Growing your business with mail Scheme for Growth

Why mail? Mail plays a powerful role in todays media landscape, engaging your customers and growing your business; Mail is a core part of consumers’ daily lives People don’t just open mail they interact with it too Receiving mail actually makes them feel valued as a customer Mail is kept for longer than you’d think Sending mail sends your customers online Including Mail in a media plan is proven to improve campaign effectiveness Mail delivers ROI Mailed catalogues drive sales Mail and email are an ideal partnership with each playing a unique role

People know when they want email and when they want mail We asked people what types of communications they wanted. Their feelings were clear: Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Receiving mail makes people feel valued Want to demonstrate to your customers that you value them? Sending them mail is considerably more likely to achieve this. You’re more likely to create a better impression from mail. Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

People don’t just open mail they interact with it too It seems that the perceived value and authority of mail translates into physical interactions. Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014

Mail is kept in the home for longer than you think Mail is kept for extended periods, creating a constant presence in the home. 17 days for advertising mail 38 days for door drops Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014

Sending out mail sends your customers online Sending customers direct mail sends them directly to your websites and to social media. In fact, the majority of people have gone online in response to mail they’ve received, and this behaviour isn’t just confined to making a potential purchase. Source: Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

Mail is engaging and remembered Mail had a much more powerful overall impact on the key measures of the neuroscience study than email or TV. 19 Source: Royal Mail MarketReach, Neuro-Insight 2013

Mail improves campaign effectiveness Mail included in multi-channel campaigns drove market share growth with 3x the efficiency versus non-mail advertisers. 2.9x Market share growth for all clients 3.4x Market share growth for service sector Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail. 13 Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

Mail delivers strong ROI Mail ROI showed a strong channel performance in BrandScience cases The average RROI across the 56 cases where mail is used and measured in the Brand Science analysis 22 Source: Royal Mail MarketReach BrandScience, 2014

Mailed catalogues drive sales were influenced by the catalogue 81% 74% Bought from a retailer within 6 months of receiving their catalogue and spent on average £271 vs. £162 (non-catalogue users) Of these purchasers Say they buy more frequently if they regularly receive a catalogue 50% Reported buying more than intended when shopping with a catalogue 40% Source: Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013 11

How you can use mail to grow your business Mail information of new launches to your customers Give your customers the best opportunity to consider and buy your new products or services Target new customers to grow your base - Find customers with similar profiles to sell more products and services Mail catalogues / brochures to your customers - Customers who are mailed catalogues, spend more, buy more and buy more frequently, often online Mail exclusive offers to your best customers - Mailing customers makes them feel valued and increases their spend and loyalty Entice previous customers with special offers - Encouraging the best types of customers to come back is more cost effective than finding new ones Mail customers to stop them from going to the competition - Customers are more likely to remember messages sent by mail

Growing your business with mail has never been easier Our Scheme for Growth improves your return on investment by giving you the opportunity to significantly cut your postage costs for certain types of mailing items. It works by giving you a postage credit on your new, incremental mail and reducing the cost for you to test and do more of your most valuable mail.   Adding mail to your marketing mix is a powerful, cost effective tool to get more revenue from your current customers, reactivate your previous customers and grow your business.

Our Scheme for Growth can significantly cut postage costs Our Scheme for Growth improves your return on Mail investment by giving you a postage credit of between 2.5 – 10.5p on all your new, incremental mail in any 12 month period, reducing the cost for you to test, identify and do more of your most valuable mail. The scheme can be used for: Testing of new formats, audiences, messaging, frequency and using mail with other media. Mailing new products to existing customers. Targeting new customers with new or existing products. Introducing new communication frequencies e.g. increasing loyalty mailings from quarterly to monthly. The minimum incremental volume to qualify for the scheme is of 250,000 items

Scheme for Growth example   Discounts start from 2.5p per item for machine readable letters rising to 10.5p for heavy Large Letters. New incremental advertising mail can qualify for the Scheme regardless of whether it is posted via an Access Operator, a mailing house, Royal Mail (Wholesale or Retail) or an alternative end-to-end delivery provider. So, for example: If the agreed baseline is 3 million items for the next 12 months. In the 12 month period, you mail 500,000 additional items. All 500,000 items above the agreed baseline would qualify under the scheme. Assuming Access Advertising Mail 70 Mailmark was used that could mean a postage credit of £12,500 for use on your next mailing. If you use this to mail a further 30,000 customers and achieve a 2% response rate, that’s 600 extra leads.

Enquiries and further information If you have any questions, or require further information regarding the Scheme for Growth Pilot, please contact us either: By email: groupincentive@royalmail.com, or visit us online at: www.royalmailwholesale.com/schemeforgrowth