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Surprising Results - The Second DM News/Pitney Bowes Direct Mail Survey
December 2008
Greetings!


The results of a new survey conducted by DM News and Pitney Bowes in September were published in the December 1 issue of DM News.

As I read through the report, there were a number of statistics that jumped out at me as being in stark contrast to popular opinion and some indicators that seemed to be obvious opportunities for companies who are trying to get through an economic recession. As companies move to an integration of marketing and transactional communications, this information should be of great interest.

We know about the strength of transactional documents such as bills and statements for getting consumer attention as opposed to stand-alone marketing mail. When you add the effectiveness of direct mail that is reported by this survey, the effect - when done correctly - could be stunning.

Should Marketers Trim Their Direct Mail Campaigns?
Judging by the survey results, the answer is: definitely not! Even though many experts maintain that consumers greatly prefer email, the survey found that 50% of the respondents actually enjoyed reviewing their mail more than they enjoyed working through their email in-boxes. 85% of consumers review their USPS mail daily.

The high percentage of mail-readers was present even in the 18-39 age group. This contradicts the popular belief that the only way to reach young consumers is through their smart phones, email, or social networking sites. Apparently, they like getting physical mail too.

"OK", you might say, "But just looking at the mail isn't the object. Responding to offers is what counts." I agree. I was blown away by the data that indicated as many as 94% of consumers said they took action on promotional offers or coupons they had received over the last year. 94% is a pretty compelling number. Now of course that doesn't mean that consumers responded to every offer they got. Three-quarters of the survey respondents said that they responded to less than 11% of the total number of offers they received.

As we've been telling our clients, your messages need to be relevant and compelling to generate reasonable results. But to know that almost all consumers respond to something that comes in the mail to them should be encouraging.

Given my personal experience with direct mail offers, I wouldn't be surprised to find out that many of the 89% of offers that consumers received and didn't respond to were poorly-targeted or somehow failed to communicate effectively. (Read last month's newsletter, "What WERE They Thinking?" in the archives to hear about some examples.)

What Are the Trends?
It was clear from the survey that consumers are highly price-sensitive today. 69% of them report that price is more important to them this year than it was last year. No surprise there! So guess what? Coupon use is up.

Between 30% and 66% of survey respondents said their coupon use increased over last year on purchases of groceries, health products, entertainment, electronics, auto parts, office supplies, and travel. And direct mail was the delivery system for coupons most preferred by consumers - 78%. Email came in second.

Even though they've been done for decades and may seem like "old school", the importance of direct mail coupons and promotions shouldn't be dismissed. Nearly two-thirds of the consumers surveyed said they are examining their mail more closely for coupons and offers than they were a year ago.

Now, considering that almost half of the consumers say they receive only 1-5 offers a week, those marketers that are sending direct mail are getting some pretty exclusive attention when their pieces are delivered. I don't think anyone doing only email marketing could say the same.

Using Direct Mail to Begin a Business Relationship
Receiving information in the mail prompted 37% of consumers to do business with the mailer for the very first time. Almost twice that number said they renewed their relationship with a business in response to a direct mail piece.

Non-profits get similar results. Getting someone to contribute the first time is the toughest part. According to the survey, 37% - 44% of consumers across all age groups made first-time donations prompted by appeals that were delivered via direct mail.

Increasing Direct Mail Marketing Looks Like an Opportunity
It is so tempting to send an e-mail to hundreds of thousands of consumers. It seems to be so cost- effective. I agree about the cost part. It's the effective portion that concerns me. Factor in spam filtering, undeliverability, open rates, and click-through rates and the only way to increase response seems to be sending higher and higher volumes of emails. We suggest that our clients to use email marketing as a component of a total multi-channel approach, rather than dumping direct mail altogether.

The reason given for cutting down on mail is usually money. Of course everyone would like to spend less. But we've found that in most organizations, there are numerous ways to cut costs and make sure that the money used to fund mailing operations is well-spent. We help them keep this valuable channel alive and save money at the same time.

I've included a lot of stats here that I thought would be relevant to our newsletter audience, but it would be worth your time to read the entire article. Click HERE to link to the report on the DM News web site.

If you think your organization is considering cutting back on direct mail, please share this information with them. Then call us to help you develop ways to get the most benefit from the dollars you spend on the marketing channel that seems to have the greatest promise for results - even in a tough economy.

Sincerely,

Mike Porter Sig
Mike Porter
Print/Mail Consultants


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