Reaching Consumers with direct mail

1
Reaching Consumers with direct mail
2
Contents

• Recent trends in direct marketing and direct
  mail
• Mail trends in the letterbox
• Reaching the consumer in the information age
• Impact Mail

3
Background - Media Landscape

• Media fragmentation
• Hike in media rates while audiences reduce
• Changing consumer behaviour
• Know marketing tactics
• Discerning, experienced consumers - they
  interpret brand from their experience (the
  moments of truth), not from the brand expression.
• Simultaneous media consumption
• Time Poor

4
Background - Media Landscape

• Marketers have more confidence in the ability of
  direct mail to achieve results than any other
  medium. (Fin Review, Boss Marketing Directions).
• The direct marketing industry is growing at a
  rate of 17 a year and it now represents over 50
  of all media spend CEASA Report, 2002.

5

• So what are the opportunities for us here in
  Australia?

Source USPS/Royal Mail
6
Addressed DM Pieces Per Head Per Annum
UK recorded 5 growth in 2002 Netherlands also
achieves similar volumes to UK
Source USPS/Royal Mail
7
Direct Mail as of Ad Spend
Source USPS/Royal Mail
8
Direct Mail Vol as of Total Mail
Source USPS/Royal Mail
9
Personally addressed mail has cut through
10
likely to respond
11
Reaching Consumers In the information age

• Marketing and Promotional Communications

12
The Research

• Reaching Consumers in the Information Age
• Independently researched by TNS, 3rd largest
  marketing information company in the world
• Qualitative quantitative study
  surveying 1001 consumers
• Reports on how and when they prefer
  to receive messages from Australian
  businesses

13
Research Scope

• Customers preferred media for receiving business
  communications
• Marketing promotional information
• Essential, e.g. bills, annual reports
• Includes preferred frequency of communication

14
Research Scope

• Preferred media for marketing communications by
• customers / non-customers
• industry sector
• and demographic information
• Includes summary charts and analysis of each of
  the findings

15
Advertising Promotional Material

• Mail preferred channel
• 36 prefer mail when addressed catalogues are
  included

Base sample 1001
16
Loyalty Programmes

• Mail clearly preferred channel, by nearly three
  quarters of consumers
• With many loyalty schemes trying to migrate
  customers to online channels its interesting to
  note only 9 prefer email and 1 prefer websites

Base sample 1001
17
Club or Membership Newsletters

• Although some organisations may be tempted to
  send electronic newsletters mail is preferred to
  email by 51

Base sample 1001
18
New Product Announcements

• TV preferred but mail cannot be overlooked
• Mail and catalogues combined equals to almost a
  third of consumers
• Strong argument for integrated campaigns when
  launching new products

Base sample 1001
19
In Essence

• the consumer is telling us . Send us mail!

20
Research tells us that.

• 89 of ad agencies surveyed would increase their
  use of Direct Mail if they could send
  non-rectangular pieces

21
IMPACT MAIL
22
DM with Bite

• Creativity with direct mail shapes enables highly
  targeted messages that differentiates your
  mailing with instant impact

23
Benefits of Impact Mail

• Creative Freedom Colour, shape, size and style
  are all open to your own interpretation.
• Almost anything goes! Australia Post strongly
  recommends that only paper based card stock is
  used. However other material may be accepted
  subject to approval prior to lodgement.

24
Impact Mail Product Overview
What is IMPACT Mail?

• Impact Mail is a service that will provide for
  the delivery of customised shaped articles
  through Australia Post.
• Unlike existing Bulk Letter Services Impact Mail
  will not require articles to be rectangular or
  oblong.
• Impact Mail will accept items of any shape up to
  the maximum permissible dimensions

25
Opportunity

• A new service to
• Generate improved response rates
• Demonstrates the power of instant shape
  recognition
• No limits unique
• Very high readership
• Enable users to go the next step

26
Why?

• Grow promotional mail
• Improve the ROI by meeting a need for a
  creative, tactile promotional medium

27
In Summary

• Local and international figures tell us that
  Mail as a marketing medium is under utilised in
  Australia
• Promotional mail is enjoyed by the consumer
• More importantly promotional mail has cut
  through and the consumer wants to receive it
  regularly
• Now Australia Post have provided Marketers with
  the opportunity to produce customised shapes
  through the mail in order to allow for greater
  creativity as well as an increase in response
  rates.

28
Thank you

• Visit www.auspost.com.au/mailmarketing and
  download the full research report
• Other reports also available as well as further
  details on the Impact Mail Product.