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Postal Code TargetingNEW from Canada Post

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8We have gone from

50marketing channels to over

By 2018, Internet advertising is poised to overtake TV as the largest advertising platform.

Source: Chief Marketing Officer (CMO) Council

Canadian Advertising Spend Trend by Category

WITH THE PROLIFERATION OF NEW CHANNELS, IT’S GETTING HARDER FOR MARKETERS TO MAKE CHOICES

DIGITAL CHANNELS ARE TAKING OVER TRADITIONAL BROADCAST TV

Marketing Today

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IT’S A DIGITAL WORLD — AND IT’S CLUTTERED

Digital is no longer “new media”.

It’s everywhere.• The Marketing Industry is at a pivotal point

of digital reassessment as it catches up with consumer behaviour.

• With more digital channels than ever, marketing has become increasingly complex – while decreasing in effectiveness.

• The focus on digital has led to over-investment in interaction while under-delivering on action.

Marketing Today

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CONSUMERS HAVE BECOME BANNER-BLIND

• Phishing scams have made people more suspicious of email marketing.

• Digital targeting is limited.

• Canadian Anti-Spam Legislation (CASL)

• Mass social channels no longer allow organic interactions with customers.

AND IT’S GETTING HARDER TO REACH THEM

Marketing Today

0.07% 47%Average click-through rate for standard banner ads

Participants in our 2nd

Neuroscience research study who actually noticed Display advertising

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Marketing Today

MARKETERS ARE SEEKING EFFECTIVE NEW WAYS TO DRIVE ACQUISITION

Digital media providers are claiming greater targeting solutions by targeting customers at the postal code level.

• Within the digital space postal code targeting can actually limit an audience and reduce precision –namely due to the reliance on IP addresses as a postal code indicator.

• Postal codes are considered too small an area to be targetable by IP address databases – accuracy recorded between 0-10%.

• With heavy internet traffic, an individual’s internet connection can be re-routed through another which could be in a different part of the city, country or another country altogether.

Only Postal Code Targeting delivers to the postal code

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TARGETS AN AVERAGE OF 20 ADDRESSES

TARGETS AN AVERAGE OF 9,000 ADDRESSES

A1A 1A1

The Power of the Postal Code

The postal code is made up of two distinct but very important parts

• The FSA – Forward Sortation Area (A1A)• And the LDU – Local Delivery Unit (1A1)

Postal codes are effortlessly collected

Consumers are more likely to provide their postal code to you than their full address. Often postal codes are collected at POS or through an online shopping basket.

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We kind of oversold it [Digital] a little bit.

Clients would say “it didn’t do anything” and we would say, “but we got clicks!” or “But we got views!”

And they would say, “But we didn’t sell anything.”

- Sasha Grujicic Dentsu Aegis’ Chief Strategy Officer (Sept 2016)

Marketing Today

SUMMING UP THE DIGITAL MARKETING CHALLENGE

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THE NEWCANADA POST

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New Canada Post

WE ARE BOLDLY TRANSFORMINGTO MEET THE CHANGING NEEDS OF CANADIANS IN THE DIGITAL AGE.

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“Canada Post has almost two thirds of the e-commerce parcel business –with all that data, I consider them to be the offline Google.”

Enrico Del Grande, Head of e-Commerce Fruit & Passion.

• Next Generation Physical Mail

• Convergence Solutions

• Digital Complements

Innovation

• Enhanced Data Targeting and Analytics

• Mini-catalogue

• Postal Code Targeting

New Products

• Expert Marketing Partners

• Marketing Industry Education

• Customized Solution Development

Solution Focus

• Human Factors White Paper: Breaking Through the Noise

• 2 Neuromarketing White Papers: A Bias for Action, Connecting for Action

Research

New Canada Post

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WE BELIEVE THAT THE SCIENCE BEHIND HUMAN BEHAVIOUR DRIVES SUCCESSFUL MARKETING.

New Canada Post

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Ethnographic studyBreaking Through the Noise

Key findings Collecting the mail is part of

our lives. Advertising mail engages. Direct mail persists Direct mail persuades

Neuroscience studyA Bias for Action

Key findings Direct mail is easier to understand

and more memorable than digital media.

Direct mail is far more persuasive than digital media.

Direct mail is visually processed in less time than digital media.

Direct mail is more likely to drive behaviour than digital media.

Neuroscience studyConnecting for Action

Key findings Media matters. Integrated

campaigns drive action.

Getting the order right.

The Science behind the Solution

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CANADA POST SMARTMAIL MARKETING :A MORE INTELLIGENT APPROACH TO DIRECT MAIL

• Physicality• Data• Connectivity

In a connected world, physical matters more than ever. Smartmail Marketing allows you to get more action out of your marketing mix.

Smartmail Marketing

Smartmail Marketing brings together three powerful elements to get your brand directly into a customer’s hands:

It’s a potent mixture that makes marketing more relevant and engaging.

TM

TM

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SMARTMAIL MARKETING CAN PLAY A PIVOTAL ROLE THROUGH EVERY PHASE OF THE PURCHASE CYCLE.No matter where your customer is in the purchase cycle, Smartmail Marketing can strengthen the sales process by using the power of physicality, data and connectivity to drive the right purchasing behaviour.

Solutions Portfolio

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Introducing Postal Code TargetingNew from Canada Post

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Now you can directly find and reach the right prospects by postal code

New from Canada Post

• Reach look-a-like audiences with a propensity to engage with your brand

• Target postal codes that exhibit the demographic characteristics of your best customers

More precise reach Greater return on marketing investment

• Leverage the power of suppression and only target new customers so that your dollars remain dedicated to acquisition

• Use data insights to select your best postal codes (included with your campaign)

Smarter data• Use your own data to help

narrow in on like-minded prospects

• Strengthen your existing data by layering additional geographic, demographic and lifestyle criteria to select your best postal codes to target, including insights like e-commerce shopper behaviour

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Canada Post Smartmail Marketing™ solutions

Neighbourhood Mail connects you to every home and apartment in specific neighbourhoods or regions anywhere across Canada.Hit everyone. Find customers. Reach wide.

Postal Code Targeting Postal Code Targeting pairs targeting at the postal code level with customer suppression to efficiently optimize acquisition and promotion efforts.Effective Costing. Efficient Data. Surgically targeted.

Personalized Mail Personalized Mail enhances one to one customer engagement to make the most of relationships driving greater loyalty and retention.Maximize relationships. Deepen connections. Get personalized.

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Each postal code contains an average of 20 addresses for more exact targeting based on more extensive data

Find all the postal codes where your best prospects live

Be smart with your acquisition investment by suppressing current customers

POSTAL CODE TARGETING. ONE TO FEW.

COMBINE DATA FROM MULTIPLE SOURCES, INCLUDING YOUR OWN CUSTOMER DATA, FOR MORE REFINED TARGETING OF THE RIGHT PROSPECTS

Canada Post Smartmail Marketing solutions™

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Audience Insights

Use your own data, Canada Post’s targeting insights or both

Age Income Education Family size Children in the

home Dwelling type

Demographics

Fashion Health and beauty Consumer

electronics Home and

housewares Mass merchants

E-commerce

Environics industry-leading PRIZM5 segmentation system analyzes your customers and identifies your most profitable segments based on their demographics, lifestyles and social values.

Prizm5

Loyalty card holders Occupation Nutrition and Diet Travel Frequency Credit card payment

patterns Charitable Donors

Interests

Make Type (SUV, high

luxury) Year Parent brand (Ford,

Mazda) Country of origin

(American, Japanese)

Automotive*

Central Asian Mediterranean Middle Eastern Eastern European

Ethnicity*

Number of employees

Industry Sales revenue

Business

* Available for Postal Code Targeting at an additional cost to postage rate

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Audience insights: The Power of the Postal code

Dwelling type: Single-detached house

Mother tongue : Single Response

English

Total households: 51

Education: High school certificate or equivalent

Household income: $100k+

Immigration status: Non-Immigrant Immigrant • Southern Europe • Eastern, Southern and

Southeastern • Eastern Europe • Central & South America • Caribbean and Bahamas

Non-permanent Resident

2 Prizm clusters• 12: Street Scenes

Younger, upper-middle-income singles and families

• 62: Terre-à-TerreDownscale, middle-aged and older rural householdsM6P 1W6

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Testing Postal Code Targeting

Challenge: I don’t know my customers and I don’t know where to find them

Opportunity: Start collecting postal codes at your point of sale, then leverage that data to profile your customers and find others like them who, based on their shared demographics, life stage or interests, will have a similar propensity to buy from your brand.

Challenge: I want to find more of my best customers

Opportunity: Give us the postal codes of your best customers and we’ll profile them, then tell you where to find more postal codes that match that profile so you can amplify your acquisition efforts.

Challenge: I want to attract new customers without disrupting my current customer base

Opportunity: Send unique offers and promotions only to prospects that are most inclined to respond while removing your current customers from your mailing.

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The value of Postal Code Targeting

Target with surgical precision with a targeting solution only

offered by Canada Post

The newest member of the Smartmail Marketing family

rooted in innovation

A solution that continues to leverage the power

of Physicality

Physical ValueA New Solution Hyper Targeted

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The Physical Value of Postal Code Targeting

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POSTAL CODE TARGETING FOR AUTOMOTIVE

• Target postal codes with a higher penetration of prospects in the market for a new vehicle by leveraging look-a-like purchase behavior.

• Influence a car purchase by driving prospects to dealership.

• Target by demographics like age and income as well as by vehicle type, make and year.

• Target the neighbours of customers who have just purchased a new car from your dealership.

Industry Applications

Target insights to leverage Demographics (age, income, kids in

the home) Automotive (make, type, year, parent

brand, country of origin)

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POSTAL CODE TARGETING FOR NOT-FOR-PROFIT ORGANIZATIONS

• Get the best return on marketing dollars by targeting donor prospect profiles whose values align with a particular cause or charity.

• Ensure event success by targeting postal codes in close proximity to your fundraising initiatives.

• Use PCT as a solution to reach potential donors in areas where you have a lower penetration or no penetration of canvassers

Industry Applications

Target audience insights to leverage Demographics (age, income, education,

kids in the home) Interests (Charitable Donors)

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POSTAL CODE TARGETING FOR FINANCIAL INSTITUTIONS

• Target high income postal codes to maximize wealth management initiatives.

• Get the best results for credit card initiatives by targeting potential customers with specific credit scores.

• Develop personal relationships with potential customers by targeting within a defined radius/distance from a branch. Overlay this with life-stage information to curate the right message to drive action.

Industry Applications

Target insights to leverage Demographics (age, income, education,

kids in the home) Interest (credit card payment patterns,

credit card spend, loyalty card holders,travel frequency, Investment profile)

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POSTAL CODE TARGETING FOR RETAILERS

• Leverage demographic insights of existing or look-a-like customers to focus messaging and offers around life events such as back to school.

• Target postal codes with a parcel locker and the means and propensity for frequent online purchases.

• Display the breadth of your products with a mini-catalogue. It’s a fast and affordable way to put your brand in potential customers’ hands.

Industry Applications

Target insights to leverage Demographics (age, income,

kids in the home) E-commerce Insights (fashion, health

and beauty, mass merchants etc.)

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POSTAL CODE TARGETING FOR TELECOMMUNICATIONS

• Increase your market share by targeting postal codes that contain a high penetration of non-customers currently with a competitor.

• Find your best acquisition opportunities and target postal codes within a network servicing range or close proximity to a retail location.

• Target new customers and businesses with special offers without disturbing your base.

Industry Applications

Target insights to leverage Demographics like age, income,

education, family size Business profile like employee size and

industry Special interests like travel frequency

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Thank you for your time. We look forward to partnering with you in 2017

Key questions

1. Are you reaching new prospects effectively?

2. Do you have address or postal code level data you would like to use to guide your acquisition planning?

3. Are you augmenting or amplifying your digital media acquisition efforts?

Put the value of Postal Code Targeting to the TEST!

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APPENDIX

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How it works

Postal Code Targeting is processed using new barcode technology with existing machine capabilities, providing customers with address level data.

CPC provides data file to MSP to create unique barcodes containing delivery information.

The barcode is scanned by the MLOCR and an address is sprayed on each item based on the delivery information within the barcode.

Customer defines targeting, coverage, data selects, and provides suppression list.

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Postal Code Targeting is delivered as addressed to the mailbox.

Postal Code Targeting items are sorted and sequenced with other addressed mail items.

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C73 Barcode data

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Specifications

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Horizontal Envelope

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Vertical Envelope

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