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HOW MAIL CAN DRIVE COMMERCIAL RETURN

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Presentation on theme: "HOW MAIL CAN DRIVE COMMERCIAL RETURN"— Presentation transcript:

1 HOW MAIL CAN DRIVE COMMERCIAL RETURN
So: Mail valued by consumers is not limited to a particular type or sector. Every piece of mail sent has the potential to have personal relevance, which is the benchmark the consumers use to assess value. Mail which includes information about a recipient’s account or interactions with a brand or organisation has unique opportunities because it contains information that is by definition personal. Mail valued by recipients was much more likely to come from organisations with which the recipient already has a relationship. By definition, customer mailings start with a greater opportunity for personal relevance compared to mail aimed at new customers Acquisition mail can be valued if it delivers personal relevance, either by successful targeting or chance. But what are the component parts of a piece of mail deemed to be useful and/or interesting?

2 MAIL DELIVERS STRONG ROI
Mail ROI showed a strong channel performance in BrandScience cases We commissioned BrandScience to conduct a meta-analysis of advertiser econometric models – 401 cases (56 of which used direct mail and 42 of which used door drops), each representing one year with an average of 3 campaigns per year. They discovered that mail’s ROI performance is strong and that it is similar to television and above that achieved by most other media channels covered in the analysis. Door drops also deliver excellent performance – around the same level as OOH (out of home / posters). Of the 56 cases using direct mail, we found that mail and door drops did well versus other channels, and that both deserved to be included/considered in their own right. Revenue Return on Investment of clients using direct mail Source: Royal Mail MarketReach BrandScience, 2014

3 AND CREATES A MEASURABLE MEDIA MULTIPLIER EFFECT
Total ROI increased 12% when mail was included in the mix When mail was included in an integrated plan, total communications revenue ROI jumped from £4.22 to £4.73 – a 12% increase. The inclusion of mail particularly showed increased revenue ROI from campaigns using TV and print. This is in line with the neuroscience research where we saw a strong interaction between mail and TV.  Source: Royal Mail MarketReach, BrandScience 2014; advertiser cases including mail versus cases without mail.

4 35 % more consumers redeemed coupons or vouchers
MAIL DELIVERS NEW AUDIENCES Adding mail to the mix opens up new responsive audiences. 35 % more consumers redeemed coupons or vouchers 21% more consumers made purchases 13% more consumers visited sender’s website Adding mail to the mix also delivers new responsive audiences. This is not just from media multiplier theory. Royal Mail consumer research shows us that different people like to be communicated with through different channels at different points in the customer journey. In our Mail & research for example, we found that 68% of people prefer companies to use some communication by mail. With mail added to the mix, in our Digital and Mail: Part 1 research, we could identify that 13% more consumers visited the sender’s website, 21% more consumers made purchases and 35% more consumers redeemed coupons or vouchers . Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

5 CAMPAIGNS INCLUDING MAIL WERE:
INCLUDING MAIL DELIVERED TOP-RANKING SALES AND ACQUISITION PERFORMANCE +27% CAMPAIGNS INCLUDING MAIL WERE: 27% more likely to deliver top-ranking sales performance 40% more likely to deliver top-ranking acquisition levels +40% Sales Aquisitions The BrandScience analysis focused on ROI, but we also wanted to confirm that mail delivered on other commercial measures. Peter Field, an independent marketing effectiveness consultant, analysed the IPA Effectiveness Awards case studies data and compared the metrics between campaigns that used mail and those that did not. The analysis of the IPA Effectiveness Awards databank identified that campaigns that included mail were 27% more likely to deliver top-ranking sales performance and 40% more likely to deliver top-ranking acquisition levels, than campaigns that didn’t.   Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

6 2.9x Market share growth for all clients
WITH MAIL IN THE MIX, MARKET SHARE GREW 3x MORE EFFICIENTLY 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 Furthermore the results of this analysis showed that where mail was included it drove market share growth with 3 x the efficiency of those that did not include mail. A brand spending the same amount of money on two campaigns, would therefore experience three times the amount of market share growth from one that included mail than one that did not. Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail. Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

7 VALUED MAIL THAT MAKES PEOPLE FEEL SOMETHING MAKES THEM DO SOMETHING
Of those people who felt something Of those people who felt nothing Did something Did 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. Base: Felt something 2,757, Felt nothing 263. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

8 AND FEELINGS AND ACTIONS CORRELATE Indices
People who acted directly felt… People who did not act directly felt… 71% 58% 56% 52% 50% 44% 27% 63% 41% 40% 37% 31% 32% 29% 13% 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 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

9 Number of different emotional responses recorded
MORE FEELINGS, MORE ACTIONS Overall 42% % Act Number of different emotional responses recorded 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. Base: 3,000; multiple answers allowed. Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014

10 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 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

11 WE CAN HELP YOU GET MORE FROM 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 We’re ready to help.

12 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 or visit mailmen.co.uk for more information.


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