Direct Mail Trends for 2010

Direct Mail: Trends for 2010

08/04/2010

Direct mail has been around a lot longer than email marketing and other online media but through constant innovation it has remained as relevant as ever. We examine the key trends in this never-say-die sector.

Direct mail can be likened to the humble television. The basic concept may be decades old but the latest flat-screen marvels bear little relation to the original ‘brown box in the corner’ such has been the rate of innovation over the years.

Similarly, DM has come a long way since the first crude attempts at customer targeting. So much so that while some have questioned its relevance in the online age it has defied the skeptics and remained a key element of many marketers’ plans for one simple reason: it delivers, time and time again.

Recent research (Amárach Research), confirms that rather than fading away, direct mail is actually claiming an ever larger slice of the advertising cake. Moreover, the same study finds that direct mail is used not just for one-off campaigns but for regular, ongoing marketing activity. In fact, more companies used direct mail (29%) in their last consumer campaign than radio (12%) and email (16%) combined. On the B2B side, meanwhile, more companies used direct mail (31%) than online (29%) or email (18%).

To hit such numbers, DM must be doing something right. That something is its ability to continually reach the right audience and achieve a high enough response rate to justify the campaign. That it is able to do so is certainly no fluke: it is achieved through constant innovation and refinement of data and targeting mechanisms.

This is reflected in the key trends we are seeing in the sector today:

1. Data enhancement

Data enhancement – enhancing internal data with external profiling information – will help you refine your mailings even more by adding demographic data (such as age, gender, marital status and lifestyle interests). You will then be able to analyse the results to identify customer characteristics you were previously unaware of – helping you to target new customers more efficiently.

2. Better targeting

Database analytics and segmentation tools enable you to target customers more precisely. It can start with behavioural segmentation such as RFM (Recency, Frequency and Monetary values) and customer lifetime value analysis, or geo-demographic segmentation. With careful analysis and data enhancement, it will also be easier to see when you should talk to your target, how regularly you should do so and what messaging sequence you should adopt. More businesses will be making use of this capability in 2010.

3. Personalisation

Personalisation in itself is not new but in the coming months we will see it move to a new level. It will go beyond first-name personalisation to encompass a richer, more personalised communication, even making reference to past purchasing behaviour and suggested next purchases. Companies who find ways to personalise communications – either through variable-data printing, customised microsites, or even simulated handwritten notes – will continue to see a better response.

4. Improved channel integration

As budgets continue to feel the pinch, marketers will have to find even more cost-effective marketing platforms and to cross-leverage their media as never before. Media integration is going to be a key factor this year and beyond, and direct mail is going to play a key role, owing to the accountability and measurability that it affords marketers. Advanced measurement tools allow companies to track and measure every step of every campaign to determine its success. For this reason, expect to see greater use of tracking technology (codes/barcodes etc) as the year progresses.

5. DM and web working together

2009 saw a boom in the use of web-based campaigns, and the trend will continue right through 2010 with the integration of direct mail and these web-based methods. Customers will receive more print marketing products in the mail which direct them to personalised URLs that deliver targeted information.

Testing 1,2,3…

Another possible trend that may emerge over the coming months – and one we would certainly advocate – is a move towards greater use of testing. Regular testing of messages, offers, timing and redemption channels is vital because it is the only way you can gain a better understanding of your customer over time.

Taken together, all of the above show how much direct mail has come since the early days of speculatively shoving letters in envelopes and mailing out a crude list of contacts. Today, targeting, integration, measurability and personalisation are the buzzwords for an increasingly mature activity that holds enduring appeal for marketers of all hues.

An Post DM resources

Mail Media Unit website (www.anpost.ie/mailmedia) – a comprehensive information hub that helps businesses and agencies get the most from their direct mail activities. Includes case studies, research and insights to help with planning and campaign strategy

Industry Breakfast Briefings – guest speakers share their experiences of and insights into successful direct marketing campaigns. Register your interest for these popular events at mail.media@anpost.ie