Direct Mail: An essential tool in your marketing strategy

Direct Mail: Still a viable tool in your marketing strategy

August 1, 2013

Steve KrejcikDirector of Strategic Technical Business DevelopmentPitney Bowes Presort Services, Inc.

Christine J. ErnaSenior Consultant

Enterprise Postal ConsultingPitney Bowes Management Services

Introductions

Christine J. ErnaSix Sigma GreenbeltSenior ConsultantEnterprise Postal Consulting

Christine J. Erna is a Senior Consultant with Pitney Bowes’ Enterprise Postal Consulting team. She brings more than 25 years of experience in direct mail marketing, design, analysis, and training - including 18 years with the United States Postal Service as a mailpiece design analyst and educator. She combines extensive knowledge of postal rates, USPS regulations and technology with Six Sigma process improvement strategies to help client analyze and improve their end-to-end mailing processes.

Steve Krejcik Director of Strategic Technical

Business Development Pitney Bowes Presort Services

Steve is the Director of Strategic Technical Business Development for Pitney Bowes Presort Services. He has over 24 years in the mailing industry developing and marketing presort software. Steve has lead several MTAC groups including The Implementation of Intelligent Mail and PostalOne! Users Group. He is on the Board of Directors and First Vice President for the National Association of Presort Mailers (NAPM), and a member of the Board of Directors for the Association for Mail Electronic Enhancement (AMEE).

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AGENDA

Integrating Direct Mail and Email: The perfect pair Mobile Barcodes and new upcoming technologies Direct Mail ROI - today and tomorrow Getting the most out of your IMb data Summary Q&A

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AGENDA


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Objective / Integration

Channel Delivery

The blending of different communications and delivery channels that are usually reinforcing in attracting, retaining, and building relationships with customers.

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Combine email marketing and direct mail for maximum effect.

Over 82% of companies are using integrated direct marketing, deploying traditional offline media such as direct mail with online media such as email, according to the Direct Marketing Association (DMA).

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Integrate email marketing and direct mail for maximum effect.

The reason is clear. Studies have shown that using direct mail and email in integrated campaigns creates synergies that boost response over using either medium alone. One Marketing Sherpa study showed that using email with direct mail increased response by nearly 30% over direct mail alone.

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Integrate email marketing and direct mail for maximum effect.

So while direct mail is still a powerful direct marketing tactic, it works even better when integrated with email, which has the highest return on investment (ROI) of any direct marketing technique according to the DMA, and is by far the most effective technique to engage prospects according to Silverpop.

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AGENDA

Integrating Direct Mail and Email: The perfect pair New upcoming technologies and Mobile Barcodes Direct Mail ROI - today and tomorrow Getting the most out of your IMb data Summary Q&A

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USPS technology incentives with postage discountsEmerging Technologies Promotion

This promotion is designed to build on the goals of past mobile barcode promotions and to continue to promote awareness of how innovative technology, such as Near-Field Communication, Augmented Reality can be integrated with a direct mail strategy to enhance the value of direct mail.

The mailpiece must meet the requirements for at least one of the two following scenarios:

1. Near-Field Communication (NFC) Component: The physical mailpiece must contain a NFC smart tag or RFID chip that allows information to be transmitted from the mailpiece to a mobile device. For example, the smart tag could upload a mobile coupon to a mobile wallet when scanned by a mobile device.

2. Augmented Reality Component: The physical mailpiece must contain print that allows the user to engage in an augmented reality experience that is facilitated by a mobile device or computer. The augmented reality

experience must have the following characteristics: it combines real and virtual, it is interactive in real time, and it is registered in 3-D.

3. Authentication Component: The physical mailpiece must integrate the attributes of physical mail, including delivery to a physical address, with mobile technology, and the user must be able to complete authentication processes for customers, potential customers, and/or mail recipients that meet their needs. Mailers must get prior approval for their proposed authentication uses from the USPS program office to be eligible for this discount.

The Emerging Technologies Promotion discount is 2% of eligible postage.

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Other new and upcoming technologies for direct mail

Augmented reality (AR), which overlays text, images, or video over physical objects, is one of those technologies that gets marketers really excited.

If you send an Augmented Reality enhanced direct mail promotional campaign between August 1, 2013 and September 30, 2013 you can take advantage of special postage discounts. It’s true! Retailers and marketers can save 2% on postage when they use Augmented Reality campaigns to enhance their direct mail print content.

https://ribbs.usps.gov/mobilebarcode/general.htm

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Near Field Communication (NFC): Near field communication creates a two-way communication link between 2 devices with Radio-Frequency Identification (RFID) capabilities.

Instead of scanning a barcode with your phone you wave your phone in front of NFC printed tags or stickers. People will be looking for these just like they do QR codes today, only much more fun.

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NFC tags and stickers are programmable like a flash drive is. They are also reprogrammable or lockable. With NFC tags, stickers and paper you can do things like:

Change the phone settings Ringer volume Turn Bluetooth on/off Turn Wi-Fi on/off Set an alarm Join a Wi-Fi network

Launch an application Display a message Send a text Open a web-page Show an address or location Social Media, foursquare,

Facebook, twitter and more

Mobile Barcodes: More than just QR technology

Program Description: The 2013 Mobile Buy-It-Now Promotion provides business mailers with an upfront two percent postage discount on Standard Mail® and First-Class Mail® letters, flats and cards (presort and automation) that include a two-dimensional (2-D) barcode or print/mobile technology that can be read or scanned by a mobile device. The technology must directly lead the recipient to a mobile optimized webpage that allows the recipient to purchase an advertised product through a financial transaction on the mobile device. November 1, 2013 – December 31, 2013

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2013 MOBILE BUY-IT-NOW PROMOTION

Mobile Barcodes: More than just QR technology

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IMb Solution for USPS Promotions

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SnapTags

SnapTags are 100% Branded

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MS Tags

Here is an example of a digital watermark.

Picture Permit Promotion:

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Picture Permit provides commercial mailers the creativity and flexibility to customize the permit indicia space of a First-Class or a Standard mailpiece by adding a business-related image such as a company logo, trademark or brand (color images only).

Mailers who have an approved Picture Permit Indicia will be eligible to participate in the promotion, which runs from Aug. 1 through Sept. 30. During this period product fees will be waived for mailers with an approved Picture Permit Indicia.

The Promotion eliminates the fees which are 1 cent per piece for First-Class Mail automation letters and postcards and 2 cents per piece for Standard Mail.

Template available from USPS RIBBS website

Picture Permit Promotion:

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BenefitsBoost mailpiece visibility, value, and open rateRaise brand awarenessEnhance your mailpiece by making use of prime “real estate” in indicia areaPromote company products and services

RequirementsLogos, brand images, or trademarksColor images onlyFull-Service Intelligent Mail® barcodeNominal per piece fee in addition to postageApplication, design approval, and sampling in advance

The Full-Service IMb is required for Picture Permit mailings

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AGENDA


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ROI from Direct Mail today and tomorrow

Promoting business using the right message to the right person through the right channel

Engage customers through print, electronic, mobile pages and social media

Customizable mobile sites for smartphone and tablet user interaction

Data Intelligence Print & Mail Email Traditional MediaChannels

Solutions

Personalize materials with QR Codes

See where and when your customers interact with your mobile site

Track and measure engagement

Channel/Solution Integration

e-Media Digital MailboxQR Codes Mobile Solutions

Prospect Experience

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“If you can’t measure it, you can’t manage it.” Peter Drucker

Right Person + Right Message + Right Time = ROI

The first and most important step in calculating your direct mail ROI is to set up some method of tracking responses to your campaign

Data Intelligence Print & Mail e-Media

Promoting business using the right message to the right person through the right channel

Engage customers through print, electronic, mobile pages and social media

Customizable mobile sites for smartphone and tablet user interaction

See where and when your customers interact with your mobile site

Track and measure engagement

Multi-Channel Marketing

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ROI: Summary of DM-Driven Sales Per $1 of DM Advertising

Return by Medium 2004 2008 2009 2010 2014Direct Mail $12.33 $12.55 $12.53 $12.57 $12.61 Direct Mail (Non-Catalog)

$15.59 $15.52 $15.22 $15.28 $15.48

Direct Mail (Catalog)

$7.06 $7.28 $7.32 $7.34 $7.27

According to the Direct Marketing Association (DMA), in 2010 every dollar spent on direct marketing advertising resulted in $12.57 in direct marketing-driven sales, on average.

Source: The Direct Marketing Association (DMA), The Power of Direct Marketing, 2009-2010

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AGENDA


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Accurately identify in-home dates at the record level

Coordinate additional touch points such as email or mobile messaging around in-home dates

Analyze response times based upon in-home dates

Confirm that mail reached it’s intended targets

Compare and trend delivery times for different classes of mail

Use IMb Tracing™ as a tool to more effectively evaluate test results

IMb Tracing™

Uses the IMb on the mailpiece to track an individual piece of mail through the postal system.

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IMb Tracing™

Knowledge = Efficiency

Visibility sending out or receiving

Benefits Plan for timely delivery Understand regional differences Meet timing objectives Anticipate response needs Map out cash flow Schedule staff Better customer service (anticipating payments)

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AGENDA


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Take Aways…….

Utilize Multichannel Marketing to improve your customer connections

Take advantage of USPS Promotions

Test, track and improve your Direct Mail ROI

Utilize all the benefits of the IMb

Summary

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Q&A Session