Survey Shows Holiday Shoppers' Offline-Online Mix

Heading into the holiday season, what should retail marketers do to maximize 2016 holiday sales? Start by asking the shoppers. Global marketing firm Epsilon has just released the findings of its 2016 holiday shopping survey. More buyers are likely to be in-store than online this year; 87% of Epsilon's 2016 respondents say they are “very likely” or "somewhat likely" to purchase at brick-and-mortar stores, compared with the 76% who say they are "very likely" or "somewhat likely" to purchase online. However, the shopping journey will probably involve a mix of channels from marketing trigger to final purchase. More than half (55%) of respondents are "very likely" or "somewhat likely" to look at a product online and then go to a store to buy, for example, while almost the same percentage (54%) are "very likely" or "somewhat likely" to look in store for a product and go online to find the best deal. Clearly, retailers will want to integrate messaging and create a seamless customer journey across channels to prevent dollars from slipping through the cracks in this multichannel environment. Since DBM Designs specializes in direct mail and supporting data services, we're happy to report surveyed shoppers cite direct mail as a potent offline marketing channel, with a big 77% of respondents saying advertisements received by mail will have at least “some influence” on their buying decisions this holiday shopping season. That's a lot more than the 41% who say banner advertisements will have “some influence” on buying decisions. Why does direct mail work so well in an increasingly "digital-first" world? No surprises: Respondents say they are influenced by direct mail because it usually contains an offer or discount, and the format allows for leisurely review time. Retail marketers can't afford to neglect online ads, e-mail and social media, of course; most respondents (90%) say they plan to access online sites or e-mails to learn about the best deals before starting to shop, and that's up from 88% of respondents in 2015. For more data from the survey, go to http://pressroom.epsilon.com/survey-results-indicate-consumers-more-likely-to-shop-in-store-than-online-this-holiday-season/

Pairing Mail and Digital Can Max Marketing Power

Digital marketing and traditional direct mail marketing often seem to run on parallel but separate tracks. However, several recent articles show why an intersection of online and offline is a more desirable destination for marketers. Consider a Forbes magazine article by Jenna Gross, CMO of the national direct marketing agency Moving Targets, who explains how her agency combines digital marketing with direct mail to deliver a powerful one-two marketing punch. In her June 1 piece, Gross describes how her agency pairs all direct mail campaigns with digital advertising, using the identical demographic and behavioral data, and leveraging e-mail marketing to boot. As a result "prospects see an ad in their mailbox, inbox and social media feed." Using such "cross-media tactics produces an exponentially better response rate, typically 25% or higher than direct mail alone, based on my agency’s findings," Gross says. Meanwhile, a MarketingLand.com post by Lewis Gersh, a leader in retargeting and e-commerce, argues that the marriage of digital and direct mail is also an ideal way to deal with the tough problem of cart abandonment and lost digital conversions. Currently, digital marketers spend 10% to 50% of budgets on retargeting efforts, he points out, yet many fail to capture attention in the noisy digital landscape, or fail to even reach the growing number of customers who resort to ad blocking and unsubscribes to escape the digital marketing onslaught. In contrast, direct mail has the advantage of guaranteed arrival and attention as a physical, tangible presence in the home of consumers, where it can be saved and referenced in future and also can be seen by people other than the intended recipient, which is rare for digital media, Gersh points out. So, leverage digital and direct mail advantages to solve the retargeting challenge, he urges: Apply digital's valuable real-time, intent-driven data to direct mail, transforming online activity into mailing of a highly relevant piece that retargets a known site visitor. To read the full Forbes article, http://www.forbes.com/sites/forbesagencycouncil/2016/06/01/how-to-deliver-a-one-two-punch-combining-direct-mail-with-digital-marketing-tactics/#7216e69f4342

Just the Facts: Why Direct Mail Is Alive--and Thriving

DBM Designs' experience as a partner with successful direct mail programs has helped us ignore the perennial claims of direct mail's demise. But for marketers who still doubt snail mail's continued marketing power, we're happy to share this year's facts from the Direct Marketing Association (DMA) 2015 Statistical Fact Book and its latest Response Rate Report. For one thing, company spending on direct mail continues to grow, not shrink, with $46 billion spent on direct mail in 2014—up from $44.8 billion in 2013. Organizations also are expected to spend $9.3 billion on data for direct mail in 2015, an increase over the previous two years. One reason for direct mail's staying power with marketers is that it continues to lead in response. Average response rates for direct mail are 3.7% for house lists and 1% for prospect names, which are both higher rates than for mobile, paid search, social media. Internet display ads and e-mail. For example, e-mail scores an average 0.1% response for customers and prospects. Only telemarketing beats direct mail in response power at 9%-10%, per DMA data. At $19 average cost per acquisition for house lists, direct mail acquisition also costs less than paid search ($21-$30) and Internet display ads ($41-$50) and is close to the $16-$18 CPA of mobile and social. Direct mail does lose out to e-mail ($11-$15) on CPA for house lists. But DMA's most important metric--median ROI--shows why direct mail in still in the game and not on the bench. Although e-mail and telemarketing lead in median ROI (21%-23% and 19%-20%, respectively) compared with direct mail's 15%-17%, direct mail ROI is still on par with social media and way ahead of mobile, paid search and Internet display. For more direct marketing industry benchmarks and response details by direct mail package type and customer target (business or consumer), see http://www.marketingcharts.com/traditional/direct-media-response-rate-cpa-and-roi-benchmarks-53645/

Fundraising Success Relies on Good Data Measurement

In providing data services for many nonprofit fundraising efforts, either directly or via their list brokers and agencies, we can vouch for the critical importance of good data measurement and analytics. A recent business2community.com post by William Comcowich, CMO of CyberAlert media measurement service, addressed that key nonprofit challenge. He began by citing six tips for improved nonprofit data measurement courtesy of Katie Paine, measurement expert and CEO of Paine Publishing LLC: Clarifying the mission and the role each activity plays in support; measuring results from all stakeholders (volunteers, sponsors, employees, and the people served as well as donors); selecting at least three specific, quantifiable and time-limited metrics for analyzing communications channels, including direct mail, e-mail and social media; gaining across-the-board leadership support of measurement; taking advantage of existing data and data gathering across departments; and analysis of measured results to improve and repeat good performance. Comcowich also stressed the need to focus on donor preference data. Based on measurable donor preferences, fundraisers can improve response with tactics such as targeting appeals and communications by age to leverage generational differences; adjusting communications frequency; and segmenting for channel and content preference to boost engagement. For the complete article, read http://www.business2community.com/non-profit-marketing/analytics-measurement-can-improve-marketing-fundraising-nonprofits-01362512

Research Comes Together to Champion Direct Mail

Database marketing and direct mail are the focus of our business at DBM Designs, but we still encounter marketers who are dubious about fully embracing "junk mail." Our thanks to industry colleague UnitedMail for a handy infographic, just published in Target Marketing magazine, which uses research to make the case for direct mail in terms of its response, ROI and value in a multichannel strategy. Among the highlights: 70%-80% of consumers say they open almost all of their mail, including "junk mail," and 79% of consumers say they act on direct mail immediately (compared with 45% for e-mail). In terms of response rates, direct mail campaigns to customers average over 3% (e-mail campaigns get just 0.1%). Plus, combining mail with other channels significantly boosts marketing results; for example, research shows consumers who receive both direct mail and e-mail spend 25% more money. The infographic also offers insights on mail creative and print-to-online technology. See http://www.targetmarketingmag.com/article/direct-mail-roi-infographic/