De Post @ Relationship Marketing congres (Stichting Marketing) http://www.post.be http://www.relationshipmarketing.be http://www.stichtingmarketing.be

1. The hidden side of Direct Mail
Relationship Marketing Congress
07 05 2009

2. Which side ?
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3. DM has a proven direct impact
But non response is even important to generate sales
Effect of DM goes far beyond response
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4. DM has a proven direct impact
But non response is even important to generate sales
Effect of DM goes far beyond response
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5. We continuously build a “DM impact database” in order
to provide benchmark measures
40 DM Barometer
200 response rate benchmarks
20 ‘pilot surveys’
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6. “What is the average response rate ?”
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7. And the answer is
6,2 %
Own database External database
8,9% 5,4%
N=200 6

8. Common sources of failures ( and successes)
Average response rate =
Source: DMA
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9. Some elements of response drivers
What drives response the most ?
Database Internal External
Promotions Contests Gifts Discount
Enveloppe Size Matter Stamps
Components Letter Flyer Folder
Channel Free Order Payment Free
‘advantages’ by phone conditions delivery
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10. Adding Direct Mail to media campaign will drive the
response
Percentage of respondents
Media funnel
Media Recall Purchase
Media recall
received content intention
“Do you remember “Can you describe the “Have you already
seeing and ad/ ad/mailing commercial purchased PRODUCT /
receiving a mailing for for the PRODUCT/ BRAND X? / Do you
PRODUCT/BRAND X BRAND X ?” intend to buy PRODUCT
Media received recently?” / BRAND X ?”
Media mix + DM * 100 69 69 70 48 59 29 + 61% of
purchase
intention for
** the media
Media mix 100 54 54 65 35 51 18 mix with DM
* Recall of TV, Press, POS OR DM amongst Media mix + DM group (n=500)
** Recall of TV, Press OR POS amongst Media mix only group (n=500)
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Source: Market research on 1000 customers, September 2006

11. Direct Mail is proven to boost ROI of most campaigns
Source: Omnicom UK – Brand Science 2008
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12. DM has a proven direct impact
But non response is even important to generate sales
Effect of DM goes far beyond response
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13. What do you want ?
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14. Are the promotions the only sales arguments ?
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15. Are the promotions the only sales arguments ?
Awareness Familiarity Consideration Sales
Response rates for
coupons,
“Pre-sales”: Discounts
Trial offers
put your brand /
product in the short
list of your target
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16. DM has a proven direct impact
But non response is even important to generate sales
Effect of DM goes far beyond response
15

17. #1. Lot of people remind Direct Mail
100%
Max 93%
• 78% of DM are
61%
opened and
read
• Non response
Min 18% doesn’t mean
6% no impact
received recall response
N = 50 Measures, B2C, direct Mail
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18. #1. Direct Mail captures their attention
Part of a unique, expected & privileged Mail moment:
97% open letterbox every day
DM breaks through the advertising clutter
on average only 1 DM / 3 days
Power of paper
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19. Example of DM with high recall
Lucille
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20. #2. DM boosts brand awareness
Brand X Top of mind awareness (FMCG sector)
14%
8%
Media Mix Media Mix + DM
Source: Market research on 1000 customers, September 2006 19

21. TOM Awareness:
Surprise about your brand
11% of the target group went online and
placed an order. The French President received well
over 100 letters asking him to declare that small
patch of France to be Belgian
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22. TOM Awareness
Launching a new brand with a
clear promise
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23. #3. Direct Mail is proven to have an impact on brand
'To which extend do you agree with the following statements concerning brand A?
Rating on a scale 1 to 10*; % Agree completely or to great extend (% of score 8 to 10)
FMCG case
Makes my life easier Control group
(1-2) (1-3)
80 DM
Modern and attractive
Is expert in its field (1-2) 60 packaging
(1-3)
40
20
Innovative and modern
Really cleans 0 brand (2-4)
(1-2) (1-3)
Easy to use
Has complete product range
giving best results for each
need (1-3)
Brand continuously
improves products (1-3)
*1: I completely disagree, 10: I completely agree
Based on all respondents knowing the brand and having a dishwasher, except for people who answered ‘don’t know on each statement’
Source: Market research on 1500 customers, October 2007 22

24. #3. DM improves brand perception because
Possibility to give more personalized content involving the customer
Possibility to explain in-depth brand values and key benefits
Possibility to provide a long media exposure
Possibility to add high eye catching and strong emotion if right creative
approach
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25. Impact on brand perception:
Demonstrate your benefit on a more persuasive way
Increased brand familiarity and
consideration
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26. Impact on brand perception:
Demonstrate your benefit on a more persuasive way
Increased brand awareness and sales
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27. #4. DM allows to better explain product or services
benefits
Source: Royal Mail
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28. Explain:
Dramatize the benefits
Up to 5% test drives, depending on the
list.
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29. #5. DM makes people move across the marketing
funnel
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30. Moving across funnel:
Change consideration of a destination for holidays
43% of respondents visited the website
and 22% entered their details to go through to
specific walk pages
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31. Moving across funnel:
Exploit the consumer insights
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32. #6. Custom publishing reinforces the brand appeal and
affinity
Source : APA advantage study 31

33. Reinforces brand appeal:
Make the brand part of everyday life
The number of unique visitors to
Persil.com in the first two weeks was
26,053,
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34. Reinforces brand appeal:
Reinforce interactions and ‘intimacy’ with consumer
Each euro invested generates about
2 euro extra turnover
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35. #7. DM makes your target really involved with your
brand
This media can give me the feeling of .. DM Avg other
media.
rewarding me as a customer 73% 19%
being connected to the brand 63% 8%
acknoweldgement / appreciation 57% 8%
being important for that brand 57% 7%
being unique 51% 7%
Source : Synovate Censydiam 34

36. Involves:
Building an intimate relationship
Of those who have read the mailings, more than
70% say they have taken, or plan to take, action as
a result
74% of those who recall the ‘Touching Brands’
campaign say that it has made them feel more
positive about Royal Mail
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37. Involves:
Be relevant
Traffic: 120.000 unique visitors (obj 80.000)
Sales: Up to +300% (in function of segments)
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38. Involves:
Reinforce relationship
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39. Involves:
“Reward”
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40. #8. Real response is often higher than measured
“The actual return on a mailing was eight times higher:
recipients to the mailing were buying the product without
bothering to redeem the voucher”
Rory Sutherland, Vice chairman Ogilvy Group
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41. #1. Lot of people remind Direct Mail
#2. DM Boosts brand awareness
#3. DM is proven to have impact on brand perception
#4. DM allows to better explain product / service benefits
#5. DM makes people move across the marketing funnel
#6. DM – Custom publishing reinforces brand appeal and affinity
#7. DM makes your target really involved with your brand
#8. Real response is often higher than expected
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42. When developping a campaign plan, consider DM for
its ROI driven performance, but also for branding and
‘long term’ impact
Response measurement is key – non response as well
(eg. DM Barometer Post: dmspecialists@post.be)
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43. Thank you
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