Direct mail in transformation

A recent report from the Winterberry Group analysed the Direct Mail trends in the USA. One of the most important conclusions is that, under influence of the recession, the use of mass mailings is shifting to more targeted direct mail. In 2008 direct mail spending declined 3%, this is the first decline in more than 60 years. Two other noticable developments are: most marketers have found that online direct mail campaigns are complementary to hard-copy direct mail and an increasing powerful array of marketing automation technologies permit marketers to be more targeted in their direct mail programs

Xerox launches Lab 1:1

Xerox Belgium sent out invitations today to announce the launch of their Lab 1:1 on March 17. Lab 1:1, which already exist in Canada and the USA, assists brand owners in developing innovative and personalised multi-media solutions. With the help of a team of Direct Marketing experts from the Belgian Post results will be analysed.

How to pimp your CFO.

Friday I presented to a group of marketers and printers invited by Xerox. Xerox promotes an application that transforms existing invoices and statements to effective and efficient marcom tools. Invoices have our full attention -direct marketers would love to achieve that with their mailings- and consumers spent a couple of minutes checking it each time. However the invoice is "owned by the financial department", not by the marketers. Marketers therefore need to convince financial staff to include marketing messages and to tackle IT hurdles, privacy requirements, customer profile definitions, print production assesments, designer requirements and above all work with all these departments in unison. Xerox recently announced a co-operation with the Belgian Post to evaluate mailings including testing these kind of projects.

Postal news

Postal services are well covered in the news. However not always in a positive way. The Washington Post wrote about a threat in the USA: do-not mail lists that are pending approval in 18 states. As the figures demonstrate, standard mail (advertising flyers, catalogues, fundraising letters, etc) is soaring: from 101 billion items in 2005 to 104 billion in 2007. (The impact of email and electronic billing is clear from the decline in first class mail: in 2004 98 billion items to 96 in 2007). The increase in standard mail has caused the consumer reaction to create do-not mail lists. The US Post fears the impact of this decision and forecast already an operational deficit of $ 1 billion.
Recently Royal Mail announced that between 1997 and 2007 the total number of mail items did increase from 25 billion to 30,66 billion. Growth is explained by the volume of invoices and statements, for example of mobile companies.
The Dutch Postal Services (TNT) were also in the news as they announced closing down the remaining 250 post offices. Postal services are provided via a total of 2500 retail points, and dedicated post offices do not longer fit into the retail strategy of TNT. Traditional post offices will probably get alternative destinations, like churches have over the last years also become libraries, ad agencies and apartments.

Green direct mail in USA

A study among 1000 Americans shows that consumers greatly overestimate the environmental impact of direct mail. DMNews and Pitney Bowes found that respondents ranked the delivery of 10-11 pieces of transactional mail per year as the third most polluting activity (in terms of carbon dioxide emission). Only driving a car 1000 miles a month and the electricity usage for a top-freezer was more polluting.
Whereas in reality advertising mail accounts for 2% of all municipal waste, respondents vastly overestimated this: 48% thought that half of the municipal was advertising mail.
There is obviously a lot of work to do to change this perception. When no action taken the perception of the medium might be in jeopardy.
Consumers seem to be unaware of the sustainability programs of organisations as Forest Stewardship Council (FSC) that promotes sustainable forest management. Over 60% of respondents said they would think more highly of the industry if it planted trees to offset paper production. Such a green label would even make unsolicited mail more positive.

Illiteracy levels boosts direct mail response

The Frankfurter Buchmesse, that just closed its doors, revealed that the illiteracy level in western Europe and developing countries is perceived as one of the biggest threats to the publishing industry. Professional visitors listed the threats to the industry, the list also includes other media competition, over-publishing and piracy.
At the Buchmesse cases of new and traditional media integration were discussed. For example launching new children books via SMS and podcast. Creating a community of children and extending the experience of reading a book proved to help stimulating literacy.
Not taking any action could make this threat a self-fulfilling prophecy. Plenty of research indicates the declining number of young people reading printed information. It should become a task of the government, education and the media industry to develop programs to correct this evolution.
There is however also a positive side to this threat; internet savvy young people seem to be more interested in hard copy direct mail. At the DMA congress in Chicago research was shown that relates high internet usage and response rates to direct mail. It all comes down to the long-known advertising adage: surprise people by standing out.

Mayor Janssens in dialogue with 2% of voters

Earlier this week I attended the award ceremony for the "Gouden Veer" (Gold Feather) for the best written Flemish sales letter. Former colleague and current mayor of Antwerp -Patrick Janssens- introduced and handed over the award.
He "outed" himself as a great believer of one-to-one communication, which was surprising for an ex ad-man having worked on image campaigns for blue-chip clients. He estimated that he answers about 2000 letters a year. All of them are personal. He referred for example to a letter and handmade drawing he had sent to pupils of a local school which generated very enthusiastic feedback from the school. He sees this contact as essential in achieving his goal of creating understanding among the various communities in Antwerp. And acknowledged that the written word in one-to-one communication is probably stronger than an ad campaign.
By the way the award was won by a football club of the third provincial division FC Wieze for a letter to potential supporters.

Forecasts and good news about direct mail

As the year is ending more consultancies are already concluding the year. The Winterberry Group in the USA states that 2006 was a year of robust growth of 7,5% compared to 2005 estimates. For 2007 the Group projects that growth will continue to outpace the growth of the traditional "above-the-line" investments. Some of the trends they identify are: complex, high-volume multichannel campaigns become the industry standard, delivery costs will drive need for data hygiene, agencies will integrate analytics and consumer targeting services, media-mix reallocation will threaten direct mail share, digital print applications will grow and catalogue marketers will reduce the number of pages but not the circulation.