In Busier Holiday Mail Season, Get Creative to Stand Out

With the mailbox distractions of the election finally past, retail mailers can now focus on the challenge of grabbing recipient attention in a holiday direct mail season that is projected to be even busier than last year's. The U.S. Postal Service just announced that it expects to deliver roughly 15.5 billion cards, letters, flats and packages for the holiday period, with around 600 million packages delivered just between Thanksgiving and New Year’s Eve, representing a 10.5% annual increase. The more successful mail efforts are likely to be those that stand out in the flood of promotions, so if you haven't already come up with something more creative for this year, take some inspiration from Target Marketing magazine's Summer Gould. Her recent article offered four ideas for spiking your creative's holiday punch. First, use direct mail's unique tactile advantages for more interactivity, she suggests, citing endless folds, scratch-and-sniff or coatings as fun options. While it's standard now to urge combining mobile with mail, Gould urges going beyond the standard QR code inclusion this year to augmented reality, a la Pokémon Go. She also pushes the envelope, so to speak, by advising consideration of a video direct mailer. This less-used idea is certainly a way to stand out--as long as you can figure out how to make the video both entertaining and promotionally effective. Finally, she supports holiday-inspired die cuts, a proven boon to postcard response but also a way to create more interactive, complex dimensional mailers. "We have even seen mail take on a whole new shape with each unfolded panel as you open it. This is fun for recipients and draws them into the mailer," she notes. To read her article, go to http://www.targetmarketingmag.com/post/direct-mail-fun-for-the-holidays/

Data Strategy Can Help Best Amazon With Holiday Buyers

Retailers complain that Amazon e-commerce gobbles up more holiday dollars each year. In fact, Amazon is now the primary gift destination of 42% of U.S. shoppers, per recent research by Signal, a marketing tech and data platform company. Is there any way to compete with the Amazon Goliath? Yes--if retailers know how to weaponize their customer data, argues Signal's CEO Mike Sands in a recent article for Marketing Land. Sands suggests three data-driven strategies for competing with Amazon this holiday season. Sands points out that while Signal's research shows Amazon is a primary buying source for a chunk of consumers, Amazon is NOT the primary gift destination for another big group (40%). Retailers can use customer data to successfully woo those customers, Sands argues. Compared with Amazon, retailers have access to more first-party data across channels and devices via sales, customer service, loyalty programs, marketing and promotion channels, and interactions with store associates. That extensive customer data from multiple channels can by used to deliver relevant, targeted promotions that outdo Amazon's touted recommendations, which often miss the mark due to minimal customer knowledge. Using data-driven marketing, retailers also can leverage the omnichannel strength of multiple touch points to create a seamless, personalized shopping experience. "Gone are the days when holiday shoppers had to choose between the convenience of buying online from home versus the assurance of handling the product in a store. Now they can do it all — and they leave a rich trail of data every step along the way," Sands notes. He points to statistics showing that while consumers say they browse for holiday purchases most frequently on desktops/laptops (36%), they most frequently purchase gifts in stores (33 percent). Finally, since offer relevancy remains basic to wooing customers, retailers can use data-driven marketing to gain an edge over Amazon even in the digital arena. Some 43% of consumers surveyed still say digital advertising on websites or mobile apps influences holiday gift-buying. Retailers now can use addressable media for personalized, timely digital ad targeting by seeing customers as people not just impressions, notes Sands. Bottom line, retailers who make the effort to aggregate, clean, segment, profile and personalize omnichannel customer data can still enjoy happy holiday sales in the Amazon era. For Sands' full article, go to http://marketingland.com/3-retail-strategies-beat-amazon-holiday-season-182228

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/

Retail Leaders Still Count on Mailings to Deliver Sales

Any retailer hesitating over the role of direct mail in their marketing mix should read a recent Entrepreneur magazine article that spotlights how much today's retail leaders count on physical mailings for sales success. For example, Costco, which sends 8.6 million magazines per month, reports that 56% of members who receive the magazine buy something based on what they read in it, according to article author Shaun Buck, CEO of The Newsletter Pro. Costco did consider dropping the print version in favor of a digital version to cut costs during the Great Recession--until it found affluent members overwhelmingly preferred a print edition. It's no surprise Costco now projects print circulation growth for the foreseeable future. Williams-Sonoma, parent brand to seven companies including Pottery Barn and West Elm, also considers catalogs "a very, very important part of the marketing strategy,” and 50% of the company’s marketing budget is spent on catalogs each year. Online men's retailer Bonobos, which only entered mailed catalog marketing in 2013, now sees more than 20% of its website’s first-time customers placing orders because they received a catalog in the mail--and spending 1.5 times as much as first-time buyers who did not receive a catalog. Author Buck adds that when The Newsletter Pro is late with its own print newsletter, phone consultations with prospective new customers drop by 25% to 33%! For the complete article, read https://www.entrepreneur.com/article/275303

Creating Loyalty: Using Retail's Most Valuable Data

Growing a loyal customer base is the holy grail of business, especially retail. A recent MarketingProfs infographic illustrates why: Existing retail customers spend 67% more than new customers, and increasing customer retention rates by 5% increases profits by up to 95%. One solution is a great loyalty program. Unfortunately, there is a disconnect between consumers (73% say programs should show the business's loyalty) and marketing execs (66% seek consumer loyalty, read dollars), which is why 97% of loyalty programs are about transaction rewards, and 77% of transaction-based programs fail in the first two years. The bottom line is that retailers need to better profile and segment loyal customers and then develop programs around their needs, not just their transactions--and that means improved data gathering and analytics. A Forbes magazine article by Bryan Pearson, president of LoyaltyOne, highlights nine loyalty trends for 2016 that we think can help refocus data efforts, especially since loyalty program engagement is getting tougher, with the average American household enrolling in 29 loyalty programs but active in only 12. Standard transaction-based points and discounts aren't going to cut through a crowded field to woo loyalty, so watch for a 2016 shift toward using data insights to offer high-value experiences, such as special events or early VIP access to sales, per Pearson. Plus, he notes that even transaction-based loyalty programs are changing shape; it's not just about cards and memberships now that there are apps to gather data and deliver personalized offers, including mobile one-to-one in-store specials (underscoring the need for integrated, multichannel data strategy). Indeed, retailers who truly maximize the value of loyalty data in 2016 will be those who use its insights across the business, not just in a retention silo, to align pricing, promotions and merchandise assortments to better address consumer needs, suggests Pearson. And he adds another way retailers can leverage data investment: Data generated by loyalty programs is a valuable product in itself, as evidenced by The Kroger Co.'s 2014 sale of $100 million in data to product suppliers. For the whole article: http://www.forbes.com/sites/bryanpearson/2016/01/04/9-things-you-dont-know-about-retail-loyalty-programs-in-2016/#3cafb0d94c05

Hunting Holiday Sales? Survey Tracks 2015 Shoppers

Happy Thanksgiving and best wishes for a profitable start to the holiday season. U.S.holiday spending is expected to jump ahead of last year, with a recent consumer survey by SAS reporting that 80% of consumers in the U.S., Canada and U.K. plan to spend as much as, or more than, they did last year (29% in the U.S. specifically said they plan to spend more). Where will they be shopping? According to the SAS survey report by MarketingProfs, some 68% will favor the discount retailers, 59% will choose e-tailers, and 53% will crowd department stores. Gift cards are the top gift choice of consumers, followed by toys/games and apparel. Note that 28% of surveyed shoppers say they will buy a gift for the family pet, a lot more than those who feel like giving to humans outside the family, such as co-workers (only 17%) or neighbors (13%). To boost sales, target a younger crowd in those holiday promotions. Shoppers aged 18 to 29 are more likely to hit the Black Friday week sales per the survey, with 42% saying they will shop the whole week, 41% on Black Friday, and 35% on Cyber Monday. And those millennial shoppers also are more likely to increase spending over last year, while most older consumers stick to their 2014 budgets. And here's more good news: The holiday spending spree will extend past Christmas, with 63% of all consumers saying they plan to shop the after-holiday sales. For more details and a great infographic, go to the MarketProfs article at http://www.marketingprofs.com/charts/2015/28846/2015-holiday-shoppers-when-and-how-they-plan-to-buy-infographic