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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/ 

 

 

 

Print Catalogs Still a Key Multichannel Merchant Tool

Despite the growth of e-commerce, printed catalogs retain their important marketing role for AccuList USA’s B2B and B2C catalog clients, and recent data from Multichannel Merchant‘s 2018 State of the Catalog survey highlights that trend.

Print Catalogs Boost Brands, Push Digital Traffic

A big majority of the merchants surveyed (84.2% ) by Multichannel Merchant (MCM) said they continue to use print catalogs as a channel to reach customers. Their commitment to the traditional print catalog comes from its value as a multipurpose marketing tool. For example, branding led the ranking of main print catalog goals, with an 8.86 out of 10 rating. Branding was followed by web and mobile traffic driver and customer retention (both ranked at 8.14), reactivation (7.57), and prospecting and store traffic spur (6.43).  Meanwhile, though measuring catalog effectiveness remains a matter of debate among merchants, a majority (57.1%) do have a formal measurement program, whether via matchbacks, tracking codes, response analysis or segmentation testing.

Frequency, Page Counts & Circulation Hold Steady

Although merchants continue to seek maximum ROI by testing page counts and formats, the majority surveyed by MCM (83.3%) maintained the same page counts in 2017, and 50% also reported the same circulation numbers. Looking ahead to 2018, 50% planned to increase page counts, but respondents split into thirds over increasing, decreasing or maintaining circulation size. As far as frequency, 83.3% said they would hold it steady for 2018.

Digital Catalogs Join Array of Print Formats

Most merchants surveyed (57.1%) rely on both a digital catalog and a standard 8.5X11 print catalog. But many also use a “slim jim” print format (14.3%) or, especially for B2B, annual “big books” (also 14.3%). Some retailers report they send out other types of direct mail pieces, such as small gatefolds or postcards with special offers. Digital page-flipper catalogs are also in use to reach customers between mailings and in areas not mailed (such as Europe). For more on the report, go to http://multichannelmerchant.com/marketing/state-catalog-alive-well/

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.

 

 

 

 

 

Demographic Trends Drive Growth in Pet-Owner Spending

Direct mail and e-mail lists and data services targeting pet owners are one of AccuList USA’s high-demand markets, and we expect trends in pet ownership to grow that marketing interest–and the competition that makes quality data and targeting even more essential.

Demographics Fuel Pet-Owner Spending

A recent post for The Marketing Insider highlights the demographic trends that are making pet owners such attractive targets: “Americans now own 305 million cats and dogs, an increase of 85 million over the past 10 years. The  50+ demographic is responsible for 60% of that growth. With 50+ population expected to grow twice as rapidly as the 18-49 segment over the next 10 years, brands that include 50+ pet owners in their marketing strategies will improve their odds of maximizing revenue growth,” asserts columnist Mark Bradbury.

Older Pet Owners Offer Big Opportunities

Bradbury makes the point that marketers hoping to cash in on the older pet-owning market will need to adjust their buyer profiles given that 50+ pet owners are mainly empty-nesters (80%), retired (one-in-three), and three times more likely than younger pet owners to be divorced, widowed or separated–leaving more time and disposable income to devote to pet members of the family. Bradbury points to statistical proof that older owners are on a pet-spending splurge: People 50+ spent over $15.6 billion on their pets in the last year, more than all of the other generations combined, according to PetBusinessProfessor.com.

Growing Market Also Draws Big Competition

The opportunity to market pet-pampering products is expanding, but so is the competition for slices of the pet-owner pie. Using marketing tactics of the past may either miss the mark with the older generation of pet owners, or get lost in the crowd vying for their attention. Bradbury suggests several tactics that put the focus squarely on the growing Baby Boomer pet market, including messaging that celebrates a pet-centric Boomer life stage. Multi-channel campaigning is a must for this market as well. In addition to digital marketing via online, social and e-mail, Boomers are also still heavy users, and responders, of direct mail, magazines and television, Bradbury points out. “Synergistic cross-media marketing plans” are required to maximize reach at every stage in the purchase funnel, he advises. Plus, though Boomers like to spend to dote on their pets, they also want to spend wisely and are attracted to savings opportunities. Direct marketers will want to include discounts or loyalty reward programs to win brand fans.

For more of Bradbury’s pet marketing suggestions, see https://www.mediapost.com/publications/article/314521/the-inside-track-on-the-booming-pet-market.html

Why You Should De-dupe Your Data

In today’s data-driven marketing, data is not only the most important asset that your company can have but can also make or break your campaign. Having clean data impacts not only marketing activities but also impacts your reputation, operations and decision-making. De-duping is one of the most important aspects of overall data hygiene. Duplicates can be found on many levels of data; they arise at the household level, individual e-mail level or company level. But before you can de-dupe your data, you must make sure you have a clear definition of what a duplicate is. Some businesses de-dupe based on a household address for direct mail campaigns, others on an e-mail basis for e-mail marketing campaigns, and some de-dupe based on the company level. If you are still not convinced that you need to de-dupe, consider the following benefits:

Avoiding Different Offers to the Same Customer

Having direct mail going out to the same household can be costly, and it can also be extremely embarrassing. For example, you send two different direct mail creatives to the same household. As one of the records was a customer, you decided to provide a returning customer 15% off, while the other record was marked as a prospect and only got 10% off. Now the person opening both direct mails will be confused by having two different discounts, and the company also can face a PR nightmare.

Cutting Unnecessary Cost

It goes without saying that having duplicates increases your cost. For example, assume you are doing a direct mail creative which costs you $5 per mailing. Your list contains 10,000 recipients. The total cost of mailings therefore is $50,000. If you decided to de-dupe, you would find out that 10% of your mailing list was duplicated. Therefore, $5,000 was a waste of resources. It would have been much cheaper to de-dupe prior to deploying your campaign.

Good Analytics for Decision-making 

Analytics is important not just from a perspective of understanding how your marketing and sales is performing but also from a decision-making perspective. By having duplicates in your CRM, you are going to be double-counting your list capabilities, miscalculating your true growth rates, and getting the wrong rate of responses. If you are looking to make a decision on future campaigns, basing it on duplicate data will give you the wrong list count, wrong budget and possibly the wrong creative picked (especially if you are basing it on an A/B testing done previously).

Reducing Customer Service Confusions

If there are duplicates in your CRM system, having clients call in, e-mail or come into the store will make it difficult for staff to track down the right individual. For example, Mary Smith is found twice in your CRM with the same phone number. She calls in to your customer support to inquire about her order status. Your customer service rep decides to pull up the customer account by phone number and finds two records. Now she has to put the customer on hold while she checks both accounts to try to locate the last purchase before she can even assist the customer. Not only is it wasting everyone’s time and making customer service inefficient, it also makes the customer have a bad customer service experience.

Preventing Potential Loss of Sales

Finally, the biggest impact that duplicates have on your business is a potential loss of sale. If you have duplicates, you do not have a true view of all prospect or customer activities. Therefore, you could be excluding prospects from a sales call because your lead scoring system indicated that they are not ready. However, if the data from both records was combined, you would have all signals indicating they are ready to be passed on to sales. With duplicates, by the time you figure it out, a customer may have already lost interest and gone with your competitor.

You can easily de-dupe your list by using a de-duping tool that will require less effort to identify duplicates and establish a master record than is required to deal with the consequences of duplicate data. De-duping should be part of your data-cleaning initiative, either prior to any major campaign or on a yearly basis.

If you are interested in data clean-up and use of a de-duping tool, contact guest author Anna Kayfitz, CEO of StrategicDB Corp.

P&C Insurance Embraces Direct Mail Response

Direct mail by property and casualty insurance clients continues as a staple of AccuList USA’s list brokerage and data services business, and so we were pleased to see a Valentine’s Day love note to P&C direct mail from the marketing consultants at IWCO Direct.

P&C Insurance Industry Loves Direct Mail

The IWCO post notes that nearly 400 insurance companies mailed more than 5.7 billion pieces of mail in 2017, according to Comperemedia. The property and casualty insurance category accounted for 53% of that volume, with more than 3 billion pieces of direct mail mailed by 110 companies. Of those direct mail packages, 95% were Marketing Mail (formerly called Standard Mail), mainly for acquisition (89%).

Mailings Reflect Ongoing Promotional Trends

Comperemedia and Competiscan data highlighted trends revealed by those direct mail packages, too.  With 55% of policyholders likely to shop around for insurance as a policy comes up for renewal, smart insurance providers are taking a proactive approach and contacting policyholders in advance to remind them why they should remain with their current P&C insurance provider. Also to woo shoppers, both in acquisition and renewal, insurance promotions are direct about savings messages and competitor pricing comparisons. Finally, the industry’s continued embrace of direct mail does not ignore the digital revolution; in fact, direct mail packages are highlighting the industry’s growing self-service digital functionality for policyholders.

Basic Direct Mail Tactics That Up Response

Leveraging industry trends and success stories, IWCO lists three basic tactics proven to boost response for P&C acquisition and cross-sell mailings: 1) Comparison charts touting coverage benefits over those of top competitors, and an offer to match coverage pricing and benefits upon policy review if appropriate; 2) Promotional cards with a clear call-to-action via website, mobile app, and/or toll-free phone; and 3) An eye-catching personalized tagline. See https://www.iwco.com/blog/2018/02/14/pc-insurance-marketing-trends-valentines-day/