HOW MAIL CAN ENHANCE YOUR CAMPAIGN

56% 51% 65% CONSUMERS DON’T LIKE THE IDEA Of just one communication channel A combined approach resonates best of the more digitally active group2 say that “mail makes me feel valued”. Only 40% say “an email makes me feel valued”3 56% prefer companies to use a combination of both mail and email1 51% like to browse through both the catalogue and online before making a purchase4 65% When it comes to brand engagement, consumers want choice. They don't have one method of engaging with brands and with each other; they have many. And which one they use at any moment depends on where they are, what they're doing and what the purpose of the communication is. They don't want brands and organisations to decide on one channel of communication. It may on the surface appear financially attractive to migrate all customer communications to email and web, and then make further investments in mobile and social. But customers are very clear this isn't what they want. Over half of them say they want a mix, and even those who lean towards one over the other still say that each has its place. What’s also interesting is when looking at the more digitally active group 56% say that “mail makes me feel valued”, whilst only 40% of the same group say the same of email. 1.Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013; Question asked (S4Q1): Overall, thinking generally about the communications you receive, would you say you prefer to be contacted by post, email or a combination of both? (Base: all respondents n=2,375) 2.People who browse throughout the day 3.Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014; Question asked to people who browse the internet throughout the day (S2Q6-9): Which communication method do you feel applies to the following: 'it makes me feel valued'? (Base: all browse internet throughout day n=711) 4.Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013 Question asked (Q12): Please now indicate the extent to which you agree with each of the following statements (Base: All Respondents n = 1,000)

13% 21% 35% Adding mail to the mix opens up new responsive audiences When compared to using email on its own 13% 21% 35% more consumers visited sender’s website more consumers made purchases more consumers redeemed coupons or vouchers More than that in our research, many customers only acted after receiving mail. So adding mail to the mix opens up a whole new untapped section of your audience to purchase, redeem coupons and visit your website. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S2Q5): In the last 6 months, have you taken any of the following actions in response to the post you have received? (Base: All Respondents n=1,000) Question asked (S3Q5): In the last 6 months, have you taken any of the following actions in response to the email you have received? (Base: All Respondents n=1,000)

CAMPAIGNS THAT INCLUDE MAIL ARE MORE EFFECTIVE Percentage difference between successful campaigns using mail vs without mail +27% +40% +104% 57% 4.9% 45% 42% % campaigns reporting top box improvements 30% 2.4% Adding mail to campaigns improves performance substantially. A recent meta-analysis by Peter Field on the IPA Databank shows that when looking at campaigns which delivered high sales performance, 27% more included mail than did not. When looking at campaigns that drove high acquisition levels, 40% more included mail than campaigns which did not. Furthermore, campaigns with mail achieved over twice (104%) the market share growth than campaigns without mail in the mix. Campaigns with mail Campaigns without mail IPA Databank meta-analysis conducted by Peter Field, 2013

(% True of Mail vs. True of Email) PEOPLE FEEL VALUED AND HAVE A BETTER IMPRESSION OF THE BRAND The emotional impact of mail versus email MAIL EMAIL 63% 18% I am more likely to take it seriously 57% 17% It makes me feel more valued 55% 25% A 2013 article in Scientific American showed that there is still a strong preference for reading on paper, driven by the physical properties of mail. And this preference for reading on paper does in fact translate into a preference for advertising mail over email communication. For example, we discovered that 63% of people say that they are more likely to take mail seriously, compared to just 18% of people for email. But not only does mail give a better impression of the company than email (55% vs 25%), people also feel more valued when they receive mail rather than email (57% vs 17%). .   It gives me a better impression of that company (% True of Mail vs. True of Email) Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

TOUCH CREATES A POWERFUL EMOTIONAL RESPONSE When people can both see and touch something, they value it 24% more highly than if they can only see it. Over a third of people say that the physical properties of mail influence how they feel about the sender.    +22% +24% Behavioural marketing experts have investigated the importance of touch in human psychology. Multisensory stimulation seems to alter the way the brain processes messages – often making processing quicker. Physical contact results in what psychologists call the ‘endowment effect’ – a sense of ownership over an item which makes people value it more highly. Scientific experiments have shown that people value something they can see and touch 24% more highly than something they can only see. Meaning that the physical nature of mail gives it a sense of importance as well as influencing how they feel about the sender. Campaigns with mail Campaigns without mail Participants were asked to subjectively grade ownership and value on a 7 point scale. Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009; IPA Touchpoints 5, 2014

VALUED MAIL THAT MAKES PEOPLE FEEL SOMETHING MAKES THEM DO SOMETHING Of those people who felt something Of those people who felt nothing In our analysis we explored the relationship between what recipients said valued mail told them, what it made them think and feel and ultimately what they did. What became clear is that people who recorded feeling something were more likely to act than those who did not. This correlation is quite clear: mail that makes you feel something makes you do something. And conversely, those who felt nothing – a total of 8% of our sample – were much less likely to do anything. Note to media specialists: Unusually 2 of our key statistics were 92%: - 92% of people said their valued mail made them feel something - 92% of those who felt something did something Don’t get confused or worried; we’ve quadruple checked these figures, and they are right. It’s unusual, but it happens. Did something Did nothing Base: Felt something 2,757, Felt nothing 263 Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014 7

FEELINGS AND ACTIONS CORRELATE 71% 58% 56% 52% 50% 44% 27% People who did not act directly felt… 63% 41% 40% 37% 31% 32% 29% 13% People who acted directly felt… Indices 113 141 145 151 168 156 152 208 We then looked to find whether any one feeling was more associated with taking a direct action than any other. The charts above have different samples; that on the left is those people who acted directly upon their valued piece of mail (the 42%), while the one on the right is those people who did not. As you can see, in all the case of all of these factors, those who acted were more likely to have felt something than those who did not. And the popularity of each of the emotions stays the same; so at 71%, the feeling that was most associated with taking an action remains feeling better or more informed. But when looking at the difference between taking an action and not taking an action – the index– we can see that feeling special, for example, means an individual really is more likely to take an action than not, with an index of 208. So managing to make a person feel special is an effective way of raising the potential to get a direct response. Of course, this isn’t as simple as simply telling them they are special! Base: Acted upon it 1,247; Did not act upon it 1,753. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

Number of different emotional responses recorded MORE FEELINGS, MORE ACTIONS Overall 42% % Act Beyond the role of specific feelings in driving direct response was the role of the breadth of feelings experienced. As noted, many people registered many feelings– 20% registered 9 or more. And as this chart shows, the more feelings an individual had, the more likely they were to take a direct response. The key point is that while powerful marketing should have one, clear message, in mail at least this does not mean that it should inspire a flat, one-dimensional emotional response. People are complex creatures, and we are living in complex times. Think about the books, tv programmes or movies we like: they may have a ‘goodie’ and a ‘badie’, but the often the ‘goodies also have faults and the badies have some redeeming features, or a reason why they became bad. Good mail, like good drama, creates layers of emotional response. Number of different emotional responses recorded Base: 3,000; multiple answers allowed Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

Average number of actions taken by those who acted AND THOSE WHO ACTED TOOK More than one action ACTED Acted 4.7 Visited shop 6.3 Downloaded App 8.7 ADVOCATED Posted online 9.0 Discussed 5.2 Recommended 6.5 Average number of actions taken by those who acted 3.1 Finally, our analysis indicated that its not only feelings that come in combinations rather than isolation: it’s actions as well. This chart indicates the total number of actions taken (on average) if a person takes any particular action. So, if a person acts directly upon receipt of their useful and/or interesting piece of mail, they are likely to take 4.7 actions in total. For example they might act directly, and go online for further information, talk about it with others, and recommend it to family and friends, etc. Conversely if they post a positive message online, they are likely to take 9 actions in total. These correlations again indicate that the value generated by a valued piece of mail is far greater than just that of its direct response. RESEARCHED Requested 7.7 Researched Online 5.6 PLANNED Planned purchase 5.6 Kept for reference 3.7 Base: 3,000; multiple answers allowed Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

WE CAN HELP YOU GET MORE FROM YOUR INVESTMENT IN MAIL At MarketReach we have a dedicated team of media specialists, planning professionals and data experts who work with brands and their agencies to boost mail performance within the wider media ecosystem.  These professionals have full access to our proprietary research, media planning tools, case studies and more. They can help with an audit of your current mail use, an exploration of new opportunities including advice on postage incentive schemes, help with data cleansing, segmentation, analysis and targeting or simply by supplying relevant case studies to inspire you. And because we are confident in the commercial value that mail generates for brands, we don’t charge for these services. So whether you just want an initial chat with a mail expert who knows your industry or you want to arrange a full days mail workshop with your team, call us on 0800 014 2368. We’re ready to help.

Thank you We have a team of media experts and data planners ready to apply these learnings to your business. To discuss how we can help you, call us on 0800 014 2368 or visit mailmen.co.uk for more information.