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TRANSCRIPT
#PIWebinar
Direct Mail Delivers: Strategies for Participating in the Value Chain
October 29, 2015
A special thank you to:
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Moderator
Today’s Speakers
Barb Pellow Group Director InfoTrends
Ginger Conlon Editor-in Chief, Direct Marketing News
[email protected] | @customeralchemy
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• What Marketers Want…And Need!
– Print is Integral to the Mix
• Direct Mail Delivers
– 5 Direct Mail Myths… And Realities
• Recommendations and Conclusions
• Q&A
Topics
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It’s All About the Customer Experience!
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0.8%
9.9%
11.6%
14.0%
17.1%
19.3%
19.6%
19.8%
22.3%
23.3%
23.9%
31.5%
36.3%
37.1%
0% 10% 20% 30% 40%
Other
More freedom/agility for business users to manage comm.
Compliance with changing regulatory or legal requirements
Reduce overall communications cost
Reduce operational cost
Reduce strain on IT
Drive behavioral change in customers
Reduce IT cost
Reduce risk
Increase upsell/cross-sell
Reduce customer churn
Better understanding of customer behavior
Increase customer loyalty
Improve customer experience
What are the most important business objectives your company wants to achieve by investing in customer communications management solutions?
N = 800 Respondents Source: Customer Engagement Technologies State of the Market Study, InfoTrends 2015
Multiple Responses Permitted
A Drive for a Better Customer Experience
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The Experience Needs to be Personal
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7.1%
13.5%
14.5%
16.5%
17.5%
20.9%
24.2%
24.9%
28.3%
29.0%
30.6%
36.0%
38.4%
39.4%
0% 10% 20% 30% 40%
Access improvements for disabled customers
Multilingual comm./expansion of supported languages
Optimizing design of mobile comm. to match screen size of device
Better channel preference management
Improving/overhauling communication layout or design
Offering digital mailboxes
Providing customer-facing staff w/ real-time customer order/comm. history
Synchronizing brand/comm. experience across multiple touch points
Better social media monitoring and responding
Offering or expanding mobile communications
More billing or payment options, e.g., mobile payments
Offering or expanding digital self-service capabilities
Better data-driven personalization and relevant comm.
Better tailored offerings
How does your company plan to improve customer experience as it relates to customer communications?
N = 297 Respondents who invest in CCM to improve the customer experience Source: Customer Engagement Technologies State of the Market Study, InfoTrends 2015
Multiple Responses Permitted
Improving the Customer Experience
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All Channels Are Important
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How many different media types does your company use for a typical customer communication/marketing campaign?
Key Findings • Average number of media
types used in a campaign: 3
• 47% of printed marketing materials were linked to online digital channels in the past 12 months
N = 1,026 Source: Understanding Vertical Markets: Enterprise Communication Requirements; InfoTrends 2012
One 8.8%
Two 30.2%
Three 36.4%
Four 13.4%
Five or more 3.7%
Don’t know 7.6%
Looking at More Channels
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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%
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/connection to digital media in the past 12 months?
Multiple Responses Permitted
N = 378 Respondents who are blending print and digital channels Source: Understanding Vertical Markets: Enterprise Communication Requirements; InfoTrends 2012
Print + Digital = The Best Alternative
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What types of digital content have been linked to print in the past 12 months?
0.8%
13.8%
13.8%
17.2%
19.3%
21.4%
23.8%
30.4%
31.2%
52.4%
71.7%
0% 20% 40% 60% 80%
Other
Audio/Music hosted on a private site
Audio/Music hosted on a public sharing site
vCard or other contact information
Video hosted on a private site
Personalized microsite
Video hosted on a public sharing site
Image files
Mobile application in an online marketplace
Social media site
Website
Multiple Responses Permitted
N = 378 Respondents who are blending print and digital channels Source: Understanding Vertical Markets: Enterprise Communication Requirements; InfoTrends 2012
Digital Channels Linked to Print
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9.0%
9.8%
10.4%
11.1%
11.4%
11.8%
12.4%
12.8%
12.9%
13.6%
14.9%
15.3%
16.1%
18.8%
25.9%
0% 10% 20% 30%
RFP/RFQ support
Implementing a CCM Center of Excellence
Postal optimization
Synchronizing the mobile experience with other channels
Cloud deployment or migration
Providing personalized customer data into a mobile app
Operational assessment; efficiency improvements
System integration
Change management
Centralizing communications
Mapping customer experience improvements on business outcomes
Measuring customer experience or customer engagement
ROI calculations; building an investment/business case
Data management, data access
Strategy development
In which of the following customer communications areas do you need the most help?
Multiple Responses Permitted
Marketers Need Help!
N = 800 Respondents Source: Customer Engagement Technologies State of the Market Study, InfoTrends 2015
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5.1%
17.8%
26.8%
40.8%
PSP has taken over an entire document process
We send data; PSP does composition and MC output
We send a composed, print-ready file
We send data; PSP does composition and print
0% 10% 20% 30% 40% 50%
What is your relationship with your print outsourcer?
N = 507 Respondents who have outsourced transactional print Source: Customer Engagement Technologies State of the Market Study, InfoTrends 2015
9.6%
14.4%
31.2%
39.4%
Insource composition; PSP becoming commodity
PSP to become a full communications provider
Help strategically with evolving comm. Needs
Help with data analytics to drive business growth
0% 10% 20% 30% 40%
How do you think your relationship with the print service provider will evolve?
Most enterprises send data and let the PSP do composition and print. There is a desire for enterprises to have the PSP take a more active role in helping with data analytics and segmentation.
Marketers Are Expecting More From Providers
The Truth About Direct Mail
Agenda
• The Current State of Direct Mail
• 5 Direct Mail Myths… and Realities
• Recommendations
Agenda
• The Current State of Direct Mail
• 5 Direct Mail Myths… and Realities
• Recommendations
Direct Mail Today
“When you want someone to attend an event, make a phone call, or do anything with a higher
touch, you still go back to physical mail.”
–Ray Wang, Constellation Research
Direct Mail Is Effective
4.3% Response rate for targeted direct mail,
versus .12% for e-mail (DMA)
84% Marketers polled who used print marketing
in 2014 (Experian)
Direct Mail Is Growing
2.7% Increase in spending on direct mail, versus a
predicted 1.1%
$45.7B predicted spending on direct mail in 2015,
versus $45.2B spent in 2014
–Winterberry Group
Direct Mail Is Industrious
Growth in direct mail in 2014
• 8% automotive
• 8% telecom
• 22% credit cards
• 45% mortgage and loans
–Mintel Comperemedia
Direct Mail Is Bookish
$2 The amount catalogs bring in for every
prospective customer they reach
$10 The amount catalogs bring in for every
current customer they reach
–ACMA
Direct Mail Is Tops!
70% Consumers who say direct mail is more personal than e-mail (Cohber)
54% Consumers who are likely to base a buying decision on direct mail, versus e-mail at 16% (CMO Council)
45% Heads of households who read direct mail “immediately” (USPS)
Direct Mail Is Responsive
40% Consumers who tried a new business after
receiving a direct mail piece
70% Consumers who renewed a relationship with
a business after receiving direct mail
–CMO Council
Direct Mail Is Omni-Channel
10%-30% Increase in conversions when digital and
direct mail are linked (Epsilon)
58% Online shoppers who browse print catalogs
for ideas (Kurt Salmon)
Direct Mail Is Enhanced
Smart Technologies mailer incorporates video, USB, and web to engage high-value prospects.
Direct Mail’s Got Game!
SWC Technology Partners’ “Reindeer Games”
• Mailer with a promo coffee mug and a link to a 5-minute video
• 1,900 video views and 160 content entries
• 50% of the total mailings converted to registrations
Agenda
• The Current State of Direct Mail
• 5 Direct Mail Myths… and Realities
• Recommendations
5 Myths
Direct mail (supposedly) is…
1. Cost-prohibitive
2. Old school
3. Not for the digital age
4. Ineffective
5. A hassle
Reality 1: It’s All About the ROI!
For every $1 Juice Real Estate invests in personalized direct mail to targeted prospects, it earns $5 in commissions.
Reality 2: It’s As Relevant as Ever
79%
The lift in response rates Robert Morris University sees when sending personalized postcards linked to pURLs versus a generic mailing.
Reality 2: It’s As Relevant as Ever
26%
The increase in Z Gallerie catalog sign-ups from its Instagram campaign
17%
The increase in Z Gallerie branded user-generated content
Reality 3: It’s Digital
CSG Invotas weaves a web of interaction with its dimensional mailer.
Reality 3: It’s Digital
$20 million
The amount of new business Klick Health captured from its hardcover book campaign
330% The ROI of that campaign
Reality 3: It’s Digital
10%-25%
The expected lift in response rates that Baudville expects by using digital print to personalize its IDville-brand catalog cover and inside pages.
Reality 4: It’s Highly Effective
35% Direct mail success rate for new customer acquisition
74% B2B marketers who say direct mail is “very effective”
79% Heads of households who act on direct mail “immediately,” versus 45% for e-mail
61% Marketers who planned to increase their use of direct mail for lead nurturing in 2015
–CMO Council
Reality 4: It’s Highly Effective
53%
Response rate to Latcham Direct’s personalized holiday cards, which sent customers to a pURL to select a gift and designate a charitable donation.
Reality 5: It’s Worth the Effort
Continuous inkjet provides speed and convenience
Data-publishing software delivers scalability
Web-to-print management systems provide flexibility
Cross-channel marketing platforms enable automation such as trigger campaigns
Agenda
• The Current State of Direct Mail
• 5 Direct Mail Myths… and Realities
• Recommendations
What’s Your Advice?
Help your clients…
Avoid the kitchen-sink syndrome
Ensure that their call-to-action is, well, actionable
Send the right mailers to the right prospects and customers
Think postage, then design
Pull the disparate pieces together
Track their results
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Recommendations and Conclusions
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• Marketers need help!
• The tools are readily available
• Print is a driver for customer engagement and initiating the customer experience
• Targeted, personalized communications are critical
• Direct mail can move customers between print and digital channels… customer acquisition, retention, and reactivation
Conclusions
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It’s Game Time!
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Question & Answer Session
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