Direct marketing goes digital

It’s direct mail – but not as we knew it. Steve Hart reports on the latest direct mail marketing initiatives, and the integration of mail with the digital world.
We all understand the value of building that all-important one-to-one relationship with customers. But making that connection can be time consuming and a bit hit and miss – unless you have professional help.
This is where direct mail organisations come in. Not only do they have access to reams of data about your potential customers, they can offer a range of creative ways to connect with them. These can include personalised colour brochures that promote web-based marketing campaigns as the worlds of print and digital combine.
“What we are seeing right now is an evolution of communication,” says Brenden Rolston, managing director at Actionmail. “We are identifying that electronic communication is getting more powerful every day. Traditional mail is on the decline – there is no doubt about that. But as the amount of mail is declining, so it becomes more of a premium product, it becomes more valuable.
“For example, years ago you’d get quite a lot of mail in your letterbox. But today there is not as much in there – so when you do get some it gets five times more attention than it used to get.”
Rolston says the personal touch can make all the difference when it comes to connecting with a customer and help deliver that all-important ‘call to action’ businesses need to generate revenue and a good return on investment.
Fiona Woolley, market engagement manager at NZ Post says mail is a “fantastic medium to engage with customers”.
“It’s relevant, personal, tangible and non-interruptive,” she says. “Mail not only allows for creativity to run wild, it can be an invaluable component of a successful marketing campaign – especially in these post-recessionary times when you need to see cost-effective, measurable results from every dollar. It can be an essential tool for acquiring new customers and retaining and building a relationship with those you already have.
“Direct marketing specialists are also finding innovative ways to take direct mail in new directions, particularly integrating with the digital world. At New Zealand Post we’re meeting our customers’ changing needs by offering digital communications solutions that dovetail with our traditional products and services.”
Among NZ Posts’ offerings is a web-based program customers can use to log in, design and send a personalised card to customers.
“Businesses and consumers can design, personalise and send a postcard or greeting card from the web or by iPhone,” she says.

Strategic approach

Deidre Ross, managing director of the Mailshop says the days of the scatter gun approach to direct marketing are long gone as firms take a far more strategic approach to their campaigns.
“We are seeing that data is being used strategically to target specific audiences,” she says. “Ultimately, the message has to be relevant to the consumer for it to be of interest.”
Among the trends she has seen include the increased use of colour and a move away from the standard sales letter.
“Creative personal communications in full digital colour is starting to take over the traditional letter printed on a letterhead,” says Ross. “An example is Xerox’s XMPie. This software uses clever fonts to create images that are relevant to the consumer; this can include things such as your name in a cloud graphic.
“The use of personal data and printing colour technology has been proven in increasing the return on investment compared with the traditional approach. Along with targeted mail, clever data analysis will give businesses the cut through they require.”
An example of smart data analysis, says Ross, includes knowing, for example, that the people living at a particular address drink red wine, or that there are two adults living there.
“The more demographic information the better, collecting data is critical,” she says.
Woolley says she couldn’t agree more, citing that one of the easiest ways SMEs can boost efficiency in a direct mail campaign is to ensure they’re being as accurate as possible with their targeting.
“Companies should keep their own mailing lists up to date and consistent,” she says. “It’s been said that around 60 percent of a direct mail campaign’s success depends on accurate data, so every list should be checked for things such as changes of address, name double-ups and people who have requested not to receive direct mail.”
Post-campaign measurement is essential too, says Woolley. She recommends that SMEs, not-for-profits and corporates alike should analyse responses to their campaigns to see what worked and what didn’t, and then “make adjustments for next time to ensure every piece of mail hits its target”.
No matter what the marketing exercise, getting value for money is essential. To do this Ross advises clients use plastic wrap on self-mailers, instead of overprinting envelopes, and have a thorough knowledge of New Zealand postal requirements when sending bulk lodgements.
Ensuring each letter is delivered is often overlooked by some firms, says Ross. Apart from having all mail correctly addressed – so it gets an approved Statement of Accuracy – mail should not include people on the ‘do not mail’ list managed by the New Zealand Marketing Association or the Death Index Database.
“You have to make sure every dollar spent is put to good use by not sending mail to non-respondents,” she says.

“We see direct mail as a tool to get people online and engage in a dialogue with customers. It is so powerful, more powerful than ever before. We are getting huge response rates.”
He says rates are up from the typical three plus percent response rate of a standard mail campaign to 40 percent for a marketing campaign that combines mail and a personalised website.
“What business owners also need to consider is that a customer who makes a purchase based on a marketing campaign should be a customer for the business for the next three years,” he says. “So it isn’t a case of spending money on marketing to achieve just one sale – it can be the start of an ongoing relationship or the cementing of an existing one.”
Rolston says companies without a customer database needn’t worry because direct mail firms such as his will more than likely have access to lists of people who fit the firm’s target market. He also says direct mail campaigns can be launched for little more than $5000 – although the sky is the limit.

Bright future

Overall, says Woolley, the future is looking good for the direct marketing industry.
“Bringing together digital and direct mail is an immensely important part of the business,” she says. “Most recently we launched iTRY, a digital-to-mail sampling solution that offers companies an easy way to get their products and services into the hands of consumers to try.
“Advertisers simply include an offer within their marketing communication that invites consumers to text a customised keyword. A free sample or offer is then delivered to the consumer in custom-branded packaging, along with product information and further offers if desired.”
One possible downside of the direct mail industry is it its use of dead tree technology. Is it sustainable?
“A company’s green credentials are more important than ever,” says Woolley. “It’s possible to be an extremely sustainable direct marketer. This could be down to the use of sustainable materials, both paper and inks, and biodegradable material.”
Woolley was impressed with a biodegradable pen that, once the customer had signed a form with it, could be planted in soil where it would grow into a flower.
Woolley also recommends the inclusion of recycling advice on direct mail packs, and making sure to reduce unwanted communications through intelligent use of data and targeting.
“Tighter targeting means less wasted resource,” she says.
Steve Hart is an Auckland based writer and editor. Email [email protected]