76
DIRECT MARKETING IN TODAY’S CATALOGUE AND ONLINE RETAIL MARKETS

Distance selling retail sector deck (Private Life of Mail)

Embed Size (px)

Citation preview

Page 1: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 2: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 3: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 4: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 5: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 6: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 7: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 8: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 9: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 10: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 11: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 12: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 13: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 14: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 15: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 16: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 17: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 18: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 19: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 20: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 21: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 22: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 23: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 24: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 25: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 26: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 27: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 28: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 29: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 30: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 31: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 32: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 33: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 34: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 35: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 36: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 37: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 38: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 39: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 40: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 41: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 42: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 43: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 44: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 45: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 46: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 47: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 48: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 49: Distance selling retail sector deck (Private Life of Mail)

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

Email

Mail

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 50: Distance selling retail sector deck (Private Life of Mail)

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

mail

Royal Mail MarketReach Mail and Digital Part 2 Quadrangle 2014

Question asked(S4Q1) How often have you done each of the following online as a direct result of receiving mail from a business or organisation Base All (n=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

Page 51: Distance selling retail sector deck (Private Life of Mail)

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

Page 52: Distance selling retail sector deck (Private Life of Mail)

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

Page 53: Distance selling retail sector deck (Private Life of Mail)

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

Page 54: Distance selling retail sector deck (Private Life of Mail)

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

Page 55: Distance selling retail sector deck (Private Life of Mail)

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

Page 56: Distance selling retail sector deck (Private Life of Mail)

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

Page 57: Distance selling retail sector deck (Private Life of Mail)

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

Page 58: Distance selling retail sector deck (Private Life of Mail)

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

Page 59: Distance selling retail sector deck (Private Life of Mail)

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

Page 60: Distance selling retail sector deck (Private Life of Mail)

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

Page 61: Distance selling retail sector deck (Private Life of Mail)

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

Page 62: Distance selling retail sector deck (Private Life of Mail)

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

Page 63: Distance selling retail sector deck (Private Life of Mail)

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

Page 64: Distance selling retail sector deck (Private Life of Mail)

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

Page 65: Distance selling retail sector deck (Private Life of Mail)

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

Page 66: Distance selling retail sector deck (Private Life of Mail)

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

Page 67: Distance selling retail sector deck (Private Life of Mail)

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

Page 68: Distance selling retail sector deck (Private Life of Mail)

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

Page 69: Distance selling retail sector deck (Private Life of Mail)

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

Page 70: Distance selling retail sector deck (Private Life of Mail)

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

Page 71: Distance selling retail sector deck (Private Life of Mail)

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

Page 72: Distance selling retail sector deck (Private Life of Mail)

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

Page 73: Distance selling retail sector deck (Private Life of Mail)

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

Page 74: Distance selling retail sector deck (Private Life of Mail)

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

Page 75: Distance selling retail sector deck (Private Life of Mail)

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

Page 76: Distance selling retail sector deck (Private Life of Mail)

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