Marketing Automationwith Direct MailAutomated 1:1 Direct Mail Marketing

Presented by Tod Cordill

Four Direct Mail Myths1. Direct mail is dead.2. Direct mail is too expensive.3. Online is the only place to do digital

marketing.4. Direct mail is too hard.

Myth #1Direct mail is dead.

It takes a lot of touches to make a sale:

First Contact2%

Second Contact3%

Third Contact5%

Fourth Contact10%

Fifth to TwelthContact

80%

They won’t buy right away...…so reach out frequently.

Nurture. Be top-of-mind when they’re ready.Ready for more information, or ready to buy.

But the problem is…

InformationOverload

Every day:294 billion e-mails are sent

2 million blog posts are written4.7 billion minutes are spent on Facebook

864,000 hours of video is uploaded to YouTube

It is hard to stand out in the digital world.

Credit: digitalbuzzblog.com: 24 hours on the internet infographic

With the adoption of online marketing, annoying marketing has changed…

email overload and spam

junk mail from to

Direct mail has become a novelty.

A printed message is the easiest way to differentiate yourself in

today’s digital world.

Why direct mail? QUALITY experience.

Works in MULTI-CHANNEL marketing campaigns and programs.

Highly TARGETED.

PERSONALIZABLE… tailored to be RELEVANT.

Why direct mail? More Facts.

Has a LONG SHELF LIFE.

65% of consumers have made a PURCHASE as a result of direct mail.

PROVEN EFFECTIVE for LEAD GENERATION and customer RETENTION.

- DMA, 2013

Integrated Campaigns with Direct MailStudies consistently show that direct mail is effective, particularly when combined with other channels.

81% of direct mail recipients read or scan their mail daily. – USPS Household Survey

22-24 year olds are most likely to respond to a direct mail piece. - DMA 2013 Statistical Fact Book

Among mail piece types, postcards are most likely to be read. 52.5% are read by recipients. - DMA 2013 Statistical Fact Book

62% of digital campaigns are seeing an increase in return on investment when combined with direct mail. – Omnicon Media Group

Direct Mail is Trusted… but not as much as Family & Friends

52%

22%

18%

16%

14%

11%

8%

0% 10% 20% 30% 40% 50% 60%

Friends and Family

Company Websites

Brochures/Flyers/Direct Mail

Television

Radio

Email

Facebook

Source: Epsilon Consumer Survey

Response Rate Increase When Print is Combined with Other Channels

45%

37%

27%

0% 10% 20% 30% 40% 50%

Print & Landing Page & E-mail & Mobile

Print & Landing Page & E-mail

Print & Landing Page or E-Mail

Source: Understanding Vertical Markets: Enterprise Communication Requirements - InfoTrends

Direct mail performs as a trusted personalized outbound channel.

Myth #2Direct mail is too expensive.

It’s about ROIFocus on the return on your marketing investment. Don’t just look at costs.

The ROI on direct mail outperforms every medium except emailing to an engagedhouse list.

Direct Mail Performs

$0

$50

$100

$150

Direct Mail(letter sized)

Catalog (print) Postcard Email Paid Search InternetDisplay

Cost per Lead (or Order) by Media Type

House List Prospect List

*

Source: Direct Marketing Association Statistical Fact Book 2013 Results not provided, but emailing to an engaged list likely has by far the lowest cost/ order.

ROI of B2C Channels

Source: Target Marketing 2013 Annual Media Usage Forecast

17%

31%52%

Acquisition

Email

Direct Mail

All Others

29%

38%

33%

Retention

Which one media delivers the strongest ROI?

ROI of B2B Channels

40%

19%

12%

29%

Acquisition

EmailDirect MailTelemarketingAll Others

53%

14%

14%

19%

Retention

Source: Target Marketing 2013 Annual Media Usage Forecast

Which one media delivers the strongest ROI?

Direct Mail Performs

0% 20% 40% 60%

Postcard

Larger than Letter Envelope

Letter Sized Envelope

Flyers

Catalog (1)

Newspapers / Magazines

Read the Piece Perceived as Useful

Source: 2012 USPS Household Diary Study

(1) Catalog not enclosed in envelope

Integrating Direct Mail and Email channels achieves positive results

for both Acquisition and Retentionmarketing programs.

Myth #3Digital = Online

Personalization

“My digital agency message has always been that digital marketing outperforms traditional marketing.”

Does this sound like you?

Digital marketing effectiveness is based on providing a highly relevant message at the right time.

Print is digital.Digital variable data printing enables personalization that provides a targeted, highly relevant message.

Personalization can be based on demographic and behavioral data.

Personalization

Direct MailEmail

Online

Leverage your CRM and Marketing Automation data to craft a highly relevant message in your channels, including:

Personalization is about being RELEVANT.Studies consistently show that personalized messages have a tremendous impact on the bottom line.

“Personalizing an email marketing campaign can improve response rate by 45%.” - Gotomarketing

“Personalized direct mail pieces increase response rates by more than 500% over a basic, non-personalized piece.” - The Digital Printing Council

“Marketers reported an average improvement of close to 50% for personalized multichannel campaigns over traditional campaigns.” - InfoTrends

“74% of online consumers become frustrated when websites offer promotional content and ads that have no relevance to them.” - Janrain’s 2013 Online Personal Experience Study

Personalization Gets Results

0% 5% 10% 15% 20% 25%

Non-profit

Manufacturing / Technology

Financial / Insurance

Education

Printing / Publishing

Retail

Response Rates for Static and Personalized Campaigns

Personalized (PODi) Static (DMA)Source: Caslon analysis of PODi and DMA data2010 Caslon Response Rate Report

VetCentric Customer Retention

Caslon Response Rate Report, 2010

OWNER NAME BASEDON DATA PET NAME BASED

ON DATA

TREATMENT BASEDON DATA

OFFERS BASEDON DATA

EXPIRATION BASEDON FREQUENCY

CLINIC BASEDON PREFERENCE

CONTENT BASEDON DATA

ADDRESS BASEDON DATA

IMAGE BASEDON DATA

VetCentric ResultsAutomated processes reduced marketing labor from 8 hours/week to 15 minutes per week

14% response rate

Over $9,000 annual postage savings

Caslon Response Rate Report, 2010

Auto Dealer Retention Program

Credit:

CONTENT BASEDON BEHAVIOR

IMAGE BASEDON CURRENT CAR

IMAGE BASEDON PREFERENCE

IMAGE BASEDON DATA

HEADER BASEDON FREQUENCY

HEADER BASEDON LOYALTY

OFFERS BASEDON DATA

LOGO BASEDON PARTICIPATION

PROGRAMS BASEDON PARTICIPATION

ADDRESS BASEDON DATA

CONTENT BASEDON PREFERENCE

CONTENT BASEDON PREFERENCE

QR BASEDON PARTICIPATION

IMAGE BASEDON GENDER

CONTENT BASEDON DATA

1.5% visit rate

34.2% conversion rate

You can even mail personalized map directions.

Source: PODi Partou Childcare Case Study, 2013

Don’t Be CreepyProvide personalized messages but...

Don’t Be Creepy: B2C PersonalizationProspects Without an established relationship, minimize obvious

personalization. Name. Address. That’s it.

Use all data you do have to create a message that is relevant.

Existing Customers

Use data they’ve provided – via previous orders, via forms – to show you’re paying attention. Also use publicly available information on their company.

Provide relevant information based on individual need and interests.

Don’t Be Creepy: B2B PersonalizationProspects The more you show you know about their

company, and can provide relevant information, the better.Show that you’ve done your homework and aren’t going to waste the prospect’s time..

Existing Customers

Use data they’ve provided – via previous orders, via forms – to provide relevant information. Show you’re paying attention.

Integrating Direct Mail

A Few Words About Email Marketing

Provides INEXPENSIVE NURTURING communications.

HIGHLY EFFECTIVE with an engaged audience.

Emailing to a HOUSE LIST provides the LOWEST COST PER LEAD, maximizing your marketing budget.

Capture email addresses!therefore

Example Marketing Programs

Revive Disengaged Prospects

Nurture High Value Leads

Prospecting Programs

Event Marketing Campaigns

Prospecting

Purchase highly targeted and accurate consumer list.

Create a compelling offer and send out a relevant direct mail piece.

Capture email addresses for prospects that respond and drop them into your existing marketing automation nurturing program.

Prospecting

Send offer via direct mail

Purchase targeted list

Landing page / Microsite

Confirmation email

Direct mail #2(if no response)

Marketing Automation Nurturing

Complete the Offer

Reviving Disengaged Prospects

Problem: Prospect that fits your ideal customer profile has stopped engaging.

Goal: Resurrect a dormant prospect with a direct mail offer.

Reviving a Dormant Prospect

Landing page

Follow Up Email(if no response)

Marketing Automation Nurturing or Sales

Follow-Up

Send offer via direct mail

Prospect has Stopped Responding

Print and mail on a regular schedule. It can be weekly, monthly, or even quarterly.

High Value Lead Campaign

Useful for Customer Acquisition and UpsellUse any mix of email and direct mail, and other mediums such as phone calls and remarketing online advertising.

Mix low cost postcards with higher value dimensional packages.

Exit lead from campaign once target score or other criteria reached.

High Value Lead Campaign

Dimensional direct mail

Marketing Automation or Sales Follow-Up

Lead Enters Cross Media Campaign

Email Email Post Card Email

Score Reached

Event MarketingEvents lend themselves to marketing campaign templates that are reused for each event.

Create multiple campaign templates.

Simple campaigns for lower value prospects or small events.

Elaborate campaigns for high value prospects and major events.

Refer a friend techniques are a particularly effective in event marketing.

Event Marketing

Day of Event

Direct mail #1

Create Targeted List

Landing Page / Microsite

Confirmation email

Direct mail #2(if no response)

Event Reminder email #1

SMS text message reminder

Follow up survey microsite

Mail thankyou gift

Marketing Automation Nurturing

Save the date email

Refer a Friend email

Follow up email

Reminder email #2

Print can be an integral part of your marketing automation

program.

Myth #4Direct mail is too hard.

Actually, Direct Mail is Easy.

Let your print / direct mail service provider do the heavy lifting.

1. Set up the program The printer creates the direct mail template using

your creative assets and customer data fields. Create a marketing automation or CRM report or

outbound object that contains the personalization data for your segment.

Set up and automated process to move the report to your direct mail service provider using FTP, email, webhooks, or APIs.

2. Run the report Automatically run the report on the

predetermined schedule.Marketing Program Suggested Mail Schedule

Prospecting Dependsing on marketing objectives, anywhere from weekly to annually.

Reviving Dormant Leads Weekly, Monthly or Quarterly

High Value Leads Daily or weekly if based on a user event, otherwise quarterly or even annually might be fine.

Event Marketing Based on the event date

3. Mail it Your direct mail service provider will clean the data

for optimal mail delivery.

The direct mail is printed on a digital press. Each piece has personalized copy, images, and offers depending on the data you have for each person.

The mail is delivered to the post office on an agreed upon schedule.

When planning an integrated marketing program, use channels where they excel.

DIGITALFail fast

Build Audience

Grow Reach

MOBILEExtend the Brand

Engage Customers

Extend real-world into the virtual world

PRINTLonger form

Deeper content

Stand out

Credit: Andrew Davis, Author: Brandscaping

In Summary1. Direct mail is alive and well.2. Direct mail provides a compelling return on

your marketing investment.3. Digital printing technology enables highly

personalized and relevant direct mail.4. Direct mail can easily be integrated into your

marketing automation programs.

www.modernostrategies.com

Tod Cordilltod@modernostrategies.com

@todcordill

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