Q2, 2015

In-depth direct

marketing expertise

The RR Donnelley Playbook is a quarterly

communication targeted to direct marketers

seeking insight into the most successful direct

mail trends and techniques designed to

increase ROI. Each issue reveals several of the

latest Power Plays that we've identified as

having produced notable results for direct

marketers.

As a direct marketer, you most likely run across

countless articles filled with tips and tricks

telling you how to be more successful. In this

Playbook, we’ve taken the knowledge that

we’ve acquired from investigating industry

sources and trade publications, and combined

them with our own insights from many years of

industry experience. Our goal is to provide you

with the most current and successful direct

mail techniques in the form of success stories

we call Power Plays, to help shorten and

smooth your path to success.

Targeted Segmentation #Q2151 / p. 1-2Notestick Personal Touch #Q2152 / p. 3-4Inline Variable Print Solution #Q2153 / p. 5-6Variable Data Maps #Q2154 / p. 7-8Conclusion / p. 9

Targeted Segmentation #Q2151

/ 1

Today’s marketers have a common goal – to

uncover those consumers most likely to respond to

their specific offer. To reach market-savvy

consumers, you need to be out there with the right

message, in the right media, and at the right time.

One of the tools that RR Donnelley uses to help

marketers find and reach out to their most profitable

customers with precision is Nielsen PRIZM®

marketing segmentation system. This versatile tool

utilizes 66 PRIZM segments that provide greater

targeting precision and can be used to answer

these key questions:

• Who are my customers?

• What are they like?

• What do they buy?

• Where can I find them?

• How can I reach them?

RR Donnelley helped a large retailer achieve

aggressive growth goals by developing targeted

direct mail programs using proven data segmentation

strategies in combination with the PRIZM system.

Confidential Between RR Donnelley and the Intended Recipient

Results

// Targeted Segmentation #Q2151 / 2

A prominent furniture retailer with 90 stores and

over 1.5 million customers saw a significant

improvement in sales when they collaborated

with RR Donnelley to develop targeted direct

mail programs involving data segmentation

strategies.

The results were twofold. They saw a 2%

increase in store purchases across all programs

mailed. In addition, the micro-targeted direct

mail campaigns achieved through PRIZM

marketing segmentation strategies created a

connected experience with customers that

increased engagement and drove brand loyalty.

The retailer is currently collecting 45,000

purchase records per month for their database.

Over 29,000 of those are from new customers!

Every record collected allows for increased

targeting precision in the future campaign

driving results even further.

Confidential Between RR Donnelley and the Intended Recipient

Notestick Personal Touch #Q2152

/ 3

Are you looking for a simple, yet compelling directmail format that will capture your audience’sattention from the very start? If so, a notestickadded to the outer envelope with a personalizedmessage may be the solution.

The removable notes can be mailed on postcards,envelopes, flats, catalogs and magazines to adda personal touch that highlights importantinformation or special targeted offers. They areeasily removed to can keep the information handy.

The USPS allows marketers to attach a 3” x 3”repositionable note to the outside of a mailingenvelope at no additional postage cost. Whenapplied properly, in accordance with USPSregulations, it can be mailed at automation rates.

RR Donnelley was one of the first to be approvedby the USPS to produce and apply these notes.This feature has helped improve results forcustomers in a variety of vertical segments.

Confidential Between RR Donnelley and the Intended Recipient

Results

// Notestick Personal Touch #Q2152 / 4

A large nonprofit customer was mailing a simplelettershop kit, and was beginning to see a fall offin response rates. They were looking for a newapproach to their Annual Appeal campaign thatwould improve response and increase donations.

RR Donnelley strategists suggested the followingtweaks to help increase openings and response:

• Produce the mailer inline with a closed-face outer

• Increase the amount of imaging throughout for a morepersonal appeal

• Add a 3” x 3” personalized note to the outer

• Add a faux printed note to the outer as a test against the actual note

The real note on the outer was the clear winnerwith a 20% lift in response over the lettershop kit.It also beat the faux note by a 15% margin. A highlypersonalized, closed-face outer mailpiece with arepositionable note is now the control for thisnonprofit marketer. They continue to testmessaging on the note to further enhance results.

Confidential Between RR Donnelley and the Intended Recipient

Inline Variable Print Solution #Q2153

/ 5

Use lettershop production or inline production?

Many marketers are asking themselves this

question when it comes to producing their

medium to long run direct mail print

communications. There is a place for both.

However, if you are one of the marketers taking

advantage of ‘big data’ to create highly targeted

campaigns for a true one-to-one experience,

I suggest that you consider inline production.

Take it a step further and produce your mailings

inline with 100% variable 4-color print. You can

reduce production and management costs

associated with conventionally produced static

print runs with:

• Fewer start-ups and plate changes

• Less component sourcing and trafficking

• Reduced postage and fewer mail strings

Confidential Between RR Donnelley and the Intended Recipient

Results

// Inline Variable Print Solution #Q2153 / 6

RR Donnelley has the flexibility to provide you

with either inline or lettershop production. And

we have the expertise to guide you to the right

solution. We recently engaged with a Managed

Care organization to find a more efficient

alternative to their Age-In program that was

being produced as a conventional lettershop kit

in multiple versions.

An inline single format solution was developed

utilizing RR Donnelley’s ProteusJetSM Multiweb

variable inkjet imaging technology. The client

was able to reduce production costs by over

30% and cycle time by 14 days. They also saw

6-figure annual postage savings through postal

optimization. Finally, they could now fulfill their

vision of delivering highly relevant messaging by

fully leveraging their database. Communicating

with their audience in a meaningful way is

extremely important in today’s highly

competitive managed care market.

Confidential Between RR Donnelley and the Intended Recipient

Variable Data Maps #Q2154

/ 7

In this day of GPS devices that provide

directions to just about anywhere you need to go,

who needs a map? The answer is, we all need

maps – more than ever. The phenomenon of web

enabled mapping has left many people

completely dependent on a map to find locations

such as retail stores, meeting venues,

restaurants and offices.

Printed maps used in direct mail have been

shown to improve response in a variety of ways.

Although printed maps cannot provide audio

turn-by-turn directions, they can provide printed

instruction and show a quick at-a-glance picture

of your location and how best to get there.

There are several styles of variable printed maps

available depending on what you are trying to

achieve. Pick from simple single (or multiple)

point store locator maps or more detailed route

maps showing how to get from point A to point B.

Confidential Between RR Donnelley and the Intended Recipient

Results

// Variable Data Maps #Q2154 / 8

A nonprofit organization has recently achievedastounding success using locator maps printed onpostcards to help build attendance at educationalevents held for members.

Prior to adding maps to their mailings, eventattendance was below what they anticipated. Theytested variable data maps supplied by locr® mapsand printed at RR Donnelley with our patentedProteusJetSM imaging technology. Maps indicatedthe event location closest to the individual’s home.Attendance skyrocketed and the postcard with amap is now their control. They experienced anincredible 75% increase in response and15% increase in event attendance.

The combination of adding variable maps alongwith vastly improved targeting of the mailing listsdrove huge response. The high attendance levelsprompted them to develop a demand model formanaging responses and locations. In highdemand areas they are now providing a map withseveral different event location options within apredetermined radius around the member’s home.

Confidential Between RR Donnelley and the Intended Recipient

We hope we have presented a few helpful

techniques that you can implement in your next

direct mail campaign to increase openings and

response.

Although each of the Power Play techniques

have been tested and approved by numerous

marketers, you should be diligent about testing

new concepts like these to confirm they deliver

the added openings and response you seek.

The key to maximizing results is to continue to

test into new and better lists, offers, formats

and messaging to create the most relevant

communications targeted to the individual.

Remember, be relevantand whatever you do,never stop testing!

In today’s world, that means becoming

comfortable with data analytics and CRM

initiatives as well as integrating direct mail

with multichannel marketing. These critical

elements have been embedded within many of

the Power Plays presented here.

/ 9

For more Power Play information, contact your RR Donnelley account representative

or call 800-722-9001. Our website is available at www.rrdonnelley.com.

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