The impact of Direct Mail in the communications mix A whitepaper fromWhistl
Introduction
How do you target consumers in a modern day, multichannel world? How do you ensure your brand is recognised and people connect with it?
In today’s world the use of multiple screens such as mobile, tablet and television have resulted in a huge proliferation in the level of marketing communication that people are exposed to every day. Whilst this provides brands with new and exciting communication opportunities, recent research shows that direct mail, a more established medium, can not only work well on its own, but can boost the performance of marketing campaigns when integrated with other marketing communication channels. As you will see from the statistics revealed, direct mail is a crucial channel to consider when designing a marketing campaign. Recent research indicates that 79% of consumers react to direct mail immediately 1 . However, campaigns which integrate direct mail with other communication channels are even more successful. A creative approach to direct mail will create initial impact, allowing people to feel and engage with the direct mail piece, increase brand awareness, influence sales levels, and drive people to your website. The purpose of this short paper is to inform you about the benefits of direct mail and the impact that direct mail has when integrated with other media channels. We have analysed recent studies to show how consumers react when they receive mail, before and after engagement with a brand. We have also looked at the way in which direct mail can drive people online and increase the likelihood that consumers will engage with your brand.
1 ‘From Letterbox To Inbox: Building Customer Relationships’. Direct Marketing Association (2013): n. pag. Print.
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1. Direct mail is a powerful communication channel
Human response to direct mail Studies have illustrated that due to the physical and tangible format, consumers rank direct mail the highest for being trustworthy (56%) and authoritative (55%) in comparison to other forms of media 5 . Direct mail’s advantages include its ability to feel personal to consumers. When you physically place direct mail in front of customers, mail becomes an interactive and immersive experience compared to email. This gives consumers time for consideration before deciding what to do next and it also gives direct mail a significant advantage over digital communication methods. A DMA study stated that response rates for an existing customer on direct mail is 3.4% when compared to that of email at 0.12%. 6 This does not necessarily indicate that mail is superior to digital channels, but more so that it is still an effective form of marketing that can be overlooked. According to another study, 57% of customers felt more valued when receiving mail while only 17% 7 felt the same way when it came to email. The research also revealed that the perception of mail throughout the years has grown to become more positive, with 56% of consumers stating that mail grabs their attention and 55% felt that it gave them a better impression of a brand and they spent more time reading their post.
Over the past decade, direct mail has had to face a number of challenges to keep its place within the communication mix – mainly due to the rise of more modern forms of audience interaction. While some brands accept that direct mail can still play a part, many have significantly reduced their use of it in favour of contemporary alternatives 2 . This is generally due to direct mail being seen as While it may seem we’re heading towards a digitally dependant world, direct mail still has the potential to be significantly more impactful than other forms of mass media. Direct mail can be highly targeted and each campaign can be tailored to appeal to specific individuals – this is rarely seen in digital campaigns, which often cater to mass audiences. A direct mail campaign can therefore have greater impact and result in higher ROI compared to other communication channels when carried out correctly. Research has also shown that consumers are not necessarily in favour of becoming fully-digital. Not all homes are digitalised; 5.2 million households in the UK do not have internet access, while 16 million consumers aged over 15 state that they do not have basic online skills 3 . 85% of UK adults have also stated that they do not like it when a brand removes their right to choose how they would like to be communicated with – whether this is via email, mail, etc. 45% of those surveyed by the DMA (Direct Marketing Association) believe that a world without physical communication would be worse, while only 15% believe it would be beneficial. Surprisingly, within the younger age bracket (18-34), one in five of those surveyed believe that a purely digital world will never happen 4 . This of course is the age group often assumed to fully embrace modern communication. an expensive channel. Not going fully-digital
2 Marketingmagazine.co.uk, ‘Special Report: Direct Marketing’. N.p., 2015. Web. 20 Mar. 2015. 3 Paper And Digital Communications: The Case For Consumer Choice. 1st ed. Keep Me Posted. Print. 4,5 ‘From Letterbox To Inbox: Building Customer Relationships’. Direct Marketing Association (2013): n. pag. Print. 6 MarketingCharts,. ‘Direct Mail Tops Email For Response Rates; Costs Per Lead Similar’. N.p., 2012. Web. 20 Mar. 2015. 7 Direct Marketing Association. It’s All About Mail And Email. 2014. Web. 30 Mar. 2015.
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2. Direct mail drives people online
OFFLINE DRIVING CONSUMERS ONLINE
As a direct result of receiving mail
86% connected with business
43% download something
92% driven to online or digital activity
87% influenced to make online purchases
54% engaged with social media
Moving people’s experience from offline to online may seem challenging. Getting people to take action on a website may seem even more daunting. However, in a recent study analysing the relationship between direct and online mail 8 , the statistics shown above were found. The benefits of an integrated marketing campaign are clear. With over 90% of users taking action online as a result of direct mail, brands clearly have an opportunity to attract new business and provide further information to potential customers about the services on their website.
A study by Deliver Magazine, also discovered that customers who received direct mail (a printed catalogue) were more likely to convert and purchased an average of 28% more than individuals who did not receive any direct mail 9 .
8 Royal Mail (2015). Private Life of Mail. England: Royal Mail. 35. 9 ComScore/United States Postal Service Catalogue Study Update: Key Insights from 2007
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3. How to drive people online via direct mail
There are a number of different ways in which people can be influenced to go online via direct mail. For example:
Augmented reality Augmented reality can set marketing efforts apart from competitors. This brings content to life, and requires a phone or tablet in order to work, increasing the likelihood of recipients going directly to your website.
QR codes The effectiveness of QR codes is often debated in marketing. When using QR codes in direct mail it is important that users have enough of an incentive to activate them, as well as providing clear instructions on how to do so.
Personalised URLs A great way to bridge the gap between offline and online marketing is to use personalised URLs. Recipients are more likely to respond to a message which is addressed with their name, as opposed to a generic opening line. A study carried out in 2014 found that, “Poor functionality and concerns over data security appear to be the main sticking points for consumers. If brands address these concerns, more consumers will move between print and online on the nearest device available – very often a mobile or tablet 10 .” Brands should therefore ensure that their site is highly functional both on desktop as well as mobile and tablet – before any marketing which drives users online takes place.
10 DMA, “Mobilising print media – new paths to purchase”, 2014.
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4. Direct mail is essential within the communications mix
MAIL’S INTERACTION WITH OTHER CHANNELS
The research found that mail is most effective once recipients have already seen a brand promoted via two other advertising platforms. The findings show the importance of timing in advertising, and suggests that “prior knowledge of a brand gained through other advertising media enhances the quick learning effect of mail’s multisensory attributes”. A study carried out by BrandScience on their own clients also found that multi-channel marketing can be effective and can create a ‘Media Multiplier Effect’ 11 . The Media Multiplier Effect relies on one marketing campaign to be delivered through several advertising mediums.The effect is achieved through first ‘priming’ the individual and ‘following up’ with a different source. BrandScience’s clients used direct mail and television advertising to target potential business and found that response rates improved by 12% when both sources were combined.
Recent research found that campaigns including mail are 27% more likely to deliver top-ranking sales performance and 40% more likely to deliver top-ranking acquisition levels. Not only that, but total communications ROI for campaigns which included mail was found to be 12% higher than those that didn’t, with mail having a strong priming effect on TV. The research also found that mail has a profound effect on the brain when used with other channels. Researchers analysed the neurological effects mail had on recipients when given to them in different orders. Please see graph above.
11 Royal Mail (2015). Private Life of Mail. England: Royal Mail. 9.
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5. Direct mail boosts revenue
USING MAIL IN CAMPAIGNS DELIVERS HIGH SALES AND ACQUISITION PERFORMANCE
The ultimate goal of most marketing campaigns is to simply increase revenue. The study also analysed the difference in sales and acquisition figures when mail was and was not included in marketing campaigns. The research found that mail increased sales by 27% and client acquisition by 40%, a huge impact by any standards.
For brands with tight marketing budgets and sales as the main focus, this research suggests that direct mail should be included within your marketing spend as long as the marketing campaign is well thought out and creative.
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6. Direct mail case studies
The benefits of direct mail aren’t limited to B2C brands. B2B brands can also utilise direct mail in their marketing efforts.
Package systems manufacturer Tekpak needed to make the most of their marketing budget which was comparatively small. Tekpak used direct mail to improve sales in an highly competitive market. In order to ensure their budget was being spent in the most efficient way, it was essential to target only the highest potential prospects. Once these prospects were found, decision makers within these businesses were identified. The target audience received a unique package which included a personalised direct mail letter, case studies and a pair of USB cufflinks – integrated within the design of a shirt 12 . These packages were sent out to 43 high priority brands, with the following results: • 40 out of the 43 mailers sent were confirmed as having been received, opened and read by the targeted prospect and facilitated a successful telesales follow-up. • Campaign targets for new tender requests were exceeded by 60%, appointments by 40%, revenues by 52%. • Three new clients were acquired, all of which were leading brand name manufacturers. • Campaign revenues contributed to an overall increase in annual revenues by 22%. This case study shows the power of direct mail as a marketing tool within the B2B industry. Not only that, it shows that direct mail can be extremely effective on its own, not just when used within a wider marketing campaign.
12 Anpost.ie. ‘B2B New Business Campaigns’. N.p., 2015. Web. 23 Mar. 2015.
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Retailer Scotts & Co are a great example of a brand who know how to integrate direct mail into their marketing mix. Throughout 2014 they used direct mail to drive traffic to their website, with impressive results.
WEBSITE ORDERS BY WEEK
2014
Orders
Mailing
As you can see, the correlation between website orders and mailing times is extremely strong. During 2014, online sales accounted for one third of business and 57% of these sales can be attributed back to direct mail. The timings of the mail releases are also essential, being delivered just before peak times for their business. To best optimise their marketing spend, Scotts & Co ensured they split their budget not by the channel that generates the most sales, but by the marketing trigger of those sales. They have operated in this way across all of their brand portfolio.
BRAND
DESCRIPTION
VISITS SPEND
Established multichannel brand +30% +38%
Scotts of Stow
Italian fashion brand
Artigiano
+22% +118%
Solutions World
New growing brand +121% +168%
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GGRP Get Creative & Get Results. Sound design company GGRP designed a cardboard mailer sleeve which unfolded and played music when the vinyl was turned.
The results of this campaign were incredibly encouraging. They received a 90% direct response rate, over 500 blog posts were written as a result of the campaign and online visitors jumped from just 50 to 70,000 visits per week 13 . The GGRP case study shows the power of a creative idea which has been well executed.
13 GreyVancouver, GGRP Cardboard Record Player Case Study. 2010. Web. 30 Mar. 2015.
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Conclusion
Evaluating the research regarding direct mail and its relationship with online marketing, it is clear to see that the former can have a strong effect on the latter. The facts and figures detailed in this paper make a strong case to implement direct mail into future marketing campaigns, preferably as the third point of exposure to the brand. Not only does direct mail have an impact on brand awareness, the research findings suggest that it can have a strong positive impact on revenue. In this document we have discussed research which found that: • Consumers regard direct mail as trustworthy and authoritative. • Direct mail is an effective way of engaging with your target audience. • It is effective at driving recipients online and connecting with a business. • Once users are driven online, they spend more meaningful time on the website. • Campaigns which include mail deliver top- ranking acquisition levels. • Mail can often work most effectively when used in conjunction with other platforms such as television or radio. • Direct mail doesn’t just boost brand awareness, it increases revenues. • Both B2B and B2C brands can utilise direct mail into its marketing campaigns. In summary, more brands are turning to direct mail in order to utilise the full potential of the other elements of their marketing campaign, using mail to provide a link between their communications channels.
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