Personalization, Omnichannel Drive 2020 Direct Mail

Direct mail marketers embrace a channel that, despite perennial death notices, continues to outperform in terms of response, but mailers need to rely on evolving strategies for success in 2020. Research consistently shows that personalization bumps up response. Most recently, in a 2019 NAPCO Research report on direct mail personalization, 44% of respondents saw personalized print marketing campaigns increase response by 16% on average, while Canon Solutions research found that adding a person’s name and other personalized database information can increase the response rate of direct mail campaigns by up to 500%! So it's no wonder that the recent Printing Impressions article by senior editor Toni McQuilken finds a number of leading marketing and print industry leaders stressing that data-driven personalization is the route to 2020 direct mail success. For example, Maureen Powers, president, Direct Marketing Group at RR Donnelley, asserts, "Personalization is more important than ever before, including with direct mail...We are using the direct mail channel to drive the customer experience through communications such as coupons and personalized offers. We’re also changing how we help our clients message their clients based on individual customer preferences and their point in the customer journey." Likewise, Jim Andersen, executive chairman of IWCO Direct, stresses the shift toward variable data printing of smaller runs of targeted, personalized direct mail with digital tie-ins: “Today’s direct mail is more effective, relevant, and timely thanks to more sophisticated audience selection and segmentation. This technology uses digital print to personalize every component of a mail piece, including letters, inserts, cards, and call-to-action reply devices that connect the physical mail to an online, digital marketing experience." For Andersen, mail personalization must be part of the omnichannel approach that customers demand today: "One of the biggest opportunities in the direct mail space is providing effective and efficient solutions to consumer demand for personalized, relevant messaging integrated across all channels. Insightful use of data, combined with the flexibility of digital print production, allows marketers to seamlessly integrate tactile marketing in their omnichannel campaigns." Summer Gould, of Target Marketing magazine, has cited three already-proven ways to combine mail and digital: 1) online display ads that match direct mail data files to an IP address to target specific people by displaying cookie-free banner ads on web pages; 2) Facebook ads that match direct mail data with Facebook data to send targeted ads; and 3) e-mail matched with direct mail audience targeting to keep offers fresh, deliver response reminders and make added special offers. These trends to more personalization and omnichannel integration rely on quality marketing data for segmentation and targeting, of course. For links to AccuList Digital2Direct programs combining mail with e-mail and Facebook, as well as data-quality strategy advice, see https://www.acculist.com/personalization-omnichannel-strategies-drive-2020-direct-mail/

Brain Science, Industry Data Boost Mail Fundraising

As digital channels expand donor influence, some nonprofit marketers may wonder about direct mail's role as a fundraising workhorse. Both neuroscience and marketing data underscore why it's essential to keep mail in harness. Technology may be changing rapidly, but the human brain hasn’t changed in about 500,000+ years, and mail marketers have a brain advantage, notes a recent NonProfit PRO article by Christopher Foster, vice president of business development at Modern Postcard. Neuroscience has found direct mail taps two basic parts of the brain: the cerebral cortex and the amygdala-hippocampus pairing. The cerebral cortex is where we process information and weigh the pros and cons of decisions. Unlike truncated digital messaging, direct mail can engage this part of the brain by describing benefits and citing objective reasons for donor dollars. Plus, research consistently shows people trust print/direct mail information more than digital info. Of course, recall and emotion are key drivers, and the amygdala and hippocampus, combining long-term memory with emotional response, favor direct mail over digital, too. In fact, research shows direct mail is 35% stronger than social media and 49% stronger than e-mail when it comes to long-term memory encoding, and 33% stronger than e-mail and social media in engagement. Next consider recent marketing data. The Data & Marketing Association (DMA) 2018 direct mail response rates were 9% for a house list and 5% for a prospect list, way higher than any other channels (such as e-mail, social media and paid search at 1%). As a result, mail's median ROI is also higher than most digital channels. Direct mail, of course, works even better integrated into an omnichannel campaign, where it actually spurs digital results; for example, studies show donors are three times more likely to give online in response to a direct mail appeal than to an e-appeal. Plus, direct mail drives donor retention; 70% of donors have restarted a relationship because of direct mail, per DMA data. And direct mail is efficient at retention; the Association of Fundraising Professionals reports direct mail costs $0.25 for every $1 from recurring donors. However, direct mail's fundraising success is certainly not a given. Another NonProfit PRO article by Jen Linck, chief marketing officer for Corporate Giving Connection, cites some basic strategies: list segmentation and targeting to avoid sending costly mail to bad leads; creative that captures attention and spurs opens, such as dimensional mail or large-sized envelopes; and the inclusion of added value, say via special offers or promotional gifts. Finally, since direct mail works best when it is integrated into an omnichannel campaign, incorporate digital technology with QR codes, short links or text keywords for use across channels. Plus, link donors to a branded, campaign-specific landing page, since 38% more donations happen with branded, campaign-specific landing pages. For more, see our blog post at https://www.acculist.com/brain-science-industry-data-bolster-direct-mail-fundraising/

Tech Creates New Breed of Interactive Mail

To help boost direct mailer use of emerging technologies, the U.S. Postal Service offered postage discounts this summer for use of interactive mail tools such as QR codes, Augmented Reality (AR), Virtual Reality (VR), Near Field Communications (NFC), and Video in Print. But taking a new technology from gimmick to ROI booster requires inspiration even more than discounts. So here are some success stories courtesy of the USPS, too. Among the USPS-cited case studies of mobile- or tablet-scanned QR and AR codes is this example of how QR codes proved their value for organized sports marketing. Sports event managers created more than 50 unique codes for signage, publications and e-tickets to provide information, social media sharing, and mobile store access, and succeeded in getting QR-code users to scan event material an average of 1.6 times, and increased downloads of the official app to 15 million. Meanwhile, AR proved its traffic-building value for a furniture retailer's mailed yearly catalog; recipients used the app to superimpose pieces of furniture onto a real-time 360°/180° view of their homes, resulting in both more app and website visits by customers for the retailer. Apps can achieve other retail marketing goals besides traffic and sales, of course. The USPS cites a beauty company's print ad AR that allowed digital trials of nail polish, with the goals of preventing product returns and improving future stocking decisions and color choices. Over 10% of users scanned the ad with their smartphones or tablets to try on 40 different nail polish colors. Near Field Communications (NFC) relies on chips and radio waves to communicate with smartphones and has the advantage of instant access. The USPS notes a movie premiere's NFC-enabled posters that encouraged users to tap an image with their smartphones to access behind-the-scenes footage, and an Uber campaign in England with NFC-enabled coasters in pubs, right on the table with the smartphones--and the drinks inspiring ride requests. Video-in-Print (VIP) uses a video device included in a mailer or print ad and can work well for targeting high-value customers. For example, an auto company promoting a new truck used publisher data to select 20,000 readers who fit the target truck owner profile and sent them a VIP magazine insert. Mobile-in-Print also creates immediate interaction by placing mobile call or text capabilities in print media. Consider the case of a multinational auto insurance company plagued by complaints about help line delays: The insurer sent out mobile-in-print mailers that prompted customers to use the keypad embedded on the page to enter their mobile telephone number and license plate information to receive instant insurance quotes on their mobile devices. For more, see https://www.acculist.com/emerging-technologies-create-new-breed-of-interactive-mail/

Smart Direct Mailers Embrace These Tech Trends

Direct mail marketers looking for success in 2018 should check out a blog post by Postalytics, a direct mail automation tool, which recently mined expert sources for the most influential direct mail trends of 2018, including key technologies. Unsurprisingly, automation purveyor Postalytics puts mail automation software at the top of the list, but they get plenty of industry support. Automation allows marketers to quickly generate high-quality, personalized and trackable letters and postcards by leveraging templates, digital cues and automated workflows, cutting direct mail production cycles from 4-6 weeks down to 1 week. Automation also allows marketers to maximize response by integrating triggered direct mail into any step in the buyer's journey, online or offline, so that mail delivery taps into the appropriate timing, content and call-to-action. Then interactive, mobile-scanned Augmented Reality apps and QR codes, as well as personal urls (PURLs) linked to targeted content-specific landing pages, allow direct mailers to connect offline marketing's printed paper with online marketing's digital pages, images, animations and videos for greater overall campaign response and ROI. But it takes quality, enhanced data to match the right message to the right people at the right time. Good mailing list data allows for targeting based on shopping habits and needs, retargeting and cross-selling, recapturing and reactivating of lost prospects and customers, leveraging of trigger events and personal preferences, and more--provided there is a commitment to database hygiene and processing. Good mailing data also allows for the sophisticated content personalization that has become a basic expectation of customers including personalized coupon codes. For more, see http://www.acculistusa.com/these-tech-trends-likely-to-drive-2018-direct-mail-success/

Smart Marketers Cater to Millennial Direct Mail Fans

Remember when marketing gurus were calling direct mail "dead," drowned by a wave of digital, mobile, and social technologies? Well, research keeps resurrecting mail from its low-tech tomb. In fact, recent studies find that Millennials--the 22- to 36-year-old, tech-savvy generation supposedly addicted to mobile devices and digital networking--are bigger fans of direct mail than older generations in some ways! For example, a recent study by InfoTrends and Prinova found that response rates for direct mail remain high for all demographics, including Millennials, who open direct mail received at the same high rate of 66% as recipients overall. More significantly, Milennials as a group respond faster to mail--within 2.4 months--which is less than the average response time for all respondents. Plus, the InfoTrends research found that a big 63% of Millennials who responded to a direct mail piece within that three-month period actually made a purchase! Along similar lines, the U.S. Postal Service (USPS) and the American Association of Political Consultants (AAPC) conducted a survey on direct mail's political impact on Millennials and found that at least 42% of Millennials prefer direct mail political ads over online ads, and that Millennials are more likely to be prompted to action by mail, with 66% likely to research the candidate and 54% visiting the candidate’s website after receiving mail. However, research also shows that all mail pieces are not created equal. Mailings that resonate best with Millennials are targeted and personalized, per research. Luckily, sophisticated targeting and personalization are possible with today's variable printing, programmatic and automation programs, and database segmentation and analytics. Millennials demand printing quality as well, with one quarter of surveyed 25- to 34-year-olds saying they opened direct mail because of the print and image quality. Plus, engaging copy counts, with 25% of that same surveyed group saying they consider reading direct mail a leisure activity. That doesn't mean that printed mail can be divorced from Millennials' digital lifestyle. Data in eMarketer's survey report “US Millennial Shoppers 2017” shows that Millennials prefer digital shopping and are comfortable with mobile shopping, which means that integrating print and digital--via QR, AR, or PURL--can significantly boost response. For more detail, go to http://www.acculistusa.com/marketers-win-by-catering-to-millennial-direct-mail-fans/

Science & USPS Both Support Mail-Digital Mating

For any direct marketers who haven’t committed to combining direct mail with digital media, 2017 is a perfect year for experimentation, with both “brain science” and U.S. Postal Service incentives increasing the attractions of a mail-digital marriage. For example, an article from The Association of National Advertisers (ANA) recently highlighted the “neuromarketing” evidence for mail-digital pairings in a recent study by Temple University and the U.S. Postal Service (USPS) Office of Inspector General and another study from a partnership the Canada Post and True Impact Marketing, a leading neuromarketing research firm. A key finding from the first study: Consumer “willingness to pay” was significantly higher when media was delivered across both digital and physical channels rather than a single channel. An important finding from the second effort: While digital media provide key platforms for customer interaction, direct mail is often better at closing the marketing-sales loop. So for marketers, a mail-digital combination offers the best of both worlds, helps bridge the gap between interaction and action and boosts sales. Why wait to reap the benefits? Especially now that the U.S. Postal Service is offering a range of 2017 programs that make the economic decision easier. The new Informed Delivery program, which inserts mail into consumers’ daily digital routines, is one example. Informed Delivery users receive e-mails that capture grayscale images of the address side of their mail. Under the program, marketers can take advantage of three potential touchpoints with one mail piece: an advance preview via e-mail/app, actually delivery in the mailbox, and inclusion of a unique URL in the digital preview to drive trackable traffic to a website. Plus, the USPS has two promotions supporting mail-digital pairing this year. The Emerging & Advanced Technology Promotion (March 1 – Aug. 31, 2017) encourages mailers to integrate direct mail with advances in mobile technology using NFC technology, Video in Print (ViP), Beacon technology, “Enhanced” Augmented Reality, Virtual Reality (newly included this year) or, as of 2017, use of Digital to Direct Mail to boost response with dynamically printed, personalized messaging automatically triggered by digital interaction. Mail-digital pairing is also rewarded by the Mobile Shopping Promotion (Aug. 1 – Dec. 31, 2017), which encourages mailers to invest in technologies that take recipients directly from the mail piece to a mobile-optimized online shopping experience via Quick Response (QR) Codes, Snap Tags, Watermarks and other technologies. For more details, see http://www.acculistusa.com/usps-science-encourage-merger-of-digital-mail-efforts/

How Direct Mail Can Boost Digital Marketing Power

Direct mail is becoming a key player in the digital marketing world, as Christopher Karpenko, executive director of brand marketing at the U.S. Postal Service, recently argued in an article for the Association of National Advertisers. His points are worth summarizing and support our own belief in the response power of combining direct mail with digital marketing channels, such as opt-in e-mail and social media, as we do in our Digital2Direct program. Karpenko points out that direct mail has evolved and now achieves even greater response power via technologies such as Augmented reality (AR), near-field communication (NFC), and quick response (QR) codes. These technologies bridge the physical and digital gap by launching a website, a video or an interactive experience right from a paper mailing piece. "These can be powerful ways of sparking product discovery and drawing consumers into the digital ecosystem of a particular brand," he writes. Technology is also removing the "snail" from "snail mail," with real-time delivery scan notifications already sent within a few minutes and now an "Informed Delivery" service on the horizon from the USPS. Informed Delivery will allow consumers to check their e-mail inbox, social media and mobile apps to actually see the front of most mail pieces coming to their physical mailbox before they arrive. To read our complete blog post, including how direct mail can leverage social media engagement, go to our website's full-length version, which also includes a link to Karpenko's article, with an interesting Chick-fil-A case study: http://www.acculistusa.com/how-direct-mail-boosts-digital-marketing-power/

Brain Science Finds Mail Bests Digital With Buyers

The latest brain science explains why direct mail maintains its role as a multichannel marketing linchpin. In fact, direct mail beats or ties digital advertising in almost all the ways marketers seek to woo buyers, per a recent Temple University neuromarketing study sponsored by the U.S. Postal Service Inspector General's office. As reported by Direct Marketing News, the study, which showed a mix of 40 e-mail ads and postcards to laboratory subjects, found that a digital approach bested snail mail in only one area: grabbing customer attention. However, postcards outperformed e-mail in five other areas: holding customer engagement longer, generating a greater emotional reaction, generating speedier recall, and creating subconscious desire and perceived value for a product or service. And the two methods tied in three categories: engagement in terms of the amount of information absorbed, memory accuracy, and willingness to purchase and pay. The Inspector General's office is hoping the findings will inspire marketers to make better use of mail's power to win customers. Among its suggestions are increased marketer testing of mail creative, sequencing, and digital print technology, such as augmented reality and QR codes. For more details, read http://www.dmnews.com/postal/direct-mail-has-a-greater-effect-on-purchase-than-digital-ads/article/423292/