Is Your Direct Marketing Ready for Generation Z?

Generation Z is arriving in the marketplace. Gen Z includes young people born in the mid-1990s to early 2000s, who are now graduating and getting their first jobs. They not only make up 25.9% of the U.S. population but will account for 40% of all consumer markets in 2020, with annual purchasing power of $44 billion and growing. But wooing Gen Z will require marketers to amend their playbooks. Oberlo, an e-commerce agency, and IWCO Direct, a direct marketing agency, recently discussed Gen Z marketing challenges in blogs, with similar conclusions. First, Gen Z members have a short attention span; marketers have only about 8 seconds to capture their notice, which is even shorter than the 11 seconds required to grab the attention of the typical Millennial. This means content must be targeted, relevant, to the point and quick to engage. Second, Gen Zers have a higher number of technological devices and are constantly jumping from one device to another. While Millennials bounce between three screens at one time, Generation Z can use up to five screens at the same time. Multi-channel, multi-platform, mobile-optimized campaigns are required. Third, Gen Z young adults have strong opinions and, raised to expect personalization, demand customized experiences. They will be critical of advertising that fails to meet their standards for authenticity and meaningful interaction. For example, Gen Z members want to buy from companies that support their values; 55% of Gen Z chooses brands that are eco-friendly and socially responsible. Yet Gen Z has less brand loyalty than prior generations and is less motivated by traditional loyalty programs, although they can be wooed with interactivity, such as online games or events. And while Gen Zers are definitely social media fans, they use social platforms differently. A study by Response Media found that Gen Z favors Snapchat to showcase real-life moments, gets news from Twitter and gleans some information from Facebook, although they see Facebook as a platform for older people. Market Wired research shows that Instagram is their most popular app for brand discovery, with 45% using it to find new products. YouTube video is another way to reach Gen Z. However, direct mail marketers shouldn't assume only a digital strategy can work with Gen Z. As IWCO Direct points out, Gen Z actually finds print media more trustworthy. An MNI Targeted Media study found that 83% surveyed said they turn to printed newspapers for trusted news instead of the Internet. Gen Z does not trust information on the Internet unless it comes from a website ending in .org or .edu. In fact, since Gen Z is online so often and using multiple devices, the biggest challenge is making a lasting impression, which is where trusted print material, such as direct mail, which can be physically touched and revisited, offers an edge as part of an omnichannel campaign. For more insights, see https://www.acculist.com/is-your-direct-marketing-ready-for-gen-z/

Demographics Fuel Pet-Owner Spending, Marketing

Direct mail and e-mail lists and data services targeting pet owners are one of AccuList USA's high-demand markets, and we expect trends in pet ownership to grow that marketing interest--and the competition that makes quality data and targeting even more essential. A recent post for The Marketing Insider highlights the demographic trends that are making pet owners such attractive targets: "Americans now own 305 million cats and dogs, an increase of 85 million over the past 10 years. The 50+ demographic is responsible for 60% of that growth. With 50+ population expected to grow twice as rapidly as the 18-49 segment over the next 10 years, brands that include 50+ pet owners in their marketing strategies will improve their odds of maximizing revenue growth," asserts columnist Mark Bradbury. Bradbury makes the point that marketers hoping to cash in on the older pet-owning market will need to adjust their buyer profiles given that 50+ pet owners are mainly empty-nesters (80%), retired (one-in-three), and three times more likely than younger pet owners to be divorced, widowed or separated--leaving more time and disposable income to devote to pet members of the family. Bradbury points to statistical proof that older owners are on a pet-spending splurge: People 50+ spent over $15.6 billion on their pets in the last year, more than all of the other generations combined, according to PetBusinessProfessor.com. The opportunity to market pet-pampering products is expanding, but so is the competition. Bradbury suggests several tactics that put the focus squarely on the growing Baby Boomer pet market, including messaging that celebrates a pet-centric Boomer lifestyle. Multi-channel campaigning is a must for this market. In addition to digital marketing via online, social and e-mail, Boomers are also still heavy users, and responders, of direct mail, magazines and television, Bradbury points out. "Synergistic cross-media marketing plans" are required to maximize reach at every stage in the purchase funnel, he advises. Plus, though Boomers like to spend to dote on their pets, they also want to spend wisely and are attracted to savings opportunities. Direct marketers will want to include discounts or loyalty reward programs to win brand fans. For a link to more pet marketing suggestions, see http://www.acculistusa.com/demographic-trends-drive-growth-in-pet-owner-spending/

Power Holiday E-mail With Segmentation, Offers

E-commerce and multi-channel retailers are beginning their holiday e-mail campaigns. What strategies will make for optimum results? From decades as data brokers and e-mail support providers, we can attest that targeting and smart segmentation are essential to holiday e-mail success. Of course, the house list can single out the active buyers and segment by basics such as location (no ice to Eskimos) and gender. But more sophisticated segmentation looks at purchase history in terms of product interest, in-store vs. web store, abandoned carts, purchase frequency, etc. For example, to maximize customer value, you can segment by average purchase (separating high-priced buyers from discount buyers) and send targeted e-mails with offers slightly over average order value. You can also reward and stimulate more sales from the most loyal buyers, segmented by purchase frequency or referrals etc., by e-mailing them unique holiday specials and freebies. The holiday season is also a great time to revive inactive customers, such as the previous year's holiday buyers who haven't been active since. Send them special offers to woo them back to the brand. Prior-holiday gift card buyers are a good sub-segment for a reminder e-mail about this convenient option. You can also target the most recent opt-ins who haven't converted to buyers with offers and creative most likely inspire clicks. And don't neglect to match your e-mail list to Facebook, YouTube or third-party newsletters to extend your reach via those vehicles! Although rented e-mail lists will not have the same intimate customer knowledge, you can still select by location, gender, age, product interest, and more. Holiday e-mails have to grab attention in crowded inboxes, and that means you need to get creative with offers that drive opens and clicks, too. Constant Contact recently surveyed its small business clients and gathered 30 successful holiday e-mail ideas that may help inspire your marketing. For a link to all 30 ideas, go to our full post at http://www.acculistusa.com/power-up-holiday-e-mail-with-segmentation-offers/

Print vs. Digital: Millennial Marketing Myths

Given that millennials love digital technology, does that mean they prefer digital marketing? Not according to a recent Target Marketing magazine article debunking several marketing myths about millennial customers, including the notion that digital advertising is the most effective way to reach those born between 1980 and 2000. Author Linda Antos, market development analyst at commercial printer Quad/Graphics, cites annual Quad/Graphics research that tracks millennial shopping and media habits and preferences to show that traditional print marketing--direct mail and catalogs--actually has greater power to move millennial buyers. The first myth Antos takes on is the belief that millennials ignore printed marketing. The Quad/Graphics study shows that 82% of millennials read direct mail and 54% look forward to receiving retail catalogs in the mail. Within 30 days of the survey, 49% reported taking print coupons to the store to shop and almost three in four used grocery retail inserts, higher than the average shopper. Myth No. 2 involves assuming that millennials' known addiction to daily digital interaction means they pay attention to digital advertising. The Quad/Graphics survey found that nearly half say they ignore e-mail and Internet ads, and 45% ignore mobile ads. By comparison, only 15% ignore direct mail ads. When it comes to millennial social networking, less than 10% say they made a purchase based on social media ads, and only 1% purchased from a social site. Another false generational stereotype is that millennials are less cost-conscious. In the Quad/Graphics millennials study, 49% said it was fun to see how much they could save with coupons, loyalty cards and discount offers, and 57% said they responded to "Buy One, Get One Free" offers in direct mail. The surprise power of direct mail with millennials doesn't diminish the need for digital marketing but does underscore the value of multichannel marketing, which is supported by more Quad/Graphics data. For the complete post, read http://www.acculistusa.com/study-debunks-marketing-myths-about-millennials/

13 Ways to Use Direct Mail in 2016 Marketing

Here's a New Year's marketing resolution that we would suggest: Make 2016 a year of direct mail successes. Unsure of how to get the most ROI from "snail mail" today? A recent Target Marketing magazine article by Summer Gould conveniently lists the most effective uses of direct mail--13 ways to leverage this powerful tool for effective acquisition, retention and brand promotion. Here are just the top five: 1) generate traffic to a retail location, website or event; 2) gather sales leads by targeting your most qualified, active audience with a high response tool; 3) counter competitive offers by reaching out to competitor's prospects without broadcasting your strategy; 4) boost customer loyalty with exclusive offers and rewards; and 5) turn customers into sales generators by garnering and rewarding customer referrals. The list includes ways to fit direct mail into partner marketing and multichannel marketing efforts, with e-mail, social media, mobile and more, and ends up at No. 13: build brand awareness with what research shows is the most trusted form of marketing. For all the ways to best use direct mail in your marketing plan, read the complete article at http://www.targetmarketingmag.com/post/13-ways-direct-mail-works-best/

Print Can Add Needed Punch to Marketing Plans

Printed material, including direct mail, keeps proving its worth to our clients in this digital marketing era. So our thanks to Jean Gianfagna of Gianfagna Strategic Marketing for a post summing up the reasons for print's continued marketing power. She cites six marketing advantages that make print a must-have for a smart marketing strategy: unlimited creative options, from formats to personalization to dimensional impact; effective branding via the unique impression created by physical materials; enhanced customer relationships from targeted, personalized loyalty, cross-sell and up-sell messaging; increased customer understanding with detailed product descriptions, comparisons and options that don't fit tight digital formats; durability, influencing decisions long after a tweet or e-mail has been discarded and forgotten; and engagement tapping multiple senses (visual and tactile, plus even scent and sound). That said, marketers can also squander budget on overdesigned, untargeted, ineffective print efforts. So Gianfagna adds some important advice on using print wisely: work closely with a printer before finalizing design to choose the most cost-effective materials and formats; be cautious with use of pricey print techniques, such as die-cuts, embossing and foil stamping; use quality data for targeted, correctly addressed direct mail; plus, when it comes to direct mail, keep USPS regulations in mind for lower postal rates. For more detail, go to http://www.gianfagnamarketing.com/blog/2015/10/29/6-reasons-you-still-need-print-in-a-smart-marketing-strategy/

It's Full Speed Ahead for Mobile Coupon Use

Coupons are forecast to be mobile marketing's rising stars this year and beyond. As pointed out in a recent Target Marketing Magazine blog post by mobile industry veteran Greg Hoy, mobile coupons are redeemed 10 times more often than print coupons and mobile coupon users, set to reach 53.2 million in 2014, are forecast to post double-digit growth rates annually through 2016 per Business Insider stats. In fact, eMarketer has predicted that by 2016, mobile coupon users will represent nearly 83% of all digital coupon users, notes Hoy. So it would be a smart business-to-consumer marketing strategy to either initiate a mobile coupon program, or beef up existing mobile coupon efforts. Make sure that tablets are front and center in any plan, urges Hoy, noting that, according to eMarketer 2014 estimates, 80.2% of mobile coupon users redeemed with a tablet, compared with 75.4% using a smartphone. Look for other digital channels allowing easy access to coupons via mobile, too, such as mobile apps, daily deal and group buying sites, e-mail and social networks. Where appropriate, test geo-targeting; retailers are reporting high redemption rates from geo-targeted SMS-delivered coupons sent to shoppers close to stores, Hoy notes. Finally, consider using mobile coupons to boost loyalty programs, suggests Hoy, citing findings of a 2014 Bond Brand Loyalty poll that a better loyalty program would lead 6 in 10 millennials to switch brands and two-thirds to change when and where they shop. Targeted mobile coupons may be just the reward to tip the loyalty scales for mobile-savvy millennials. Read the complete post at http://www.targetmarketingmag.com/blog/extending-your-mobile-marketing-strategy-through-coupons

Loyalty Rewards Needed to Woo Millennial Shoppers

To win over the fickle millennial shopper, a loyalty rewards program is essential, at least based on a new report from Bond Brand Loyalty. As reported recently in Ad Age, Bond's fourth-annual survey of more than 6,000 consumers, found that 37% of millennials, defined as 20- to 34-year-olds, said they would not be loyal to a brand that doesn't have a strong loyalty program (compared with 30% of all respondents). And brand loyalty programs must keep competing to please these younger buyers: Of millennials surveyed, 68% said they change when and where they make purchases to get loyalty rewards, and 60% will switch brands if incentivized. No wonder loyalty programs are elbowing each other in a crowded field. On average, people are enrolled in 10.4 loyalty programs, according to the Bond study, although they are only active in 70% of them. Looking for loyalty rewards worth emulating? See the survey's top-ranked loyalty programs by company in each market category at http://adage.com/article/datadriven-marketing/dove-jetblue-top-loyalty-program-rankings/293499/