Building Value in A ChallengingBuilding Value in A ChallengingGlobal Economy

Pitney Bowes & Royal MailJuly 14, 2010

Co-sponsored by the

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Today’s Hostsy

Larry PendergastDirector of Sales & Product 

Paul DavisonData Consultant

Management, International Services

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Webinar Agendag

Who is Pitney Bowes Mail Services & Royal Mail

UK Market Conditions and Growth Opportunities

Designing A Customized UK Mailing Solution

R l M il M di C tRoyal Mail Media Centre

Q&A

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Who is Pitney Bowes Mail Services?

A trusted partner to posts worldwide, Mail Services helps mailers earn significant postage discounts through consolidation and expedited mail pdelivery. 

We leverage our innovativeWe leverage our innovative technology and infrastructure to enhance customer value. 

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Who is Royal Mail?Who is Royal Mail?

History1635 – Made Post Office available to the public (Charles I)1840 – Introduced first postage stamp – Penny Black1857 – Introduced first postcode system1959 – Introduced modern postcode system1974 – Expanded postcodes nationwide1989 – Introduced Mailsort1994 – Entered U.S. market2005 – Launched mail media centre2007 – Entered partnership with PB

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Building Connections That Matter

Pitney Bowes exclusive partnership with Royal Mail allows us to support the widest range of Royal Mail products for our clientsour clients.

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UK Market Conditions

Did You K ?Know?The UK 

market is valued at 

London is ranked as the #1 city in the world 

$2.3 trillion.

London is the fastest 

International retailers take one in every

yfor global commerce.

growing capital city in 

Europe.

one in every  £8 of UK 

retail spend.

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p

Source: Think London; Mastercard

Trends – Direct Mail in the UK

B2C direct mail traffic has grown.

Consumer and business direct mail volumes by calendar year, 1983 to 2009y y ,

3500

4000

4500

1500

2000

2500

3000

Consumer

Business

0

500

1000

B2C direct mail traffic has grown more than B2B because it delivers higher response rates and better returns. Consumer direct mail grew by 137% between 1988 and 2009 as consumer spending rose and businesses used i d t ti t h i t t t di

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improved segmentation techniques to target new audiences.Business direct mail grew by 23% between 1988 and 2009 but declined by 31% from 1998 to 2009.

Source: Royal Mail

Trends – Direct Mail in the UK

Direct mail has become more cost‐effective.

Direct mail expenditure and postage expenditure by calendar year, 1990 to 2009 (£millions)

Direct mail has become more cost effective, particularly since 1995, with postage expenditure rising less than the total expenditure.

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Source: Royal Mail

p

Total direct mail expenditure grew by 1% between 1998 and 2009. Over the same  period, postage expenditure fell by 2%.

Trends – Direct Mail in the UK

Consumer direct mail volume share 2009, by sector

Base: Total consumer direct mail 2009

Financial direct mail accounts for 24% of all mail on the doormat, down from 29% in 2008 and a high of 34% in 2003. 

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Source: Royal Mail

g

Find the Right Service for your Business

Range of tailored postal sol tions to meet indi id al req irementsRange of tailored postal solutions to meet individual requirements

Financial Catalogs/ Direct Non ProfitPublishersFinancial

InstitutionsCatalogs/E‐tail

Direct Mailers

Education Non‐ProfitInstitutions

Printers

P i R i R F lfill R tProspecting Retention Responses Fulfillment

Value Chain

Returns

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Benefit from a Local Image

Boost response rates by giving your mail the appearance of originating in the UK appea a ce o o g at g t e U

Our local relationship enables us to offer a choice in reaching customers quickly and i hi b dwithin budget

We can provide an in‐country local address, plus a response handler to route transactionsplus a response handler to route transactions on replies

Final mile delivery by Royal Mail

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Design an Optimal UK Mail Solution

Where Do You Start?

Unique solutions for unique situations

Custom‐tailored options

End to end solutions along value chainEnd‐to‐end solutions along value chain

Services to meet every need and budget

In‐house capabilities and partnershipsIn house capabilities and partnerships

Value to you and your customers

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Royal Mail Expert Data – At Your Fingertips

Solutio

nSupp

ort

Royal Mail Data Consultancy

Collecting Data Online &  Analytical Expertise & Offline – Best practice Resource Support

Managing Campaign Consent / Data ProtectionConsultancy & training

Achieving best in class data quality

g g p gResponses / Returns

Consultancy & training

Targeting and audience provision

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class data quality audience provision

The Royal Mail Media Centre (MMC)Mintel

Insight & Marketing Intelligence:D loves e

Who’s mailing to your customers? NielsonGFKBilletsD loves e

Sensory mailTransactional mailWord of mouthMail in consumers lives

BilletsAdDynamicsDatamonitorWARCMail in a digital age

Hard to reach audiences

Where are your customers?

WARC

Customer & Prospect Analysis:Profiling – Insight and targetingSegmentation – Off the shelf or bespoke developmentPropensity Modelling / Quality scoring

NEW in 2010! Royal Mail Insight Tool

Where are your customers?

Propensity Modelling / Quality scoringGeographic targetingResponse & Conversion analysis

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eBay Transactions – Unique Insight

Royal Mail’s eBay Insight Tool, giving you access to 

over 140 million

eBay transactions at postcode level in the UK

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Insight tool provides you access toaccess to …

All providing you with greater targeting

bili i d

increase the effectiveness of your campaigns

capability in order to

your campaigns

Refreshed monthlydown to one specific day

Provides a view of transactions from over a twelve month period

data variables

Select from a wide range of

Actual transactionsopposed to claimed

Refreshed monthlygiving you a very up to date picture

data variables, bespoke to your needs

Over 140 million transactionsover last 12 months

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MMC: Your One‐Stop Resource

Complimentary consultations

In person seminarsIn‐person seminars

Online, easy‐to‐use access

Value‐added features:Value added features:

Creative Showroom

Marketing Masterclass

Click to startstart demo

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How do I create an effective fundraising John Smith is Director, Marketing for a New 

campaign?

Where is my audience?

What type of mail medium should I use

York non‐profit organization that’s looking to raise funds b d

What are my competitors 

What type of mail medium should I use and how can I send it cost‐effectively and efficiently?

abroad. 

He wants to tap into the growth opportunities y p

doing?growth opportunities that exist in the UK market, but isn’t sure where to start…where to start…

JOHN SMITH

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John Smith discovers Pitney Bowes & Royal il d l h il di CMail and leverages the Mail Media Centre….

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Knowledge Center

Case studies

Research

Facts & Figures

Trends

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For example, we can tell John which of his “rivals” are mailing to his potential donors…g p

In March 2010, John’s target audience received more items of mail from Competitor A than from John’s organization.

•253682John’s Org

Competitor A than from John s organization.

•324168

•129642

Competitor A

Competitor B

•24013

•15059

Competitor C

Competitor D

•6831

Competitor D

Competitor E Source: Royal Mail proprietary data (Thomson Rapport)

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And, we can show John examples of competitor mailings…

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We can also access research to validate types of mail campaigns and uncover the latest trends...

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Wrap Upp p

The UK represents a significant growth opportunityThe UK represents a significant growth opportunity

The Mail Media Centre contains valuable data and insights for helping businesses create more effective mail campaigns

The partnership between Royal Mail & Pitney Bowes provides th t d i i ht t k ili i t th UK t i htthe support and insight to make mailing into the UK straight‐forward and effective.

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Interested in more information about Pitney Bowes and Royal Mail solutions, or the Media Centre? 

Contact us anytime.

877‐9‐MAIL‐SVCSwww.pb.com/mailservices

Register online at the Mail 

Today’s webinar will be posted on the web for you to download at your convenienceMedia Centre 

today! 

convenience. 

Thank you!http://mmc.co.uk/It’s FREE!

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