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Mail and Email Sales Presenter (May 2014)

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At Royal Mail we’ve always believed in using the power of 1 to 1 communications to build customer relationships.

However, technology has transformed marketing communications. The development of email and the rapid adoption of smartphones and tablets have changed the way
we connect with customers forever. When you want to talk to customers directly you now have many different tools at your disposal and that’s a good thing.

So we’ve conducted extensive research to find out how customers prefer businesses to talk to them. You have this research in front of you and we think the results are fascinating.

It shows that the core strengths of mail have endured and in some cases grown even stronger, often by driving customers online. Mail is still opened, still valued, still kept and still drives response. Digital has transformed marketing but it hasn’t replaced mail for one simple reason. Customers don’t want it to.

Customers are very clear about what they prefer to receive by mail. They prefer to receive items of substance that they can spend time with and keep. Equally, there are some communications like quick updates that customers prefer to receive via email.

So, complementarity pays. A recent meta-analysis by Peter Field on the IPA Databank reveals that 27% more of the campaigns which delivered high sales performance included mail than did not.

He also looked at campaigns which drove high acquisition levels. And 40% more of these included mail than those that didn’t. Campaigns with mail achieved over twice (104%) the market share growth when measured against campaigns without mail in the mix.

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Mail and Email Sales Presenter (May 2014)

  1. 1. IT’S ALL ABOUT MAIL Working together to create great 1 to 1 relationships with your customers May 2014 AND EMAIL
  2. 2. THE IMPACT OF THE DIGITAL REVOLUTION 2
  3. 3. A LOT HAS HAPPENED IN 7 YEARS 3 1. Ofcom, The International Communications Market, 2007 2. Compete, Millward Brown Digital 3. Facebook User Stats, July 2009 4. Ofcom, Communications Market Report, 2012 5. Ofcom, Communications Market Report, 2013 6. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 7. TGI, Kantar Media, 2013 8. IPA Touchpoints 5, 2014 9. Twitter.com, May 2014
  4. 4. 4 THE AMOUNT OF MONEY SPENT ON DIGITAL HAS GROWN ENORMOUSLY Many consumers are feeling overwhelmed by email 1. IAB/PwC, Digital Adspend study, 2014 2. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S3Q4): Please tell me which of the following apply to the way you manage your inbox. “I receive too many emails”. (Base: all respondents n=1,000) £6.3bnUK digital advertising spend 20131 70%say “I feel that I receive too many emails”2
  5. 5. 5 CONSUMERS ARE BECOMING LESS ENGAGED WITH EMAIL 1. DMA National Email Benchmarking Report, 2013 2. Litmus Email Analytics, 2013 21%open acquisition emails1 51%of emails are deleted within two seconds2 29%open retention emails1
  6. 6. CONSUMERS SEE MAIL AND EMAIL AS DIFFERENT AND LIKE TO RECEIVE BOTH 6
  7. 7. MAIL AND EMAIL HAVE VERY DIFFERENT 7 Mail is good for substance and email for speed. CHARACTERISTICS Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014 Question asked (S3Q10): Please choose the words that you most associate with the different ways that [industry sector] communicate with you? Base: All respondents n=2375 Email Quick 302 Spontaneous 244 Informative 217 Smart 214 Informal 209 Interesting 223 Mail Formal 360 Official 321 Important 274 Considered 288 Informative 235 Personal 214 Believable 278 Reliable 253 Numbers = Index (Average 100)
  8. 8. 8 MAIL MAKES RECIPIENTS FEEL MORE VALUED THAN EMAIL Helping you earn time with your target audience. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base: all respondents (n=1,000)
  9. 9. 9 AS DIGITAL USAGE HAS GROWN, THE CORE STRENGTHS OF MAIL HAVE INCREASED % Growth 2007 – 2013 +31 +22 +20 +3 Royal Mail, D Loves E, Quadrangle, 2007 Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base: all respondents (n=1,000)
  10. 10. AND THEY NOT ONLY OPEN MAIL, THEY 10Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity McQueen, 2014 Question asked: What did you do with [Item type]? (Base: all receiving item described, n=192-463) Advertising mail is kept for 17 days on average INTERACT 69% 56% 55% 43% 43% 43% 43% INTERACT WITH IT AND KEEP IT TOO 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
  11. 11. EMAIL IS A MEDIUM OF CONVENIENCE 11 Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S4Q6): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? (Base: all respondents n=1,000) It is easy to respond to.
  12. 12. 12 CONSUMERS KNOW WHEN THEY WANT MAIL AND WHEN THEY WANT EMAIL Preference for mail versus email 21% Brochures and catalogues Welcome packs Bills or statements Loyalty rewards Issues or complaints Information from companies not used before Other products and services Confirmation or follow-up messages News and updatesReminders 63% 62% 53% 49% 40% 23% 26% 27% 42% 36% 43% 54% 57% 62% 39% 26% 22% 21% 17% Email Mail Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S4Q2): How do you prefer to hear from companies that you have/have not used before for [item] (Base: all respondents n=1,000)
  13. 13. THEREFORE MAIL AND EMAIL WORK ON 13 But in ways which complement each other Quick Informal Good for follow-up Easy to respond to Email Grabs attention Considered and informative Gives a better impression Makes recipient feel valued Mail DIFFERENT LEVELS
  14. 14. CONSUMERS MOVE BETWEEN PHYSICAL AND ONLINE WORLDS, BETWEEN MAIL AND EMAIL 14
  15. 15. BOTH MAIL AND EMAIL HAVE THE POWER 15 Despite this being seen more recently as email’s domain 44%say this of email 42%say this of mail “I am more likely to do something as a result of it” Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base: all respondents (n=1,000) TO DRIVE CONSUMERS TO ACTION
  16. 16. SENDING OUT MAIL DRIVES 16 And mobile is making it easier than ever for people to do this 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 As a direct result of receiving mail 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) CUSTOMERS ONLINE
  17. 17. 17 THE DIGITALLY ACTIVE1 ARE MORE RESPONSIVE THAN AVERAGE TO MAIL 1.People who browse throughout the day Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014 Question asked (S2Q1a): On average, how often do you use the internet for personal reasons (i.e. not for work) (Base: all respondents – n= 2375) Question asked (S4Q1): How often have you done the following online? (Base – frequent browsers, n=711) 84% driven to the sender’s new products and services (Index vs. population = 101) 35% ‘followed’ the sender on Twitter (Index vs. population = 142) 46% shared information on social media (Index vs. population = 126) 73% sent an email to the sender (Index vs. population = 107) 50% downloaded the sender’s ‘app’ (Index vs. population = 129) As a direct result of receiving mail
  18. 18. INTEGRATING MAIL AND EMAIL OF YOUR COMMUNICATION MAXIMISES THE EFFECTIVENESS 18
  19. 19. 19 CONSUMERS DON’T LIKE THE IDEA OF JUST ONE COMMUNICATION CHANNEL A combined approach resonates best 1.Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013; Question asked (S4Q1): Overall, thinking generally about the communications you receive, would you say you prefer to be contacted by post, email or a combination of both? (Base: all respondents n=2375) 2.People who browse throughout the day 3.Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014; Question asked to people who browse the internet throughout the day (S2Q6-9): Which communication method do you feel applies to the following: 'it makes me feel valued'? (Base: all browse internet throughout day n=711) 4.Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013 Question asked (Q12): Please now indicate the extent to which you agree with each of the following statements (Base: All Respondents n = 1000) 51%prefer companies to use a combination of both mail and email1 65%like to browse through both the catalogue and online before making a purchase4 56%of the more digitally active group2 say that “mail makes me feel valued”. Only 40% say “an email makes me feel valued”3
  20. 20. 20 ADDING MAIL TO THE MIX OPENS UP NEW RESPONSIVE AUDIENCES when compared to using email on its own Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013 Question asked (S2Q5): In the last 6 months, have you taken any of the following action in response to the post you have received? (Base: All Respondents n=1,000) Question asked (S3Q5): In the last 6 months, have you taken any of the following action in response to the email you have received? (Base: All Respondents n=1,000) 13%more consumers visited sender’s website 35%more consumers redeemed coupons or vouchers 21%more consumers made purchases
  21. 21. 21 CAMPAIGNS THAT INCLUDE MAIL ARE MORE EFFECTIVE Campaigns with mail Campaigns without mail Percentage difference between successful campaigns using mail vs without mail +27% +40% +104% IPA Databank meta-analysis conducted by Peter Field, 2013
  22. 22. HOW YOU CAN APPLY THESE INSIGHTS 22
  23. 23. DELIVER ACROSS THE CUSTOMER JOURNEY 23 Interest The Customer JourneyAll Customers – Use Both Short reminder email and follow-up with detail via mail All Customers – Use Both Send automated email to acknowledge complaint and follow up with a letter (personalise for high value) Win Back – Use Mail Send a mail pack saying ‘We’re sorry that you left’ and include a voucher to encourage returning All Customers – Use both Send statements by mail, and for cross selling; otherwise allow customers to choose Welcome – Use Both Use email for confirmation and login details, and mail for registration forms, further information and to showcase other services Influence – Use Mail Use mail to send catalogues, vouchers or discounts to cut through and drive action Set-up & join Statements Decide Updates & Promotions Renew Leave Complaints All Customers – Use Email Account updates and reminders All Customers – Use Mail Vouchers, coupons, minilogues Prompt – Use Both Use email for ‘pulse’ reminders and mail for nudging specific action
  24. 24. CONCLUSIONS 24 The real conclusion from the research is that you create the greatest value when you combine mail and email. By doing this you take advantage of their very different but highly complementary strengths.  Combine the time that mail earns you with your customers with the speed of email.  Give customers something to think about.  Show them that you care.  Make it easy for them to act.
  25. 25. CONCLUSIONS 25 In fact, adding mail to campaigns improves performance substantially. Figures taken from an IPA Databank meta-analysis conducted by Peter Field show that, of campaigns delivering high sales performance, 27% more included mail than those that didn’t. Also, when looking at campaigns that drove high acquisition levels, 40% more included mail than campaigns which didn’t. Campaigns with mail achieved over twice (104%) the market share growth than campaigns without mail in the mix. It all adds up. Mail and email together build better, more valuable relationships. “The use of Direct Mail as part of a multi-channel campaign significantly boosts the short-term effectiveness and efficiency of campaigns” Peter Field, 2013
  26. 26. RESEARCH SOURCES 26  Compete, Millward Brown Digital  DMA, National Email Benchmarking Report, 2013  Facebook User Stats, 2009  IAB/PwC Digital Adspend Study, 2014  IPA Touchpoints 5, 2014  IPA Databank meta-analysis conducted by Peter Field, 2013  Litmus Email Analytics, 2013  Ofcom, The International Communications Market, 2007  Ofcom, Communications Market Report, 2012  Ofcom, Communications Market Report, 2013  Royal Mail MarketReach, D loves E, Quadrangle, 2007  Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013  Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014  Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity McQueen, 2014  Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013  TGI, Kantar Media, 2013  Twitter.com, May 2014 Our insights are based on the findings from a number of sources
  27. 27. APPENDIX I 27  Mail and Digital Part 1 We used an online survey to ask a panel of 1,000 individuals about the way they perceived mail and email, and how they preferred companies to use the two media to communicate with them. The results are representative of the UK population as a whole.  Mail and Digital Part 2 We used an online survey to ask a panel of 2,375 individuals a series of questions about their digital activity, their attitudes to different media, the way they preferred different kinds of organisation to communicate with them at different times, and the things they have done online in response to mail. The results are representative of the UK population as a whole.  Print Catalogues in a Digital World We used an online survey to ask a panel of 1,000 individuals about the way they interacted with catalogues and how it affected the way they browsed and ordered online. The results are representative of the UK population as a whole.  Meta-Analysis of IPA Effectiveness Database We gained access to the database of campaign results submitted to the IPA for its effectiveness awards. We analysed 416 such campaigns, comparing those that used direct mail (97) with those that did not (319), comparing them on a wide variety of reported metrics. For each metric, only campaigns with directly comparable data were selected.
  28. 28. APPENDIX II 28  Media Moments Ethnography Quantitative We asked a panel of 1,312 individuals a series of questions online about their actions around mail, looking specifically at behaviours observed in the qualitative stage of the research. Knowing that actual and stated behaviours differed, we made sure we were asking about the former by instructing respondents to think about the mail they had in the house at the time of answering – either mail from that day’s delivery or items that had been kept in the house for some time. We asked them what they had done, or intended to do, with that specific day’s mail. The results are representative of the UK population as a whole.  DMA, From letterbox to inbox: Building customer relationships, fast.MAP 2013 fast.MAP asked a panel of 1,232 UK consumers 28 questions about their attitudes to different media via an online questionnaire. The results are representative of the UK population as a whole.  Litmus Email Analytics 2013 Litmus are a monitoring company offering tracking and analytic services for users of email marketing. They periodically collate the statistics generated from their clients in this way into general reports.
  29. 29. THANK YOU NAME Email / contact details 29

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