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Royal Mail Group Publishing Sector Incentives.

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Presentation on theme: "Royal Mail Group Publishing Sector Incentives."— Presentation transcript:

1 Royal Mail Group Publishing Sector Incentives

2 Our understanding of prevailing market conditions
Post Brexit economic conditions are more uncertain, GDP constrained Publishers face pressure as advertising revenue from print is not easily replaced in the digital world Abundance of free media widens consumer choice We continue to see reduced volumes of magazine distribution as digital channels take an increased hold on media consumption Subscriptions taking slight increase in share from Newsstand

3 Cross selling \ Up selling
There are a number of areas Where We hope to support you Customer Acquisition Magazine Fulfilment Cross selling \ Up selling Renewal Win-back Once a subscriber lapses, what are the best ways to encourage re-sign New Subscriber - find new subs via Direct Mail New Title Launch – reduced postage costs over initial period while you grow your subscriber base Best use of mail working with other media to increase renewal rates Supporting your revenue growth with targeted offers to subscribers, and helping retention by doing so

4 NEW incentives to help Grow your business
Volume Commitment: To support the use of mail for the circulation of titles we are offering postage credit rebates for customer who simply match the volume of mail they sent in the previous year Support for new title launches: To help you maximise your return when launching a new title we are reducing the postage cost for new titles by 30% for the first 12 months and 10% for the next 12 months Use Advertising Mail to grow you customer base: Mail is a proven to achieve high scoring results for customer acquisition and retention. Our research shows that: consumers don’t always like the idea of one communication channel -– 65% of people say that they are more likely to give mail their full attention1 Including mail in the marketing mix increases ROI by 12%2 To help you see for yourself the benefits of mail we are offering the chance to earn postage credits of 15% off the postage cost for tests performed over a 6 month period Better still, you can earn a 30% postage credit for each test item you send when testing the sending of your title to a brand new audience not previously targeted 1 Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample 2 Source: Royal Mail MarketReach, Brand Science Meta Analysis, 2012

5 Publishing volume commitment
Earn Postage Credits on all your publications for committed volume over a 12 month period THE DEAL Postage Credit rate of 2% of the Royal Mail Access price for publications (0.6 – 1.9p depending on service used and weight) Publishers required to include all titles in the volume commitment and commit to sending at least 95% of last year’s volume WHO’S ELIGIBLE Anyone sending publishing volume of at least 250,000 items per year Customers must apply to participate For postings sent directly with Royal Mail or an Access Operator Key Points Discount paid as a retrospective postage credit in the form of postal credit vouchers or direct into a Royal Mail Account Available only for Large Letter mailings Use of Mailmark is optional although the customer will be required to complete an e-manifest when it is available to enable volumes to be measured. There will be no obligation to add a mailmark barcode to the item Apply here

6 Publishing Test incentive for New title launches
Earn Postage Credits for up to 24 months on all publications distributed by post when launching a new title using the Royal Mail Publishing Test Incentive THE DEAL Reduce the postage cost for new titles by 30% for the first 12 months and 10% for the next 12 months as the title becomes established WHO’S ELIGIBLE Any new title launch when you distribute at least 10,000 items a year by post Customers must apply to participate For postings sent directly with Royal Mail or an Access Operator Key Points The incentive encourages the use of mail for new title launches and where mail has not previously been used for a title - customer must intend to roll out the title beyond the lifetime of the incentive Available only for Large Letter mailings Discount paid as a retrospective postage credit in the form of postal credit vouchers or direct into a Royal Mail Account Apply here

7 Royal Mail Advertising Mail Test Incentive
Publishing Test incentive for Renewals using mail Earn Postage Credits when testing the use of mail to improve renewal rates using Royal Mail Advertising Mail Test Incentive THE DEAL Postage Credit rates of 15% for tests that introduce the use mail for renewals or for tests that add a new stage of mail to the renewal process Tests can be performed over a period of up to 6 months WHO’S ELIGIBLE Any test of subscription renewal mailings of a minimum of 10,000 items For postings sent directly with Royal Mail or an Access Operator Key Points Available for incremental mail for subscriptions renewals Discount paid as a retrospective postage credit in the form of postal credit vouchers or direct into a Royal Mail Account Apply here

8 Publishing Test incentive for Acquisition and cross-selling
Earn Postage Credits when testing the use of mail for new subscriber acquisitions and cross-selling using Royal Mail Advertising Mail Test Incentive THE DEAL Postage Credit rates of 15% for advertising mail tests for up to 6 months to assess whether mail can improve subscription acquisition and cross- selling WHO’S ELIGIBLE Any test of advertising mail mailings of a minimum of 10,000 items For postings sent directly with Royal Mail or an Access Operator Key Points Available for tests where mail has not previously been used e.g. use mail to promote new titles, new audience testing and frequency testing Discount paid as a retrospective postage credit in the form of postal credit vouchers or direct into a Royal Mail Account Apply here

9 How to apply You will need to submit an application form that will ask for the following details: Company name Details of your postal supply chain including your: Name of your postal providers A list of any credit account numbers you hold with Royal Mail Your Unique Customer Identifier (UCID) (if posting through Access) Mailmark Participant ID A description of the test if using test incentive Last years posting volume if using the volume commitment incentive Your expected volume and start date You can find the Application forms and information on how to submit them at We may ask you to provide samples of your publications so that we can check they meet our ‘Publishing Mail’ definition. For information and help please visit the website at the address above, contact your postal provider or contact us at Royal Mail be ing

10 48% OF CUSTOMERS WON’T BUY FROM A COMPANY THEY DON’T TRUST*
In uncertain times how can brands build trust? We live in uncertain times and this isn’t changing: Political Economic Social Technological Legal Environmental It is important every message you deliver can be trusted and mail can help build trust 48% OF CUSTOMERS WON’T BUY FROM A COMPANY THEY DON’T TRUST* *Source:2017 Edelman Trust Barometer

11 THE VALUE OF MAIL IN UNCERTAIN TIMES
BRANDS NEED TO BUILD TRUST AND ADDING DIRECT MAIL TO YOUR MARKETING MIX CAN HELP New research* confirms this and shows that mail is proven to deliver reassurance and credibility and these are key components to building and maintaining trust Mail is seen as valued, confidential, important and secure and drives response Earlier this year, we carried out some research that refreshed and built on work we’ve been doing since 2007. We did this by running a nationally representative online survey with Kantar Kantar TNS, a reputable research provider. The survey looked into what qualities consumers believe mail has (we compared it with it’s closest digital equivalent, , to help do this), and what situations or messages consumers prefer to receive via mail. We were then able to analyse the results to highlight the relevant and useful qualities of mail that consumer value in the current climate. * Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample

12 It gives me a better impression of the company
How mail builds trust It makes me feel valued It gives me a better impression of the company MAIL IS VALUED AND MAKES ME THINK BETTER OF THE SENDER Do the following statements relate mostly to mail or you receive from companies? Mail In a ten year period, the results show that the percentage of people stating that mail ‘makes them feel valued and gives them a better impression of the company’ has increased to 70%. This uplift may be the result of improvements in the quality of mail, or in better use of data. It may also be that the comparative rarity of mail in relation to is a key factor in the changing perceptions of mail. About the Question “Do the following statements relate mostly to mail or you receive from companies?” and consumers were able to pick between mail and This was a trended question, and the results for mail have trended upwards since The full report gives this three year trend: It gives a better impression of the company 53% 55% 70% It makes me feel valued 43% 57% 70% * Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample

13 describe mail as ‘Believable’
how MAIL builds credibility Now thinking about the mail and you receive from companies, how would you describe the way they communicate with you? 87% describe mail as ‘Believable’ (vs. 48% for ) Believability is a key factor that engenders trust. A range of other descriptions are available in the full report and show that mail, while seen as formal, is also important, believable, and above all, secure For instance, 62% of people say the word ‘formal’ best describes mail (vs. 13% for ) About the question: People were allowed to pick whether a word best described mail, , or was true of both to the question “Now thinking about the mail and you receive from companies, how would you describe the way they communicate with you?” This question also ran in 2013, and is trending upwards since that time (the 2013 equivalent was 64%) * Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample

14 Mail is valued because it’s secure
Thinking about how companies or organisations contact you, what is your preferred method of contact for sensitive or confidential account information: 51% 35% 12% 1% Post Phone call SMS alert People seem to feel that mail and other printed communications are intrinsically more trustworthy, perhaps because they are tangible and cannot be erased with the swipe of a finger. About the question: People were allowed to pick between post, , phone call or SMS/ smartphone alert for a range of different scenarios. * Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample

15 MAIL is valued BECAUSE IT’S private
To what extent do you agree or disagree with the following... I am confident that the contents of my mail are private When sensitive or confidential information needs to be communicated, mail delivers reassurance that the message is credible and secure. And in these uncertain times, that power to build trust is all the more important to organisations of every kind * Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample

16 I am likely to give it my full attention
People pay attention to mail Do the following statements relate mostly to mail or you receive from companies Mail “I think that’s the thing with post… I personally think there’s some value in it because people actually look at it.” Jack, mid-20s These findings show that mail is not only valued and appreciated, but that it also engages a customer’s full attention. The characteristics of mail make it stand apart from ‘multi-screening behaviour’, where consumers are simultaneously paying attention to two or more digital or video devices at the same time. Reading an item of mail is an active process that demands the dedicated attention of the viewer. In our recent research, 65% of respondents said they gave mail their full attention, compared with only 35% who said the same for . Even if they opened it, 72% of people said they often read and review some of their mail at a time when they can give it their full attention. The Illuminas local government research was one of MarketReach’s sector specific projects, and shows the breadth of expertise we offer our clients. It involved an online survey with a nationally representative panel of 2861 individuals, a face to face survey of 200 local residents, and qualitative interviews with 16 consumers I am likely to give it my full attention Royal Mail MarketReach Research conducted by Kantar TNS in May 2017: Base UK adults, nationally representative sample Quote from MarketReach/ Illuminas Local Government Research, 2017

17 and a bill or statement for
MAIL HAS LONGEVITY On average, an item of addressed advertising mail stays in the home for 17 DAYS a door-drop stays for 38 DAYS and a bill or statement for 45 DAYS* We know that mail also stays in the home, giving people multiple opportunities to reread the item, and engage with it more deeply * Source: Private Life of Mail, 2015

18 Including Mail in the marketing mix increased
From trust to profit Including Mail in the marketing mix increased ROI by 12%* 36% of people have bought or ordered as a result of receiving mail in the last 12 months** A BrandScience review of multi-channel campaigns concluded that when mail was included in the marketing mix, campaigns had 12% bigger ROI than those without mail. This shows us that mail drives profitable activity. The IPA TouchPoints survey tracks the range of responses indicated by consumers when receiving mail. It demonstrates that mail drives a range of commercially relevant responses: driving enquiries online or by phone, encouraging store visits, purchases and prompting service renewals. All of these actions have seen an upward trend in the past year. So the improved performance of mail is not limited to thoughts or feelings: active responses to mail are improving too. *Source: Royal Mail MarketReach, Brand Science Meta Analysis, 2012 ** Source: IPA TouchPoints, 2016

19 Including mail is an excellent Way to build trust
A MEDIUM CAN CONVEY A MESSAGE Mail’s attributes - tangibility, tactility and longevity help build trust while also driving short term commercial actions. Therefore adding or including mail in the marketing mix is an excellent way to build trust.

20 How we can help

21 Thank you name Phone number address


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