Using Data, Technology & USPS to Rev Mail Response

Recent research provides compelling reasons to include direct mail in marketing plans--and also highlights opportunities to further pump response and ROI. Direct mail response rates actually jumped in 2016 per the Data & Marketing Association (DMA) 2017 "Response Rate Report," hitting 5.3% for house lists and 2.9% for prospect lists, the highest levels the DMA has tracked since 2003. Also consider last year's InfoTrends' direct mail statistics: 66% of direct mail is opened; 62% of consumers who responded to direct mail made a purchase within three months; and 56% of consumers who responded to direct mail went online or visited the physical store. But direct mail is expensive, and response is no slam dunk, so marketers must plan carefully to leverage positive trends. Luckily, 2017 offers data and print technology options, and U.S Postal Service support, to aid in direct mail success. We suggest committing to six key steps: First, start with data quality. That requires updating, cleaning and aggregating the customer database. Look for data gaps and append important targeting factors, such as contact info, demographics or firm-ographics. Second, analyze the data to identify and profile your best customers and their attributes, preferences and transactional history so that you can find and target lookalikes in acquisition, as well as tailor more profitable retention. Third, use your data to create effective targeting and personalization with tactics such as segmentation, variable data printing and timely triggered mail. Segment the audience into target mail groups, based on factors ranging from age and gender to purchase history. Use variable data printing technology for hyper-targeted messaging with multiple variable-content fields. You also can automate digital-activity mail triggers so that, for example, a relevant postcard is sent within 48 hours of an online purchase. Fourth, use print technology's PURLs or QR codes to leverage multi-channel investment, boost response ease, and create a seamless brand experience by linking physical mail to website, mobile and social. Fifth, test innovative creative that will stand out in the mailbox. Summer Gould, president of Eye/Comm, recently offered some suggestions in Forbes magazine, including Augmented Reality, dimensional mail, "endless folds" pieces, and video mailers. Finally, take advantage of the U.S. Postal Service's postage discounts and incentives! In 2017, programs include Earned Value; Color Transpromo; Emerging & Advanced Technology; Tactile, Sensory & Interactive Engagement; Direct Mail Starter; and Mobile Shopping. For details: https://www.usps.com/business/promotions-incentives.htm

Smart Direct Mail Reaps New-Mover Bounty

New-mover lists provide direct mailers access to one of the most valuable event-triggered consumer segments. A family move drives a leap in purchases of goods and services--household furnishings and appliances, home-improvement services, phone services, insurance, banking and financial services, medical services, pet care, restaurants and even nonprofits. In fact, research shows new movers spend more in the first three months after a move than most people do in a three-to-five-year period. A timely introductory mailer can not only reap immediate revenue, research also shows new movers are five times more likely to become long-term customers. Depending on promotion, final counts and costs, mailers may want to further target a new-mover mailing by factors such as household income, age, home value, presence of children, move distance, geographic radius and more. Because of proven response, new-mover mailings are popular, so it's worth some creative thought to stand out in the crowded mailbox of a new resident. A recent Target Marketing magazine article by Paul Bobnak, director of Who'sMailing What!, provides examples of four ways to improve impact. The first response-booster is a no-brainer: Offer a new-mover discount. Bobnak cites Pottery Barn's 5 3/4" X 10 3/4" self-mailer with three 15% off coupons redeemable in-store, online or by phone, plus promotion of free design services. Idea No. 2: Leverage marketing's tried-and-true emotional copy motivators (greed, guilt, fear, exclusivity, need for approval), such as the GEICO auto insurance mailer touting a potential $500 savings based on the new address. Hook No. 3: Offer desirable content with the promotion, such as a retail furniture chain's 16-page mini-catalog with tips on interior design along with coupons. Finally, Tip No. 4: Make it easy to respond. Bobnak shares a local hospital's postcard with mobile-scannable QR code leading to a pURL welcome landing page and pre-populated form, plus a gift (thermometer) for adding data such as insurance and e-mail address. For the examples: http://www.targetmarketingmag.com/post/4-hooks-mover-direct-mail/

B2B Lead Gen Rediscovers Direct Mail

Direct mail is enjoying renewed interest as a lead generation tool among business-to-business marketers, according to Demand Gen Report. Demand Gen Report's "2016 Demand Gen Benchmark Study" found direct mail not only still in the B2B marketing mix but earning increased spending by some marketers. Besides working to drive leads at the top of the funnel, direct mail was seen by surveyed marketers as an effective way to drive conversions later in the buying cycle, with 21% citing it as most effective at boosting conversions, tied with social media. A recent Demand Gen Report article interviews some B2B marketing execs to find out why they opt to invest in direct mail along with their digital lead-gen efforts like e-mail, search and social media. The CMO of Salesfusion sees direct mail as a way to stand out with the target audience, citing over-exposure in the digital space and touting a 10%-15% conversion rates for direct mail. Aptos is trying the same tactic and increasing direct mail spending, including a high-end mailer to nurture "suspects." Ricoh Americas also is sending out "high-end and very targeted dimensional mailers," especially to global and major accounts, and combining mail outreach with an interactive website and phone follow-up. B2B agency Babcock & Jenkins has "leveraged direct mail as part of an account-based marketing approach" for clients like CSC, IBM, Jive Software, Lifelock, Tripwire and Xerox, per the article. Stressing direct mail's place in an integrated strategy, Ruth Stevens, president of B2B consultancy eMarketing Strategy, explained why mail can be more effective at outreach than other channels: "In the B2B world, there's an increased understanding that you cannot get all the business you need by using e-mail as an outreach medium, since e-mail address data is far less available than physical addresses." Read http://www.demandgenreport.com/features/industry-insights/direct-mail-reborn-b2b-marketers-integrate-more-physical-mail-with-digital-channels

Using Segmentation to Better Mine Donor Databases

We have helped nonprofit clients boost retention and fundraising response by segmenting their existing donor mailing lists for better targeting and personalization. And we've learned that effective segmentation has two strategic prerequisites: selecting the right segmentation parameters and having accurate data for those parameters. Unfortunately, surveys show that many nonprofits rely on an overly narrow donor segmentation strategy and ignore factors that could really improve response and engagement; for example, Eleventy Marketing Group recently highlighted a survey finding that while 80% of nonprofits segment by donation amount, other significant factors are frequently neglected (less than 15% said they always segment by interest, channel preference or demographics, for example). A January blog post by the Creative Suitcase nonprofit marketing/design agency gave a great summary of important individual-donor segmentation factors: donation amount, of course, but also donation timing (recency, frequency, patterns); area of focus or interest; preferred type of communication (and that means going beyond mail vs. all-or-nothing opt-ins to frequency and content options); age (older donors prefer direct mail, while millennials like a multi-channel approach, for example); and preferred donation channel (mail, event, online, etc.). So how can a nonprofit gather and maintain such information, especially preference and interest data, about donors? Online and mail donation form questions, online thank-you questions, event registrations and donor surveys are some of Creative Suitcase's suggested vehicles. We would add that demographic data, such as age, can be appended. For more on using donor segmentation to improve communications, see http://www.creativesuitcase.com/2016/01/donor-segmentation-leads-to-increased-donor-retention/

Don't Let Data Glitches Stymie B2B Lead Efforts

Business-to-business marketers dedicate chunks of budget and time to gathering qualified leads. Unfortunately, we've seen basic data problems undermine the effectiveness of hard-won B2B prospect and customer databases. So we'd like to pass along a recent MarketingProfs article alerting marketers to six of the most common data pitfalls. No. 1 on the list posted by Rob Manser, acting director of marketing at contact validation firm Service Objects, is relying on a single contact method in lead data. Focusing solely on e-mail outreach, for example, increases failure from address errors or poor channel response. By gathering or appending multichannel contact options--phone, e-mail and mailing address--the chances of connection climb. As Manser points out: "An e-mail or a phone call might never be returned, but a clever direct mail piece may catch a prospect's eye." Problem No. 2 arises from incorrect data gathering--incomplete, typo-riddled, misformatted or just plain bogus contact information. It doesn't mean all bad-data contacts must be tossed; many can be cost-effectively salvaged today via data verification, validation and appending software. Pitfall No. 3 is out-of-date information. Valuable contacts change companies, move to other locations in the same company, change titles and departments, etc. Frequent and thorough contact-data updating is required. That said, even when info is technically correct, Pitfall No. 4 occurs because data is not contact-specific enough; using a headquarters phone and address instead of the contact's division location will miss response in a geo-targeted campaign, for example. No. 5 on Manser's list of prospecting mistakes: Lead data that doesn't include a company's key targeting criteria--such as title or company size--which creates costly sales and marketing misfires. The final error compounds all others: allowing a contact database to become a pool of wasted opportunities by failing to fix data problems. Manser argues that there is no excuse now that marketers can turn to database services for quick, automated data-appending, data-verification and data-validation programs for clean-up--and we agree!  For more: http://www.marketingprofs.com/opinions/2015/28978/six-huge-lead-generation-pitfalls-that-are-hurting-your-business 

Survey Cites Obstacles to Data-Driven Marketing Success

Despite technology advances and the bounty of "big data," data quality remains the biggest challenge for data-driven direct marketing. Consider MarketingProfs' report on a new Ascend2 global survey of marketing, sales and business professionals. In terms of the most important goals of data-driven marketing strategy, personalizing the customer experience led the field (60%), followed by measuring data-driven ROI (51%) and targeting individual market segments (50%). Then when it came to the biggest obstacles to success, companies put front-end data issues ahead of back-end analytics by a wide margin. Improving data quality was ranked as the No. 1 challenge to data-driven success (59%), followed by integrating data across platforms (51%), raising the level of data analytical skills (38%) and measuring data-driven marketing ROI (37%). In fact, only 16% of respondents rated the quality of their marketing data as "very good," compared with the 27% who rated data quality as "somewhat poor" to "very poor." The majority (57%) called their data "somewhat good," which is just not good enough for the most cost-effective marketing results! For more from the survey, read http://www.marketingprofs.com/charts/2015/28904/data-driven-marketing-top-objectives-and-challenges

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

Are You Missing Out on Personalization's Big ROI?

Personalization via variable data printing is a proven way to increase direct mail response and ROI. Any mailer would want a result like this: Melissa Data has reported it found personalized color direct mail typically generated a 6.5% response rate, three times higher than the average 2% response rate resulting from non-personalized direct mail. Yet some direct mailers hesitate to go beyond a "Dear Jon" first-name greeting. It may be because they lack a robust house database and need a long-term data collection process and profiling. Appending and modeling are options to help jumpstart that process. When it comes to personalized prospecting, there are well-sourced, up-to-date rented mailing lists that offer a wealth of targeting data for personalization. Common response factors for B2C include gender, past purchase or donation history, expiration/renewal dates and geographic location (personalized mapping is a proven retailing tool), for example. A remaining personalization hurdle is data quality--inaccurate data, duplicate data, improperly formatted data, or no data at all in key fields. Bad data makes personalization backfire with the wrong name, the wrong address or the wrong offer. Luckily, given the payoff in terms of response and ROI, the low-cost investment in mailing list data hygiene is a no-brainer. Once data is cleaned up, careful mailing list segmentation by target audience preps for variable data printing (VDP) of personalized versions. While working with VDP, consider adding a Personalized URL that sends each contact to a personally customized landing page; research by the Direct Marketing Association and others shows PURLs can further lift overall response (even double it). By the way, if you are in fundraising or in finance and insurance marketing, and you haven't embraced personalization, you are lagging the pack. See the most recent list of top direct mail categories using personalization, courtesy of Who's Mailing What: http://www.directmarketingiq.com/article/whos-mailing-what-direct-mail-categories-using-personalization/1

Study Shows Bad Data Undermining Marketers

If you worry that customer data problems are hurting your marketing results, join the crowd. Poor data quality continues to drag down ROI for the majority of U.S. businesses. In fact, the average U.S. organization believes that one-third of its data is inaccurate, and a whopping 91% of companies believe revenue is being negatively affected by inaccurate data in terms of wasted resources, lost productivity, or wasted marketing and communications spending, according to the Experian Data Quality study released this year. One of the most common culprits cited was poor address data quality. The study definitely reflects the kind of data quality challenges that direct mailers (and their list brokers, printers and agencies) bring to DBM Designs' database marketing services. What are the tasks that usually need to be tackled? Data processing prior to mailing provides address format standardization for proper mail sorting, postal discounts, avoidance of invalid addresses, and removal of wasteful duplicate records from all sources. And with 17% of Americans moving each year, a mailing list check against the National Change of Address (NCOA) database is essential to avoid costly wrong addresses and duplicates. Thorough data processing also helps to detect other data problems, such as missing, incomplete or miscoded customer information, and to create a single-customer view across channels for better segmentation, targeting by channel, and response tracking. For more on the results of the Experian Data Quality study, go to http://www.experian.com/blogs/news/2015/01/29/data-quality-research-study/