WHERE DIRECT MARKETING IS HEADED

In early 2010, PRIMIR commissioned J Zarwan Partners with Interquest to investigate direct marketing and where opportunities exist for the graphic communications industry.

This new PRIMIR study, Trends and Future of Direct Marketing, examines direct marketing, and in particular, how printed direct marketing channels are performing in light of a host of new non-print direct marketing options.

“Email, websites, social media and mobile channels pose threats to print,” PRIMIR reports. The study addresses the impact of technology, economic and social issues, environmental concerns, postal rates and demographics, as well as developments and differences in more than 16 key vertical market sectors such as retail, finance, insurance, healthcare, and business services.

The resulting report reveals that direct marketing’s share of advertising expenditures has shown a strong upward trend over the past decade and continues to grow, accounting for nearly half of all advertising spending.

In 2009, direct mail (31%) and telemarketing (29%) were the most important channels. Of concern to the graphic communications industry, however, are non-print media such as web-direct, email, mobile, and social networks, which have increased in importance and share.

Despite the challenges, marketers believe print has a number of significant advantages, particularly deliverability and the ability to finely target. These marketing executives believe that print is more personal than other media and that customers prefer print.

One of the central questions of the study was the degree to which marketers will return to printed direct marketing when the economy recovers. And by the conclusion of the study in late 2010, direct mail volume had increased; the consultants believe this trend will continue. Marketers value printed direct marketing as an effective acquisition channel.
The 450-page report is available exclusively to members of PRIMIR.

Source

In Digital Era, Marketers Still Prefer a Paper Trail

An excerpt from the Wall Street Journal - Friday, October 16, 2009 - By Jeffrey Ball

"Never is the elusiveness of a paperless world more evident that at this time of year, when mail boxes overflow with catalogs and holiday cards.

More than 17 billion catalogs were mailed in the U.S. last year - about 56 for every American. So why does the catalog, which helped Richard Sears launch his eponymous retail empire more than a century ago, continue to thrive in the electronic age? Because glossy catalog pages still entice buyers in a way that computer images don't. Catalogs, marketers say, drive sales at Web sites, making them more important than ever.

Among retailers who rely mainly on direct sales, 62% say their biggest revenue generator is a paper catalog, according to the latest survey by the Direct Marketing Association of its members. Only a fifth of those retailers say they draw their biggest sales from their Web sites.

That is why virtually no one expects the mail-order catalog to go away - even though only 1.3% of those catalogs generated a sale, a survey found.

Internet retailing has environmental consequences, notably energy-consuming Web servers. The catalog industry says it is working hard to reduce the environmental impact of its mailings by pushing retailers to increase their reliance on recycled paper and by making it easier for consumers to opt out of mailings they don't want to receive."

Integrated Marketing Defined - think broad media mix

Integrated Marketing Communication is the cohesive execution of all your online and offline media efforts. Audiences today are increasingly fragmented, and multiple media are needed to reach them. A marketing platform should include print, direct mail, interactive, web advertising, and social media providing a constant flow of the message from sender to receiver.

Capturing data and information from your integrated marketing strategy is critical to developing leads. More and more customers have the expectation that they can anonymously get information online. It's just one more reason companies should be thinking about a broad media mix. Companies need multiple means to identify and collect sales lead data.

Integrated campaigns typically center around a strong web presence — usually a website or a blog, sometimes a microsite — but should also include print, direct mail, email, television, radio and social media to support and publicize that web presence.

Direct Mail and Print is the "welcomed intruder" and is still considered to be the most effective tool in lead generation. Coupled with the current CASS and NCOA requirements, your mailing list is pretty much guaranteed to be up to date. And the post office will forward mail if an address update is identified after the piece reaches the post office.

Email is a great follow-up tool, although there are still some major delivery issues when using it to acquire leads and prospects (scoring in at 10% below direct mail as reported by an Target Marketing study in January 2008 of 340 direct marketers) . Email is considered effective and efficient in communicating with existing customers for retention purposes.

Developing microsites is a great way for your direct mail campaign to assist with your email campaign and help you keep your email list clean and track the results of both online and offline campaigns.

Ultimately this is the "age of accountability" for the marketing profession. Breaking down the silos between online and offline media campaigns is the solution. Now is the time to crack the code for measuring integrated, cross platform media efforts.

Online and Offline Media = Complete Communications Strategy

The convergence of offline and online media, is the best communication strategy. It recognizes that markets and audiences are
increasingly fragmented and multiple media are essential in communicating to this environment.

Electronic/Digital Media is certainly effective when correctly used, but it comes with limitations - notably it's trendy, untested, ineffective, can result in spam listings, image blocking, phishing, deliverability issues, etc. Additionally, Print Media is certainly effective when correctly used, but it too comes with limitations - it's physical, can get lost, misplaced and there is no data backup, time lag in creation, etc.

However, when used in conjunction or in collaboration, a mix of online and offline media is very effective. The strengths of one solution balance the weaknesses of the other. The Post Office delivers more than 99% of it's mail. On top of that, it forwards mail to new physical addresses. Mailing certification solutions such as CASS and NCOA help you manage your databases. This ensures your message will be delivered to your audience. Using this print media to then stimulate web activity and interactivity can help you communicate with your fragmented audiences, enhance your web presence and keep email address databases clean and vital.

Understanding the various options in the world of business communications and how it's changing can help you in strategizing the right mix of media for your marketing plan.

Mail Preparation Standards Changing - AGAIN!

First-Class Mail and Standard Mail Machinable Letters will have a pricing change going into affect on May 11th.

The mail preparation standards for First Class Mail and Standard Mail must now meet all the standards for automation letters, except for the bar code requirement. This change will enable the USPS to process more machinable mail on automated letter sorting machines, especially unenveloped mail such as booklets and folded self-mailers.

The changes include:
- All folded self mailers and booklets mailed at machinable prices must be sealed with tabs, tape, glue spots, or glue lines. Follow the tabbing instructions posted in the Quick Service Guide 201b, Using Tabs, wafer Seals, and Glue Spots.

- The maximum weight for machinable and automation letter-sized booklets and folded self-mailers is 3 ounces.

- Letters closed with staples and letters without closures are nonmachinable and eligible only for nonmachinable prices.

Rest assured, the AGC Fulfillment Yields Interest Mailing Department is adept at quickly responding to the changing needs of the USPS. If you have any questions or if you are concerned about a piece you are currently working on please email us.

POSTCARDS: Five Strategies for Postcard Marketing Success

Postcards can be a very cost-effective way to generate website traffic, announce upcoming events, provide advance notice, encourage customers to take action and make special offers and promotions... if you do it right.

1.) Make a Big First Impression.
People like getting postcards from friends and relatives. They don't like getting advertising mail. Make your postcard look at first glance like a message from a friend instead of like advertising. It creates a warm friendly reception for your postcard.

Remember that your postcards will often be delivered in a pile of other mail items so using attractive images and sizes that will stand out in the pile will help your message get noticed and read. As a bonus, think about making the face of your postcard something that might even be worthy of framing...it will help keep your message around a little longer while your prospective customer gets around to framing the image. Making the postcard usable as a "free print" is a little "good will" gesture that will also set you apart.

2.) Get Right to the Point.
Postcards get delivered in a format that's ready to read. Take advantage of this by making the biggest benefit you offer the first thing the reader sees. This will encourage them to want to read the rest of your postcard. Keep it simple. Be direct.

For example, state your biggest benefit as a headline at the top of your postcard ...or make it the first item on a bulleted list of benefits ...or highlight it in bold type if it's in the body of your postcard.

3.) Choose the Right Purpose.
Marketing postcards are most effective when they are used to generate website traffic or generate excitement and interest for "something to come". They are less effective for closing sales because they don't provide space for a detailed message.

Design your message to "sell" the reader on seeking more information instead of trying to close sales.

For example, don't include much (if any) actual information about the product or service you are selling on your postcard. Instead, promote the major benefit (or benefits) they provide. Then persuade the reader to visit your website or to take some other action to get more information from or respond to a source where you can close sales. On occasion, you may be able to get your customer to take more definitive action if the matter is time sensitive and they can benefit from acting immediately.

4.) Be Clear and Direct.
You have only a few seconds to get the reader's attention and to persuade them to take the action you want. So keep your message brief and make sure the reader can clearly understand with just a quick glance what action they should take.

For example, limit your postcard to just a few short sentences with blank lines between them. Reduce several sentences to a short bulleted list to save space and reading time.

Always end your postcard by telling the reader exactly what to do to get more details - and include a reason to do it immediately.

5.) Stimulate Fast Action.
Unless the postcard is being used as a teaser, just telling your reader how to get more information is not enough. Give them a reason to respond now or many will put your postcard aside to do later... then get involved with other things and never act.

For example, offer them a discounted price, a special bonus or some other benefit if they reply to your postcard by a deadline. Postcards are not new or high-tech. But that's not a reason to ignore them. They are relatively easy to create and distribute. They can generate a lot of interest and improve the response to your existing marketing programs for a very low-cost.

Article originally posted within AGC's e-newsletter, ePrint Tips.

Change = Opportunity (Everything is going digital!)

From iTunes, Netflix and eBay to Airline Tickets, Stock Trading and Banking - not to mention FaceBook, Twitter and Email - everything is going digital. And so is AGC!

While this shift in digital information may be perceived as a threat to traditional paper manufacturers and printing companies, we at AGC are not traditional. We enthusiastically support and promote the endless opportunities digital presents.

As Charles Darwin once said, "It is not the strongest of the species who survives, nor the most intelligent that survives. It is the one that is most adaptable to change." (Thanks to my dear friend Rachel for bringing this quote to my attention while we were working on a project together.)

As stated in my earlier post regarding Williams-Sonoma, there are great risks associated with the abandonment of traditional media. And at every point during the execution of your marketing strategy it is important to consider your marketing mix and the opportunities vs. the threats of that mix (Marketing 101: SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats).

What's most important is to embrace the multitude of communication opportunities available (which can be overwhelming) and determine which group is right for you, your company, your brand, and your marketing strategy. The good news, AGC can help!

We will be hosting presentations in the upcoming weeks (for those interested) on the emerging technologies AGC will be offering to help you engage your digital audience. Email us if you'd like more information.

Williams Sonoma: A Cautionary Tale

"In the realm of "what did they think would happen?" Direct Magazine reports that William-Sonoma experienced a direct revenue drop of $264.7 million, or 15.9% in 2008, the same year it dropped its catalog circulation by more than 20%, from 393.2 million in 2007 to 313.7 million, and cut catalog page counts by more than 30%.

Catalog revenue itself fell to $356.6 million in 2008 from $560 million in 2007 (that's $203.4 million dollars in lost revenue!) while the catalog cutback reduced direct-to-consumer costs by just $45 million. The company circulated just under 314 million catalogs in 2008 and direct-to-consumer sales represented approximately 42% of its business.

Although Internet revenues represent a higher portion of company sales, they also slipped, from $1.1 billion to 1.03 billion, a fact in part attributable to the cut back in catalog mailings, according to the Direct report, which notes "The company is aware that decreasing its catalog circulation will have a negative effect on other channels. In a note within its filing, the company acknowledged 'approximately 40% of our company-wide non-gift registry Internet revenues are incremental to the direct-to-consumer channel and approximately 60% are driven by customers who recently received a catalog.' "

WOW! As an experienced shopper, I can personally attest, a majority (90-95%) of my online purchases are a direct result of a recent catalog mailing.

This is a perfect example of the need to focus on multi-channel marketing (see earlier post titled "Interactive Marketing Emerging at AGC"). Direct Mail feeds Website Traffic and hence revenues (period). There is far too many business' vying for our attention for marketers to think we will always just remember their business exists, however, when prompted with direct mail, we usually pay them a visit.

This is a tale worth considering when developing the strategy for your next marketing campaign.

Direct Marketing & Customer Segmentation

The use of customer segmentation and data for better targeting, efficiency and ROI is a leading trend in direct marketing today. The more accurate and targeted the database, the higher the response rate. The higher the response rate, the better the marketer's ROI. The key is maintaining list hygiene and identifying market segmentation.

Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Therefore, every segment can be addressed with an individually targeted marketing mix.

Typically marketing strategists consider the 4P's: Product, Price, Place, Promotion and possibly some additional "Ps" such People, Processes and Product Interest. When preparing your marketing strategy or marketing mix follow these steps:

Market Segmentation
1.) Identify the customer's needs and market segments
2.) Develop profiles of resulting market segments

Identify Target Markets
3.) Evaluate and rank each identified segment
4.) Select the best target segment or segments

Positioning
5.) Identify the different advantages in each segment
6.) Develop and select positioning concepts to attract the identified segments

Marketing Planning
7.) Develop a marketing mix for each segment according to the chosen position (advertising, print, direct mail, interactive, social media, etc.)

Have you considered how best to position your message to address and satisfy customer needs?

DMA Strengthens Efforts for More Choices

DMAchoice is about empowering consumers to identify what they like and what they do not like.

What goes into your mailbox depends on what you're into. You can arrange to start getting the mail you want -- and stop getting the mail you don't.

Companies what to reach people who are most like to be interested in what they have to offer. Direct mail keeps you in-the-know. it helps you find out about new products, services and money-saving deals. It connects you to local merchants. It informs you of important local and national charities. it even helps you compare prices and shop anytime you like -- day or night.

Last year alone, more than 70% of Americans shopped direct. More than 80% of U.S. households reads some or all of their advertising mail. And non-profit organizations raised nearly $200 billion from generous donors through direct mail.

Check out DMAchoice for more information