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

Key Lessons From Personalization Backfires

Personalization is at the top of every list of 2016 direct mail strategies--but that doesn't mean personalization is a no-brainer. Indeed, a recent blog post by Greg Cholmondeley, Workflow Practice Director of Caslon & Company and the PODi (Print on Demand Initiative) digital printing organization, warns that poorly executed personalization can create epic fails, too. He provides a great example of personalization gone-wrong: an e-mailed offer of "escape the cold" winter airfare deals--sent to him in sunny Fort Lauderdale, FL, with an offer of a cheap flight to snowy Akron, OH! For personalization to work, all aspects of data, offer and message need to be thought out and tested from a variety of data perspectives, Greg stresses. First, the data must be clean and up-to-date (and, bravo, the offending piece got his e-mail and closest airport location right), and the offer must be appealing (an airfare of $39 from a local airport certainly piqued interest). But special care must also be taken with messaging. And here is where the marketing flopped--by adding personalized elements to a traditionally designed static offer without thinking it through. Simply dropping personalized data into copy does not necessarily create a relevant direct marketing message. Greg notes that the marketers could have avoided the snafu with cold and hot versions based on recipient location. But his basic point is that successful personalization requires "relevant thinking" instead of "broadcast thinking." Are you using your data to create that "relevant" personalized direct mail offer? Read the full article at http://www.blog.podi.org/learning-from-personalized-marketing-fails

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