marketing automation with direct mail
DESCRIPTION
Marketing Automation is a hot topic these days but most implementations use only online marketing channels. All the benefits of direct mail, including personalization enabled by variable data digital printing technologies, highly targeted, a long shelf life, and standing out from the crowd by placing your marketing piece literally in your prospect's hands, are not leveraged in most automated marketing programs. It doesn't need to be this way. It is actually pretty easy to add a direct mail channel to a marketing automation program. This presentation dispels four direct mail myths and illustrates why you should consider adding direct mail to your marketing automation program.TRANSCRIPT
Marketing Automationwith Direct MailAutomated 1:1 Direct Mail Marketing
Presented by Tod Cordill
Four Direct Mail Myths1. Direct mail is dead.2. Direct mail is too expensive.3. Online is the only place to do digital
marketing.4. Direct mail is too hard.
Myth #1Direct mail is dead.
It takes a lot of touches to make a sale:
First Contact2%
Second Contact3%
Third Contact5%
Fourth Contact10%
Fifth to TwelthContact
80%
They won’t buy right away...…so reach out frequently.
Nurture. Be top-of-mind when they’re ready.Ready for more information, or ready to buy.
But the problem is…
InformationOverload
Every day:294 billion e-mails are sent
2 million blog posts are written4.7 billion minutes are spent on Facebook
864,000 hours of video is uploaded to YouTube
It is hard to stand out in the digital world.
Credit: digitalbuzzblog.com: 24 hours on the internet infographic
With the adoption of online marketing, annoying marketing has changed…
email overload and spam
junk mail from to
Direct mail has become a novelty.
A printed message is the easiest way to differentiate yourself in
today’s digital world.
Why direct mail? QUALITY experience.
Works in MULTI-CHANNEL marketing campaigns and programs.
Highly TARGETED.
PERSONALIZABLE… tailored to be RELEVANT.
Why direct mail? More Facts.
Has a LONG SHELF LIFE.
65% of consumers have made a PURCHASE as a result of direct mail.
PROVEN EFFECTIVE for LEAD GENERATION and customer RETENTION.
- DMA, 2013
Integrated Campaigns with Direct MailStudies consistently show that direct mail is effective, particularly when combined with other channels.
81% of direct mail recipients read or scan their mail daily. – USPS Household Survey
22-24 year olds are most likely to respond to a direct mail piece. - DMA 2013 Statistical Fact Book
Among mail piece types, postcards are most likely to be read. 52.5% are read by recipients. - DMA 2013 Statistical Fact Book
62% of digital campaigns are seeing an increase in return on investment when combined with direct mail. – Omnicon Media Group
Direct Mail is Trusted… but not as much as Family & Friends
52%
22%
18%
16%
14%
11%
8%
0% 10% 20% 30% 40% 50% 60%
Friends and Family
Company Websites
Brochures/Flyers/Direct Mail
Television
Radio
Source: Epsilon Consumer Survey
Response Rate Increase When Print is Combined with Other Channels
45%
37%
27%
0% 10% 20% 30% 40% 50%
Print & Landing Page & E-mail & Mobile
Print & Landing Page & E-mail
Print & Landing Page or E-Mail
Source: Understanding Vertical Markets: Enterprise Communication Requirements - InfoTrends
Direct mail performs as a trusted personalized outbound channel.
Myth #2Direct mail is too expensive.
It’s about ROIFocus on the return on your marketing investment. Don’t just look at costs.
The ROI on direct mail outperforms every medium except emailing to an engagedhouse list.
Direct Mail Performs
$0
$50
$100
$150
Direct Mail(letter sized)
Catalog (print) Postcard Email Paid Search InternetDisplay
Cost per Lead (or Order) by Media Type
House List Prospect List
*
Source: Direct Marketing Association Statistical Fact Book 2013 Results not provided, but emailing to an engaged list likely has by far the lowest cost/ order.
ROI of B2C Channels
Source: Target Marketing 2013 Annual Media Usage Forecast
17%
31%52%
Acquisition
Direct Mail
All Others
29%
38%
33%
Retention
Which one media delivers the strongest ROI?
ROI of B2B Channels
40%
19%
12%
29%
Acquisition
EmailDirect MailTelemarketingAll Others
53%
14%
14%
19%
Retention
Source: Target Marketing 2013 Annual Media Usage Forecast
Which one media delivers the strongest ROI?
Direct Mail Performs
0% 20% 40% 60%
Postcard
Larger than Letter Envelope
Letter Sized Envelope
Flyers
Catalog (1)
Newspapers / Magazines
Read the Piece Perceived as Useful
Source: 2012 USPS Household Diary Study
(1) Catalog not enclosed in envelope
Integrating Direct Mail and Email channels achieves positive results
for both Acquisition and Retentionmarketing programs.
Myth #3Digital = Online
Personalization
“My digital agency message has always been that digital marketing outperforms traditional marketing.”
Does this sound like you?
Digital marketing effectiveness is based on providing a highly relevant message at the right time.
Print is digital.Digital variable data printing enables personalization that provides a targeted, highly relevant message.
Personalization can be based on demographic and behavioral data.
Personalization
Direct MailEmail
Online
Leverage your CRM and Marketing Automation data to craft a highly relevant message in your channels, including:
Personalization is about being RELEVANT.Studies consistently show that personalized messages have a tremendous impact on the bottom line.
“Personalizing an email marketing campaign can improve response rate by 45%.” - Gotomarketing
“Personalized direct mail pieces increase response rates by more than 500% over a basic, non-personalized piece.” - The Digital Printing Council
“Marketers reported an average improvement of close to 50% for personalized multichannel campaigns over traditional campaigns.” - InfoTrends
“74% of online consumers become frustrated when websites offer promotional content and ads that have no relevance to them.” - Janrain’s 2013 Online Personal Experience Study
Personalization Gets Results
0% 5% 10% 15% 20% 25%
Non-profit
Manufacturing / Technology
Financial / Insurance
Education
Printing / Publishing
Retail
Response Rates for Static and Personalized Campaigns
Personalized (PODi) Static (DMA)Source: Caslon analysis of PODi and DMA data2010 Caslon Response Rate Report
VetCentric Customer Retention
Caslon Response Rate Report, 2010
OWNER NAME BASEDON DATA PET NAME BASED
ON DATA
TREATMENT BASEDON DATA
OFFERS BASEDON DATA
EXPIRATION BASEDON FREQUENCY
CLINIC BASEDON PREFERENCE
CONTENT BASEDON DATA
ADDRESS BASEDON DATA
IMAGE BASEDON DATA
VetCentric ResultsAutomated processes reduced marketing labor from 8 hours/week to 15 minutes per week
14% response rate
Over $9,000 annual postage savings
Caslon Response Rate Report, 2010
Auto Dealer Retention Program
Credit:
CONTENT BASEDON BEHAVIOR
IMAGE BASEDON CURRENT CAR
IMAGE BASEDON PREFERENCE
IMAGE BASEDON DATA
HEADER BASEDON FREQUENCY
HEADER BASEDON LOYALTY
OFFERS BASEDON DATA
LOGO BASEDON PARTICIPATION
PROGRAMS BASEDON PARTICIPATION
ADDRESS BASEDON DATA
CONTENT BASEDON PREFERENCE
CONTENT BASEDON PREFERENCE
QR BASEDON PARTICIPATION
IMAGE BASEDON GENDER
CONTENT BASEDON DATA
1.5% visit rate
34.2% conversion rate
You can even mail personalized map directions.
Source: PODi Partou Childcare Case Study, 2013
Don’t Be CreepyProvide personalized messages but...
Don’t Be Creepy: B2C PersonalizationProspects Without an established relationship, minimize obvious
personalization. Name. Address. That’s it.
Use all data you do have to create a message that is relevant.
Existing Customers
Use data they’ve provided – via previous orders, via forms – to show you’re paying attention. Also use publicly available information on their company.
Provide relevant information based on individual need and interests.
Don’t Be Creepy: B2B PersonalizationProspects The more you show you know about their
company, and can provide relevant information, the better.Show that you’ve done your homework and aren’t going to waste the prospect’s time..
Existing Customers
Use data they’ve provided – via previous orders, via forms – to provide relevant information. Show you’re paying attention.
Integrating Direct Mail
A Few Words About Email Marketing
Provides INEXPENSIVE NURTURING communications.
HIGHLY EFFECTIVE with an engaged audience.
Emailing to a HOUSE LIST provides the LOWEST COST PER LEAD, maximizing your marketing budget.
Capture email addresses!therefore
Example Marketing Programs
Revive Disengaged Prospects
Nurture High Value Leads
Prospecting Programs
Event Marketing Campaigns
Prospecting
Purchase highly targeted and accurate consumer list.
Create a compelling offer and send out a relevant direct mail piece.
Capture email addresses for prospects that respond and drop them into your existing marketing automation nurturing program.
Prospecting
Send offer via direct mail
Purchase targeted list
Landing page / Microsite
Confirmation email
Direct mail #2(if no response)
Marketing Automation Nurturing
Complete the Offer
Reviving Disengaged Prospects
Problem: Prospect that fits your ideal customer profile has stopped engaging.
Goal: Resurrect a dormant prospect with a direct mail offer.
Reviving a Dormant Prospect
Landing page
Follow Up Email(if no response)
Marketing Automation Nurturing or Sales
Follow-Up
Send offer via direct mail
Prospect has Stopped Responding
Print and mail on a regular schedule. It can be weekly, monthly, or even quarterly.
High Value Lead Campaign
Useful for Customer Acquisition and UpsellUse any mix of email and direct mail, and other mediums such as phone calls and remarketing online advertising.
Mix low cost postcards with higher value dimensional packages.
Exit lead from campaign once target score or other criteria reached.
High Value Lead Campaign
Dimensional direct mail
Marketing Automation or Sales Follow-Up
Lead Enters Cross Media Campaign
Email Email Post Card Email
Score Reached
Event MarketingEvents lend themselves to marketing campaign templates that are reused for each event.
Create multiple campaign templates.
Simple campaigns for lower value prospects or small events.
Elaborate campaigns for high value prospects and major events.
Refer a friend techniques are a particularly effective in event marketing.
Event Marketing
Day of Event
Direct mail #1
Create Targeted List
Landing Page / Microsite
Confirmation email
Direct mail #2(if no response)
Event Reminder email #1
SMS text message reminder
Follow up survey microsite
Mail thankyou gift
Marketing Automation Nurturing
Save the date email
Refer a Friend email
Follow up email
Reminder email #2
Print can be an integral part of your marketing automation
program.
Myth #4Direct mail is too hard.
Actually, Direct Mail is Easy.
Let your print / direct mail service provider do the heavy lifting.
1. Set up the program The printer creates the direct mail template using
your creative assets and customer data fields. Create a marketing automation or CRM report or
outbound object that contains the personalization data for your segment.
Set up and automated process to move the report to your direct mail service provider using FTP, email, webhooks, or APIs.
2. Run the report Automatically run the report on the
predetermined schedule.Marketing Program Suggested Mail Schedule
Prospecting Dependsing on marketing objectives, anywhere from weekly to annually.
Reviving Dormant Leads Weekly, Monthly or Quarterly
High Value Leads Daily or weekly if based on a user event, otherwise quarterly or even annually might be fine.
Event Marketing Based on the event date
3. Mail it Your direct mail service provider will clean the data
for optimal mail delivery.
The direct mail is printed on a digital press. Each piece has personalized copy, images, and offers depending on the data you have for each person.
The mail is delivered to the post office on an agreed upon schedule.
When planning an integrated marketing program, use channels where they excel.
DIGITALFail fast
Build Audience
Grow Reach
MOBILEExtend the Brand
Engage Customers
Extend real-world into the virtual world
PRINTLonger form
Deeper content
Stand out
Credit: Andrew Davis, Author: Brandscaping
In Summary1. Direct mail is alive and well.2. Direct mail provides a compelling return on
your marketing investment.3. Digital printing technology enables highly
personalized and relevant direct mail.4. Direct mail can easily be integrated into your
marketing automation programs.
www.modernostrategies.com
@todcordill
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