Direct Mailing Trends

Target Marketing Magazine examined the last year and a half of the Who’s Mailing What Archive and concluded a few trends.

Repetition

Repeat mail was up 12 percent in 2010. It now represents a full quarter of all direct mail. The reasons include mailers being budget-conscious and staying with efforts that are clearly working.

Gifts

Mailing premiums has increased by over 6 percent so far this year compared to 2009. Now nearly 20 percent of all direct mail includes a premium offer. “According to Archive Director Paul Bobnak , among nonprofits, incentives have taken on greater importance. Usage doesn’t seem to have increased. Instead of one tote bag or aluminum bottle, they’ll offer two or three as a premium. And tote bags and blankets (which have been good premiums) have begun to show up as ‘freemiums’ being mailed to prospects.”

Personalization

Personalization is also used more, a 19 percent increase from last year. Used in 35 percent of direct mail, help make mail relevant for the recipient.

Financial Services Offers Are In The Mail Again

Major credit card issuers are adjusting to new credit card marketing regulations and are mailing offers. Some have launched new products. The best example of this is Chase with their multiple new cards.

Social Media

Mailers are increasingly promoting social media connections (Facebook, Twitter, …) in direct mail, particularly retailers. QR codes have been popping up too, although without much attention being called to them.

Self Mailers Declining

The one trend that is going in the opposite direction is the usage of the self-mailer. It is down 15 percent from 2009, in part because of production cost. It’s still used in 43 percent of all direct mail.

Paper Beats Digital For Emotion

According to a study by branding agency Millward Brown retold in a Neuromarketing blog post, physical media left a “deeper footprint” in the brain, even after for controlling for the increase in sensory processing for tangible items.

Images comparing Brain Scans of Paper vs Digital

Images comparing Brain Scans of Paper vs Digital

The study concluded:

  • Material shown on cards generated more activity within the area of the brain associated with the integration of visual and spatial information.
  • Physical material is more “real” to the brain. It has a meaning, and a place. It is better connected to memory because it engages with its spatial memory networks.
  • More processing is taking place in the right retrosplenial cortex when physical material is presented. This is involved in the processing of emotionally powerful stimuli and memory, which would suggest that the physical presentation may be generating more emotionally vivid memories.
  • Physical activity generates increased activity in the cerebellum, which is associated with spatial and emotional processing (as well as motor activity) and is likely to be further evidence of enhanced emotional processing.

Paper has advantages over digital media. To maximize these concepts:

  • Think about the touch and feel of the piece. Heavier stock and a textured finish could emphasize the “tangibility” of the mailed item.
  • Seize the advantage of the brain’s emotional engagement with tangible media and craft a message that will make an emotional connection.
  • Find ways to maximize your brand imagery and perhaps feel, brand recall may be enhanced by the paper medium.

We talked about the power of touch and how that can increase how likely people are to purchase an item because of the increased connection.

Commercials Lead to More Enjoyment

People say they prefer to watch television without ads, yet they enjoy programs that have commercial interruptions more.

The Harvard Business Review recently published the results of a study and asked the authors to “Defend the Research”. The authors found that People who watched a program with commercials were willing to pay 30% more for a DVD compilation of similar programs than people who watched an ad-free version, according to a team led by Leif Nelson of UC Berkeley.

The researchers concluded that it was not the commercial itself, but the interruption. Think of a massage. The longer a massage goes on, the less you really enjoy it. But if it stops briefly, then starts again, it retriggers that initial enjoyment. People report enjoying interrupted massages more even though they predict they’ll like uninterrupted ones more. Think of the law of diminishing return. You enjoy the thrill of your first car purchase more than the last car you bought.

I hope that helps us all to reconsider much of our feelings and impressions about traditional marketing and advertising, including direct mail.

The 40-40-20 Rule

Ed Mayer is credited with stating the idea that direct marketing success is attributed to:

40% List

40% Offer

20% Everything Else

As we all optimistically look forward and consider fresh marketing approaches, how can we help you?

  • Is it time to append your customer list with more details that will give you more accurate information to select new prospective customers?
  • Can we do some research for you to help you select the best possible list to meet your needs?
  • Do you have a new idea about an offer and want to ask for another opinion?
  • Are all the details for your offer and everything else clear?

Be Ready for Risk by Thinking the Unthinkable

When faced with risks, organizations have two basic possible responses.

Rita McGrath shared her thoughts in blog post on The Harvard Business Review. Most organizations are heavily biased toward risk prevention. An alternative is to focus on building resilience so that when the unthinkable happens, you’re better prepared to face it. Look at all the risks you face and play out what you would do if any of them were to come to bear. Having systems in place to respond could save you valuable time, money, and resources.

Thinking the unthinkable and preparing to face it — may serve us better than risk avoidance.

We would always prefer to avoid negative outcomes if possible, and organizations should certainly invest in prevention. It may be wise to remember, though, that investing in resilience can be a complementary and essential component of preparing to face risks.

A Tribute to the Underdog

As a tribute to cute costumes and a way to help you consider a possible branding message, we want to share some highlights from Harvard Business School professor, Anat Keinan.

The weaker party is often more attractive to many people. The reason might be due to consumers wanting to identify with the underdog. In today’s economically difficult times, it appears, underdog brands are gaining power in the marketplace.

Stories about underdogs overcoming great odds through passion and determination are resonant during difficult times. They inspire and give hope when the outlook is bleak. They promise that success is still possible. Throughout history Americans have embraced the American Dream, which proclaims that through hard work and perseverance anyone can be successful.

Underdog brand biographies (that highlight the companies’ humble beginnings, hopes and dreams, and noble struggles against adversaries) are being used by both large and small companies and across categories. Even large corporations, such as Apple and Google, are careful to retain their underdog roots in their brand biographies.

The common themes that link these brands’ underdog biographies are

  1. a disadvantaged position in the marketplace versus a “top dog,” a well-endowed competitor with superior resources or market dominance, and
  2. tremendous passion and determination to succeed despite the odds.

Marketers can use underdog narratives to positively affect consumers’ perceptions of and purchase of brands. “Underdog narratives are often delivered to consumers through the rhetorical device of a brand biography, an unfolding story that chronicles the brand’s origins, life experiences, and evolution over time in a selectively constructed story.”

Many contemporary brand biographies contain underdog narratives. Product packaging, corporate Web sites, direct mail advertising, blogs, and marketing communications tell the biographical stories of brands.

  • Avis’s classic slogan “we’re number 2” emphasized that it was playing second fiddle to a giant in the rental car business.
  • Brands such as Google, Clif Bar, and Apple celebrate their garage origins. Hewlett-Packard recently bought, and has a whole section on its Web site dedicated to, the garage in which it started. It is now a historical landmark.
  • Starbucks, in an effort to reverse declining sales, recently launched Pike Place Roast, which emphasizes the brand’s humble Seattle coffee culture beginnings.
  • Adidas’s “Impossible Is Nothing” campaign emphasized the underdog stories of famous athletes.

Marketing Power

We attended a seminar that suggested that 80% or 90% of people believe posted consumer reviews. The Harvard Business Review’s Daily Stat stated that each year, consumers make more than 500 billion online impressions on one another about products and services.

These WOW numbers reinforce the idea that once your potential customers find you or know about they may start looking deeper for more information about you. Can we help you boost your trust score by sending some mail to your treasured customers to ask them to post something nice about you? Once you have accumulated some great reviews, send a postcard to your warm prospects to put your name in front and suggest they see for themselves comments from your satisfied customers.

Genetics Affects Survey Response

Genes are responsible for 45% of the variance in people’s response to surveys, according to a survey of more than 1,000 sets of twins. “There is a pretty strong genetic predisposition to not respond to surveys,” says lead researcher Lori Foster Thompson of North Carolina State. The paper, “Genetic underpinnings of survey response,” was co-authored by Dr. Zhen Zhang of Arizona State University and Dr. Richard Arvey of the National University of Singapore.

It will be interesting to learn if genetics plays a role in other types of response, including response to direct mail.

Business Database Differences

BtoB Online summarized a study on Sources of B-to-B Data that reveals an evolution in how business data are collected and offered.

“The background for this study is the lack of confidence business marketers have in publicly available prospecting files,” said Ruth P. Stevens, a customer acquisition and retention consultant, Columbia University business professor, and co-author of the study. “We did find that data from these compilers was more accurate, in terms of names, addresses, company name, ZIP codes, etc.” Stevens said. “But what we found is that there are a lot of business buyers names whose records are not in these databases.

Compiled lists for use by direct marketers are assembled from a variety of sources, including directories, contacts from trade shows, public records, social sites, credit reports and even by “scrubbing” business or other special-interest websites for information about business executives.

To increase the likelihood that marketers get the data they want, the researchers advised them to develop a detailed list ordering methodology. They also urged marketers to understand what vendors mean by “complete” information, a definition which can vary; to be specific about industry selections; to watch for vendor specialization by industry; and to choose between breadth of companies, or breadth of contacts or both.

We can help you evaluate multiple direct mail list choices, we are neutral and will do research for you to find the best alternative to meet your needs.

Planned Retirement Age is Going Up

A Gallup poll found that the number working Americans expecting to retire at 65 or older has risen from 44% to 61% over the last 15 years, while the number predicting retirement before 65 has fallen from 50% to 29%. The reasons may be related to shifting views on the rewards of working, as well as on the shrinking value of investments.

expected retirement age

Expected Retirement Age