Direct Mail and Direct Marketing Programs of Thailand Post

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Direct mail and Direct Direct mail and Direct Marketing Programs Marketing Programs

of Thailand Postof Thailand Post

Direct mail and Direct Direct mail and Direct Marketing Programs Marketing Programs

of Thailand Postof Thailand Post

Suchada BuddharuksaSuchada Buddharuksa

Vice President of Vice President of MarketingMarketing

Thailand PostThailand Post

Contents

•Direct marketing perspective

•Direct marketing program of Thailand Post

•Direct mail practices in Thailand

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Direct Marketing Definition (1)

“The use of consumer-direct channels to reach and deliver goods & services to customers without using marketing middlemen.”

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Direct Marketing Definition (2)

“An interactive system of marketing which uses one or more advertising media to effect a measurable response at any location.”

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Channels

• Face-to-face saleforce

• Direct mail• Letter box

drops• Telemarketing• Interactive TV

• Web sites Internet/e-mail• Mobile devices • SMS• Catalogs• Fax

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Direct Marketing Benefits

• Measurable• Targeted • Personal • Relevant• Testable• Cost-

effectiveness

• Builds relationships

• Invisible• Interactive• Compliments

mainstream activities

• Builds the brand

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Direct Marketing Value Chain

Initial Communication

Response

Fulfillment

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How does it work in Thailand?

• Customer Acquisition• Customer Up-sell/Cross-sell• Customer Retention • Customer Relationship

Management

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Customer Acquisition

• Where does the data come from for mail/telemarketing?

• What are traditional mail order businesses in Thailand?

• Syndicated lifestyle surveys• Direct Response Advertising

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Customer Up-sell/Cross-sell

• It is 5-15 times less expensive to sell to an existing customer than to acquire a new one.

• It is a means to start building a relationship with a customer.

• Example: If they apply a credit card, they can spend more.

If they buy a car, they need insurance.

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Customer Retention

• There are so many rewards, loyalty and retention programs in Thailand.

• Many “loyalty” programs are used as an acquisition tool— like “member-get-member” program.

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Customer Relationship Management• CRM is a customer-focused

business strategy that uses enabling technologies to increase customer knowledge and build profitable two way relationships.

• Life-time value of a customer is more and more focused and

relationship is highlighted.

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Does Direct Marketing work in Thailand?

• It does for a number of companies.• Especially after economic crisis in

1997 • Marketing spending through

advertising is revisited.• Companies make their data

available to non-competitive brands

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HOWEVER…………• Different people are inclined to

respond to different stimuli.• Direct mktg alone cannot work

well without integrated marketing communications (IMC).

• Together they can do their work of reaching the prospect, making the

sale, and developing the relationship.

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Direct Marketing Programs of Thailand Post

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Growth of direct marketing in THP• Thai Direct Marketer

Association (TDMA)-a dedicated assoc. that actively promotes Direct marketing in Thailand

• Key members include mailing house, list renter, advertising agency, mail order companies

• Thailand Post was one of the

key founders of TDMA16

TDMA Objectives• To encourage direct marketing

implementation and support the honest and ethical practices in the industry

• To promote cost-effectiveness of business and society benefits

• To foster close relationships among members and with public organizations

• To be an information center on Direct marketing concepts

and issues 17

TDMA Activities• DM Thailand 2002: Reaching out

to Your Customers• DM Thailand 2003: Customer

Intimacy for Greater Profits• DM Thailand 2004: Achieving

Profitability in an Age of Uncertainty

• DM Thailand 2005 (8-9 June): How to Make and Keep Your Customers Delighted

*DM Thailand 2006 (1-2 August)

:DM-Future of Marketing18

THP roles in Direct Marketing

• As co-founder of TDMA, THP has actively participated in their conferences as endorsing organization, free mail distribution support, Guest of honor and speakers, advertising web site link

• To grow postal business, THP produces direct mail sale kits to

educate prospects on DIRECT MAIL.

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THP Key Messages

• Every household are reached by our postmen….16.5 million households and 8,200 postmen

• Delivery to targeted areas/communities at flexible postage….Unaddressed Mail

• Response device inland & overseas … Business Reply Service

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THP Key Messages

• Taking Orders-Pick-Pack-Collect Money and Confirm Delivery with Reliability….Total Solution Service with Track & Trace Facility

• Thailand Post, an enabler of the direct communication to your valued customers anywhere they live.

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Direct Marketing Practices in THP

• THP itself also implements direct marketing concept.

• Key account management is applied using 80-20 rule.

• Direct mails are sent for cross-selling of stamps, EMS

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Direct Marketing Practices in THP

• Customer card is recorded for EMS

major customers• Training of staff on direct

marketing benefits

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Direct mail practices in Thailand

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Direct mail practices in Thailand: Major Users

• Charities• Financial institutions• Airlines/Hotels/Leisure• Automotive • Housing project• Mail order companies• Shopping Malls

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Direct mail practices in Thailand :

Unicef Example• Direct mail- one of the main cost

effective fundraising activities.• Recruit new donors• Increase public participation• Donor cultivation• Loyalty programs

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UNICEF Direct Marketing Strategy

• Market research in 1995-1996• Findings helped steer the course of

action• Steps in direct mail strategy

- prospect donor to UNICEF donor - one-time donor to a regular donor - Regular donor to pledge donor

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UNICEF Direct Mail Results

• 83% of income generated from direct mail campaign

• From direct mail income source: 86% are individuals, 14% are corporate

• 57% becomes regular donors

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UNICEF Successful House Mail

• On an envelope: “there is a small thing inside this envelope!!!!”

• A seed packet included in the brochure.• Wording: “These seeds symbolize the

lives of children…If we want the seeds to grow up to be beautiful plants/vegetables, we must provide them with a good soil…adequate fertilizer…rigt amount of water and a good environment. In the same way, children need adequate care and a healthy environment to develop and become a quality adult.’

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Direct mail practices in Thailand

• Growth rate of letters are constant despite internet creeping-in.

• Direct Mail plays a key role in the mail order business. It is still the main source of information for mail order customers.

• Direct mail still maintains its positive image

• Postage cost is equal to ordinary mail.

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Opportunities for THP

• Mailing list is still inadequate, new prospects are still in search.

• Quality of list needs address hygiene.

• Address support is currently in focus by Posts.

• Delivery is heavily dependent on Posts

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• Life cycle of direct mail market in Thailand is still at a take-off stage.

• Track&Trace facility enables an evaluation of direct mail offer.

• The growing penetration of e-commerce needs careful delivery of

the orders received

Opportunities for THP

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Opportunities for THP• Printing and advertising industry is

of high quality with reasonable costs. • The industry is well equipped with

direct marketing concept.• Catalogs, direct mail, telemarketing

have been growing rapidly. to major cities out of Bangkok.

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Opportunities for THP

• Expansion of economic growth to major cities outside Bkk.

• Personalised mails are popular for maintaining customer relationships.

• Customer lifestyle surveys are done regularly.

• Close relationship with TDMA to foster the development of direct mail market.

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Direct mail value chain vs postal business

Opportunities for THP

Initial communication Response Fulfillment

LettersUnaddressed MailAddress cleaning Address locating

BRSFinancial ServiceP.O.Box

Warehouse & PackingParcelsEMSTrack @Trace

The End36

Thank you for your kind attention.

Q&A