Whistl Direct Mail Whitepaper

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 >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12

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