Omnishoppers Challenge Retail Marketers in 2023

Retailers face the challenge of targeting today's "omnishoppers." Inflation has accelerated the trend toward multichannel comparison-shopping in-store and via online, social media and mobile. In fact, The Harvard Business Review has reported a whopping 73% of retail consumers use multiple channels to shop. According to Nielsen, these omnishoppers will spend over $600 billion on retail purchases by 2025. They already spend 4% more than single-channel shoppers on ecommerce sites and 10% more on every in-store trip. 

To capture these valuable buyers, retailers will need to market via multiple channels, too. The average engagement rate of campaigns using three or more channels was 18.96% across all channels, while single-channel campaigns earned only 5.4%, per a 2019 retailer study. 

While many retail marketers have boosted online at the expense of offline advertising in the past, online marketing faces new consumer data restrictions, falling engagement rates and rising costs (a 2022 study showed the average CPM for Meta was up 61% year-over-year), and that suggests a rebalancing of the marketing mix is in order to cost-effectively woo omnishoppers in 2023 via a bump in offline, including direct mail.  Note that The Association of National Advertisers' 2022 report shows direct mail with an average ROI of 112%, email with 93%, paid search 88%, social media 81% and digital display 79%. 

At the same time, retailers will need to work harder at integrating campaigns and data to create a seamless customer journey across channels, avoiding the kinds of silos that generate customer complaints. For direct mail and omnichannel retail marketing support, see https://www.acculist.com/retailers/

Companies Retain Embrace of Recognition Products

Recognition and incentive products marketers will be happy to know that the market is strong and stable, per the most recent data. A 2019 survey of employee recognition programs, conducted by rewards association WorldatWork and underwritten by Maritz Motivation, found the programs overwhelmingly common (87%) among organizations surveyed, typically companywide (88%), and almost all in place for more than five years. But there are details and shifts worth noting. While most companies surveyed are seeing the same level of use for recognition and incentive products as last year, one in three are seeing an uptick. In fact, the study found growth at both ends of the corporate commitment spectrum, with an increase in deeply-embedded recognition programs (17% in 2019 compared to 10% in 2015) but also an increase in companies who say they have no employee recognition policy, strategy or philosophy (19% in 2019 compared to 12% in 2015). Survey respondents agreed that their programs are meeting goals for the most part (48%) or somewhat (31%), but there is room for improvement and change since only 18% said they are definitely meeting goals. Program administrators may come from the Human Resources (50%), Compensation (25%) and Benefits (8%) departments, but the key to growth is likely to be more senior executive support, increasing the 52% of senior executives who now support recognition programs as an investment. Indeed, companies without recognition programs cite cost and lack of leadership support as the main impediments. The average organization uses eight separate recognition programs. The most typical programs reward length of service (72%) and above-and-beyond performance (62%). Programs to motivate specific behaviors or outputs such as customer service (34%), productivity (27%) and quality (27%) are lower on the list. Meanwhile, biometric/wellness programs are the ones that impact the highest proportion of the workforce today (40% of workers in the last 12 months). What recognition and incentive products top the survey? Gift cards lead (62%), followed by cash (50%), clocks/watches (49%), plaques/trophies/certificates (47%), apparel/accessories (46%), jewelry (46%), sporting/recreational goods (44%), electronics (42%) and luggage/leather goods (41%). Popular goals of recognition programs include motivating high performance, creating/maintaining a positive work environment and increasing engagement, with 24% using recognition to support a culture of change. But the study found that organizations tend to measure the success of those programs and goals by employee satisfaction/engagement surveys (65%) or employee involvement (47% use number of nominations and 37% count employee usage or participation rates). There is a lot lower use of external performance data such as customer surveys (24%), employee turnover (23%), productivity (12%) or profit (12%). Unsurprisingly, recognition programs that could lead to higher, measurable ROI (error reduction, safety, waste minimization, etc.) remain relatively rare. For details, see our website blog at https://www.acculist.com/employee-recognition-programs-remain-organizational-mainstays/

B2B Marketing ROI Depends on Clean Data

As business-to-business marketers craft their fiscal 2020 budgets, it’s important that complex issues such as analytics, automation or AI do not distract from a core investment for achieving ROI: clean data. When 94% of B2B companies suspect inaccuracy in their databases, any marketers who do not prioritize data hygiene have their heads in the marketing sands. A recent blog post by b2b data management firm Synthio confirms the basic steps for data hygiene. It starts with a data plan. A good data plan will decide on the data-quality key performance indicators (KPIs) needed to achieve business goals. The plan will survey existing contact and account data and determine how to measure health in terms of data accuracy and completeness and how to maintain data hygiene tracking on an ongoing basis. It will look to see if there are important parameters for KPI success that the existing data does not address. Then, before cleaning data even begins, marketers need to check that important contact data at the point of entry or download is standardized. This will make it easier to catch errors and duplicates and to merge data from multiple sources. There should be a standard operating procedure (SOP) that defines fields, formats, and entry or upload processes to ensure that only quality, standardized data is used. The next step is to validate the accuracy of the data. Although a manual process might work for a small database, and there are tools and imported lists for cleaning data, advanced data hygiene is probably best handled by experts like AccuList, which can match contact addresses against USPS verification standards and change of address databases as well as update e-mail address changes. With standardized, validated information, data sets can be seamlessly merged and purged of duplicates. Why worry about duplicates? Duplicate records hobble CRM efforts, waste dollars in marketing campaigns, undermine the Single Customer View essential for targeting and response tracking, damage customer relations and brand reputation, and result in inaccurate reporting that can mislead marketing strategy. The final database improvement step involves data appending. Most b2b house databases have data for each record, such as contact first and last name, e-mail, company name and business address. But complete data for all records may be spotty, and some desired data may be missing altogether, such as title, phone number, company annual revenue, tech stack, purchase history, etc. Wouldn’t it be great for targeting and response to fill in the blanks? Data appending can enhance a house file with hundreds of variables from outside lists, including business “firm-ographics” on revenue, industry, employee numbers, opt-in e-mail and telephone numbers. For more, see our website blog post at https://www.acculist.com/make-clean-data-a-top-priority-for-effective-b2b-marketing/

These Basics Help Maximize Direct Mail ROI

Industry data shows that direct mail is still relevant and effective in this digital era, which is why clients continue to come to AccuList for its expertise in targeted direct mailing lists and data services. While postal mail wins a higher response rate than other direct marketing channels, its higher costs also intimidate those wary of ROI stumbles, so as marketers begin to prepare 2020 budgets, we’ll pass along some key tips for making “the most of the post” from Chief Marketer. There is a difference between good and bad creative, for one. Anxious to pack in maximum value for the cost of postage, direct mailers can create counterproductive pieces. Long-winded content and pieces crammed to the gills with words, images and multiple messages actually can create confusion that drives recipients away rather than calling them to action, the Chief Marketer article warns. Instead, use white space judiciously to highlight key content, keep messaging direct and simple, and make the offer and call to action clear and easy to follow. If you have multiple messages, consider multiple mailings. On the other hand, don’t be afraid to look for a wow factor that will stand out amid mailbox clutter. Oversize or dimensional mail pieces, promotions ranging from a personalized item to a free report, or an overnight envelope that sparks open-me urgency are examples that have proven effective in boosting response. Next, direct mail success starts with clean, up-to-date list data and selective targeting of prospects or customers. Just choosing the right targets is not enough, however. They must receive a targeted message. Marketers should use demographic, geographic and psychographic parameters to segment lists and then variable data printing to craft personalized content to send the right message to the right audience. But trying to reduce mail costs by skimping on testing—whether of list, creative or offer—is sure to backfire in terms of ROI, especially when introducing a new brand, product or creative. Always test to optimize response before risking the cost of rollout. Failing to track mail response across channels, especially in today’s multichannel world, also will compound ROI risks. Before you mail, consider how you will measure ROI, such as visits to a unique URL, calls to a dedicated 800 number, mailed reply card, or other response device, advises the article. For more tips, see our website blog post at https://www.acculist.com/basic-steps-help-maximize-direct-mail-roi/

Use Predictive Analytics to Harness Big Data Power

Predictive analytics, meaning scientific analysis that leverages customer and donor data to predict future prospect and customer actions, can scientifically "cherry-pick" names from overwhelming "big data" lists and other files. For example, at AccuList, experienced statisticians build customized Good Customer Match Models and Mail Match Models to optimize direct mail results for prospect lists, as well as one-on-one models for list owners to help acquire more new customers or donors. Plus, predictive models can aid other marketing goals, such as retention, relationship management, reactivation, cross-sell, upsell and content marketing. One of the benefits of analytics is improved lead scoring, for example. Lead scoring is too often a sales and marketing collaboration, in which salespeople provide marketers with their criteria for a "good" lead and marketers score incoming responses, either automatically or manually, for contact or further nurturing. Predictive analytics will remove anecdotal/gut evaluation in favor of more accurate scoring based on data such as demographics/firmographics, actual behavior and sales value. It also speeds the scoring process, especially when combined with automation, so that "hot" leads get more immediate contact. And it allows for segmentation of scored leads so that they can be put on custom nurturing tracks more likely to promote conversion and sales. In fact, with predictive analytics, list records can be segmented to achieve multiple goals. The most likely to respond can be prioritized in a direct mail campaign to increase cost-efficiency. Even more helpful for campaign ROI, predictive analytics can look at the lifetime value of current customers or donors and develop prospect matching so mailings capture higher-value new customers. Predictive analytics also can tailor content marketing and creative by analyzing which messages and images resonate with which customer segments, identified by demographics and behavior, in order to send the right creative to the right audience. Finally, analytics can develop house file segmentation for retention and reduced churn, looking at lapsed customers or donors to identify the data profiles, timing inflection points and warning signs that trigger outreach and nurturing campaigns. Data analysis and modeling can also be used to improve future marketing ROI in terms of channel preferences and even product/services development. Of course, reliable predictions require a database of clean, updated existing customer or donor records, which AccuList also supports via its list hygiene and enhancement services. For helpful links, see https://www.acculist.com/predictive-analytics-harnesses-data-for-marketing-roi/

Arts Fundraising Study: Invest to Reap More

Any of AccuList’s performing arts marketing and museum/zoo marketing clients that fret over investing in fundraising efforts in 2019 should take a look at the recently released "DataArts Fundraising Report" from Southern Methodist University. Basically, the report concludes, arts and cultural organizations that make smart investments in fundraising reap more dollars, with individual donors a “vital source” of contributions. Looking at fundraising by 2,421 organizations across 11 different arts and cultural sectors between 2014 and 2017, the study found good news for many marketers even though the overall ROI on every dollar spent on fundraising declined from $8.80 in 2014 to $8.56 in 2017. This reflected issues in select sectors. Seven sectors—including performing arts companies, orchestras and operas—actually saw an increase in return on fundraising over the period. The biggest ROI gain, adjusting for inflation, was a 28.8% bump for community-based organizations. But gaining sectors were offset by ROI declines for art museums, dance companies and theaters. Another encouraging sign was an increase in the average individual donor contribution over the four-year period. For arts and cultural fundraising, size matters, but in an inverse fashion, the report found. Small- and medium-sized organizations increased the returns on their investments in fundraising over the four years, while larger organizations had steadily declining ROI. Individual donors are important for success, per the report, especially outside of the big metro areas where government support, foundations and corporate donors help foot expenses. But locations vary widely in terms of revenue successfully tapped. For example, New York organizations had the highest average number of corporate donors at 12 and also had the highest percentage of expenses covered by government support (9%). On the other hand, Chicago reaped the most from foundations, with 7% of expenses picked up by foundation support. For more report detail, go to https://www.acculistusa.com/arts-fundraising-study-invest-to-reap-more/

Promo Products Trends: USA-Made, Retail Quality

The “2019 Ad Impressions Study” by the Advertising Specialty Institute has many nuggets to help AccuList’s promotional products marketing clients woo targeted buyers. For example, promo products purveyors can point out how their items beat other ad media not only with high ROI, thanks to a cost per impression as low as a tenth of a cent, but also high impact, with consumers under age 55 preferring promo products over all other mediums for advertising, including newspapers, radio, magazines, television, internet and mobile. In fact, consumers are nearly 2.5 times more likely to have a positive opinion of promotional products compared with online advertising, per ASI. When it comes to consumers’ favored promotional products, ASI’s study shows the highest ownership for writing instruments (89%), drink ware (88%) and T shirts (80%). But winning even with a popular category means keeping up with trends. Among the latest spotted by Promo Marketing Magazine at the 2019 Promotional Products Association International (PPAI) Expo is the boost in re-usable, environmentally friendly products now that cities and states are banning single-use plastic bags and straws. A return to natural and vintage is not surprising in this anti-plastic mode, with a rise in the popularity of wooden pieces, from cutting boards to awards. Plus, multi-function items continue to grow in popularity, with suppliers adding tech functions to classic promotional items, so that water bottles double as Bluetooth speakers and business card holders can be used to prop phones.The marketers at Delta Marketing Group (DMG) get even more specific about trends in design. As more retail brands become available as customizable promotional products, even non-brand items are starting to emulate the retail look and feel, the agency points out. Quality over brand-logo-blasting also is taking hold, for example with branded apparel using small embroidered patches, subtle custom tags, and understated tone-on-tone colors instead of large logo imprints. Creative materials and refined finishes are forecast to come to the fore in 2019, with bright colors, matte and soft-touch finishes, and heathered and burlap fabrics. Plus, the made-in-the-USA trend stays strong, per ASI’s study. About 53% of consumers have a more favorable opinion of an advertiser if the promotional product is made in the U.S. versus elsewhere, and that sentiment is especially strong in New England, where 73% of consumers prefer buying made-in-the-USA items. For more, see https://www.acculistusa.com/watch-for-2019-promotional-products-to-embrace-re-use-multi-use-quality/

B2B Gifting Survey Finds Keys to Gift ROI

We recently ran across some interesting data from a study by Knack, a Seattle gifting company, that should help both corporate gift suppliers to craft the most appealing packages and business gift buyers to maximize their gift effectiveness. The good news from the Knack "Business Gift Satisfaction Survey" is that corporate gifting works well when it is done well: 57% of respondents said that "gifts can impact their opinion of a business partner both positively and negatively." In fact, over 80% of C-suite executives surveyed said they believe that business gifts generate measurable positive ROI in addition to intangible benefits. Since there's a huge investment involved annually, with the market for non-cash business gifts estimated at $125 billion, getting the most positives and fewest negatives is clearly vital. Return-on-investment for a business gift to high-value targets, such as C-suite executives, is highest if the gift tells a story and facilitates a deeper personal connection, per the survey. Quality is more important than the quantity spent to achieve that personal connection; the survey finds that the right amount to spend per gift is between $50 to $150. What defines quality? The best impression comes from good presentation/packaging and the kind of personalization that logo items and gift cards lack, per gift recipients. A memorable gift will seem selected just for the recipient; will include a personal message and will have "value attributes," such as a handmade/artisan item or a gift supporting an appropriate cause, such as ecological sustainability or made-in-U.S.A. For a checklist of fail-safe business gifting tips, see our website blog at http://www.acculistusa.com/b2b-gifting-survey-finds-personal-memorable-score-roi/

Marketing ROI Requires 2019 Data Hygiene Plan

As marketers prepare to launch their 2019 campaigns, they should make sure that a complementary data hygiene plan is in place. Marketers don't want to join the 88% of U.S. companies whose bottom lines are hurt by dirty data, based on Experian research. The top areas impacted by poor data practices are marketing (66% of companies) and lead generation (80% of companies), according to DemandGen. To avoid that fate, marketers need a plan to regularly fix any customer and prospect data that is incorrect, inaccurate, incomplete, incorrectly formatted, duplicated, or irrelevant, plus to enrich the database via appending of relevant missing customer targeting parameters. Pete Thompson, founder of DataIsBeauty.com, has put together a useful primer for developing a data hygiene plan. Start with the basics: Decide what data is important for business decisions and estimate the ROI of data quality improvement. Then review existing data processes: types of data captured, where it comes from and how is it captured, the standards for data quality, how errors and issues are detected and resolved, etc. Other questions include the main sources of errors, methods for validating and standardizing data, methods for appending or combining multiple sources, automation used if any, etc. Without going into detail, the basic steps of the data plan will start with creating uniform data standards, preferably applied at the point of data capture. Then develop a data validation process, applied either when data is captured or, if that is not possible, at regular intervals for data already entered. After data has been standardized and validated, you can append missing fields by cross referencing with multiple data sources. Streamline the process through automation tools and scripts, saving time and money and reducing human errors. However, while it may be tempting to start with automation, Thompson cautions against putting the cart before the horse; success requires having data standards and a proven validation process in place before automating. And then set up a monitoring system of the hygiene process, whether automated or not, via random test samples and back testing, and implement periodic checks. For more detail, see our web blog post at http://www.acculistusa.com/make-sure-you-have-a-2019-data-hygiene-plan/

Social Media ROI Needs New 2019 Strategies

As social media marketing competition rises, organic reach dwindles and social ROI gets tougher, social media marketers need to hone their data, targeting and creative strategies. Here are just a few big social media trends for next year, based on analysis by Hootsuite and Social Media Today (SMT). Trust in social networks has declined. Edelman’s "2018 Trust Barometer" found that 60% of respondents no longer trust social media companies, and Facebook is among the hardest-hit, reports Hootsuite. As a result, Hootsuite sees brands focusing less on maximizing reach and more on "transparent, quality engagement." Instead of posting the same content across multiple platforms, successful marketers are likely to favor context-specific and audience-specific messaging that reaches smaller but more valuable groups in 2019. The need to balance privacy demands with personalization is leading marketers to be more open about when and why data is collected, but up to 96% of marketers surveyed still see personalization as driving customer relationships despite privacy issues, per SMT. As use of social media influencers has grown, their prices have climbed, and, at the same time, trust in celebrity influencers has declined, both Hootsuite and SMT report. One solution is to increase use of experts and employee advocates over celebrity influencers, notes Hootsuite. Meanwhile, SMT suggests more micro-influencer marketing. While they have followings of fewer than 10,000 people, most of the micro-influencers' followers are genuinely interested, and since micro-influencers are not massively targeted by advertisers, they are seen as trustworthy and down-to-earth, notes SMT. Meanwhile, when it comes to ad placement, Hootsuite predicts that "the news feed may be slowly becoming a thing of the past," as social media users increasingly prefer content in a stories format. Certainly, the stories format has exploded on Snapchat, Instagram, Facebook and WhatsApp--and is even being tested by LinkedIn. In fact, Hootsuite cites a recent finding by consulting firm Block Party that sharing via that method is growing 15 times faster than feed-based sharing. Meanwhile, the pay-to-play era is driving larger social ad budgets, Hootsuite notes, with "The CMO Survey" reporting a 32% increase in social budgets in 2018 alone. At the same time, ROI is getting tougher. The most recent "Internet Trends Report" from Mary Meeker  found that while click-through rates on Facebook are up 61%, CPMs (cost per thousand impressions) have soared 112%. The good news is that the gaps between social media and commerce are narrowing. For example, Meeker’s 2018 report also showed that 55% of survey respondents have purchased products online after social media discovery. Shopping is being made easier by technologies such as in-stream payment tools, video plugins and social media special features such as shoppable posts, Instagram's Explore shopping tab, Facebook Marketplace and Pinterest’s Buyable Pins. For more on social media trends, see our onsite blog post at http://www.acculistusa.com/harness-these-2019-trends-to-boost-social-media-roi/

2018 Direct Mail Surges in Usage, Response, ROI

Direct mail marketers received lots of encouraging news in the 2018 “ANA-DMA Response Rate Report.” Direct mail improved its usage ranking to tie with social media as the second most-used medium (57%), for example, and continued to deliver the best response rates of any medium. In fact, “snail mail” even improved on its response success by doubling median response rates over last year to 9% for house lists and 4.9% for prospect lists in 2018. Mail’s Return on Investment (ROI) also leaped by 12 percentage points to beat out online display this year. The only negative in the report is that those surveyed continue to doubt the future of direct mail, with 19% saying they plan to decrease usage in the coming 12 months. But if the report participants follow their behavior after previous surveys, which similarly predicted mail declines, direct mail usage will remain buoyant, which allowed it to rise in 2018 despite planned cuts. One drag on direct mail continues to be its Cost Per Action/Acquisition, which is the highest CPA of any medium and puts budget pressure on mail volume, which did decline for both house and prospect lists compared with the 2017 study. However, high response rates, competitive ROI, online tracking and print-tech advances are keeping marketers loyal to “traditional” mail in a digital world. In fact, direct mail usage for marketing campaigns equals or exceeds 50% for most of the 11 industry segments cited in the study. In usage, direct mail leaders were travel or hospitality (80%), nonprofits (75%), publishing or media (71%), and financial services/banks/credit (67%). Only Technology (44%), Retail (44%), and B2B Services (34%) came in below the 50% usage mark. But when it comes to tracking those response rates, marketers have definitely gone digital, with over half of surveyed marketers (53%) saying they use online tracking capabilities, such as PURLs, followed in popularity by the use of codes or coupons (45%) and call center or telephone inquiries (41%). For data comparing response rates by type of format and B2B vs. B2B campaigns, see our website blog post at http://www.acculistusa.com/despite-doubters-2018-direct-mail-ups-response-roi-usage/

Tips on Integrating Direct Mail & E-mail to Rev ROI

Even though omnichannel has gone from marketing buzzword to marketing given, marketers can still face challenges in getting the most ROI from direct mail and e-mail integration. A recent MarketingProfs post offered a collection of stats and tips that can help. For those who doubt the power that traditional mail can add to a digitally focused effort, the article cites a few important facts about snail mail's bottom line punch. For example, campaigns that use two channels together, such as direct mail and e-mail, have been shown to get up to a 35% lift over those using a single channel, per IWCO Direct data. The younger generation may be very digitally savvy, even addicted when it comes to social and mobile, but recent studies from the U.S. Postal Service prove mail's sales power: A whopping 57% of Millennials make purchases based on direct mail offers! Other USPS studies show why mail works so well regardless of age: People spend more time with physical advertising, have a stronger emotional response and remember the physical promotion better than digital efforts. Plus, beyond the ability to use direct mail's sizes, formats and tactile designs to grab attention, today's print technology makes it easy to link a printed piece to digital channels via QR codes, near-field communication (NFC), and augmented reality (AR). So how do you get the most out of a direct mail-e-mail marriage? Here are some ideas from the MarketingProfs post's authors, Dennis Kelly, CEO of direct mail automation tool Postalytics, and Nancy Harhut, a creative director who has worked with leading brands such as Google, Adobe, McGraw-Hill, and Nationwide Insurance: 1) Consider delivering critical information in both channels to reinforce the message; 2) Have each communication build on the previous one; 3) Use direct mail to emphasize a key message or break up the expected routine; 4) Ensure both e-mail and direct mail adhere to the same graphic standards and reflect the same voice so each piece reinforces and extends your brand promise; 5) Use direct mail to initiate a conversation with people whose email addresses you do not yet have, or with those who have repeatedly not responded to your email. For more, see the full post at http://www.acculistusa.com/learn-how-to-integrate-direct-mail-e-mail-for-max-results/

Smart List, Mail Design Cut Postage Costs

Maximizing direct mail ROI requires cost efficiency, especially in the postage realm. Good list selection and hygiene are key to avoiding mailing waste. Another important factor in controlling postage costs is mail package design. If you are sending mailings to the wrong people, people unlikely to be interested in your offer, lower response rate and cost inefficiency will be reflected in poor ROI. Using tools from predictive modeling to customer profiling to segmentation can improve list choices and targeting parameters. Plus, AccuList USA's proprietary list research can help clients find the top-performing lists for their specific vertical market. But no matter how data is targeted, dirty data with duplicates, errors, invalid addresses, and old demographic or purchase history information will create costly delivery failures and misdirected waste. That's why AccuList USA goes beyond list brokerage to provide expert merge-purge services that combine and standardize data in order to eliminate duplicates, identify and correct old or undeliverable addresses, verify zip codes, and maximize postal discounts. In fact, by comparing names and addresses to real-time information on multiple public and private databases, AccuList USA offers an advanced hygiene regimen that is able to identify and correct twice as many addresses as standard USPS FASTforward and NCOALink use, which only represent a portion of U.S. movers and undeliverables. USPS offers postage discounts to mail pieces that are not only addressed correctly but also designed for processing on automated equipment. For mail to qualify for the lowest postage rates, the mail piece needs to be at a letter size, which is a minimum of 3 ½" high by 5" long and a maximum of 6" high by 10½" long. Larger mail pieces fall into the flat category, which can cost more than twice as much per piece as a letter. Plus, to take advantage of automation, the piece must by rectangular, with an aspect ratio (length divided by height) of 1.3 to 2.5, or risk costing twice as much in postage. The addressing and barcode block on letter size mail also must fit into the USPS OCR read area to avoid additional postage. Naturally, weight matters. Keep the weight of a folded self-mailer under 1 ounce; if the piece weighs over 3 ounces, it must go in an envelope. Thickness counts, too.  If a mail piece is less than 0.009" thick, it costs more in postage. On the other hand, the maximum thickness for letter size mail is ¼" and for flat size is ¾". For more, see http://www.acculistusa.com/smart-list-mail-design-choices-help-save-on-postage/

Creative Format Shifts Key Direct Mail Metrics

In planning direct mail campaigns, marketers often turn to standard industry benchmarks courtesy of the annual "Response Rate Report" from the Data & Marketing Association (DMA), soon to be a division of the Association of National Advertisers (ANA). However, while general direct mail response rates for house lists (5.1%) and for prospect lists (2.9%) far outpace those of digital media, the mailing piece format selected can make a key difference in expected results. For example, an oversized flat envelope package tends to deliver the highest response rate: 6.6 % for a house file and 4.9% for a prospect list. Next most effective in terms of response are postcards, with a house file response rate of 5.7% and and a prospect names' response of 3.4%. At the tail end, but still far above digital efforts, comes the standard letter format, with a 4.37% response rate for house names and a 2.5% response for prospecting. Some marketers hesitate over the more expensive oversized flats, which have the highest cost per thousand (CPM) among formats at $481 for house files and $467 for prospect files. Which is why postcards continue to win fans among B2C and B2B marketers, with the lowest CPM among direct mail formats benchmarked. However, despite their higher CPMs, the solid response rates of flats mean they can deliver the highest ROI (37% and 30% for house and prospect names, respectively). Postcards and letter packages, meanwhile, are tied in terms of ROI, with house mailings garnering a 29% ROI and prospecting turning in 23% ROI. For links to more data, see our website blog post http://www.acculistusa.com/format-drives-differences-in-direct-mail-results/

Case Studies Showcase Museum & Zoo Direct Mail

AccuList USA provides mailing lists and direct marketing support for a growing number of museum and zoo marketers, and we thought our museum and zoo clients, and other nonprofit marketers, would be interested in recent case studies of how combining direct mail with digital marketing can successfully drive gift membership purchases. The case studies were presented by The Lukens Company, a nonprofit agency, for the American Museum Membership Conference. Seattle's Woodland Park Zoo was concerned that its costly traditional direct mail letter package promoting gift memberships was experiencing declining ROI and relied on a complex process for signup. Tasked with finding solutions, the agency came up with a new two-drop postcard combined with a three-part e-mail series timed after a Cyber Monday campaign. The campaign directed recipients to an online signup with a promo code to track gift sales.  Targeting prior gift membership purchasers and offering a standard $15 discount, the new approach resulted in a 173% increase in number of purchases and 88% increase in revenue. A similar strategy provided positive ROI results for a gift membership drive by the San Francisco Museum of Modern Art (SFMOMA) in its first holiday season after reopening following a three-year closure. Marketers faced a dual challenge: fatigue of the traditional direct mail package to the existing gift membership audience, plus a new audience unfamiliar with SFMOMA gift membership offerings. Seeking to energize both targets, the agency's creative shifted from the traditional package to a two-drop postcard and five-part e-mail series, directing recipients online to a new custom landing page, along with phone and onsite support. Mailing to current members, lapsed members, and general admission and event ticket buyers, the campaign offered 10% off gift memberships for members and prospects who became members. For more ways direct mail can drive results, more case studies and samples of actual creative go to http://www.acculistusa.com/case-studies-showcase-zoo-museum-direct-mail-strategy/

Making the Direct Mail Case in Multi-channel Plans

As multi-channel marketers polish their 2018 plans, it's a good time to remind them of the continued value of direct mail in this digital era. A recent infographic from direct marketing agency US Presort puts together data from The Data & Marketing Association (DMA), Social Media Examiner, Epsilon, Experian and Marketing Sherpa to make the case for a direct mail commitment in multi-channel plans. The majority of marketers (71%) say they believe in an integrated multi-channel approach. After all, a smart multi-channel strategy can combine the pervasive impact of digital (96% of consumers say they were influenced online in making a purchase decision) with the effectiveness of direct mail (digital can't beat mail's 80% open rate or its consumer trust rating of 76% compared with 61% for Google search, 43% for social and 39% for online ads). So why are so few marketers (just 29%) actually implementing those integrated multi-channel campaigns? One misconception, as the infographic points out, that causes hesitation over integrating direct mail with digital is mail's high perceived cost. Yet while direct mail costs more to produce and distribute, its response rates are also much higher than other channels, so its ROI remains competitive. For example, per the DMA's 2016 data, direct mail response rates averaged 5.3% for house lists and 2.9% for prospect lists, compared with online display ads at 0.9%, e-mail at 0.6% for house files and 0.3% for prospects, social media with 0.6%, and paid search at 0.5%. As a result, median ROI for direct mail, while behind e-mail, is on par with social media at 29% and 30%, respectively, and ahead of other digital channels. Others assume difficulties in digitally connecting and tracking paper promotions. But technology and U.S. Postal Service discounts are making mail easier and cheaper to integrate with digital via mobile device-scanned coupon links, QR codes, PURLs, and landing pages. Plus, direct mail can now be tracked in real time thanks to the U.S. Postal Service Intelligent Mail Barcode. To successfully leverage the power of direct mail in a multi-channel strategy consider a few key steps: Include the USPS Intelligent Mail Barcode on all mail to track delivery and coordinate with other channels; gather measurable response from multiple channels via tactics such as reply cards, 800-number call tracking, as well as mobile-scanned QR codes and PURLs; create campaign-specific landing pages and make sure they are mobile-friendly; integrate e-mail and direct mail messaging and lists, and coordinate e-mail blasts with mail delivery; create Facebook ad campaigns to target the same audience as your direct mail lists; consider IP Direct Mail or Web Direct Mail to target the same mail audience on Google with coordinated ad banners. For more, see http://www.acculistusa.com/making-the-case-for-direct-mail-power-in-multi-channel-marketing/

At Year-end, Check KPIs to Gird 2018 Marketing

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/content marketing. Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired (CPL) can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures. Beyond general performance, marketers should use measurement to fine-tune future plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the return on marketing investment can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing. But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, average customer lifetime value is vital and calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years. For a helpful KPI checklist from Digital Dog Direct, see http://www.acculistusa.com/use-key-direct-marketing-kpis-to-gird-2018-plans/

E-mail Tops Digital ROI With Personalization, Mobile

E-mail marketers will be happy to know that e-mail outpaces other digital channels in terms of reported return on investment, ahead of SEO, content marketing, paid search, and social media, per the "2017 Email Marketing Industry Census" from Adestra, in association with Econsultancy. E-mail ROI was rated as good to excellent by 73% of marketers surveyed, just edging out SEO, with 72% giving SEO a good to excellent ROI rating. Content marketing slipped to third place, with 63% calling its ROI good to excellent. Paid search followed with 60% ranking its ROI as good to excellent, and social media trailed (44%). But the report also raised questions about how accurately marketers assess e-mail impact. The majority of marketers are using click-through rate (91%), open rate (80%) and conversion rate (62%) to track e-mail performance, while other important metrics, such as bounce rate, delivery rate and list growth rate, are used by a minority. List segmentation is another challenge that may be impeding even higher ROI, falling midway in the ranking of best practices even though those who carry out advanced segmentation are more than twice as likely to report "excellent" ROI from e-mail marketing as those who don’t segment. What practices do marketers use to push e-mail opens and clicks? The census found that sending personalized and relevant messaging led the list of e-mail best practices reported; 80% of marketers are already doing this and 14% are planning for it. Personalization was followed by mobile-optimizing of e-mail (73% doing and 19% planning to start), regular list cleaning (57% doing and 24% planning), and promoting social content sharing (49% doing and 22% planning on it). Personalization also is the area of e-mail marketing where most respondents (30%) say they need to focus in 2017. For more see http://www.acculistusa.com/e-mail-earns-top-digital-roi-via-personalization-mobile-strategies/

Why Direct Mail Retains a Key Marketing Role

Direct mail, perhaps because of its proven workhorse status, keeps a low profile in marketing trend articles, except for the periodic "direct mail isn't dead" reminder. Yet, despite growing use of digital channels--web, e-mail, social, mobile--the majority of marketers continue to rely on direct mail. Why? Marketing data backs up direct mail's proven response power and ROI. Target Marketing magazine’s latest study “Marketing Mix Trends 2010-2016” shows that 69% of marketers surveyed either increased or held steady on direct mail spending in 2016. The 6% of marketers decreasing their mail budgets were the smallest group since 2010. A reason for direct mail's survival as a go-to marketing channel can be seen in the the Data & Marketing Association's 2016 "Response Rate Report." The report showed 2016 direct mail response rates leaping to 5.3% for house lists and 2.9% for prospect lists, the highest DMA-tracked response rates since 2003. By comparison, 2015's reported rates were 3.7% and 1.0%, respectively. More significantly, no other channel in 2016 had response rates over 1%! Direct mail response allows it to compete in ROI despite higher costs, coming in third at 27%, close to social media's 28% (e-mail leads ROI). Bottom line, direct mail's evergreen power lies in delivering on direct marketing basics. Rather than exploring the diverse creative and tech-savvy ways to meet direct mail goals, it is easier to focus on a few big mail "don'ts," and that's the tack recently taken by Summer Gould of Target Marketing magazine in "5 Things Not to Do in Direct Mail." Gould chooses key, highly avoidable pitfalls: a hard-to-read font; dishonesty; old, bad data in mailing lists (one of our bugaboos); a missing or unclear call-to-action; and a promotional focus on features over benefits. Direct mail--no matter how loaded with interactive QR codes, variable data printing personalization and multi-channel customer analytics--will miss the mark if it misses on these basics! For more, go to http://www.acculistusa.com/how-direct-mail-retains-its-place-in-marketing-tool-chests/

Measuring ROI Is Top Multichannel Challenge

As highlighted recently in a MediaPost Real-Time Daily post, quantifying and optimizing ROI across channels is a top challenge for today's marketing execs.  Gone are the days when direct marketers could afford siloed channel strategies. Citing a new global survey conducted by the programmatic marketing and analytics firm DataXu, the Real-Time Daily article notes that U.S. senior marketers now say the single greatest challenge in their jobs is developing an accurate way to quantify ROI across the variety of channels. Another 37% of U.S. marketers say their biggest challenge is developing an efficient marketing mix across channels to drive ROI. The U.S. marketers are not alone, however; difficulty tracking the success of a marketing campaign into metrics was cited by one-third of global marketers as the largest threat to the success of their teams. In meeting multichannel challenges, marketers also feel the bar for technical skills is set higher than ever before because of expanding digital technologies and proliferating data sources. So it's no surprise that 78% of U.S. marketers point to understanding marketing technologies as a skill critical to their mission, and 72% think grasping digital media is crucial to success. Overall,  65% also say it is necessary to be data literate. Testing to optimize marketing mix ROI is an approach that some marketers are now taking, per the article, including survey author DataXu. These marketing teams are randomizing deployment of existing budgets across various channels and then measuring business outcomes to pinpoint where a campaign is most successful, transforming a media plan into a controlled experiment. For more on the article and its statistics, go to http://www.acculistusa.com/multichannel-marketers-see-roi-measurement-as-top-challenge/