the direct mail advantage: delivering higher impact at lower costs
DESCRIPTION
Marketing service providers must continuously look for innovative ideas and new ways to help their clients achieve even stronger direct mail results while maintaining their bottom line. This webinar will discuss how direct mail can deliver the best results for your business including ways to deliver higher impact at lower cost; how to create more engaging, personalized communications; and how to use technology to increase efficiency.TRANSCRIPT
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The Direct Mail Advantage:
Delivering Higher Impact at Lower Costs
June 17, 2014
A special thank you to:
Thank you for joining us – we will be starting at 2:00 PM ET/11:00 AM PT
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Today’s Speaker
Todd Stoker
Vice President of Operations
Anderson Direct Marketing
Moderator
Barbara Pellow
Group Director
InfoTrends
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• Direct Mail Reaching Consumers
• Direct Mail Delivering ROI
• Making Direct Mail Work
– Todd Stoker, Anderson Direct Marketing
• Recommendations and Conclusions
• Questions and Answers
Topics
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• Among mail piece types, postcards are
most likely to be read by recipients
(56%).
• More people respond when a
courtesy-reply envelope is provided as
opposed to a business-reply envelope.
• The overall volume of direct mail went
up slightly in 2013 to 87.3 billion,
accounting for 56.2% of all mail.
• 2.9 billion coupons were redeemed in
2013.
Source: 2014 DMA Statistical Fact Book
The Facts
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Direct Mail Wields Power
Source: Marketing Profs July 2013 #PIGWebinar
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Source: Marketing Profs July 2013
It’s How Consumers Make Decisions
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How can your providers improve the business communications they
send you?
1 Make them easier to understand
2 Personalize the content for me
3 Use color to emphasize important information
Listen to the End Customer!
Source: The Future of Multi-Channel Transactional Communications, InfoTrends 2013 #PIGWebinar
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0
25
50
75
100
2011 2012 2013 2014 2015 2016
U.S
. D
ire
ct
Ma
il P
ag
es (
Bil
lio
ns
of
A4
Eq
uiv
ale
nts
)
Dramatic Growth in Color
26.6% CAGR ‘11-’16
B&W in Decline
-4.2% CAGR ’11-’16
Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends
Direct Mail: A Move to Color
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Fastest-Growing Applications (Absolute Page Growth)
Source: U.S. Digital Production Printing Application Forecast: 2011-2016, InfoTrends
0 20 40 60 80 100 120
Labels
Posters, banners, signage
Inserts, coupons
Newspapers/newsletters
Direct Mail
Magazines
Catalogs
Brochures
TransPromo
Books
Billion Impressions (A4)
2012 2017
+ 2.6 B pages
+ 9.9 B pages
+ 12.1 B pages
+ 9.8 B pages
+ 6.8 B pages
+ 14.9 B pages
+ 4.2 B pages
+ 40.4 B pages
+ 11.1 B pages
+ 5.0 B pages
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Mass Marketing (One-to-Many)
37.4%
Segmented Marketing
(One-to-Few) 33.4%
Personalized Marketing
(One-to-One) 29.2%
What percentage of your customer communications or marketing campaigns fit into the following
categories?
Not Just Color… Personalized Color!
N = 1,026
Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
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2.6
3.0
2.9
2.7
1 2 3 4 5 6
No variable data,
text, or images
Low complexity
Medium
complexity
High complexity
How often do your addressable print communications involve personalization/variable imaging? (Means)
Always Never
Definitions
High Complexity includes variable pictures/images,
variable blocks of text, or actual dynamic composition
of all or sections of the piece.
Medium Complexity personalization includes
personalized text phrases within the piece, NOT just
address or salutation. Examples might include
personalized offer details.
Low Complexity personalization includes name,
address, salutation, and/or business card data.
N = 1,026
Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends
With Increased Variability
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The Migration to 100% Variable Data Print (1)
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Source: Pitney Bowes
The Migration to 100% Variable Data Print (2)
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Source: Pitney Bowes
The Migration to 100% Variable Data Print (3)
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Source: Pitney Bowes
The Migration to 100% Variable Data Print (4)
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1 2 3 4 5
The Migration to 100% Variable Data Print (5)
Source: Pitney Bowes #PIGWebinar
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Mobile Codes Mobile Messaging
Augmented Reality NFCs
Direct Mail: Driving Interactive Engagement
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All Channels ON!
How many different media types does your company use for a typical communication/marketing campaign?
Key Findings
• Average number media
types used in a campaign: 3
• 47% of printed marketing
materials were linked to
online digital channels in
past 12 months
N = 1,026
Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends
One 8.8%
Two 30.2%
Three 36.4%
Four 13.4%
Five or more 3.7%
Don’t know 7.6%
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Connecting Print to Digital Channels
2.6%
1.3%
14.6%
14.8%
16.1%
17.7%
21.2%
28.0%
29.6%
30.7%
31.0%
33.9%
38.6%
41.5%
52.1%
56.1%
0% 20% 40% 60% 80%
Don’t know
None of the above
Books
Retail store receipts
Outdoor
Directory
Product packaging
Newspapers
Point-of-purchase displays
Catalogs
Inserts
Business cards
Magazines
Bills or statements
Direct mail
Brochures
What types of printed media have included a link or connection to digital media over the past year?
Multiple Responses Permitted
N = 378
Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
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Mobile is a Bridge, Linking the Physical with the Digital
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Increased Value to Print
Measurability Interactivity Media Extension
Why Integrate Print and Mobile?
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15%
18%
19%
21%
23%
30%
47%
59%
0% 20% 40% 60%
Make a purchase
Download mobile app
Contact info
Download music
Enter sweepstakes
Testing a code
Coupon/deal/discount
Additional info
Why do you interact with mobile barcodes?
N = 428 Consumers who have interacted with mobile barcodes
85%
24%
88%
43%
0%
20%
40%
60%
80%
100%
Familiar withMobile Barcodes
Interaction withMobile Barcodes
2011 2013
Have you ever seen a mobile code?
Have you ever interacted with a mobile barcode?
Sources: Mobile Technology: Making Print Interactive (2011) and Consumer Media Trends Survey (2013), InfoTrends
Mobile Barcode Use Among Consumers
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Video Websites for Order Entry
Social Media
QR Codes Linked To…
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• Close proximity radio
communications between NFC
devices or unpowered chips (tags)
• NFC tags can be affixed to any
surface
• Enables offline-to-online
engagement
• 1 billion+ NFC-enabled phones by
the end of 2015
Near-Field Communications: Enabling Interaction
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Adding NFC Tags to Casino Direct Mail Promotions
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Christmas Cards Postcards
B2B and Personal Cards Linked to Video
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12%
50%
17%
57%
0%
20%
40%
60%
Familiar (No Examples) Familiar (w/ Examples)
2011 2013
Are you familiar with the concept of Augmented Reality?
2011 N = 1,192 Consumers | 2013 N = 1,126 Consumers
12%
13%
17%
19%
21%
26%
27%
35%
50%
0% 20% 40% 60%
Help make a purchase
Coupon/deal/discount
Testing out AR app
Enter sweepstakes
Access video
Additional info
Find location
Gaming
Fun/Entertainment
Why do you interact with Augmented Reality applications?
N = 159 Consumers who have interacted with AR applications
16%
25%
0%
10%
20%
30%
2011 2013
Have you ever interacted with an AR application?
2011 N = 591 Consumers | 2013 N = 639 Consumers
Augmented Reality is Gaining Awareness
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Augmented Reality: From Catalogs to Direct Mail
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• Direct mail’s sense of
touch is linked to video
testimonials/
demonstrations
• Referrals build a bigger
community
• Social media drives
awareness of an upcoming
direct mail offer
Social Media: Building Brand Advocates
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Blending Postcards and Social Media to Drive Results
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20,000 postcards were sent out, and due to the integration of social sharing, the direct
mail campaign gained a total of 30,068 responses, a 150.58% RESPONSE RATE.
The Power of Social Media (1)
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Direct mail campaign delivered 40% Redemption
The Power of Social Media (2)
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AND
Web Landing Page
AND
27%
37%
45%
AND
Web Landing Page
OR
AND
Web Landing Page
AND
AND
Mobile Marketing
Higher
Higher
Higher
Response Rates Increase When Print is
Combined with Other Channels
N = 1,026
Source: Understanding Vertical Markets: Enterprise Communication Requirements, InfoTrends #PIGWebinar
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Managing Postal Costs is Key
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Postal Savings
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Gain Visibility into the Mailstream
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Anderson Capabilities Presentation
Direct Mail Advantage—
Delivering higher impact at lower costs
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Founded in 1985
Based in San Diego
170+ associates
Diverse nationwide client base
$38+ million annual revenue
Top 20 DM Agency
The Top Commercial Printer in San Diego
–San Diego Business Journal (2014)
Who We Are
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In today’s connected world, every communication is a direct communication. Our
decades-long expertise in direct, digital, and database marketing provides
unparalleled insight into who your target audiences are, what they need, how to
reach them, and what will inspire them to act.
…Now and in the Future!
Our Vision for the Future
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B2C & B2B
Automotive & Transportation
Biotech & Pharma
Casino & Gaming
Energy
Financial & Investing
Healthcare & Medicine
High-Tech
Insurance
Identity Theft Protection
Manufacturing
Nonprofit & Fundraising
Retail
Telecom/Wireless
Travel & Hospitality
Broad Vertical Expertise
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They all revolve around you
and the success of our
customers’ businesses.
We work to deliver greater ROI by
plugging vertically integrated array
of services—all under one roof.
Alone, each brings great results.
Together, they offer unbeatable
synergy, enabling us to deliver a
return on your investment unlike
any other direct marketing agency.
ROI and you
MARKETING STRATEGY
PRODUCTION CREATIVE SERVICES
MEDIA INTEGRATION
DATA INTELLIGENCE
DIGITAL
Our Best-in-Class, In-House Solutions
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Because we offer agency and production services in-house, we have
developed systems and procedures to ensure a timely, efficient, and
high-quality transition from creative through production.
This is why we have an in-house agency as well as production
capabilities within our vertically integrated model. By having all
services in-house, we are dedicated to and culturally accountable for
the success of our clients.
When we do utilize outside service providers, we employ a modified
version of our internal system to manage the process.
Cross-Functional Efficiency
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The Blue Cross Blue Shield Arizona
Challenge: All Channels On!
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Communicating 1:1
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Mobile Makes a Difference
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Thanks in part to input
from the client’s other
agency partners, the new
Anderson campaign drove
a 24% improvement in
performance and
profitability over the
previous years’ efforts.
It’s All About Results!
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The Challenges
The economy
Increased competition, plus aggressive pricing from other lines
A requirement to meet aggressive growth goals
Crystal Cruises: Dealing with a
Challenging Economy
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The Solution: More Personalization,
More Channels
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Destination: A 94% Increase
in Conversion Rates
• Lifted response by as much
as 77%, and conversion by as
much as 94%
• Continued marketing to non-
converting responders—for a
2,381% ROI
The Results
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Any Questions?
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Recommendations
and Conclusions
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Consumer engagement
and experience
Deliver customer value
Differentiate and promote
effectively through an array
of distribution channels
Develop innovative and
sustainable offerings
Leverage all information and
analysis
Demonstrate performance
and impact
1. Consumers keep evolving and changing
2. Make investments in secure, scalable environments
3. Promote channel synchronization and consistency
4. Online integration, marketing analytics, and determination of customer value
5. Marketers need to be measurable, innovative, and sustainable
It’s a Balancing Act for Businesses Today
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• Targeting and list 40% - 50%
• Offer 30% - 40%
• Creative & media 30% - 40%
The Fundamentals Haven’t Changed!
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4 Get big savings on postage
using automation presort
1 Boost response rates with targeted, relevant
personalization
5 Gain faster, more consistent delivery timing and
visibility by inducting mail closer to its final
destination and leveraging Full Service IMb
2 Lower cost per thousand and increase impact
with variable data, color print
3 Increase results by linking
the physical to the digital
5 Ways to Increase Your Direct Mail ROI
The Direct Mail Advantage Webinar
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Question & Answer Session
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The Direct Mail Advantage Webinar
Speak with a Pitney Bowes Direct Mail
Solutions expert to uncover ways to deliver
higher impact direct mail at lower costs:
• Optimize postage and delivery timing
• Add personalization and color
• Lower cost per mail piece
Call 877.406.7704 to arrange for a solution
expert to contact you.
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More Questions?
Barb Pellow
Group Director, InfoTrends
585-734-2228
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