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DIRECT MARKETING
IN TODAYrsquoS CATALOGUE AND
ONLINE RETAIL MARKETS
The retail sector and the role of mail
The new news about mail
Why use mail now
Our products and services
WHAT WE WOULD LIKE TO TALK ABOUT
2
As the economy has begun to recover growth in
the retail sector has increased more quickly
The retail sector has grown by over 5 in each
quarter compared to the previous year since Q1
2013 Growth in the whole economy has averaged
around 2
Retail spend has grown as customer confidence
improves
The UK retailing industry is influenced by customer
confidence as confidence increases so does spend
in retail items
Consumer confidence is the highest it has been in
the UK since the autumn of 2007 (Nielsenrsquos Global Survey
of Consumer Confidence and Spending Intentions)
Leading to retailers feeling more confident to invest
in marketing to acquire and retain customers
POST-RECESSIONARY RETAILING
Source The Retail Industry Statistics and Policy House of Commons June 2014
Nielsenrsquos Global Survey of Consumer Confidence and Spending Intentions Nielsen Ad Dynamix October 2014
Source The Retail Industry Statistics and Policy House of Commons
June 2014
3
INCREASING COMPLEXITY OF THE
According to research from Deloitte 44 of all retail
transactions in the UK involve multiple channel
interactions
In all categories shoppers use multiple channels to
buy with online dominating travel and booksDVDrsquos
clothingfootwear However food purchases are still
mainly store based
Shopping via devices has increased with tablet
purchases reaching 35 and buying via a
smartphone reaching as high 41 in some
categories
Resulting in the customer journey to both purchase and
return goods becoming more complex
Some 27 of online shoppers now use click-and-
collect while nearly as many consumers have returned
internet purchases in-store (13) as by post (17)
Catalogues have a presence in most categories
SHOPPER JOURNEY
Source Changing trends in multichannel browsing and shopping preferences eDigitalResearch plc September 2012 Servicing the connected consumer The Multichannel retail opportunity Deloitte 2011
4
THE GROWTH OF OMNI-CHANNEL
Changing consumption patterns have led to increasing
omni-channel retailing
Retailers are playing catch-up with pure play online
retailers such as Amazon and ASOS who continue to
grow and nurture their direct customer relationships
Next has responded well by establishing a distribution
model thanks to its ldquocataloguerdquo business (which these
days is overwhelmingly online) and click-and-collect in
store
There will be an increasing trend for online and
catalogue retailers opening physical presences
through pop-ups or more permanent showrooms
Click-and-collect will move from being a differentiator to
being a hygiene factor for high street retailers For
example Argos is turning its 700-plus stores to a ldquoclick-
and-collectrdquo hub About a third of sales now come from
online orders that are collected in-store
RETAILING
Source GMI Mintel Click amp Collect September 2014
5
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
The retail sector and the role of mail
The new news about mail
Why use mail now
Our products and services
WHAT WE WOULD LIKE TO TALK ABOUT
2
As the economy has begun to recover growth in
the retail sector has increased more quickly
The retail sector has grown by over 5 in each
quarter compared to the previous year since Q1
2013 Growth in the whole economy has averaged
around 2
Retail spend has grown as customer confidence
improves
The UK retailing industry is influenced by customer
confidence as confidence increases so does spend
in retail items
Consumer confidence is the highest it has been in
the UK since the autumn of 2007 (Nielsenrsquos Global Survey
of Consumer Confidence and Spending Intentions)
Leading to retailers feeling more confident to invest
in marketing to acquire and retain customers
POST-RECESSIONARY RETAILING
Source The Retail Industry Statistics and Policy House of Commons June 2014
Nielsenrsquos Global Survey of Consumer Confidence and Spending Intentions Nielsen Ad Dynamix October 2014
Source The Retail Industry Statistics and Policy House of Commons
June 2014
3
INCREASING COMPLEXITY OF THE
According to research from Deloitte 44 of all retail
transactions in the UK involve multiple channel
interactions
In all categories shoppers use multiple channels to
buy with online dominating travel and booksDVDrsquos
clothingfootwear However food purchases are still
mainly store based
Shopping via devices has increased with tablet
purchases reaching 35 and buying via a
smartphone reaching as high 41 in some
categories
Resulting in the customer journey to both purchase and
return goods becoming more complex
Some 27 of online shoppers now use click-and-
collect while nearly as many consumers have returned
internet purchases in-store (13) as by post (17)
Catalogues have a presence in most categories
SHOPPER JOURNEY
Source Changing trends in multichannel browsing and shopping preferences eDigitalResearch plc September 2012 Servicing the connected consumer The Multichannel retail opportunity Deloitte 2011
4
THE GROWTH OF OMNI-CHANNEL
Changing consumption patterns have led to increasing
omni-channel retailing
Retailers are playing catch-up with pure play online
retailers such as Amazon and ASOS who continue to
grow and nurture their direct customer relationships
Next has responded well by establishing a distribution
model thanks to its ldquocataloguerdquo business (which these
days is overwhelmingly online) and click-and-collect in
store
There will be an increasing trend for online and
catalogue retailers opening physical presences
through pop-ups or more permanent showrooms
Click-and-collect will move from being a differentiator to
being a hygiene factor for high street retailers For
example Argos is turning its 700-plus stores to a ldquoclick-
and-collectrdquo hub About a third of sales now come from
online orders that are collected in-store
RETAILING
Source GMI Mintel Click amp Collect September 2014
5
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
As the economy has begun to recover growth in
the retail sector has increased more quickly
The retail sector has grown by over 5 in each
quarter compared to the previous year since Q1
2013 Growth in the whole economy has averaged
around 2
Retail spend has grown as customer confidence
improves
The UK retailing industry is influenced by customer
confidence as confidence increases so does spend
in retail items
Consumer confidence is the highest it has been in
the UK since the autumn of 2007 (Nielsenrsquos Global Survey
of Consumer Confidence and Spending Intentions)
Leading to retailers feeling more confident to invest
in marketing to acquire and retain customers
POST-RECESSIONARY RETAILING
Source The Retail Industry Statistics and Policy House of Commons June 2014
Nielsenrsquos Global Survey of Consumer Confidence and Spending Intentions Nielsen Ad Dynamix October 2014
Source The Retail Industry Statistics and Policy House of Commons
June 2014
3
INCREASING COMPLEXITY OF THE
According to research from Deloitte 44 of all retail
transactions in the UK involve multiple channel
interactions
In all categories shoppers use multiple channels to
buy with online dominating travel and booksDVDrsquos
clothingfootwear However food purchases are still
mainly store based
Shopping via devices has increased with tablet
purchases reaching 35 and buying via a
smartphone reaching as high 41 in some
categories
Resulting in the customer journey to both purchase and
return goods becoming more complex
Some 27 of online shoppers now use click-and-
collect while nearly as many consumers have returned
internet purchases in-store (13) as by post (17)
Catalogues have a presence in most categories
SHOPPER JOURNEY
Source Changing trends in multichannel browsing and shopping preferences eDigitalResearch plc September 2012 Servicing the connected consumer The Multichannel retail opportunity Deloitte 2011
4
THE GROWTH OF OMNI-CHANNEL
Changing consumption patterns have led to increasing
omni-channel retailing
Retailers are playing catch-up with pure play online
retailers such as Amazon and ASOS who continue to
grow and nurture their direct customer relationships
Next has responded well by establishing a distribution
model thanks to its ldquocataloguerdquo business (which these
days is overwhelmingly online) and click-and-collect in
store
There will be an increasing trend for online and
catalogue retailers opening physical presences
through pop-ups or more permanent showrooms
Click-and-collect will move from being a differentiator to
being a hygiene factor for high street retailers For
example Argos is turning its 700-plus stores to a ldquoclick-
and-collectrdquo hub About a third of sales now come from
online orders that are collected in-store
RETAILING
Source GMI Mintel Click amp Collect September 2014
5
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
INCREASING COMPLEXITY OF THE
According to research from Deloitte 44 of all retail
transactions in the UK involve multiple channel
interactions
In all categories shoppers use multiple channels to
buy with online dominating travel and booksDVDrsquos
clothingfootwear However food purchases are still
mainly store based
Shopping via devices has increased with tablet
purchases reaching 35 and buying via a
smartphone reaching as high 41 in some
categories
Resulting in the customer journey to both purchase and
return goods becoming more complex
Some 27 of online shoppers now use click-and-
collect while nearly as many consumers have returned
internet purchases in-store (13) as by post (17)
Catalogues have a presence in most categories
SHOPPER JOURNEY
Source Changing trends in multichannel browsing and shopping preferences eDigitalResearch plc September 2012 Servicing the connected consumer The Multichannel retail opportunity Deloitte 2011
4
THE GROWTH OF OMNI-CHANNEL
Changing consumption patterns have led to increasing
omni-channel retailing
Retailers are playing catch-up with pure play online
retailers such as Amazon and ASOS who continue to
grow and nurture their direct customer relationships
Next has responded well by establishing a distribution
model thanks to its ldquocataloguerdquo business (which these
days is overwhelmingly online) and click-and-collect in
store
There will be an increasing trend for online and
catalogue retailers opening physical presences
through pop-ups or more permanent showrooms
Click-and-collect will move from being a differentiator to
being a hygiene factor for high street retailers For
example Argos is turning its 700-plus stores to a ldquoclick-
and-collectrdquo hub About a third of sales now come from
online orders that are collected in-store
RETAILING
Source GMI Mintel Click amp Collect September 2014
5
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
THE GROWTH OF OMNI-CHANNEL
Changing consumption patterns have led to increasing
omni-channel retailing
Retailers are playing catch-up with pure play online
retailers such as Amazon and ASOS who continue to
grow and nurture their direct customer relationships
Next has responded well by establishing a distribution
model thanks to its ldquocataloguerdquo business (which these
days is overwhelmingly online) and click-and-collect in
store
There will be an increasing trend for online and
catalogue retailers opening physical presences
through pop-ups or more permanent showrooms
Click-and-collect will move from being a differentiator to
being a hygiene factor for high street retailers For
example Argos is turning its 700-plus stores to a ldquoclick-
and-collectrdquo hub About a third of sales now come from
online orders that are collected in-store
RETAILING
Source GMI Mintel Click amp Collect September 2014
5
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
THE RISE OF CLICK-AND-COLLECT
Some 35 of internet users have used click-and-collect in the
last year This compares to 39 saying they have used
reserve-and-collect and 86 using home delivery in the past
12 months
Click-and-collect orders will make up 15 of all internet retail
sales of physical products by value in 2014
By 2015 it is estimated that around 17 of all internet retail
sales (or 22 of all retail sales) to be collected by customers
The collection rate is much higher in non-grocery orders (eg
clothing electrical amp furnishings) than groceries
This raises opportunities and threats to direct and online
retailers
ONLINE SALES
Click and Collect Usage
Source GMI Mintel Click amp Collect September 2014
6
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Research from MarketReach and YouGov suggests
that despite the popularity of online shopping the
shopping catalogue remains a firm favourite with
shoppers
After a period of declining spend the market has
returned to growth and is expected to deliver a 98
uplift over the next five years ( Verdict UK Retail
Futures 2013)
A quarter of all UK consumers have ordered an item
direct from a company having browsed a printed
catalogue in the past 12 months
Most customers now go direct either via web or post to
order
Physical catalogues are becoming more interactive
using technology so that people can buy off the page
using NFC and QR codes
CATALOGUE MARKET DYNAMICS
Source Royal Mail MarketReach Print Catalogues in a Digital World September 2014
Catalogues and Mail Order Shopping Report YouGov January 2012
Retail Futures Verdict UK 2013
7
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Source TGI Kantar Media April to June 2014
A quarter of all UK consumers have ordered
an item direct from a company having browsed
a printed catalogue in the past 12 months
52 of adults who have shopped via mail
order in the last 12 months browsed in a
catalogue before ordering
74 then go on to order online
Retailers with physical shops are increasingly
seeing customers go in-store to collect
Due to the physical nature of catalogues they
are still playing an important role in the
customer journey
52
71
7
29
0
20
40
60
80
In the Catalogue On the Website Elsewhere Catalogue andWebsite
All adults who bought via mail order - how did you browse
CATALOGUES PLAY AN IMPORTANT
ROLE IN THE MAIL ORDER JOURNEY
24
74
15
2 3
0
20
40
60
80
TelephoneMobile On-lineInternet Mail OrderPost Through an Agent Other
How did you order
8
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
OFFLINE AND ONLINE ARE BECOMING SEAMLESS
PARTNERS IN THE CUSTOMER JOURNEY
63
45
50
37
55
50
Distance shoppers notusing catalogues
Purchasers fromcatalogues
All respondents
No Yes
Which catalogues have you requested (type of
goods mention allowed)
Mentions above 3
Base Those requesting a cataloguebrochure from a website Source Royal Mail MarketReach Catalogues in a Digital World 2014
Have you ever requested a catalogue or brochure from a
website Direct communications are playing an important
role in driving customers online
Many online shoppers request a catalogue
online to browse offline
66 of shoppers say catalogues prompt them
to go online
65 browse through both an offline catalogue
and online shop before they make a purchase
9
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
CATALOGUES CAN DRIVE MORE VALUE
74 bought from
a retailer within 6
months of receiving
their catalogue
Of these 81 were influenced by the catalogue
50 say they buy more
frequently if they regularly receive
a catalogue
40 reported buying
more than originally
intended when shopping
with a catalogue
Customers who purchase from catalogues buy more more often
Source Royal Mail MarketReach Catalogues in a Digital World 2014
10
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
RETAILERS WITH A DIRECT OR DIGITAL PRESENSE
THAT HAVE INCREASED DIRECT MAIL
11
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL SPEND IN MAIL ORDER AND
Many catalogue retailers are increasingly using mail
not just to drive acquisition but to also build loyalty
Mail can help drive sales of key items or remind
customers of key promotions enhancing AOV and
loyalty through repeat sales
E-retailersrsquo mail spend has shown a big increase in
the last year with companies like The Hut and eBay
using it as part of integrated campaigns
E-RETAILING 2013-14
Source Nielsen Ad Dynamix October 2014
Cinema
DirectMail
DoorDrops
Internet
Outdoor
Press Radio TV
YoY Diff (4360) 6942 5281 (3971) 1835 1118 (2943) (1553)
(6000)
(4000)
(2000)
000
2000
4000
6000
8000
YoY Diff
12
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IS A CATALYST FOR
For those who went online to find out more following a direct mail campaign
bull 59 used their PC
bull 43 used their tablet
bull 30 use their mobile phones
DRIVING CUSTOMERS ONLINE
59 ofPC Users
43 of tablet users
30 of mobile users
Source Royal Mail MarketReach Mail Drives Behaviour 2013
13
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
THE BEST RETAIL MAIL MAKES PEOPLE KNOW
63
66
75
83
It told me something new
It kept me up to date
Most likely to help consumers KNOW
It told me about their new
products and services
All others lt50
It told me about their offers
and promotions
Most likely to make consumers THINK
All others lt50
Most likely to help consumers FEEL
All others lt50 53
55
66
67
83
50
51
60
69
Better more informed
Pleasantly surprised
Happy
Tempted by offer
Made me think that they
value their customers
Made me think about
them more positively
Kept their products and
services top of mind
Reminded me about the
brand company
Made me think about
buying from them
(n=677)
(n=677)(n=677)
Q9 What was it that this mail told you that you found useful andor interesting
Q10And what did this mail make you think
Q11 And how did this mail make you feel when you received it
The best retailer mail makes people think about and feel tempted by products and services
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
THINK AND FEEL
Recipients like to know about offers and promotions
and being kept up-to-date about new products
As well as making people think about wanting to buy
good retailer mail also serves to remind people about
the brand company and to keep products top of mind
Making the consumer feel tempted by the offer is a
key driver of action
14
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
38
39
46
49
57
Went online for more info
Visited shop retail outlet
Planned a future purchase
Acted upon itpurchasespentused etc
Kept for future reference
Most likely for people to DO
All others lt30
All who ldquoacted uponrdquo mail
All others lt10
17
24
34
39
94
Made my usual purchase
Made a spontaneous purchase
Used their vouchers
Used their discount offer
Made a purchase
(n=677) (n=331)
Combined figure all types of purchase
hellipWHICH LEADS TO PLANNED AND
ACTUAL PURCHASES
Q12a And WHAT DID YOU DO as a result of getting this mail from ltbrand allocationgt
Q12b Which of the following ACTIONS DID YOU TAKE as a result of getting this mail from ltbrand allocationgt
More than half of consumers keep their useful
interesting retail mail (57) and or plan a future
purchase (46)
And around half have actually made a purchase as a
result of receiving this mail (46 or 94 of those
who acted upon their most useful interesting retail
mail)
Source Royal Mail MarketReach Values Best Mail Quadrangle 2014
15
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
CREATIVE TRENDS
16
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
CATALOGUE CREATIVE
One key trend has been reduction in
the size of the catalogue pages as
retailers post smaller catalogues
There is more interactivity within the
catalogue especially QR codes and
NFC to order via mobile from the
page
Increasingly brands are using
celebrity and celebrity ranges
(especially Littlewoods group)
JD Williams are segmenting and
targeting their audiences distinctively
Marisota is using lsquoShapeologyrsquo
to differentiate its core offering
to larger women
17
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
FIRST ORDER INCENTIVES
Most retailers offer money-
off incentives to acquire
new customers
Free delivery is becoming
the norm as direct sellers
battle the competitive threat
of click and collect
Some companies also
reward reviews and social
media coverage
18
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
DRIVING RETENTION
Many retailers use mail to build
loyalty and incentivise repeat
orders driving sales and enhancing
AOV and loyalty through repeat
sales
Win-back promotions offering
money off when a customer has not
ordered over a period of time is
focusing on building customer
numbers
Boden sent customers who
had not ordered for a while a
reminder about the
relationship they had lost
19
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
BODEN USES A DIFFERENT
Boden is using distinctive catalogue
design and interactive mail to get cut-
through in a cluttered marketplace where
most catalogues look the same
Inside on the first spread theres a repeat
of their discount offer and a set of
stickers to engage customers with the
catalogue making it easy and fun to mark
items of interest to drive AOV
APPROACH TO CATALOGUE MAILINGS
Source Royal Mail MarketReach Boden 2011
20
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
E-RETAILERS WHO USE MAIL
Increasingly online retailers are using
mail to create stand out as people
become less responsive to emails
They are looking to direct channels
to drive interest and encourage
people to go online
They have found that mail works in
the world of online as part of
integrated campaigns
Amazon has produced
an offline gift catalogue to drive people back online
21
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
CASE STUDIES
DIRECT MARKETING THAT
DRIVES VALUE
22
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
BODEN USED MULTI LEVEL
PERSONALISATION TO DRIVE REPEAT SALES
Background
Boden wanted to remind people about how good it felt to shop
with them and remind lapsed customers to come back
Solution
They sent a very personalised targeted mail piece to lure
customers back and elicit repeat business
The back of the mailing featured personal product
recommendations based on analytics
An online landing page was also created so that customers
could voice what they thought of the brand
Results
Drove a near 30 uplift in response
Source Royal Mail MarketReach Boden 2011
23
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
ASOS USED MAGAZINES AND MAILINGS
TO CREATE MORE VALUE
Background
ASOS created a magazine to be distributed with orders and
bagged with other fashion magazines The first three issues
generated over pound15m of revenue
Solution
ASOS added direct mail as a channel and launched the
magazine as a standalone They also created a smaller 36
page supplement to drive new customer acquisition
Results
The magazine was distributed to an average of 451369
customers and drove loyalty with active customersrsquo response
rate up 85 and 23 on lapsed customers Active customer
ABV was also up 83 on lapsed customers
Source APA Most Effective Retail Consumer Magazine of the Year ASOS 2007 and 2008
24
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
IKEA USED DIGITAL PRINT TO INSPIRE
Background
The vast majority of UK homeowners have some form of
outdoor space But sadly many are neglected IKEA wanted
to raise awareness among IKEA FAMILY members that they
offered an extensive outdoor range
Solution
Clever use of data identified customers with gardens and
created a series of personalised weather forecasts Using
digital printing weather-responsive personalised mailers
were sent out
Results
This inspired people to improve their gardens Outdoor
product transactions increased by 55 and sales by 34
CUSTOMERS TO REVAMP THEIR OUTDOORS
Source DMA Gold Winner Ikea 2013
25
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
VERYCOUK USED MAIL AS PART OF AN
Background
verycouk targeted mum and baby customers bringing together
style and motherhood via an integrated campaign
Solution
verycouk created a fashion attitude campaign lsquoWork it Babyrsquo
showcasing a wealth of products for mums mums-to-be babies
and toddlers Integrated data and creative delivered relevant
personalised mail
Results
The combination of targeting relevant products and dynamic
communication created 4795 new customers with an increased
order value of pound145 almost 3x more than the average spend
INTEGRATED TARGETED CAMPAIGN
Source DMA Grand Prix Winner verycouk 2011
26
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
IKEA CREATED MORE VALUE FROM
Background
The IKEA catalogue is an institution It is the cornerstone of IKEAs
marketing program and the distillation of the IKEA brand driving
annual business performance
Solution
The IKEA catalogue is big and it takes up space Space that in
todays tough climate is worth something What if the catalogue paid
its way What if IKEA paid people for the space the catalogue takes
up in the home
Results
The Rent campaign was highly successful Research showed an
overall awareness of +12 representing a massive swing of 21
percentage points
THEIR CATALOGUE
Source Warc Prize for Innovation Entrant Ikea 2013
Country Australia
27
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
OUTREACH USED A CATALOGUE TO ENGAGE
Background
Outreach International is a humanitarian organisation It
needed to raise funds to help poverty stricken communities
Solution
Outreach International created a unique catalogue to raise
much-needed funds It allowed donors to buy bare basics
such as goats chickens and malaria shots given in the
donors name
Results
This campaign beat the target by 55 Donation amounts
from the catalogue were 24 higher than online
WITH HARD TO REACH SUPPORTERS
Source DMA (US) Bronze ECHO Award Winner Outreach 2010
28
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
DOOR DROPS AND MAIL HELP DRIVE
Background
Easter is a key period for DIY - better weather longer days people
think about their gardens Focus DIY had a good reputation for plants
and flowers so they wanted to find an innovative standout way to
associate Focus with plants
Solution
lsquoKeep Britain Beautifulrsquo was the idea which lead to the printing of door
drops on seed paper Existing data was used to target the best
postcodes
Results
The seed paper door drops were delivered to 812000 Focus DIY
discount cardholders Of these 26 responded going in store and
making a purchase with their discount card
SALES AND LOYALTY FOR FOCUS DIY
Source DMA Gold Award Winner Focus DIY 2011
29
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Background
Home improvement projects are irregular and unpredictable so
Homebase wanted an alternative to store-wide discounting every
other weekend to drive DIY sales
Solution
Data analysis identified ten purchase patterns proven to lead to
future spend if Homebase could communicate close to the
opportunity
Personalised direct mail was sent within 6 days of spend with
messages and offers targeted to original spend to drive additional
visits and revenue
Results
The programme moved average response rates from 9 to 46
It delivered 2 of total sales (pound304m per year) and shifted ROI
from 120 to 346
Source DMA Silver Award Winner Homebase 2013
HOMEBASE CRM JOINED DATA INSIGHT WITH
DIGITAL PRINT TO MAXIMISE SALES
30
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Background
Low awareness levels of waitrosecom meant it struggled to acquire and
retain warm and cold high-value customers
Solution
waitrosecom mail delivered a multi-shop incentive pound75 off each customers
first five shops By combining mapping systems demographic profiling and
mosaic targeting the mailing targeted the10 best UK regions Media
engaged prospects with the offer and delivered the brandrsquos core values
brought alive by Waitrose partners
Results
Weekly orders grew at three times the rate of the market Weekly new
customer volume increased by 134 In the targeted regions 57 of new
shoppers placed all five shops an increase of 49 compared to usual
retention rates
Source DMA Gold Award Winner waitrosecom 2012
WAITROSECOM GREW THROUGH TARGETED
ACQUISITION PLUS STRONG BRANDING
31
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
BOOTS CUSTOMERS WERE REWARDED WITH A
WITH A PERSONLISED XMAS PRESENT
Background
Boots wanted to increase response and coupon redemption of their
advantage card Christmas statement and in-store events
Solution
The Advantage Card is the most loved loyalty card in the UK and members
really engage with the lsquotreats for mersquo proposition So Boots sent a highly
personalised mail piece (400000 different versions) to the 6 million
database driving them in store with coupons and offers
Results
Getting personal with data resulted in a record-breaking Christmas for Boots
CRM Incremental profit increased by 60 Coupon redemption increased by
25 due to customers receiving more relevant offers
Source DMA Silver Award Winner Boots 2010
32
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
ELC USED LOYALTY CLUB TO DRIVE REVENUE
Background
Research showed that only 10 of parents bought their
childrens birthday presents from ELC
Solution
ELC created the lsquoBig Birthday Clubrsquo mailing parents just before
their childrens birthday with a new theme each year It delivered
engaging personalised content that was age appropriate for each
child and importantly enabled parents to click directly through to
buy
Results
The lsquoBig Birthday Clubrsquo recruited over a million members It
generated over pound75 million incremental revenue with a response
rate of 17 ELC achieved an ROI of pound1-13
Source DMA Gold Award Winner ELC 2010
33
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
PETS AT HOME CREATED A PET CENTRIC
Background
The Pets at Home loyalty scheme needed to celebrate
owners unique relationship with their pets and deliver
against challenging incremental revenue targets
Solution
Pets are as different and diverse as their owners so the
loyalty programme was highly tailored and delivered
relevant content Mail was segmented to communicate the
bond with their animal and personalised with pet names
and tailored content
Results
As a results 88 of members have swiped their VIP card at
checkout Average transaction values are 37 higher than
for non-members and boosted those spending by 20
LOYALTY SCHEME
Source DMA Gold Award Winner Pets at Home 2013
34
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MOTHERCARE USED HIGHLY TARGET MAIL TO
Background
Mothercare wanted to drive greater loyalty and sales across their
retail network and communicate their unique understanding of the
parenting journey
Solution
The lsquoBaby amp Me Clubrsquo was launched A series of targeted direct mail
packs were sent out each tailored to babys age and stage
development with advice information and vouchers to help new
parents through their first year
Results
The Mothercare Baby amp Me Club recruited 200000 parents-to-be and
new parents in the first year It achieved an ROI of 132 and
acquisition averaging 30000 a month Mothercare achieved a win-
win new parents got the support advice and information they need
and Mothercare got a sales uplift
DRIVE MEMBERSHIP OF THEIR LOYALTY SCHEME
Source DMA Silver Award Winner Mothercare 2010
35
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Itrsquos been proven to be the most emotionally engaging media
People still enjoy receiving it
It has increasing standout in a digital world
It is highly valued by people
It is omnipresent in people houses
It helps uplift other channels and create value
NEW NEWS ABOUT MAIL
36
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
THE PRIVATE LIFE OF MAIL
MAIL IN THE HOME
HEART AND HEAD
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
38
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
12 Ethnography households
14 Focus groups
99 Depth interviews
213 Neuroscience biometric participants
401 BrandSciencersquos lsquoResults Vaultrsquo cases
416 IPA Effectiveness Databank cases
1000+ Academic articles reviewed
9504 Respondents across our telephone and online quantitative surveys
18 MONTHS OF RESEARCH
39
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
DEVELOPED IN 8 STRANDS
Ethnography
Post ethnography survey
Multisensory Communications review of academic literature
Tactility
Values Best Mail
Mail and Digital 1 amp 2
Neuroscience
ROIEffectiveness metrics
40
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IN THE HOME
LIFE BEYOND THE LETTERBOX
41
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
42
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL GETS OPENED ndash AT HIGH RATES
Statement bill or information update
Brochure from a company they have ordered from before
Letter ndash promotion or special offer
Letter ndash about a productservice they donrsquot have
Leaflet without an address about a productservice
Leaflet without an address about a promotionoffer
Brochure from a company not ordered from before
83
71
69
60
59
54
54
OPEN
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 201443
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAILrsquoS JOURNEY ISNrsquoT OVER WHEN
Adults read their mail on average for 22 minutes a day
IT HITS THE DOORMAT
115PM Collects mail and brings it into the
home with other bags and belongings
130PM Opens mail whilst doing other jobs
215PM Opens parcel
230PM Uses laptop to get details on a piece
of mail received
530PM Uses laptop again to get further
details on the piece of mail from earlier
830PM Brings catalogue into lounge to read
Source IPA Touchpoints 5 2014 (Data based on Monday ndash Saturday morning)
Royal Mail MarketReach Media Moments Trinity McQueen 2013 44
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
PEOPLE GIVE MAIL TIME
Mail is kept for extended periods creating a constant presence in the home
17 daysfor mail
38 daysfor door drops
45 daysfor bills and statements
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 45
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
AND SPACE
80 of adults kept some mail that
companies had sent them in the last four
weeks
lsquoThe Holding arearsquo where it is kept
before being dealt with
lsquoThe Pilersquo for mail that has been read
and will be revisited
lsquoThe Display arearsquo for useful or
important items (local information
time limited offers)
Display Area
Pile
Holding area
Source TGI Kantar Media 2014
Royal Mail MarketReach Media Moments Trinity McQueen 2013 46
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL GETS DISPLAYED
39 of people have a dedicated display area for mail in the home
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 47
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IS SHARED
An average of 23 of mail is shared within a household
Brochure from a company I have ordered from before
Statement bill or information update
Letter ndash about a productservice they donrsquot have
Brochure from a company not ordered from before
Leaflet without an address about a promotionoffer
Letter ndash promotion or special offer
29
24
25
23
22
21
SHARE
Average of 23 of mail shared
within a household
Source Royal Mail MarketReach Ethnographic Quant Trinity McQueen 2014 48
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL OFFERS A LESS CLUTTERED
ENVIRONMENT THAN DIGITAL
70
ldquoI feel that I
receive too
many
emailsrdquo
Mail stands out due to the proliferation
of digital messages
3
3
22
72
48
18
19
15
0 20 40 60 80
More than 10
7 to 10
4 to 6
1 to 3
How many items do you receive in a day
51
of emails are
deleted within
two
seconds
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 2013
Source Royal Mail MarketReach Mail and
Digital Part 1 Quadrangle 2013
Source Litmus Email Analytics 2013
49
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
INCREASINGLY MAIL IS DRIVING PEOPLErsquoS
43download
something
54engaged in
social media
87influenced to
make online
purchases
92driven to online
or digital activity
86connected with
business
DIGITAL BEHAVIOUR
As a direct
result of
receiving
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=2375)
50
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IN THE HEART
CREATING AN EMOTIONAL
RESPONSE
51
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
52
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
53
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
TOUCH CREATES A POWERFUL
When people can both see and
touch something they value it
24 more highly than if they
can only see it
Over a third of people say that
the physical properties of mail
influence how they feel about
the sender
EMOTIONAL RESPONSE
+22 +24
275 273
336 338
0
1
2
3
4
5
Psychological ownership Valuation
VISION ONLY VISION AND TOUCH
Participants were asked to subjectively grade ownership and value on a 7 point scale
Source Peck Joann and Suzanne B Shu The Effect of Mere Touch on Perceived Ownership Journal of Consumer Research 2009 IPA Touchpoints 5 2014
54
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
PEOPLE FEEL VALUED AND HAVE A
BETTER IMPRESSION OF THE BRAND
The emotional impact of mail versus email
I am more likely to take it seriously
It gives me a better impression of that company
It makes me feel more valued
63
57
55
18
17
25
( True of Mail vs True of Email)
MAIL EMAIL
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201355
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IN THE HEAD
HOW MAIL IMPACTS THE BRAIN
56
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
57
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
58
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
THE BRAIN RESPONDS MORE STRONGLY
Mail had a much more powerful overall impact on the key measures of the
neuroscience study than email or TV
TO MAIL THAN TO TV OR EMAIL
Source Royal Mail MarketReach Neuro-Insight 2013
168
202
172
127
165
130
105113
100
0
50
100
150
200
250
Engagement Emotional Intensity Long-term Memory Encoding
Ind
ex v
s
No
rma
l r
es
tin
g b
rain
MAIL EMAIL TV
59
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
IN A MULTI MEDIA CAMPAIGN
SEQUENCING MAIL LAST MAXIMISES IMPACT
Source Royal Mail MarketReach Neuro-Insight 2013
Mail after TV and email
100 100 100
112
101
106
126
121
110
80
90
100
110
120
130
140
Engagment Emotional Intensity Long-term MemoryEncoding
Ind
ex v
s
resp
on
se
fro
m first e
xp
osu
re
MAIL SEEN FIRST MAIL SEEN SECOND MAIL SEEN THIRD
Engagement
60
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IN THE WALLET
HOW MAIL MAKES MONEY
61
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL DELIVERS ROI
Mail ROI showed a strong channel performance in BrandScience cases
Revenue Return on Investment of clients using direct mailSource Royal Mail MarketReach BrandScience 2014
0
2
4
6
8
pound
RROI (Revenue ROI)
62
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Total ROI increased 12 when mail was included in the mix
MEDIA MULTIPLIER EFFECT
MAIL CREATES A MEASURABLE
Source Royal Mail MarketReach BrandScience 2014 advertiser cases including mail versus cases without mail
422
463
5hellip
473493
631
1
2
3
4
5
6
7
Total Comms TV Print
RR
OI
RROI-NO MAIL RROI-WITH MAIL
63
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL DELIVERS NEW AUDIENCES
Adding mail to the mix opens up new responsive audiences When mail is
added to the schedule
versus email on its own
Source Royal Mail MarketReach Mail and Digital Part 1 Quadrangle 201364
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
INCLUDING MAIL DELIVERED TOP-RANKING
Campaigns that included mail
were
27 more likely to deliver top-
ranking sales performance
40 more likely to deliver top-
ranking acquisition levels
SALES AND ACQUISITION PERFORMANCE
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013
+27 +40
45
30
57
42
0
10
20
30
40
50
60
Sale Acquisition
C
lien
ts l
isti
ng
to
p p
erf
orm
ing
im
pro
vem
en
ts
RROI - NO MAIL RROI - WITH MAIL
65
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
WITH MAIL IN THE MIX MARKET
SHARE GREW 3x MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with
3x the efficiency versus non-mail advertisers
29xMarket share growth
for all clients
34x Market share growth
for service sector
Comparing market share growth per 10 Extra Share of Voice points (ESOV) shows the increase in efficiency of advertising plans including mail
Source Royal Mail MarketReach IPA Databank Meta-Analysis Peter Field 2013 66
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
MAIL IN ACTION
HOMEBASE
67
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Background
Home improvement projects are irregular and unpredictable Part of
Homebasersquos marketing strategy was to promote everything and discount on a
frequent basis The direct marketing strategy had been built around regular
high volume event mailings with blanket discounts
Solution
Homebase found patterns in shopping behaviours in both transactional and
non-transactional data identifying customer needs close to lsquoShare of Projectrsquo
spending opportunities
They identified 10 project trigger identifiers and then analysed the length and
shape of the sales curves to quantify the purchasing opportunity For each
they created a personalised communication plan
Responding quickly enough to be relevant was critical Homebase was able to
get direct mail delivered within six days and email in two Dynamic templates
made the communication truly personalised delivering the right message at the
right time to increase customer value
HOMEBASE USED DATA PATTERNS TO DELIVER
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
PERSONALISED CUSTOMER SUPPORT FOR DIY-ERS
68
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Solution
The programme used highly responsive direct mail magazines emails at till
communications and inspiring shareable content to increase customer value
using a hierarchy to determine customer inclusion to suit their interest or
project
Results
The strategy has been transformational The evolved CRM programme has
delivered incremental sales four times greater than three years ago - ROI up
350 to 431 It also smashed its profit target by +48 creating a
demonstrably more engaged and valuable customer in terms of both total
spend and activity ndash mail response increased from an average of 9 to a
maximum of 46 up 500 ATV increased by 135 and repeat visits up 6
TARGETING AND PERSONALISATION COMBINED
Sources DMA Best Multi-channel CRM programme Gold Award 2014 DMA Data Strategy Silver Award 2013 Marketing
Week Engage Award Winner CRMLoyalty and Direct Marketing 2014 Homebase and MRM Meteorite
WITH FAST REPONSE DELIVERED DRAMATIC GROWTH
69
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
IN SUMMARY
Mail brings a brand into the home where it is kept displayed andor shared
Its tactile qualities have powerful emotional and rational impact that can be identified
and proven
Mail makes your message more memorable
Mail drives successful return on investment
When used in integrated campaigns it can provide a measurable media multiplier effect
Mail delivers top-ranking sales and acquisition growth and efficient market share growth
The newly transformed Royal Mail is a credible motivated and connected partner to you and your
marketing agencies
Media and Data
Planning
Bespoke Research
and Insight
Data Provision
Distribution
70
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
71
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
BIG DATA IS DRIVING MORE 121 DIRECT
Data is driving more 121 and personalised interactions
Trigger based communications based on actual and future behaviour change
There is a strong role for highly targeted personals mail in this space
Less short termism and more longer term ROI
COMMUNICATION
72
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
ADVANCES IN TECHNOLOGY MEANS
USB film content
Augmented Reality Online offline
integration
VideoPaks
Sensory Mailings Taste amp smell
increases tangibility
Interactive print
Digital templating cheaper faster
amp more personalised
QUICKER CHEAPER amp MORE IMMERSIVE MAILINGS
73
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
NEW DEVELOPMENTS FOR MAIL
Barcode
A new barcode standard for machine readable Business Advertising and Publishing Mail
Technology
Sorting machines that read the new barcode and collect mail data
Reporting
Mail Analytics that reports on volume compliance predicted delivery and overall performance
Ultimately generating more efficiency greater transparency and
measurement for your mail campaigns
74
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
WHAT WE COULD DO FOR YOU
Work with you to increase the performance of your DR channels
bull Best case for mail
bull Test matrix
bull ROI
bull Contextualise within
the media mix
bull Addressed
unaddressed mail
1 Review your
competitive set
2 Understand the key
dynamics of your
sector
3 Unearth powerful
insights in relation to
Mail and how Mail can
address your business
issues
bull Acquisition
bull Loyalty
bull Retention
Understand the key
issue
Sector experts gather
insight Recommendation
75
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76
Royal Mail the cruciform and all marks indicated with reg are registered trade marks of Royal Mail Group Ltd
Royal Mail Group Ltd 2014 Registered Office 100 Victoria Embankment London EC4Y 0HQcopy Royal Mail Group Ltd 2014 All rights reserved
THANK YOU
76