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/

Personalization, Privacy Drive 2020 Data Strategies

Multiple data issues face direct marketers in 2020, starting with data privacy. While many of our U.S. clients are not affected directly by the European Union's General Data Protection Act (GDPR), U.S.-based consumer-data privacy efforts have now resulted in the California Consumer Privacy Act (CCPA), with more legislation on the horizon. Meanwhile, omnichannel data personalization has become essential for targeted response and ROI. Companies face complicated decisions when combining first-party data collection, user-level data from the big digital platforms (Google, Facebook and Amazon) as well as second- and third-party data in ways that balance consumer privacy with smart (and customer-demanded) personalization. A post in AdExchanger by Briggs Davidson, a senior manager at Deloitte Consulting, outlined some key steps for coping. He advises starting with a focus on the customer in collecting, organizing, storing, and activating data across all silos that may need to meet data-privacy compliance. When it comes to first-party data, prepare to shift marketing strategies to ensure consumers have a reason to share their data, delivering value to build trust. Davidson predicts creation of data clean rooms, or a separate analysis space for combining first-party data with platform-level customer data under strict privacy controls. Regardless, marketers will need multidisciplinary teams as well as partner collaboration. Meanwhile, prepare for hyper-personalizaton to drive marketing, according to European digital platform firm Qualifio, which found that 83% of marketers say creating personalized content is one of their biggest challenges. Why? Because personalization now requires: 1) new tools to collect and analyze first-party data for compliance with data privacy regulations like GDPR and CCPA; 2) an omnichannel purchasing journey and analytics for a single customer view; 3) incorporation of new technologies such as voice search (50% of Google searches are expected to be voice searches in 2020); and 4) meeting rising customer standards for personalized promotion and service. In fact, 70% of the customers surveyed want an immediate response to their questions or complaints, which is fueling artificial intelligence (AI) and machine learning (ML) initiatives. This means data quality will be even more key. A Forrester Consulting July 2019 report revealed that while 82% of companies place a high priority on refining data quality, more than a quarter of all marketing campaigns were hurt by substandard data in the last 12 months. Plus, a majority of marketers launching artificial intelligence (AI)/machine learning (ML) initiatives (78%) say these projects have stalled—with data quality as one of the culprits for 96%—according to a new study from Dimensional Research. CMO Kristin Hambelton, of Marketing Evolution, urges marketers in a recent Forbes magazine post to take these basic steps for improved data quality: 1) prioritize data quality and create a comprehensive initiative on data verification, collection and cleansing policies; 2) define and verify high-quality data in terms timeliness, completeness, consistency, relevance, transparency, accuracy, and representativeness; 3) organize disparate data sources with unified marketing measurement for a holistic customer view. For more, see https://www.acculist.com/personalization-and-privacy-trends-highlight-need-for-data-strategy/

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/

Why You Should De-dupe Your Data

Anna Kayfitz, CEO of StrategicDB Corp., recently offered AccuList USA this expert advice on why direct marketing success requires de-duping data: 

In today’s data-driven marketing, data is not only the most important asset that your company can have but can also make or break your campaign. Having clean data impacts not only marketing activities but also impacts your reputation, operations and decision-making. De-duping is one of the most important aspects of overall data hygiene. Duplicates can be found on many levels of data; they arise at the household level, individual e-mail level or company level. If you are not convinced that you need to de-dupe, consider the following five benefits. First, you can avoid different offers to the same customer. For example, you send two different direct mail creatives to the same household. As one of the records was a customer, you decided to provide a returning customer 15% off, while the other record was marked as a prospect and only got 10% off. Now the person opening both direct mails will be confused by having two different discounts, and the company also can face a PR nightmare. Second, you can cut unnecessary cost. For example, assume you are doing a direct mail creative which costs you $5 per mailing. Your list contains 10,000 recipients. The total cost of mailings therefore is $50,000. If you decided to de-dupe, you would find out that 10% of your mailing list was duplicated. Therefore, $5,000 was a waste of resources. It would have been much cheaper to de-dupe prior to deploying your campaign. Third, you will get better analytics for decision-making. Analytics is important not just from a perspective of understanding how your marketing and sales is performing but also from a decision-making perspective. By having duplicates in your CRM, you are going to be double-counting your list capabilities, miscalculating your true growth rates, and getting the wrong rate of responses. If you are looking to make a decision on future campaigns, basing it on duplicate data will will give you the wrong list count, wrong budget and possibly the wrong creative picked (especially if you are basing it on an A/B testing done previously). Next, de-duping helps prevent customer service confusion when clients call in, e-mail or come into the store. For example, Mary Smith is found twice in your CRM with the same phone number. She calls in to your customer support to inquire about her order status. Your customer service rep decides to pull up the customer account by phone number and finds two records. Now she has to put the customer on hold while she checks both accounts to try to locate the last purchase before she can even assist the customer. Not only is it wasting everyone’s time and making customer service inefficient, it also makes the customer have a bad customer service experience. Finally, the biggest impact that duplicates have on your business is a potential loss of sale. If you have duplicates, you do not have a true view of all prospect or customer activities. Therefore, you could be excluding prospects from a sales call because your lead scoring system indicated that they are not ready. However, if the data from both records was combined, you would have all signals indicating they are ready to be passed on to sales. With duplicates, by the time you figure it out, a customer may have already lost interest and gone with your competitor. De-duping should be part of your data-cleaning initiative, either prior to any major campaign or on a yearly basis. You can easily de-dupe your list by using a de-duping tool that will require less effort to identify duplicates and establish a master record than is required to deal with the consequences of duplicate data. For more help, see http://www.acculistusa.com/why-you-should-de-dupe-your-data/

2018 Marketers Face Old and New Data Issues

Direct marketers will face both old and new data challenges in 2018. A recent Forbes magazine interview with Tom Benton, the CEO of the Data & Marketing Association (DMA), highlighted six of those data hurdles for next year. The perennial problems of data quality and integration continue, worsened by the huge volume and types of data streaming into marketers. Many are struggling to decide which data sets to use and which to ignore, how to keep data accurate and actionable, and how to integrate new data with existing data. Several practices for 2018 success are suggested: clear business goals and target audiences to narrow the data focus; a clear test case for examining or onboarding data; regular examination of new and legacy data accuracy and value; and systems for integrating new data with existing data, especially given the new types of data streams available–everything from wearable gym trackers to chatbots to grocery checkouts. But 2018 also offers potentially exciting opportunities via new marketing tech tools, such as augmented reality (AR), machine learning and AI. The Forbes articles offers the example of how 1-800-Flowers improved customer experience by integrating the company’s website with artificial intelligence (AI) technology and natural language processing to understand customer demand and then search the product catalog to deliver customized recommendations. Use of AR today ranges from AMC theater movie posters to Simmons Bedding Co. product demos to labels of Australia’s 19 Crimes wine brand. At the same time, marketers face tougher challenges in the areas of data security and privacy rules. If customers don’t trust that sensitive information will be safeguarded, they’ll stop engaging, hurting not only individual brands but the data-driven community. After massive data security breaches made headlines in 2017, data security is a top concern to retain customers and prevent risk in 2018. Meanwhile, American marketers who seek to tap European markets need to get ready for the enactment of the European Union’s General Data Protection Regulation (GDPR), taking effect May of 2018, which will set a tough new baseline for consumer privacy rights. For more, see http://www.acculistusa.com/2018-offers-new-and-old-marketing-data-challenges/

Reputation Scoring Key to E-mail Deliverability

Deliverability is the first step to e-mail marketing success. If your e-mail never hits the inbox, all those subject line and content tactics are useless. So why do the top e-mail marketers get a 90% inbox placement rate, while others languish below 50%? A deciding factor is reputation, as measured by a "sender score," according to Return Path's annual "Sender Score Benchmark Report." A sender’s reputation score is a number, calculated from 0–100, that mailbox providers use to evaluate whether or not e-mail sent by a particular IP address is likely to be legitimate and wanted or should be filtered out of inboxes. Return Path's analysis finds that e-mail senders with a reputation score above 90 saw an average of 92% of their e-mails reach the intended recipient, but e-mail deliverability drops to 72% for senders scoring between 81-90 and just 45% for senders with a score between 71 and 80. So how do you get and keep a strong reputation score? A recent post by Krista Barrack, for the sendinblue blog, cites six ways you could be damaging your sender score, starting with e-mail list issues. One common error is collecting invalid e-mail addresses in your house list (often caused by typos, especially from mobile users). These create hard bounces to erode your sender score. A second mistake is using purchased e-mail data where people have no opt-in relationship with your brand and so don't engage or mark your message as spam, hurting your score. That's why, as responsible data brokers, we don't sell e-mail data and instead broker list rentals so messages are sent by the list owner with valid recipient opt-ins. A third house list problem is allowing outdated, unmailed addresses to accumulate and become invalid. To deal with the problem, set up a program of regular communication and hygiene to prune your list frequently. Poor content quality affects sender scores, too. If your e-mail message is not mobile-optimized, is loaded with spam words, is plagued by faulty links, and/or is not relevant or honest, recipients are either not going to open it, will label it as spam or will opt-out. Timing matters, too, and the most common sin is embrace of a spammer's excess frequency. Note that studies show read rates drop with increased weekly frequency--and opt-outs and complaints rise. Finally, watch for spam traps hiding in your e-mail list. These can get you blacklisted! For more detail, go to http://www.acculistusa.com/whats-the-secret-to-better-e-mail-deliverability-your-reputation/

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/