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Introduction. Review Customer and Mailer Survey Data Review Direct Mail Economics Review Postal Implications and Strategic Options Review Business Positions Initiatives and Developments. 11-15%. Broadcast. Website. Direct Mail. Advertising. Social Media. S.E.O. Publications. - PowerPoint PPT Presentation
Citation preview
UPU
April 2013
2
Introduction
• Review Customer and Mailer Survey Data
• Review Direct Mail Economics
• Review Postal Implications and Strategic Options
• Review Business Positions Initiatives and Developments
3
Media Choice
• Harte- Hanks 2000 the benefits of direct mail
– Consumers are targeted based on knowledge
– Messages personalised and differentiated
– Tailored call to action drives a specific response
– Campaigns have measurable ROI
– Captured responses add to knowledge
– Creates a one to one relationship with consumers
Mass
Target
Broadcast Events & Sponsorship
Outdoor
Advertising
Directories Publications
Website
Social MediaS.E.O
Email & SMS
11-15%
Direct Mail
Banner & Click Pay
4
10 Trends on Consumer Communication Sentiment
Consumer Sentiments Marketers Sentiment
1 • 40 out of 50 open direct mail –Brand Relevance Personalisation Coupons Underestimate
2 • 15 out of 50 happy to receive direct mail and email Underestimate
3 • 1in 50 happy to receive text/ sms message Overestimate
4 • 30 out of 50 reject business friend request and 40 out 50 ignore banners Overestimate
5 • Preferred Retention Communication 60% email 40% mail &7% phone
6 • 40 out of 50 object to marketing text messages Underestimate
7 • Coupons 30 % redeem regularly $2 enough to motivate behaviour Underestimate
8 • Retail Cards 60% of population still not subscribed Overestimate
9 • 25 out of 50 uncomfortable with personal data exposure Underestimate
10 • 11-20 % of consumer spending motivated by direct promotions Underestimate
fast.MAP 8th Annual Marketing-GAP Tracker
5
Observations
• There is a gap between marketers perception and desire to move communication into a social mobile world and the preference of communication for more traditional relationship based pushed information
– Consumer-preference and behaviour data needs to be used to maximise restricted budgets.– Consumers’ preference is for mail and email. – A small but growing minority are receptive to mobile and social-network contact and permission-
based contact with these as part of a multi-media campaign can generate improved results – The percentage of those who open direct mail is still high compared to , acceptance of mobile, SMS
and social media – Marketers miss these current facts and push mobile , social media and Twitter.– Customers and prospects can be alienated if these media are used . – Consumers are becoming steadily less willing to divulge personal information– 97% redeems coupons but relevance rather than value drive use . – Since 2006, marketers have underestimated the motivational power of coupons.– Targeted promotion has a big impact on consumer spend .
• There remains opportunity for Direct Mail to win share in the marketing mix but knowledge relevance targeting and ROI have to be proven to counteract the digital bias
fast.MAP 8th Annual Marketing-GAP Tracker
Financial Home shopping/Mail order Charity Retail
Utilities Travel/Tourism Media/Publishing Government
Manufacturing (FMCG) Leisure Restaurant/ Take away Other sectors
Direct Mail
27%
12%
10%10%
8%
6%
5%2%
15%
2%1%
Source: TNS Consumer Panel
Economics of Direct Marketing
• ROI is key to campaigns ( driven by product contribution and conversion rate)
– 1:1 Breakeven– 3:1 Expected– 5:1 Great Campaign.
• Product price and contribution aligns DM to certain sectors e.g. Financial Mail Order, Automotive
• Conversion rates and cost per sale key to media choice
Mailer s Future Sentiment on Advertising Spend & Mailing
Customer Acquisition
Insurance 66%Mail Order 60%IT Outsourcing 80%
Mail Order 30%
Insurance 34%Retail 100%Mail Order 10%Publishing 100%
Telcom 100%Banking 100%
G
S
D
Decline Static Grow Decline Static Grow
Advertising Spend Source Strategia Survey
Customer Retention
Insurance -70%Mail Order-90%
Utilities 100%
Banking 30% Insurance 30%Mail Order 10%Retail 100%
Banking 70%Telcom 100%Publishing 100%
8
Market Direction- Interactive Data Over Multiple Channels
The management of data will be at the heart of future DM. Critical success factors will be single customer view, data quality, targeting, personalisation & behaviour identification
ProactiveBehaviour
Driven
Real-time Reactive Inbound
Segmented Outbound
Mass Mailing
No List Customer Lists Loyalty CRM
Customer Knowledge
Soph
istic
ation
Wave 1
Wave 2
Wave 3
Wave 4
Customer Identification & Segmentation The Customer Interaction Engine
Execute
Target
Analyse Data
Create DataResponse Analysis
Plan
Customer Interaction
Engine
9
Postal Implications and Strategic Options
• Mail will have a smaller share in the wider marketing mix• Need to educate market and close gap between receiver sentiment and
mailer intention• Data and targeting of both senders and customers key to improve response
rates • ROI is the critical driver of media choice
• Lower prices to impact ROI• Enhance relevance of campaigns• Support data management to impact ROI• Integrated direct and interactive marketing media solutions
10
Potential Postal Positions
• Develops a range of New Delivery Products• Focus on efficiency and campaign returnsEnhanced Delivery
• Catalyse the development of Direct Marketing Competences in the economy
• Builds services and infrastructure to support developing industry and challenge broad cast media
Market Maker
• Develop range of outsourcing services to manage and enhance the use of data in defining focused high response direct marketing campaigns
• Develop services to support integrated multi media direct mail campaigns
Data and Campaign Manager
The Strategia Group 11
Post – Future Potential Services
Find Understand Make RetainPlan Distribute
IdentifyManage
DataCreate
CampaignManage
CampaignProduce Distribute Respond
Respond Interact
List Brokerage & Procurement
Single Customer Database Administration
Unaddressed Direct Mail Planning System
Mailing List Preparation
Unaddressed and Leaflets
Permission Marketing
Reply Coupons Customer Loyalty Mgt
Geo-Marketing Effective Measurement
Campaign Media Selection
Address Cleaning & Verification
Addressed DM DM Portal Inbound Telemarketing
Geo-Demographic
Data Administration & Processing
Campaign Planning Outsourcing
Print On Demand
Bulk E-Message Distribution
In-House Permission Marketing
Campaign Response Design
List Enhancement
Database Building & Warehousing
Campaign Management
DM Aspects of Mailroom Outsourcing
Multi-Channel Message Distribution
E-Mail Campaign Outsourcing
Campaign Response Services
Multi-Channel Address Services
Data Mining Outsourcing
Telemarketing Campaign Management
Social Media
E-Coupons Promotions/ Incentives
Campaign Response Analysis
Acquiring the Competences for Diversification
Direct Marketing will be increasingly data driven and multi- media.Post option is either to seek to dominate an increasingly price sensitive and at best a relatively decling market or participate in the wider market
NEW COMPETENCE
HISTORIC COMPETENCE
IdentifyManage
DataCreate
CampaignManage
CampaignProduce Distribute Respond
BuildAcquirePartner
Bring Development of Multi Media Marketing
Service Comment
Integrated Physical
Direct Mail
Audience analysis, profile report-base., customer acquisition, cross- & up-sell, churn, non-response analysis Address list provision based on multiple socio-demographic variables Database cleaning services Traditional range of addressed and unaddressed physical delivery services
Digital Direct Marketing
Customer Dialogue Across all digital channels - web, email, mobile & social media Provision of tools & solutions provided on a SaaS & monthly fee model IDA is a web-based tool for customer dialogue in digital channels using SMS, e-DM newsletters, supported by
impact statistics & analysis Creating a significant competence to support customers in designing, developing & implementing market
communication strategiesKeytecq A partner company specialising in online marketing campaigns
CRM Provide CRM portal on a SaaS basis to wide customer base with continuous overview of all contact points Integration based on open standards with web & SMS technology with Oracle database platform & Microsoft.
Net for information exchange & integration Delivery on a modular basis
Agency
MRM (Marketing Resource Management System) Controls marketing activities from planning to implementation & follow-up Focus on effective budget control in campaign planning, marketing communication, material
handling/distribution, time to market/reporting Wide range of creative production & management services related to multi media advertising content
Creation of Bring Dialogue through acquisition – a specialised business unit (140 employees) responsible for direct marketing. Key focus is to create & manage multichannel campaigns across physical, mobile, web, email & social networks
13
Deutsche Post Direct Marketing
Service Comment
Integrated Physical
Direct Mail
Traditional range of addressed/unaddressed mail management products & tools. Key innovation is to create online management of the products & to seek online/offline integration in reply tools & CRM systems
Maintain Address – verify; online address factory; Info Manager; relocation database, premium address Buy Address - business & household across the Germanic speaking countriesMailing Factory Creating direct mail items online including cleansing, buying addresses & printing Infopost Manager to help & prepare dialog marketing campaigns Prospect service a web based solution to select zip code areas for distribution of unaddressed mail XML Postage Optimization of Infopost items within a workflow
Digital Direct Marketing
Werbemanager (Advertising Manager) Campaign manager for SMEs for advertising in local search engines & banner campaigns Tool handles campaign planning & optimisation, performance reporting & payment to the marketer Pricing model based on a minimum period of 12 weeks with 3 package options (S/M/L) charged monthly Search Engine Advertising: 350 clicks €249; 800 clicks €499; 1300 clicks €749 Ad banner: 20.000 flashes €199; 40.000 flashes €349; 80.000 flashes €599
CRM
Nugg.ag Acquisition of the behavioural targeting service provider in online marketing, nugg.ad (Berlin) in July 2010
underlining DPG Strategy 2015 to increase internet marketing & third party services Nugg.ag expertise in analysing consumer behaviour online (a market dominated by Google)DialogManager Online Strategic sale ales alliance with Microsoft on CRM Software Service Customers buy Dynamics CRM service to realise the complete functions of the CRM solution of Microsoft
combined with postal functionalities (address check, cleansing & postage optimization & delivery)
Agency Agency Services
Goal is to increase position in the growing internet advertising market. The Nugg acquisition signals continued growth in this area & the implementation of the E3 strategy - providing marketing solutions using digital channels & cross-media target groups
14
E-Commerce and Digital Marketing – GSI Marketing Services Division
Comprises 8 specialist companies, employs 1,100 employees across 6 US offices, London & Singapore with revenues $150M ($49M margin), positioned to capture offline-online shift in marketing & advertising spend
15
Features Comment
MBS Offers database-driven marketing services & solutions that help marketers innovate, advance & automate the marketing process for greater return on their marketing investment
PepperJam Affiliate marketing network that provides advertisers & publishers with industry leading pay-for-performance tracking, reporting, communication & payment solutions
Silverlign Group Integrated marketing strategy & design agency
TrueAction Full-service digital agency focused on areas of strategy, usability, design, media & photography
Clearsaleing Online advertising analytics technology that provides a platform for operational & multi-channel marketing attribution - an accurate way to measure, compare & optimize profit & ROI of online advertising campaigns
e-Dialog Develop & implement targeted e-mail marketing campaigns
Fetch Back Fetch Back's solution is designed to put marketing messages in front of lost prospects that have left a web site in order to attract them back & convert them into customers
M3 Mobile Marketing solutions company focused on targeting consumers through the mobile channel in order to raise brand awareness & drive revenue
Marketing : Smart Delivery Innovation
16
• Leaflets and Coupons growing but limited value from a marketing/ ROI perspective
Premium Leaflets Features• Leaflet
• to find buyers• Coupons
• to incentivise registration• Registered relationship-
• to build permission• Exclusive E- Coupons
• to build loyalty• E- Mail offers
• to increase contact and targeting• Social Media
• to drive interaction• Managed data pool
• to enable Campaign Analysis
Premium Leaflets is an outsourced marketing system which refreshes the leaflet market and makes it interactive
17
Conclusions
• Direct Mail is still valuable but needs to compete with other media and perception
• Improving accessibility to direct mail can widen the market
• Understanding and Improving the economics is a prerequisite critical features: production and mail costs, conversion rates, cost of sale, contribution and ROI
• Post who simply stay only as deliverer of physical items will face at best relative loss of position and revenue in the advertising market
• Post can seek positions in wider interactive marketing through developing a range of services around data, integrated media and interactive response