2018 Recognition Market: Tech Partnering, Wellness & Non-cash Awards

AccuList USA recently completed proprietary research on hundreds of top performing lists of employee recognition and incentive product buyers to support clients in a business-to-business marketplace that now encompasses close to 90% of companies.

89% of Companies Committed to Recognition Spending

In fact, the 2017 “Trends in Employee Recognition” report from WorldatWork, a nonprofit human resources association, found 89% of surveyed organizations committed to recognition programs, with 65% offering between three and six different programs, from companywide (81%) to individual (69%) to department/team (67%). The top five recognition programs rewarded length of service (85%); above-and-beyond performance (77%); programs to motivate behaviors associated with the business initiatives, such as customer service (51%); peer-to-peer recognition (49%); and retirement (34%).  Certificates and/or plaques remain the most awarded recognition item, at 80% of respondents, followed by cash (55%), gift certificates/cards (45%), company-logo merchandise (40%), and food, such as a lunch or pizza party (39%). For incentive and recognition marketers, targeting can mainly focus on two departments responsible for administering programs: human resources (59%) and compensation (22%).

2018 Trends Include Brand Culture, Tech Partnering, & Wellness

The Incentive Research Foundation’s “IRF 2018 Trends Study” offers recognition and incentive marketers more guidance on changing demand trends. For one, predictive analytics, artificial intelligence and augmented reality capabilities will be a “fundamental requirement” for vendors and suppliers looking to partner with incentive professionals in 2018, per IRF. Marketers also will want to push wellness messaging, since more incentive professionals are adding health and wellness components focused on fitness, food, and comfort to their incentive programs this year compared with other features, says the report. And when it comes to merchandise products, incentive buyers in 2018 don’t want more choice as much as more “impactful products,”  such as products with local sourcing or organic roots and products that can be easily personalized and customized. The desire to build a brand-asset culture around intangibles, such as innovation, as well as traditional assets is one factor pushing these non-cash awards in 2018, notes the report. On the other hand, gift cards will continue to gain momentum this year, according to the IRF, which says mid-size firms spend an average of nearly $500,000 annually on gift cards across all programs, while large ones spend over $1 million annually. Finally, although incentive travel makes up a small part of the recognition pie, the incentive travel industry’s net optimism score for the economy is up almost 20 points from 2017 in the IRF report, leading to budget increases despite rising costs. For more on top incentive trends, see http://www.incentivemag.com/News/Industry/IRF-Top-Incentive-Trends-2018/

 

 

Use Direct Mail to Push Trade Show Attendance Ahead of the Pack

After many years of supporting the marketing of trade show and conference managers and exhibitors, AccuList USA can attest to the continued power of direct mail in building audience. While exhibitors who do a pre-show campaign 1-2 months before a show can increase attendance by up to 50%, according to the Center for Exhibition Industry Research, a post by the NextPage agency recently explained how direct mail will push those pre-event promotional efforts several steps ahead of competitors.

Make Direct Mail an Engaging, Personalized Invitation

Show marketers looking for an edge with multi-channel audiences will embrace direct mail’s higher response rates and retention rates, urges NextPage, leveraging the deliverability of a tactile and visual attention-getter in an era of crowded digital mailboxes and websites. By combining variable printing with segmented list targeting, savvy marketers can create a pre-event mailing that is highly personalized. Custom shapes and dimensional options, textured paper, intriguing folds, eye-catching graphics and taglines, and more will then help mailings stand out and engage.

Include Incentives That Spur Booth Visits

NextPage also advises including an incentive in the mailer to spur booth visits, such as a raffle ticket or product sample. Creativity pays off, and the blog cites some incentive success stories. For example, trade show expert Marlys Arnold uses scavenger hunts in pre-show campaigns, with a direct mail piece that lists five questions and gives a web address where attendees can print off an answer sheet to fill out and bring to the show. She reports earning satisfying lines at her booths compared with more passive giveaways. In another example, independent copywriter named Mark Johnson wanted to target subscription newsletter marketers at a Las Vegas Conference and created a special website with case studies and a free offer that he touted in a postcard. The free offer was an exclusive 30-minute consultation with Johnson to review current marketing campaigns. Johnson rented the conference association’s membership list and mailed the card only to qualified leads five weeks before the show. Out of 400 pieces mailed, 406 people visited his site, and he generated five solid leads!

Use Targeted Lists of Qualified Prospects

Yet the real key to success with a direct mail campaign is targeting of qualified leads, starting with a list of current clients and prospects and moving on to lists of registered attendees, association members, subscribers to relevant trade publications and newsletters, multi-channel buyers of relevant products, etc.  Marketers can then segment and tailor messaging by geography, industry, product interest, title, firm-ographic data (such as number of employees) to increase response.

For more direct mail advice, see the blog post.

Promotional Product Marketers Can Hone Proven Tools

AccuList USA recently completed a proprietary analysis of the top-performing direct mail and e-mail lists for promotional products companies to help buttress the continued success of this evergreen marketing tool.

A Message About Proven Success

Promotional product providers already have some powerful arguments in wooing business-to-business and business-to-consumer marketers. For example, per industry surveys, eight in 10 consumers have one to 10 promotional products, 53% use the giveaways at least once a week, and 60% retain the products for up to two years. Before receiving a promotional product, 55% surveyed had done business with the advertiser, but after receiving a promotional product, 85% did business with the advertiser. With promotional products delivering such regular, repeated brand exposure and enhanced outreach, it’s no wonder the U.S. promotional products industry is forecast to generate $24 billion in 2018, growing at 2.5 % annually.

Many Industries Worth Wooing

Plus, while not every industry is a good target for a promotional product pitch, prospective buyers abound. A recent post by Designhill, a graphic design platform, cited some top promotional users they have supported. Real estate promotions lead in distributing branded notepads, keychains, calendars, magnets, door hangers and more, for example. The education sector often offers writing instruments, apparel, water bottles, folders, and frisbees at college fairs, seminars, expos and open houses. In today’s competitive healthcare market, clinics, hospitals, outpatient clinics and surgery centers go beyond branded tote bags to first-aid kits and custom ice packs. Nonprofits are big consumers of tumblers, tote bags, wristbands and lanyards, while banks, credit unions and insurance firms opt to reward both employees and new accounts with everything from travel bags and mugs to fidget spinners. With the midterm elections ahead, don’t forget that political candidates are a big market for flags, stickers, decals, apparel and hats (following in MAGA footsteps). On a global basis, the top 25 promotional products purchasers include seven from the consumer-goods industry, six from the communications industry, and a dozen more from pharmaceutical, technology and automotive industries.

Targeted Data Available for Mail, Digital & Social

The key to success is targeted data. Promotional products are visual sales, which is why direct mail and catalogs using targeted mailing lists have such a role in the industry. Now social media options such as Instagram, Pinterest, Facebook and LinkedIn also allow for visual, targeted promotions, including video. And tools like AccuList USA’s Digital2Direct can link highly targeted direct mail with social media advertising on Facebook, or send direct mail with timely opt-in e-mail to the same recipients. In a digital world, house e-mail databases, enhanced by LinkedIn connections, lead capture forms or event contacts, are very cost-effective marketing tools for promotional products—as long as the e-mail database is accurate, up-to-date and targeted, which is among the data support services that AccuList USA also offers promotional product clients.

 

 

 

Direct Mail Lead Gen Doesn’t Have to Bust the Budget

Many direct marketing articles tout digital tactics for generating sales leads. But at AccuList USA, we can attest to the continued lead-gen effectiveness of traditional direct mail for a range of our clients, including online retail and publications. Direct mail has higher response rates while avoiding some of the challenges of SEO, social media and e-mail, such as rapidly changing rules, deliverability/visibility issues and a crowded competitive space. But what about the cost of direct mail?  As a recent MarketingProfs post highlighted, there are direct mail options that can effectively deliver leads without busting the marketing budget!

Sales Letters Are Proven Workhorses

A No. 10 envelope that includes a one- or two-page letter and a reply card is an expensive, simple and effective way to reach prospects with something likely to be opened and read (unlike many e-mails). Of course, response depends on the proper targeting of the prospect lists and the personalized content of the letter. The letter should identify a problem, present a solution and offer a “freebie” of value, such as a brochure, sample, demo, evaluation, information kit or anything else that will get a response so that salespeople can follow up with qualified prospects.

Postcards and Flyers Are Lower Cost Options

A postcard is an inexpensive alternative to a letter, with low print costs and lower postage rates, as long as you stay within the minimum size of 3.5″ x 5″ and the maximum of 4.25″ x 6″. Because there is less room for the sales message, offer copy needs to be simple with a clear call to action. And because there is no additional response device, postcards need to stress a website address or a phone number. To drive traffic to a retail store, make room for directions or a map. Similarly, flyers are cheap and great options for local small businesses or businesses that want to appear small (read less expensive). Printed on ordinary paper, folded in thirds with a tab to hold it closed, and addressed with a mailing label and stamp, the result doesn’t have to be beautiful to be effective. Put the main message on the inside and teasers and mailing information on the outside so that, when you read the address, the folded side is on the bottom and the tab is on the top.

Court Attention With Invitations and Special Delivery

An invitation doesn’t have to be printed in formal lettering on cream card stock in a fancy hand-addressed envelope. You can draw people to an event or offer in a way that seems more personal and important just by using the words “You are invited…” An invitation can use a letter, a postcard or a flyer for an open house, special sale, product demonstration, etc. The key is to make the event seem exclusive and the invitees special in some way. Another way to make a mailing seem special is to use FedEx or other quick delivery service. The package content can range from a simple personal letter to a video or product sample. A special delivery package is a guaranteed open, but, because the delivery method is more expensive, it is usually limited to a smaller group of select targets.

For the complete article, see http://www.marketingprofs.com/8/cheap-direct-mail-tools-generate-sales-leads-fast-rieck.asp

Smart List, Mail Design Choices Help Save on Postage

Direct mail has higher average response rates than digital choices, but maximizing mail ROI requires cost efficiency, especially in the postage realm. Good list selection and hygiene are key to avoiding mailing waste, and this is one area where AccuList USA’s expertise in targeted mailing lists selection and data services can certainly aid clients. Another important factor in controlling postage costs is mail package design. An article by Target Marketing magazine’s Summer Gould offers a great summary of how smart choices in lists and design can add up to savings.

Targeted, Clean Lists Cut Postage Waste

If you are sending mailings to the wrong people, people unlikely to be interested in your offer, lower response rate and cost inefficiency will be reflected in poor ROI. Using tools from predictive modeling to customer profiling to segmentation can improve list choices and targeting parameters. Plus, AccuList USA’s proprietary list research can help clients find the top-performing lists for their specific vertical market. But no matter how data is targeted, dirty data with duplicates, errors, invalid addresses, and old demographic or purchase history information will create costly delivery failures and misdirected waste. That’s why AccuList USA goes beyond list brokerage to provide expert merge-purge services that combine and standardize data in order to eliminate duplicates, identify and correct old or undeliverable addresses, verify zip codes, and maximize postal discounts. In fact, by comparing names and addresses to real-time information on multiple public and private databases, AccuList USA offers an advanced hygiene regimen that is able to identify and correct twice as many addresses as standard USPS FASTforward and NCOALink use, which only represent a portion of U.S. movers and undeliverables.

Careful Design Wins Postage Discounts

USPS offers postage discounts to mail pieces that are not only addressed correctly but also designed for processing on automated equipment. For mail to qualify for the lowest postage rates, the mail piece needs to be at a letter size, which is a minimum of 3 ½” high by 5″ long and a maximum of 6″ high by 10½” long. Larger mail pieces fall into the flat category, which can cost more than twice as much per piece as a letter. Plus, to take advantage of automation, the piece must by rectangular, with an aspect ratio (length divided by height) of 1.3 to 2.5. Mail pieces outside those ratios could cost twice as much in postage. Then the addressing and barcode block on letter size mail must fit into the USPS OCR read area to avoid additional postage. For tri-folded self-mailers, the address must be on the center panel to qualify for discounted automation postage. Naturally, weight matters.  Keep the weight of a folded self-mailer under 1 ounce; if the piece weighs over 3 ounces, it must go in an envelope. Thickness counts, too  If a mail piece is less than 0.009″ thick, it costs more in postage. On the other hand, the  maximum thickness for letter size mail is ¼” and for flat size is ¾”. The best advice is to consult with your mailing service provider about any new design in advance. For more, see https://www.targetmarketingmag.com/post/save-money-postage/

 

Format Drives Differences in Direct Mail Results

In planning direct mail campaigns, marketers often turn to standard industry benchmarks courtesy of the annual “Response Rate Report” from the Data & Marketing Association (DMA), soon to be a division of the Association of National Advertisers (ANA). However, while general direct mail response rates for house lists (5.1%) and for prospect lists (2.9%) far outpace those of digital media, the mailing piece format selected can make a key difference in expected results.

Mailer Format Shifts Response Metrics

For example, an oversized flat envelope package tends to deliver the highest response rate: 6.6 % for a house file and 4.9% for a prospect list. Next most effective in terms of response are postcards, with a house file response rate of 5.7% and and a prospect names’ response of 3.4%. At the tail end, but still far above digital efforts, comes the standard letter format, with a 4.37% response rate for house names and a 2.5% response for prospecting.

Balancing CPM & ROI in Format Selection

Some marketers hesitate over the more expensive oversized flats, which have the highest cost per thousand (CPM) among formats at $481 for house files and $467 for prospect files. Which is why postcards continue to win fans among B2C and B2B marketers, with the lowest CPM among direct mail formats benchmarked. However, despite their higher CPMs, the solid response rates of flats mean they can deliver the highest ROI (37% and 30% for house and prospect names, respectively). Postcards and letter packages, meanwhile, are tied in terms of ROI, with house mailings garnering a 29% ROI and prospecting turning in 23% ROI.

Purchase the whole report or see a free summary article for more data.

Pet Charity Mailer’s Creative Opens Hearts & Wallets

AccuList USA has a long and successful history with mailing lists and data services targeting “pet parents” and organizations offering pet-related products, services and causes. One of the surefire ways to engage an audience is to use adorable animal pictures combined with copy crafted to open hearts–and wallets. So here’s a recent example of direct mail to inspire our pet marketing clients, courtesy of a post by Target Marketing magazine.

Envelope That Uses Hard-to-Say-No Pictures & Teasers

Best Friends, which runs the largest no-kill U.S. animal sanctuary across multiple locations, was seeking donations for its mission of ending pet homelessness. The outer envelope of their newsletter package immediately grabs attention with a picture of one of the nonprofit’s doggie stars. The heart-tugging gaze is hard to ignore, especially coupled with an intriguing teaser: “Hey, whatever happened to Justin? Find out inside!”

Emotionally Moving Letter With Up-Front Reply Form

When recipients open the envelope, they find a newsletter showcasing the sad story of a pup who had a rough start, including a photo to tug at donor heartstrings. And once emotions are triggered, the format makes it easy to act by putting a donation reply form and call-to-action right at the top of the letter.

Including Proof of Dollar Impact & Mission Value

If prospective donors still hesitate, the Best Friends’ copy offers data on the importance and urgency of action by providing examples of the impact that specific dollar-amount donations will have. The copy also educates recipients on the organization’s mission, vision and history so they connect with the larger cause.

Since a picture, especially one of a winsome pup, is worth a thousand words, take a look at the actual mail piece by going to the article.

These Tech Trends Likely to Drive 2018 Direct Mail Success

Because direct mail data and support services are at the heart of AccuList USA’s expertise, we are always delighted to pass along tips on how to use direct mail more successfully in multi-channel marketing strategy. A blog post by Postalytics, a self-serve direct mail automation tool, recently mined multiple expert sources for the most influential direct mail trends of 2018, ranging from creative to technology to mailing strategy. If you have any lingering doubt over adding interactive technology to traditional snail mail, just take a look at the article’s top mail technology trends for this year.

Automation and Integration: Speedy, Targeted Production

Unsurprisingly, automation purveyor Postalytics puts mail automation software at the top of the list, but they get plenty of industry support. Automation allows marketers to quickly generate high-quality, personalized and trackable letters and postcards by leveraging templates, digital cues and automated workflows, cutting direct mail production cycles from 4-6 weeks down to 1 week. That automation also allows marketers to maximize response by integrating triggered direct mail into any step in the buyer’s journey, online or offline, so that mail delivery taps into the appropriate timing, content and call-to-action.

Linking Offline to Online: AR, QR and PURL

Interactive, mobile-scanned Augmented Reality apps and QR codes, as well as personal urls (PURLs) linked to targeted content-specific landing pages, allow direct mailers to connect offline marketing’s printed paper with online marketing’s digital pages, images, animations and videos. Studies show that combining snail mail with interactive digital is key to greater overall campaign response and ROI.

Enhanced Data Targeting and Personalization

The magic wand of quality, enhanced data can be waved over direct mail to match the right message to the right people at the right time. Good mailing list data allows for targeting based on shopping habits and needs, retargeting and cross-selling, recapturing and reactivating of lost prospects and customers, leveraging of trigger events and personal preferences, and more–provided there is a commitment to quality database hygiene and processing. Customer and prospect data lists need to be up-to-date, de-duped and accurate, and mailings must use cost-effective advanced postal address hygiene and pre-sorting. In addition to cost-effective, high-response targeting, good mailing data allows for sophisticated content personalization far beyond simply inserting a name, the kind of personalization that has become a basic expectation of customers. Marketers can even create personalized coupon codes that deliver a much higher ROI than generic coupon codes; these unique codes make customers feel valued on an individual level.

For 2018 direct mail trends in creative design and mailing strategies, see https://www.postalytics.com/blog/direct-mail-marketing-trends-for-2018/ 

 

 

 

Why Direct Mail Still Wins Allegiance of Trade Show Marketers

One of AccuList USA’s oldest areas of expertise is trade show and conference marketing, particularly direct mail lists and support services. A recent survey of exhibit managers and event marketers by Exhibitor magazine shows why direct mail continues as a promotional tool, as a companion rather than a victim of the growing use of e-mail and social media. Here are some insights we gleaned from those comments:

It’s Still All About the List

The traditional rules of direct marketing continue to apply for direct mail success: Quality, targeted data is the most essential response factor. Mike Naples, business alliance manager for the United States Postal Service, reminds event marketers of those basics: “A successful campaign is 60% identifying the target, 30% making a compelling offer, and 10% creating a unique piece.” Dan McAdams, vice president of sales and marketing for McAdams Graphics, is even more specific:  “The most effective direct-mail projects start with a solid mailing list. A bad list yields a bad return.”

E-mail Is Mate, Not Replacement, for Snail Mail

While acknowledging the growing use of e-mail, Holly Seese, global marketing communications manager at Celanese Corp., reminds Exhibitor readers that “hard-copy event invites are still more memorable than e-mailed ones.” That can be especially true with an older target audience. “People over the age of 50 have an emotional attachment to letters that people under the age of 50 never developed,” opines Keith Goodman, vice president for corporate solutions at Modern Postcard. More generally, e-mail faces headwinds in crowded, spam-filtered inboxes, while direct mail’s lower volume actually boosts its impact: “Direct mail is back in vogue because few companies are using it. So a creative mailer is more likely to get read,” explains Eugene Maresh, co-owner of Say it With Style Targeted Promotional Solutions. Or as Joy Gendusa, CEO of PostcardMania, sums up: “E-mail is brilliant for lead nurturing, but not for lead generation. If your message is seen as spam, you’re hurting, not helping.”

Creativity and a Multi-Channel Mix Required

At the same time, audiences have become more demanding. Direct mail must be personalized, relevantly targeted and creatively eye-catching to engage response now. Tired tricks are not going to win interest. “An interesting shape is the best way to generate attention. Priority or overnight mail doesn’t cut it anymore. It feels wasteful,” asserts Rhea Cook, president of Ex Machina Design X Marketing. And because audiences also use multiple digital channels daily, they expect to engage with coordinated event promotion and response across channels, so direct mail can’t go it alone if it is to be successful. Or as Jefferson Davis, trade show marketing and sales consultant at Competitive Edge, concludes: “People ask me all the time, ‘What is the single best media for exhibit marketing?’ But there is no single best media. The magic is in the mix.”

To see more quotes about direct mail from event marketing pros, go to http://www.exhibitoronline.com/topics/article.asp?ID=1282 

Direct Mail Still Powers Fundraising, Especially Planned Giving

At AccuList USA, nonprofit interest in our direct mailing lists and services for fundraising remains strong despite the growing share of donor dollars collected via online giving. Some of the reasons that fundraising pros remain committed to mail power are cited in a recent article for The NonProfit Times by Mark Hrywna.

Direct Mail Is Vital in a Multi-Channel Mix

It’s true that nonprofit organizations are beginning to see a growing share of donations attributed to online giving, but as Steve MacLaughlin, vice president of data and analytics at fundraising tech firm Blackbaud, stresses in the article, online giving is still less than 10% of all charitable giving. Fundraisers need to avoid confusing the channel of engagement with the channel of transaction, he advises. Direct mail response certainly is no longer limited to mailed donations as many direct mail recipients go online to give; similarly, a mobile-device outreach or e-mail appeal can generate offline gifts. Even in an increasingly digital world, a good multi-channel mix will include direct mail.

Direct Mail Keeps Proving Its Power

Hrywna cites Make-a-Wish Foundation as an example of continued direct mail investment. When Chief Financial Officer Paul Mehlhorn started with Make-A-Wish Foundation in 2009, he recalls that he was told direct mail was a dinosaur that would be gone in five or six years.  Yet last year the national office exceeded 2009 direct mail revenue by several million dollars, going from $13.9 million to $15.3 million. “It looks to me like a program that can stay very strong for the next 10 to 15 years,” Mehlhorn asserts to Hrywna. In fact, Mehlhorn says he may expand on that direct mail success: “We continue to increase our investment in online giving. However, we are reconsidering our approach to direct mail and may increase our investment for direct mail in future years. As you get past the low-hanging fruit, [online] becomes almost as costly as direct mail. Unless you enlarge your donor pool, you’re going to be spending about the same.”

Direct Mail Has a Key Role in Planned Giving

Plus, while the revenue ratio of direct mail to online giving has gone from 3:1 to even at Make-a-Wish, there are some areas where direct mail retains an edge, such as planned giving. Make-A-Wish Foundation has seen revenue from planned gifts just about triple during the past four years, growing from about $2 million to $6 million, and Mehlhorn credits part of that success to actively promoting planned giving in direct mail as well as online campaigns. “A lot of the folks now making end-of-life plans are still in that generation that likes getting mail,” he points out.

For more, see The NonProfit Times article.