.
Mail delivers more cut-through and is far more likely to be opened than email. Research reveals that 69% will open a letter from a company about a promotion or special offer. What’s more, 60% will open mail if it’s from a company about a product or service they don't currently have.
Recipients actually spend time with mail, on average, they keep mail around the house for more than two weeks. Although most marketers know, from responses that come much later than two weeks, many people keep mail for much longer.
Door to door mail such as leaflets, postcards and flyers also deliver strong cut through, with 59% of people saying they open it and interact with it.
So mail not only gives brands more time in customers' hands, it gives them more time in their homes. Mail is a constant presence for a considerable time.
But email has it’s strengths too.
People like email because it's quick and easy to respond to.
Email is perfect for creating an instant response, and for confirmation and follow-up.
For example, acknowledging an order or an enquiry, providing a delivery notification or telling someone when a new item is available.
We asked people about specific types of communication from companies they already have a relationship with. And what they say they want to receive through the letterbox compared to what they prefer to get in their inbox, reflects the general attitude towards the two channels.
So for catalogues and brochures that require time to read, consider, and keep around the home, they strongly prefer printed versions in the mail.
Equally, since mail is a medium of authority, it's not surprising to see that people still prefer to get their bills and statements in a physical form. They can then consider the contents and keep the information around the home.
And finally, since mail makes people feel valued, it's also the preferred medium for loyalty communications.
In contrast, email scores highest for news and updates – messages that typically require a quick glance or messages about events that are happening soon.
These findings show that combining mail and email can be very beneficial to organisations and brands.
Email is quick and easy to respond to. It's suited to urgent messages such as acknowledging enquiries or giving out specific pieces of information such as delivery times. It's perfect for following up customer requests. People also feel it has an informal quality. It is the equivalent of saying ‘just thought you would like to know’.
But mail grabs our attention, draws us in and then holds that attention. Mail is suited to messages requiring greater consideration. It's for when we need to give more information. For instance, people like to browse through catalogues and brochures, or dip into them over longer periods. Customers often hold onto welcome packs or membership guides for future reference.
Mail also makes recipients feel valued. It shows a brand cares. This is an important differentiator. Mail is the medium that allows you to take your time to tell your audience more about you, about your products and services.
Customers respond positively to this, they say that mail creates a better impression and will usually take the time to read it.
Brands face a big challenge trying to be seen and heard today, never mind being cared about. There are more demands on people's time than ever and they receive more communications.
In 2007 we used to talk about 'going online' as if we were moving into a different space or world.
Now we don't see a difference between reading the news in a paper or on a mobile device.
Or reading a book on Kindle.
Or shopping online compared to shopping in a store.
We're still doing the same thing – just through different channels.
We're moving seamlessly between those channels and as marketers, mirroring this behaviour will mean we're more likely to get a positive response from our customers.
So we've shown that mail evokes stronger feelings, and email is easier to respond to.
Email may be easier to immediately reply to, but mail drives actions too.
If we go back to the reasons why people use mail and why they use email, there are some obvious reasons why one is preferred over the other (such as using an online discount code).
But when we think about decisions related to where we go on holiday, how we manage our finances, or major purchases for the home or garden, these typically require planning and discussion.
The authority, longevity and perceived value of mail clearly give it a potentially valuable role in helping people make these 'big' decisions.
And it's mail that prompts us to interact further with brands online. Research shows that most of us will have gone online in direct response to mail we've received, and this behaviour isn't just confined to making a potential purchase.
What our research shows is that 86% of us have contacted an organisation online in direct response to receiving an item of mail – whether that's visiting their website, sending them an email or using Twitter.
Equally, more than half of us have logged in to Facebook, YouTube, Twitter or another social channel because of something we received through our letterbox.
And 87% of us have been influenced to make an online purchase.
It's mail that prompts us to interact further with brands online:1
43% ‘liked’ the senders Facebook page
24% followed the sender on Twitter
25% followed the sender on other social media site
36% shared information with friends via social media
Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014
Question asked (S4Q1): How often have you done each of the following online as a direct result of receiving mail from a business or organisation. Base: All (n=2,375)
The people who are more likely to do something online as a result of receiving mail are those who are most digitally active. This means those who spend more time on the internet, browsing throughout the day, who are most likely to be accessing it via smartphone, are the very same people who embrace the qualities of mail.
In other words, to maximise engagement with the most digitally active consumers, the answer is not to rely on a digital strategy. The trick is to put together an integrated communications plan combining both mail and email, because mail is often the initiator.
Integrating mail and email communications means you’ll not only meet customers’ needs, you’ll maximise the effectiveness of your communication.
What's clear from the research then is that as mail and email are very complementary, it makes sense to use them together.
But what we also discovered is that when you do this, you get better results.
When it comes to brand engagement, consumers want choice.
They don't have one method of engaging with brands and with each other; they have many. And which one they use at any moment depends on where they are, what they're doing and what the purpose of the communication is.
They don't want brands and organisations to decide on one channel of communication. It may on the surface appear financially attractive to migrate all customer communications to email and web, and then make further investments in mobile and social.
But customers are very clear this isn't what they want.
Over half of them say they want a mix, and even those who lean towards one over the other still say that each has its place.
What’s also interesting is when looking at the more digitally active group 56% say that “mail makes me feel valued”, whilst only 40% of the same group say the same of email.
More than that in our research, many customers only acted after receiving mail.
So adding mail to the mix opens up a whole new untapped section of your audience to purchase, redeem coupons and visit your website.
Adding mail to campaigns improves performance substantially.
A recent meta-analysis by Peter Field on the IPA Databank shows that when looking at campaigns which delivered high sales performance, 27% more included mail than did not.
When looking at campaigns that drove high acquisition levels, 40% more included mail than campaigns which did not.
Furthermore, campaigns with mail achieved over twice (104%) the market share growth than campaigns without mail in the mix.
What's clear from the research then is that because mail and email are very complementary, it makes sense to use them together.
But what we also discovered is that when you do this, you get better results.
When you think about building a relationship with a customer, optimising your communication mix can make a positively disproportionate impact on that relationship and on your bottom line.
When you believe that when you make the effort to deliver value to an individual, they'll be more likely to deliver value right back to you.