MAIL’S EVOLVING ROLE

IN TODAY’S

RETAIL BANKING MARKETPLACE

Date

Audience

Retail banking and the role of mail

The new news about mail

Why use mail now

Our products and services

WHAT WE WOULD LIKE TO

TALK ABOUT TODAY

2

RETAIL BANKING

AND THE ROLE OF MAIL

3

THE CHALLENGES FACING FINANCIAL SERVICES

“Financial organisations will need to work harder than in the past to retain their

customers. Heightened awareness of the new switching service and high-profile

marketing campaigns will encourage more people to consider their relationship with

their existing bank over the next few years. Around one in seven current account

holders would consider switching providers following the launch of the new Current

Account Switch Service”

Deborah Osguthorpe, Head of UK Financial Services

Research Mintel 2013

4

FOUR BANKS STILL CONTROL MOST OF THE

MAIN RELATIONSHIPS WITH CUSTOMERS

Britain has one of the most

concentrated banking systems

in the world, with just four

banks controlling over 70% of

all current accounts and 85%

of small business lending

This is mainly driven by the

fact that people do not tend to

switch banks very oftenBased: 1,930 internet users aged 18+

Source: GMI / Mintel, Consumers and

Technology in Financial services & Banking

Market Share, October 2013

31

15

15

12

11

9

7

Lloyds Banking Group*

RBS/NatWest

Barclays

HSBC**

Santander

Nationwide Building Society

Other***

%

Main PCA

Source: Labour will refer banks to competition authorities in 2015, Milliband to pledge, The Guardian,

15th January 2014Source: Ed Milliband urges bank branch sell-off to

tackle ‘broken’ market, BBC, 17th January 2014

5

OVER 70% OF PEOPLE HAVE NEVER CHANGED

THEIR MAIN BANK ACCOUNT

Source: nVision, May 2014

Base: 1,783 respondents responsible for the household’s bank account service age 16+

Middle-aged, most affluent customers

are most likely to switch

They tend to have more complex

financial demands and are more savvy

Among current account holders 52% of

people report they have never switched.

They tend to open an account when

they first leave home/start work – many

will be recommended from

family/friends.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Don't know

Never

>4 years ago

3-4 years ago

1-2 years ago

6-12 months ago

Last 6 months

Last switched bank accounts

5%

19%

5%

8%

5%

5%

52%

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

Don't know/Can't remember

Yes, more than 5 years ago

Yes, 4-5 years ago

Yes, 1-3 years ago

Yes, 7-12 months ago

Yes, within the last 6 months

I've never changed my main current account provider

Main current account switching behaviour May 2014

Source: TGI, Kantar Media, August 2013

6

BUT CURRENT ACCOUNT SWITCHING IS UP 22%

SINCE THE INTRODUCTION OF EASIER SWITCHING

Easier 7 day switching came into

effect in September 2013

In the 12 months since introduction,

the fast switching scheme encouraged

1,203,334 account holders to switch

banks in search of a better deal, a

22% increase on the previous 12

months

Loyalty and retention have become an

increasing focus for retail banking,

leading to the use of targeted

personalised mailing

Source: BACS, 17th July 2014

0

20,000

40,000

60,000

80,000

100,000

120,000

Jan Feb Mar Apr May Jun

2013

2014

Switching levels: The number of people switching current

account in 2014 has been higher each month compared to 2013

7

MOST CUSTOMERS HAVE FEWER THAN TWO

PRODUCTS WITH CURRENT SUPPLIER

Most people have fewer than 2 other products (apart

from current account) with their main provider

Those tend to be a current account and credit card

Customers feel that banks do less well than other

business sectors in rewarding customer loyalty

This shows a big opportunity for targeted relevant

messaging to cross and upsell

Source: GMI / Mintel, Consumers and Retail Banking, September 2014

An opportunity for retention and cross selling

Number of products held with main current account provider, May 2014

Sales, None of these, 23%

Sales, 1 type of product,

26%Sales, 2 types

of product, 23%

Sales, 3 types of product,

13%

Sales, 4+ types of

product, 15%

8

LIFESTAGE IS A KEY DRIVER IN OWNERSHIP

The need for different

banking products is mainly

dictated by lifestage

triggers

There are distinct

opportunities to target

different life stage groups

with different products and

services

We are seeing an increase

in highly targeted lifestage /

trigger based

communications in the

banking sector

Source: TGI, Kantar Media, July 2013 to June 2014

Life stage has a significant impact on types of financial product holding

OF BANKING PRODUCTS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Age Group 15-24

Age Group 25-34

Age Group 35-44

Age Group 45-54

Age Group 55-64

Age Group 65+

CurrentAccount

SavingsAccounts

PremiumBonds

Stocks andShares ISA

Mortgage

9

THE BIG OPPORTUNITY FOR BANKS TO IMPROVE

ACCOUNT SATISFACTION IS WITH

MIDDLE-AGED CUSTOMERS

There is a need to work hard to understand what is key to

customers as their financial needs start to develop

Young consumers are more

likely to be satisfied because

they have comparatively few

financial needs.

Middle-aged customers have more

complex financial demands, such as

mortgages, loans, and children’s

education. Hence there is more

opportunity for dissatisfaction.

Older customers are the least

demanding. They don’t have the

same expectations of online and

mobile banking and will make a

considered selection based on

their lifetime experience.

Source: Financial Services Consumer Insight Survey - Drivers of Customer Satisfaction in Retail Banking, Datamonitor Financial, July 2014

0%

10%

20%

30%

40%

50%

18-24 25-34 35-44 45-54 55-64 65+

% who are "very satisfied" with their primary PCA - by age

10

IMPROVING CUSTOMER PERSONAL CURRENT

ACCOUNT SATISFACTION INCREASES

CROSS-SELLING PROSPECTS

Satisfied PCA customers are more likely to open additional financial products with their PCA

provider. Datamonitor Financial analysis found that customers who are “very satisfied” with their

PCA are more likely to have chosen the same bank as their savings account, mortgage, and

personal loan provider.

Banks must focus on increasing and then maintaining customer satisfaction with their PCA as part

of their cross-selling strategies

68.4%61.7%

71.8%

63.6%

55.3%

63.8%

68.4% 61.7% 71.8%

Savings account Mortgage Personal loan

% that chose provider of savings account, mortgage and personal loan because they were already a customer

Very satisfied with PCA Everyone else

Source: Financial Services Consumer Insight Survey - Drivers of Customer Satisfaction in Retail Banking, Datamonitor Financial, July 2014

11

LEADING TO THE GROWTH OF BANK

LOYALTY/REWARD SCHEMES

12

Cinema5%

Direct Mail3% Door Drops

0%

Internet4%

Outdoor15%

Press23%

Radio5%

TV45%

Channel Spend

RETAIL BANKING CHANNEL SPEND

There is a rise in TV spend as the

bigger banks rebrand and try to

differentiate themselves

Mail can be a powerful tool to

complement and enhance other

channels to do both a brand and DR

role

The majority of retail banking spend is dominated in above the line channels

Banks included on

the chart

Lloyds Bank Plc

Halifax Plc

Barclays Bank Plc

Santander

Natwest

Hsbc Bank Plc

Tsb Bank Plc

Nationwide

Royal Bank Of

Scotland Plc

Bank Of Scotland

First Direct

Aviva Plc

Source: Nielsen Ad Dynamix, 1 July 2013 to 30 June 2014

13

THERE’S A WIDE MIX OF MEDIA SPEND STRATEGIES

SUPPORTING CURRENT ACCOUNTS

Media strategies to market PCA’s

Source: Nielsen Ad Dynamix, 1 January to 31 December 2014

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

TV

Radio

Press

Outdoor

Internet

Door Drops

Direct Mail

Cinema

14

ALTHOUGH THERE HAS BEEN A MOVE TO ONLINE

Online forums play a key role in research

into financial products

People still rely on face to face contact

with bank staff, friends/family and financial

advisors

At a time when banks are closing

branches, the relevance of targeted

personalised mail to help build more

personalised relationships is becoming

more important

PEOPLE STILL LIKE TO TALK TO A PERSON

ABOUT THEIR FINANCIAL NEEDS

Based: 1,930 internet users aged 18+

Source: GMI / Mintel, Consumers and Technology in Financial Services, October 2013

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Online forums

Bank staff

Friends or family

Company website

Price comparison sites

Newspaper and magazines

Finacial adviser

Consumer groups

The Money Advice Service

Social media sites

Other

None of these

Preferred source of information for financial advice

15

MARKET DYNAMICS AND TARGETING STRATEGIES

ARE REFLECTED IN VARIED MESSAGING APPROACHES

Personalised Offers Up Sell / Cross SellPromotions

Source: Nielsen Ad Dynamix, December 2012 to July 2014

16

AN EFFECTIVE MEMBER-GET-MEMBER CAMPAIGN

Background:

At any given time, only about 7% of people are thinking about

switching banks. However, First Direct have one advantage over other

banks: they are the UK's most recommended.

Solution:

A member-get-member mail pack. The key was generating talk-ability,

to help customers introduce First Direct into conversation. Existing

customers were offered £50-worth of iTunes vouchers for every friend

who joined. New customers who also got £100 for switching.

Results:

21,000 customers were mailed and results indicate a high percentage

of those contacted would recommend First Direct to a friend.

FIRST DIRECT: PASS THE PARCEL

Source: DMA , Bronze Winner, First Direct, 2011

17

AN EFFECTIVE USE OF DATA TARGETING TO

Background:

At Bank of Scotland, communications to customers were

previously high volume, one-size-fits-all, which is expensive,

inefficient and risks bombarding customers with irrelevant

communications.

Solution:

A sophisticated ‘decision and optimisation’ data model which

calculates the next best offer for every individual customer.

Results:

Significantly improved customer experience, speed to market,

efficiency and ROI. Cutting costs and increased response rates by

up to 50%.

COMMUNICATE RELEVANT OFFERS

Source: DMA, Bronze Winner, Bank of Scotland, 2012

18

CASE STUDY - NEVER UNDERESTIMATE

The challenge:

Acquire new Platinum card customers.

The solution:

To make the pack stand-out and cutting through the

usual financial jargon, it contained one word “yes”,

making applying a foregone conclusion.

Mailed to existing customers to upsell to the

Platinum card.

The results:

Response rates increased by 30%, conversion was

up by 42%.

THE POWER OF SIMPLICITY: BARCLAYCARD

Source: DMA, Silver Winner, Barclaycard, 2012

19

SPECIFIC ROLE FOR MAIL

20

CONSUMERS ARE MORE LIKELY TO OPEN AND TRUST

Financial mailings have some of the highest open rates in the industry

Over 80% of people open statements or information updates

Mail is still the most trusted and authoritative media

Mail is seen as both personal and relevant

Source: From Letterbox to Inbox: Building Customer

Relationships, DMA ,2013

Royal Mal MarketReach, Values: Best Mail, Quadrangle, 2014

of best Financial

mail…

is often kept for

future reference

72%

FINANCIAL MAIL

21

More than half (52%) would prefer to receive their

Welcome Pack by mail, almost three times as many as

would prefer email (18%). This suggests they see value

in having this content in a form they can use and keep.

Mail is also preferred for sales messaging such as new

financial product offers

Consumers are slightly more willing to have email for

product messages. This may suggest they find a lack of

personal relevance in these sales communications.

Email allows them to more quickly assess interest and

delete if not valuable.

FINANCIAL CONSUMERS CONTINUE TO PREFER MAIL

FOR MARKETING MESSAGES THEY FIND VALUABLE

Prefer to receive bymail

Prefer to receive byemail

Welcome pack 52% 18%

Information about new products and services

44% 29%

Offers for new/other financial products

43% 32%

Source: Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014.

(Which channel would you prefer to receive…? Base: All (n=2,375)) 22

0%

10%

20%

30%

40%

50%

60%

New CardActivation

Annual Statements

Welcome Packs

Monthly statement

Changing Ts & Cs

Information aboutnew products and

services

Responding tocomplaints

News about shares

Offers for otherfinancial products

Notifications

DM

Email

Portal

Channel I would prefer to receive by message

SHOWING A CLEAR PREFERENCE FOR MAIL

THAT HAS CLEAR PERSONAL IMPORTANCE

Consumers want mail for key

information and account details they

need and use

They are more willing to receive

transactional messages(annual

statement, notifications, Ts & Cs) via

digital channels

Source: Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014.

(Which channel would you prefer to receive…? Base: All (n=2,375)) 23

It’s been proven to be the most emotionally engaging media

People still enjoy receiving it

It has increasing standout in a digital world

It is highly valued by people

It is omnipresent in people houses

It helps uplift other channels and create value

NEW NEWS ABOUT MAIL

24

THE PRIVATE LIFE OF MAIL

MAIL IN THE HOME,

HEART AND HEAD

26

12 Ethnography households

14 Focus groups

99 Depth interviews

213 Neuroscience / biometric participants

401 BrandScience’s ‘Results Vault’ cases

416 IPA Effectiveness Databank cases

1,000+ Academic articles reviewed

9,504 Respondents across our telephone and online quantitative surveys

18 MONTHS OF RESEARCH

27

DEVELOPED IN 8 STRANDS

Ethnography

Post ethnography survey

Multisensory Communications: review of academic literature

Tactility

Values: Best Mail

Mail and Digital 1 & 2

Neuroscience

ROI/Effectiveness metrics

28

MAIL IN THE HOME

LIFE BEYOND THE LETTERBOX

29

30

MAIL GETS OPENED – AT HIGH RATES

Statement, bill or information update

Brochure from a company they have ordered from before

Letter – promotion or special offer

Letter – about a product/service they don’t have

Leaflet without an address about a product/service

Leaflet without an address about a promotion/offer

Brochure from a company not ordered from before

83%

71%

69%

60%

59%

54%

54%

OPEN

Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 31

MAIL’S JOURNEY ISN’T OVER WHEN

Adults read their mail on average for 22 minutes a day.

IT HITS THE DOORMAT

1.15PM: Collects mail and brings it into the

home with other bags and belongings

1.30PM: Opens mail whilst doing other jobs

2.15PM: Opens parcel

2.30PM: Uses laptop to get details on a piece

of mail received

5.30PM: Uses laptop again to get further

details on the piece of mail from earlier

8.30PM: Brings catalogue into lounge to read

Source: IPA Touchpoints 5 (Data based on Monday – Saturday morning); Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 32

PEOPLE GIVE MAIL TIME

Mail is kept for extended periods, creating a constant presence in the home.

17 daysfor mail

38 daysfor door drops

45 daysfor bills and statements

Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 33

AND SPACE

80% of adults kept some mail that

companies had sent them in the last four

weeks.

‘The Holding area’ where it is kept

before being dealt with

‘The Pile’ for mail that has been read

and will be revisited

‘The Display area’ for useful or

important items (local information,

time limited offers)

Display Area

Pile

Holding area

Source: TGI, Kantar Media, 2014; Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 34

MAIL GETS DISPLAYED

39% of people have a dedicated display area for mail in the home

Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 35

MAIL IS SHARED

An average of 23% of mail is shared within a household.

Brochure from a company I have ordered from before

Statement, bill or information update

Letter – about a product/service they don’t have

Brochure from a company not ordered from before

Leaflet without an address about a promotion/offer

Letter – promotion or special offer

29%

24%

25%

23%

22%

21%

SHARE

Average of 23% of mail shared

within a household

Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 36

MAIL OFFERS A LESS CLUTTERED

ENVIRONMENT THAN DIGITAL

70%

“I feel that I

receive too

many

emails”*

*Source: Royal Mail MarketReach, Mail

and Digital Part 1, Quadrangle, 2013

**Source: Litmus Email Analytics, 2013

Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Mail stands out due to the proliferation

of digital messages

3%

3%

22%

72%

48%

18%

19%

15%

0% 20% 40% 60% 80%

More than 10

7 to 10

4 to 6

1 to 3

How many items do you receive in a day?

Email

Mail

51%

of emails are

deleted within

two

seconds**

37

INCREASINGLY MAIL IS DRIVING PEOPLE’S

43%download

something

54%engaged in

social media

87%influenced to

make online

purchases

92%driven to online

or digital activity

86%connected with

business

Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

Question asked(S4Q1): How often have you done each of the following online as a direct result of receiving mail from a

business or organisation. Base: All (n=2,375)

DIGITAL BEHAVIOUR

As a direct

result of

receiving

mail

38

MAIL IN THE HEART

CREATING AN EMOTIONAL

RESPONSE

39

40

41

TOUCH CREATES A POWERFUL

When people can both see and

touch something, they value it

24% more highly than if they

can only see it.

Over a third of people say that

the physical properties of mail

influence how they feel about

the sender.

EMOTIONAL RESPONSE

+22% +24%

2.75 2.73

3.36 3.38

0

1

2

3

4

5

Psychological ownership Valuation

VISION ONLY VISION AND TOUCH

Participants were asked to subjectively grade ownership and value on a 7 point scale.

Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009; IPA Touchpoints 5, 2014 42

PEOPLE FEEL VALUED AND HAVE A

BETTER IMPRESSION OF THE BRAND

The emotional impact of mail versus email

I am more likely to take it seriously

It gives me a better impression of that company

It makes me feel more valued

63%

57%

55%

18%

17%

25%

(% True of Mail vs. True of Email)

MAIL EMAIL

Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 43

MAIL IN THE HEAD

HOW MAIL IMPACTS THE BRAIN

44

45

46

THE BRAIN RESPONDS MORE STRONGLY

Mail had a much more powerful overall impact on the key measures of the

neuroscience study than email or TV.

TO MAIL THAN TO TV OR EMAIL

Source: Royal Mail MarketReach, Neuro-Insight 2013

168

202

172

127

165

130

105113

100

0

50

100

150

200

250

Engagement Emotional Intensity Long-term Memory Encoding

Ind

ex v

s.

'No

rma

l' r

es

tin

g b

rain

MAIL EMAIL TV

47

IN A MULTI MEDIA CAMPAIGN

SEQUENCING MAIL LAST MAXIMISES IMPACT

Source: Royal Mail MarketReach, Neuro-Insight, 2013

Mail after TV and email

100 100 100

112

101

106

126

121

110

80

90

100

110

120

130

140

Engagment Emotional Intensity Long-term MemoryEncoding

Ind

ex v

s.

resp

on

se

fro

m first e

xp

osu

re

MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD

Engagement

48

MAIL IN THE WALLET

HOW MAIL MAKES MONEY

49

MAIL DELIVERS ROI

Mail ROI showed a strong channel performance in BrandScience cases

Revenue Return on Investment of clients using direct mail

Source: Royal Mail MarketReach BrandScience, 2014

0

2

4

6

8

£

RROI (Revenue ROI)

50

Total ROI increased 12% when mail was included in the mix.

MEDIA MULTIPLIER EFFECT

MAIL CREATES A MEASURABLE

Source: Royal Mail MarketReach, BrandScience 2014; advertiser cases including mail versus cases without mail.

4.22

4.63

5…

4.734.93

6.31

1

2

3

4

5

6

7

Total Comms TV Print

RR

OI

RROI-NO MAIL RROI-WITH MAIL

51

MAIL DELIVERS NEW AUDIENCES

Adding mail to the mix opens up new responsive audiences. When mail is

added to the schedule

versus email on its own

Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 52

INCLUDING MAIL DELIVERED TOP-RANKING

Campaigns that included mail

were:

27% more likely to deliver top-

ranking sales performance

40% more likely to deliver top-

ranking acquisition levels

SALES AND ACQUISITION PERFORMANCE

Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

+27% +40%

45%

30%

57%

42%

0%

10%

20%

30%

40%

50%

60%

Sale Acquisition

% C

lien

ts l

isti

ng

to

p p

erf

orm

ing

im

pro

vem

en

ts

RROI - NO MAIL RROI - WITH MAIL

53

WITH MAIL IN THE MIX, MARKET

SHARE GREW 3x MORE EFFICIENTLY

Mail included in multi-channel campaigns drove market share growth with

3x the efficiency versus non-mail advertisers.

2.9xMarket share growth

for all clients

3.4x Market share growth

for service sector

Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail.

Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013 54

MAIL IN ACTION

EDF

55

EDF USED TARGETING AND CHARM TO

MAKE CONSUMERS FEEL ZINGY ABOUT ENERGY

Background:

EDF Energy was facing many challenges. Operating in a low interest commodity

category, the industry had the lowest amount of switching since records began. When

EDF Energy stopped face to face selling, they lost their largest acquisition channel. They

therefore needed to maximise the potential of other channels.

Solution:

EDF wanted to reach people who had not switched from their competitors and shake

them up. But a new angle was required to engage the audiences.

EDF had launched a new ATL brand positioning ‘Feel Better Energy’ with the brand

character ‘Zingy’. This offered the perfect opportunity for a radical change in direct

marketing.

Launching its biggest ever direct campaign, EDF used Zingy to persuade people to open

and engage with the new brand messages. Direct mail , door drops, inserts and direct

response print were deployed to convert awareness into action.

Sources: AIS London, IPA Effectiveness Bronze Award 2014, Marketing Week Engage Award Gold 2013,

56

EDF REACHED KEY AUDIENCES AND

Results:

This was the most successful campaign EDF Energy had ever run, giving

them a new route to a previously unresponsive audience.

EDF reached their 2012 year-end sales objective three months early. The

campaign achieved a record breaking 43,000 calls and19,500 direct sales,

exceeding sales targets by 30%.

Short term incremental gross profit showed that every £1 spent on the

campaign generated £2.36. Cost of sale was 23% lower than target,

making direct marketing a feasible acquisition channel for the first time.

EDF won c.25% of all market switchers making EDF the fastest growing

B2C energy supplier in the UK. 55% of sales came from customers who

had never switched before. 73% of consumers who responded to the

direct campaign said they wouldn’t have switched if they hadn’t received

the direct marketing.

The long life of mail was proved by the fact the it was still generating calls

three months later.

CHANGED BEHAVIOUR

Sources: AIS London, IPA Effectiveness Bronze Award 2014, Marketing Week Engage Award Gold 2013,

57

MAIL IN ACTION

Homebase

58

Background:

Home improvement projects are irregular and unpredictable. Part of

Homebase’s marketing strategy was to promote everything and discount on a

frequent basis. The direct marketing strategy had been built around regular

high volume event mailings with blanket discounts

Solution:

Homebase found patterns in shopping behaviours in both transactional and

non-transactional data, identifying customer needs close to ‘Share of Project’

spending opportunities.

They identified 10 project trigger identifiers and then analysed the length and

shape of the sales curves to quantify the purchasing opportunity. For each,

they created a personalised communication plan.

Responding quickly enough to be relevant was critical. Homebase was able to

get direct mail delivered within six days and email in two. Dynamic templates

made the communication truly personalised, delivering the right message at the

right time to increase customer value.

HOMEBASE USED DATA PATTERNS TO DELIVER

Sources: DMA Best Multi-channel CRM programme Gold Award 2014, DMA Data Strategy Silver Award 2013, Marketing Week Engage Award Winner CRM/Loyalty and Direct Marketing 2014, Homebase and MRM Meteorite

PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS

59

Solution:

The programme used highly responsive direct mail, magazines, emails, at till

communications and inspiring shareable content to increase customer value,

using a hierarchy to determine customer inclusion to suit their interest or

project.

Results:

The strategy has been transformational. The evolved CRM programme has

delivered incremental sales four times greater than three years ago - ROI up

350% to 4.3:1. It also smashed its profit target by +48% creating a

demonstrably more engaged and valuable customer in terms of both total

spend and activity – mail response increased from an average of 9% to a

maximum of 46%, up 500%, ATV increased by 13.5% and repeat visits up 6%.

TARGETING AND PERSONALISATION COMBINED

Sources: DMA Best Multi-channel CRM programme Gold Award 2014, DMA Data Strategy Silver Award 2013, Marketing Week Engage Award Winner CRM/Loyalty and Direct Marketing 2014, Homebase and MRM Meteorite

WITH FAST REPONSE DELIVERED DRAMATIC GROWTH

60

IN SUMMARY

Mail brings a brand into the home where it is kept, displayed, and/or shared

Its tactile qualities have powerful emotional and rational impact that can be identified

and proven

Mail makes your message more memorable

Mail drives successful return on investment

When used in integrated campaigns, it can provide a measurable media multiplier effect

Mail delivers top-ranking sales and acquisition growth and efficient market share growth

The newly transformed Royal Mail is a credible, motivated and connected partner to you and your

marketing agencies.

Media and Data

Planning

Bespoke Research

and Insight

Data Provision

Distribution

61

62

BIG DATA IS DRIVING MORE 121 DIRECT

Data is driving more 121 and personalised interactions.

Trigger based communications based on actual and future behaviour change.

There is a strong role for highly targeted personals mail in this space.

Less short termism and more longer term ROI.

COMMUNICATION

63

ADVANCES IN TECHNOLOGY MEANS

USB film content

Augmented Reality: Online / offline

integration

VideoPaks

Sensory Mailings: Taste & smell

increases tangibility

Interactive print

Digital templating: cheaper, faster

& more personalised

QUICKER, CHEAPER & MORE IMMERSIVE MAILINGS

64

NEW DEVELOPMENTS FOR MAIL

Barcode

A new barcode standard for machine readable Business, Advertising and Publishing Mail

Technology

Sorting machines that read the new barcode and collect mail data

Reporting

Mail Analytics that reports on volume, compliance, predicted delivery and overall performance

Ultimately generating more efficiency, greater transparency and

measurement for your mail campaigns

65

WHAT WE COULD DO FOR YOU

Work with you to increase the performance of your DR channels

• Best case for mail

• Test matrix

• ROI

• Contextualise within

the media mix

• Addressed/

unaddressed mail

1. Review your

competitive set.

2. Understand the key

dynamics of your

sector,

3. Unearth powerful

insights in relation to

Mail and how Mail can

address your business

issues.

• Acquisition

• Loyalty

• Retention

Understand the key

issue

Sector experts gather

insight Recommendation

66

Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd.

Royal Mail Group Ltd 2014. Registered Office: 100 Victoria Embankment, London EC4Y 0HQ.© Royal Mail Group Ltd 2014. All rights reserved.

THANK YOU

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Page 5 - Mintel report October 2013 - Consumers and Technology in Financial Services

& Banking Market Share - Labour will refer banks to competition authorities in 2015, Miliband to pledge -

Wednesday 15 January 2014. Banking Market Share - BBC News - Ed Miliband urges bank branch sell-off to

tackle 'broken' market - 17 January 2014

Page 7 - This is money‘ - Not the avalanche needed to transform market': Current account switching up 16% but

the big banks still dominate - 17th July 2014

Page 10, 11 – DataMonitor - Drivers of Customer Satisfaction in Retail Banking – July 2014

Page 15 - Mintel report October 2013 - Consumers and Technology in Financial Services

Sources

68