Friday, August 6, 2021

Calculated Digital and Direct Mail Integration is the Key

Direct Mail and Digital Marketing Integration

We are in the age of multimedia, diminishing attention rates, blocking, unsubscribes and the relentless volume of digital messages. Effectiveness of these channels have plummeted with attribution becoming more and more difficult. There has been a huge increase in the rates of bot responses, fraudulent responses and digital activity appearing in undesirable online media. It is therefore becoming harder and harder to truly cut through, hold consumers attention and measure the true success of your digital campaign.

There are growing problems with digital marketing. The consumers’ lack of engagement with the barrage of messages they receive – translates to the fact that direct mail is already offering marketers more impact, engagement, and profitability than could have been predicted even 5 years ago.

And perhaps more importantly, a new generation of young people are emerging who feel constricted  by a  ‘digital only’ world, and are looking to the tactile,  3 dimensional, and long lasting opportunity that mail items offer.  They are developing skills, gaining decision making roles, and will help drive new ideas and activities.

Consider the following:

  •  In 2016, over $45 Billion was spent on direct mail advertising each year and it continued to grow at a clip of close to 5%.
  • Epsilon surveyed nearly 5,000 customers and “60 percent said going to the mailbox and receiving a piece of mail provided an emotional boost.” Yes, people have a great connection with mail. It’s personal, tangible, and if done right, it can be highly targeted to individuals’ specific interests.
  • The Epsilon survey also revealed that, “Consumers said they found mail to be more trustworthy than other forms of communication.”

 The integration between other channels and direct mail is key:

So many companies are marketing with "omni-channel, multi-channel, opti-channel, integrated marketing, dynamic marketing" but fail to clarify the integration. Maybe it builds the mystique around it.  Bottom line integrating the digital channels with direct mail with proper understanding and strategy is the key to successful returns.

“Direct Mail Conversion Research,” in February 2019 by USPS found that a more dynamic approach to direct mail is the way forward. It’s established a new place in marketing strategies and yearly budgets, all thanks to its effectiveness.

  • 40% conversion rates when digital and direct mail are combined.
  • 68% of marketing respondents said combining digital and direct mail increased website visits.

In that research, here is how companies are coordinating the digital and direct mail integration:

  • 80% drive traffic from direct mail to digital channels.
  • 76% integrate a unique URL or discount code in direct mail.
  • 61% timing digital media once direct mail is delivered to customers.
  • 51% sending personalized direct mail based on online behavior.
  • 49% creating a digital version of direct mail.
  • 15% are using QR codes in direct mail.
  • 7% are embedding AR or VR in direct mail. 

In summary Marketers should use behavioral data from other channels to deliver direct mail communication just-in-time. But direct mail will increasingly be used as an engagement tool when brands lose permission to communicate via email or SMS. Eventually, the future of direct mail will necessitate educating a generation of “marketers” who have been ignoring the channel for the longest time. ‘

Steer your digital efforts to collecting data, asking not telling with a sledgehammer. When you know and understand consumers from their behavior, it becomes that much easier to build a direct mail marketing campaign around their specific needs. You know what they consume, how they engage with your brand, why they might be in the market for a certain product or service, and when they might be in the market to make the purchase.

KISS Principle

In one of the studies, 61% of marketing respondents said the length of a standard direct mail production cycle hampered the coordination of campaigns. 

Being in operations for as long as I can remember, I can tell you that direct mail campaigns don’t have to be long production cycles. Keep it simple. For starters, avoid odd mailpiece shapes and sizes as well as unnecessary finishes to save time and expense. Focus on efficiently getting your message out.  Better yet, work with a print service provider like us to plan out your campaign strategy.

Don't overlook the data going into the campaign and the data going out. Data going in can give you a glimpse into consumer preferences and the buyer’s journey, allowing for more relevant direct mail campaigns. You can offer the right promotion at the right time to the right person or the right neighborhood and can also have options to tailor your approach to specific households and their preferences. Each household or neighborhood will respond differently, so use a data-driven approach to build direct mail marketing practices that focus on relevant messaging and targeted media spend to drive results.

Work with us as your print and mail service provider to translate that data going out into intelligent direct mail. We partner with USPS to make sure you are getting the discounts that are available based on the needs of that campaign. The benefits of great data going in and going out is often overlooked and that translates into lost dollars.

-Martin Aalsma

 

 

 

 


Thursday, August 5, 2021

LEVERAGING DIRECT MAIL TO ENGAGE MULTIPLE SENSES

by Keypoint Intelligence/Eve Padula

Because electronic messages substantially outnumber printed communications, direct mail is now the less cluttered channel. Electronic communications also fall short of well-designed printed communications in terms of tactile impact. This article explores how marketers of printed communications can use the sensory elements of direct mail to their advantage.

Introduction

Electronic messaging has become increasingly prevalent over time, to the point that it now substantially outnumbers printed communications. Email spam messages are considerably more numerous than printed “junk mail,” and direct mail is clearly the less cluttered channel. In addition, direct mail is a tactile form of communication that can appeal to multiple senses, including touch, sight, and even smell. Despite their popularity, electronic communications fall short of well-designed printed direct mail in terms of tactile impact. Marketers of printed communications can and should incorporate the sensory elements of direct mail to create messages that stand out and prompt engagement even in today’s digital world.

Cutting Through the Clutter

Savvy marketers understand that targeted and relevant direct mail can stand out and attract attention. When used correctly, direct mail communications can also be more impactful than electronic messaging. The statistics tell the story:

  • According to a report from Data & Marketing Association (DMA), up to 90% of direct mail gets opened, compared to only 20% to 30% of emails.
  • Data from Canada Post suggests that direct mail requires 21% less cognitive effort to process than email.
  • Based on direct mail statistics from Marketing Profs, three-quarters of consumers can recall a brand after viewing a piece of direct mail. Meanwhile, only 44% can do the same after seeing a digital ad.

Because many consumers have become overwhelmed with digital communications, printed direct mail is considered a trustworthy marketing channel. When consumer respondents to Keypoint Intelligence’s most recent marketing communications research were asked to specify their reasons for reading direct mail rather than digital marketing communications, 15% believed that providers who sent printed communications were more serious about winning and keeping their business. It is now more important than ever for marketers to be smart and strategic in their use of printed communications.

Appealing to the Senses

Whereas most digital communications primarily appeal to the sense of sight, printed direct mail offers a tactile experience that electronic messaging simply can’t match. Thanks to ongoing technological innovations, today’s digital inkjet devices can now produce printed communications that deliver eye-catching special effects and embellishments. Images as well as text can be enhanced with attention-grabbing neon colors, an embossed finish for a 3D effect, metallic inks, or glitter effects that will really shine when exposed to light, or foil stamping for an elegant appearance. Because of the way it changes in certain lighting conditions, a direct mail piece with metallic ink, glitter, or foil stamping delivers a more interactive visual experience than an email.

Unlike electronic communications, printed direct mail pieces literally land in the consumer’s hands and therefore engage the sense of touch. Direct mail that is treated with a velvety coating will feature a highly appealing soft touch, but these communications can also be produced with a rougher coating for a different effect. Printed communications can also incorporate special textures to make certain elements stand out. Some examples might include a furry coating on an image of an animal or a dimpled rubber feel to enhance a picture of a basketball. Coatings or textures can create a unique look and feel that the recipient can’t help but notice.

Direct mail can also engage the sense of smell. Although many of us print geeks might say that we simply like the smell of paper itself, there’s really no reason to stop there as direct mail can be infused with all sorts of scents. For a personal example, I’ll admit to having a minor obsession with shower gels. I often wonder why the large bath care chains don’t send more direct mail pieces that highlight their newest scents. Think about it… emailing me about new fragrance has undertones of cinnamon and vanilla is a start, but even with that description, I still won’t know if I’ll truly enjoy the scent. If you send me a postcard that smells like the real thing, I’ll be able to tell in about five seconds if it’s something I’m interested in purchasing…and all the better if I can order said product online and have it delivered to my home!

The Bottom Line

With so many improvements to digital print technology over the past few years, marketers of printed communications are limited only by their imaginations as they seek ways to make their direct mail stand out. In today’s electronic age, we’re overloaded with images from computer screens and smartphones. This level of distraction means that we’re not always paying attention to what’s in front of us, but special effects in print can capture our attention. Tactile elements like textures, foiling, or scents are different and unexpected, and this can make people more likely to engage with the messaging. Competition is fierce, but the good news is that brand owners can create printed pieces that surprise recipients with unexpected elements and truly stand out as a result.

Eve Padula is a Senior Consulting Editor for Keypoint Intelligence’s Production Services with a focus on Business Development Strategies, Customer Communications, and Wide Format. She is responsible for creating many types of content, including forecasts, industry analyses, and research/multi-client studies. She also manages the writing, editing, and distribution cycles for many types of deliverables.


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Direct Mail Testing Guide

Direct Mail Testing Guide

by Erik Koenig

David Ogilvy, the Father of Advertising, once said, “Never stop testing, and your advertising will never stop improving.”

Testing to optimize the effectiveness of your marketing efforts is a no-brainer. Yet, with so many elements to investigate, testing strategies to consider, and methods to measure performance, knowing where to begin can be a brainteaser. With the right guidance, you can build a sustainable testing program to discover your best audience, learn what motivates them, and refine your campaigns. The right strategy will allow you to maximize your testing budget and your program profitability. Here is how to get started.

Determining What to Test

Direct mail testing does not have to be complicated to be effective. However, it should be calculated and systematic. This takes planning and commitment.

Start by devising your testing ground rules. How often will you test? At what volumes? What is an appropriate test versus control ratio? How often will you test incrementally versus swinging for the fences? (Hint: you should do both.) Each of these depends on the maturity of the channel and how control performance is achieving the KPIs. Set these parameters and stick to them.

From there, identify the order of importance (potential impact) of your testing categories: list, offer, creative, and digital integration are the primary variables in direct mail and are typically tested in that order.

Take inventory of what has worked in the past, as well as what failed. Review competitive samples through a tool like Competiscan or Mintel’s Comperemedia.

Then, use this information to develop a testing roadmap to outline and prioritize test opportunities within each category, complete with a test rationale, hypothesis, and performance projection.

Generally speaking, your mailing list(s) has the biggest impact on campaign performance (optimization and scale), therefore, it should be prioritized and account for the majority of your testing. Testing new data sources, new modeling approaches, different customer segmentation, and more are sure fire ways to move the needle.

Also examine how you can integrate additional direct marketing channels, such as digital or CTV, with your direct mail to boost campaign performance. Scrutinize the creative package for enhancement opportunities, paying close attention to the offer, CTA, format, images, colors, and fonts. It is also important to consider the timing and cadence of your prospecting and retargeting campaigns, such as frequency, seasonality, and delivery day. All these variables can impact response rate, conversion rate, purchase value, customer lifetime value, and overall program ROI.

Testing Strategies for Direct Mail

With your testing roadmap in place, it is time to devise your direct mail testing strategy (design). The two most common designs are A/B and multivariate.

In A/B testing, you are testing two versions of one element (e.g., creative), with one single variance between them, such as the offer or personalization. Although an affordable testing option, A/B can be a timely approach to determining the best performing combination of list, offer and creative. This testing strategy works best for mature campaigns where the current performance is acceptable.

Multivariate direct mail testing allows you to test multiple components of your program at a time. This strategy accelerates the process but may also dilute the benefit, as tests are often conducted in small sets due to available budgets. New mailers who are working to quickly identify a control or those looking to achieve a step-change improvement benefit most from this strategy — provided they can afford the lofty price tag.

Recognizing a gap in the two approaches, some agencies offer proprietary testing strategies that aim to deliver multivariate test results but at a fraction of the cost. By isolating test elements and leveraging indexing, direct marketers can identify the variables that have the greatest relative impact on campaign performance to accurately identify a control combination — whether or not that particular combination was tested. This strategy is attractive to brands who are new to the channel, and to those who are looking to improve the performance of existing programs – even if they have more modest budgets.

Measuring your Direct Mail Test Results

The end goal of a direct mail test is knowledge, not profit. Regardless of the outcome, there are no wasted results. You will learn what works and what does not — and you should never have to spend precious budget to test non-performing data sets or combinations again.

Your overall test objective (i.e., lower cost-per-acquisition or improve ROAS) should not only drive which tests you prioritize, but also determine how you will measure and analyze your results. Rather than obsess over response rates or sales rates, we recommend you focus on striking the perfect balance between cost-per-acquisition and lifetime value. After all, one should inform the other.

To easily track your investment, certainly include directly attributable elements on your mail piece, such as a unique URL or promo code. But don’t stop there, be sure you pair those results with a matchback analysis comparing your sales file to the mail file for a comprehensive view of campaign performance and attribution reporting.

Take caution against making snap judgments based on directly attributable performance alone. Allow ample time to perform your matchback analysis. Due to its longevity, a direct mail read period often lasts 60 to 90 days. Performing a backtest to validate initial test winners can help bring statistical validity to your results. Finally, let the data inform your future campaign strategy, despite what your gut says. Log the results on your test roadmap – and keep testing!

Adopting a Results Mindset

Consumer behavior and preferences are ever evolving, and the direct mail industry is no different as marketers eagerly search for new ways to increase engagement and loyalty. The key to a sustainable and profitable direct mail program is commitment to a regular testing schedule and adopting a results mindset. Even if your current direct mail campaigns are successful, remember the words of David Ogilvy: continue to refine the elements that make your campaigns great and always watch for opportunities to improve.

POSTCARDS MAKE GREAT DIRECT MAIL

By Summer Gould

Postcards Make Great Direct Mail

Why do I love postcards? They are really versatile and allow you to grab attention quickly. There are also many sizes to choose from. Best of all they are cost effective. Color images and headlines are really important to postcards. They make your piece unique and help convey your message.

When do postcards work best?

  1. Sending to Consumers – Consumers like to get postcards. On the other hand, businesses tend to sift through mail before it gets to the designated person so many times postcards are tossed before they are ever seen.
  2. You have great images – Images drive attention and response, so if you don’t have good ones to use, skip doing a postcard.
  3. Coupons – When you have a postcard with a coupon, it is easy for people to see and keep to use.
  4. Coatings – You can use fun coatings to give special texture to your images or message. Remember that the sense of touch is enormously impactful with direct mail.

There is no one best format, as a matter of fact the more unique the format the more engaged your prospects and customers will be. Think beyond the standard layouts. As with any type of direct mail there are some pitfalls you need to keep an eye out for such as:

  • Size – The maximum letter size is 6.125 x 11.5. This gives you tons of room for your design and message. If you want to mail at first class postcard rate, your maximum size is 4.25 x 6.
  • Paper stock – You will need to use at least 90# cover weight stock to meet mailing requirements, but in many cases you want to use something thicker in order to prevent tearing during processing.
  • Aspect ratio – When selecting your final size you need the length divided by the height to be between 1.3 and 2.5. Anything less or more will be a problem.
  • Scuffing – Many times when postcards are printed digitally they scuff in the postal sorting machines. You can prevent this by adding a coating after printing.
  • Addressing – There are requirements on postcards for where the address can go, and when you are barcoding you need to make sure you also have room for that. There are two locations where you can put the barcode. First you can place it with the address block which needs to be a minimum of 5/8 from the bottom of the card and 1/2 from the right. The second place you can put the barcode is in the barcode clear zone. This is located on the bottom 5/8 of the right side of the card. This needs to be clear of any print items so that the post office can read the barcode.

There are so many creative things to do with postcards that just don’t work for envelopes. Test out some new ideas and see what your prospects and customers think. Be unique. You can really take your postcards to the next level with coatings and foil. You might want to consider holographic foil to get a rainbow look on an image, text or logo.
You can also do a soft touch, people love the feel! There are fun ways to grab attention on a postcard that people do not see every day. Not all of them will fall in your budget, but if you take time to research options you will find something that you can afford and helps increase your ROI. Are you ready to get creative?

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