IT’S ALL ABOUT MAIL

Working together to create great 1 to 1

relationships with your customers

May 2014

AND EMAIL

THE IMPACT OF THE

DIGITAL REVOLUTION

2

A LOT HAS HAPPENED IN 7 YEARS

3

1. Ofcom, The International Communications Market, 2007

2. Compete, Millward Brown Digital

3. Facebook User Stats, July 2009

4. Ofcom, Communications Market Report, 2012

5. Ofcom, Communications Market Report, 2013

6. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

7. TGI, Kantar Media, 2013

8. IPA Touchpoints 5, 2014

9. Twitter.com, May 2014

4

THE AMOUNT OF MONEY SPENT ON DIGITAL

HAS GROWN ENORMOUSLY

Many consumers are feeling overwhelmed by email

1. IAB/PwC, Digital Adspend study, 2014

2. Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S3Q4): Please tell me which of the following apply to the way you manage your inbox. “I receive too many emails”. (Base: all respondents n=1,000)

£6.3bnUK digital advertising

spend 20131

70%say “I feel that I

receive too many emails”2

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CONSUMERS ARE BECOMING LESS

ENGAGED WITH EMAIL

1. DMA National Email Benchmarking Report, 2013

2. Litmus Email Analytics, 2013

21%open acquisition emails1

51%of emails are deleted within

two seconds2

29%open retention emails1

CONSUMERS SEE MAIL AND

EMAIL AS DIFFERENT AND

LIKE TO RECEIVE BOTH

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MAIL AND EMAIL HAVE VERY DIFFERENT

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Mail is good for substance and email for speed.

CHARACTERISTICS

Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

Question asked (S3Q10): Please choose the words that you most associate with the different ways that [industry sector] communicate with you? Base: All respondents n=2375

Email

Quick 302

Spontaneous 244

Informative 217

Smart 214

Informal 209

Interesting 223

Mail

Formal 360

Official 321

Important 274

Considered 288

Informative 235

Personal 214

Believable 278

Reliable 253

Numbers = Index

(Average 100)

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MAIL MAKES RECIPIENTS FEEL MORE

VALUED THAN EMAIL

Helping you earn time with your target audience.

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base:

all respondents (n=1,000)

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AS DIGITAL USAGE HAS GROWN, THE CORE

STRENGTHS OF MAIL HAVE INCREASED

% Growth

2007 – 2013

+31

+22

+20

+3

Royal Mail, D Loves E, Quadrangle, 2007

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion? Base: all

respondents (n=1,000)

AND THEY NOT ONLY OPEN MAIL, THEY

10Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity McQueen, 2014Question asked: What did you do with [Item type]? (Base: all receiving item described, n=192-463)

Advertising

mail is kept for

17 dayson average

INTERACT

69%

56%

55%

43%

43%

43%

43%

INTERACT WITH IT AND KEEP IT TOO

Statement, bill or information update

Brochure from a company they have ordered from before

Letter – promotion or special offer

Letter – about a product/service they don’t have

Leaflet without an address about a product/service

Leaflet without an address about a promotion/offer

Brochure from a company not ordered from before

83%

71%

69%

60%

59%

54%

54%

OPEN

EMAIL IS A MEDIUM OF CONVENIENCE

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Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S4Q6): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion?

(Base: all respondents n=1,000)

It is easy to respond to.

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CONSUMERS KNOW WHEN THEY WANT

MAIL AND WHEN THEY WANT EMAIL

Preference for mail versus email

21%Brochures and catalogues

Welcome packs

Bills or statements

Loyalty rewards

Issues or complaints

Information from companies

not used before

Other products and services

Confirmation or follow-up messages

News and updatesReminders

63%

62%

53%

49%

40%

23%

26%

27%

42%

36%

43%

54%

57%

62%

39%

26%

22%

21%

17%

Email Mail

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S4Q2): How do you prefer to hear from companies that you have/have not used before for [item] (Base: all respondents n=1,000)

THEREFORE MAIL AND EMAIL WORK ON

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But in ways which complement each other

Quick Informal

Good for

follow-up

Easy to

respond to

Email

Grabs

attention

Considered

and

informative

Gives a

better

impression

Makes

recipient feel

valued

Mail

DIFFERENT LEVELS

CONSUMERS MOVE BETWEEN

PHYSICAL AND ONLINE WORLDS,

BETWEEN MAIL AND EMAIL

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BOTH MAIL AND EMAIL HAVE THE POWER

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Despite this being seen more recently as email’s domain

44%say this of email

42%say this of mail

“I am more likely to do something as a result of it”

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S4Q4): Thinking just about the messages you get from businesses, please tell me whether you think [statement] is most true of mail, or of email in your opinion?

Base: all respondents (n=1,000)

TO DRIVE CONSUMERS TO ACTION

SENDING OUT MAIL DRIVES

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And mobile is making it easier than ever for people to do this

43%download

something

54%engaged in

social media

87%influenced to

make online

purchases

92%driven to

online or digital

activity

86%connected

with business

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=2,375)

CUSTOMERS ONLINE

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THE DIGITALLY ACTIVE1

ARE MORE

RESPONSIVE THAN AVERAGE TO MAIL

1.People who browse throughout the day

Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

Question asked (S2Q1a): On average, how often do you use the internet for personal reasons (i.e. not for work) (Base: all respondents – n= 2375)

Question asked (S4Q1): How often have you done the following online? (Base – frequent browsers, n=711)

84%driven to the

sender’s new

products and

services(Index vs. population =

101)

35%‘followed’ the

sender on

Twitter(Index vs. population =

142)

46%shared

information on

social media(Index vs. population =

126)

73%sent an email

to the sender(Index vs. population =

107)

50%downloaded

the sender’s

‘app’(Index vs. population =

129)

As a direct

result of

receiving mail

INTEGRATING MAIL AND EMAIL

OF YOUR COMMUNICATION

MAXIMISES THE EFFECTIVENESS

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CONSUMERS DON’T LIKE THE IDEA OF JUST

ONE COMMUNICATION CHANNEL

A combined approach resonates best

1.Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013;

Question asked (S4Q1): Overall, thinking generally about the communications you receive, would you say you prefer to be contacted by post, email or a combination of both? (Base: all

respondents n=2375)

2.People who browse throughout the day

3.Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014;

Question asked to people who browse the internet throughout the day (S2Q6-9): Which communication method do you feel applies to the following: 'it makes me feel valued'? (Base: all browse

internet throughout day n=711)

4.Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013

Question asked (Q12): Please now indicate the extent to which you agree with each of the following statements (Base: All Respondents n = 1000)

51%prefer companies to use a combination

of both mail and email1

65%like to browse through both the

catalogue and online before making a purchase4

56%of the more digitally active group2

say that “mail makes me feel valued”.

Only 40% say “an email

makes me feel valued”3

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ADDING MAIL TO THE MIX OPENS UP NEW

RESPONSIVE AUDIENCES

when compared to using email on its own

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Question asked (S2Q5): In the last 6 months, have you taken any of the following action in response to the post you have received? (Base: All Respondents n=1,000)

Question asked (S3Q5): In the last 6 months, have you taken any of the following action in response to the email you have received? (Base: All Respondents n=1,000)

13%more consumers visited

sender’s website

35%more consumers redeemed

coupons or vouchers

21%more consumers

made purchases

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CAMPAIGNS THAT INCLUDE MAIL

ARE MORE EFFECTIVE

Campaigns with mail Campaigns without mail

Percentage difference between successful campaigns using mail vs without mail

+27% +40% +104%

IPA Databank meta-analysis conducted by Peter Field, 2013

HOW YOU CAN APPLY

THESE INSIGHTS

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DELIVER ACROSS THE CUSTOMER JOURNEY

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Interest

The

Customer

JourneyAll Customers – Use Both

Short reminder email and

follow-up with detail via mail

All Customers – Use Both

Send automated email to

acknowledge complaint and

follow up with a letter

(personalise for high value)

Win Back – Use Mail

Send a mail pack saying ‘We’re

sorry that you left’ and include a

voucher to encourage returning

All Customers – Use both

Send statements by mail, and for

cross selling; otherwise allow

customers to choose

Welcome – Use Both

Use email for confirmation and

login details, and mail for

registration forms, further

information and to showcase

other services

Influence – Use Mail

Use mail to send catalogues,

vouchers or discounts to cut

through and drive action

Set-up

& join

Statements

Decide

Updates &

Promotions

Renew

Leave

Complaints

All Customers – Use Email

Account updates and reminders

All Customers – Use Mail

Vouchers, coupons, minilogues

Prompt – Use Both

Use email for ‘pulse’ reminders and

mail for nudging specific action

CONCLUSIONS

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The real conclusion from the research is that you create the greatest

value when you combine mail and email. By doing this you take

advantage of their very different but highly complementary strengths.

Combine the time that mail earns you with your customers with the

speed of email.

Give customers something to think about.

Show them that you care.

Make it easy for them to act.

CONCLUSIONS

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In fact, adding mail to campaigns improves performance substantially.

Figures taken from an IPA Databank meta-analysis conducted by

Peter Field show that, of campaigns delivering high sales

performance, 27% more included mail than those that didn’t. Also,

when looking at campaigns that drove high acquisition levels, 40%

more included mail than campaigns which didn’t. Campaigns with

mail achieved over twice (104%) the market share growth than

campaigns without mail in the mix.

It all adds up. Mail and email together build better, more valuable

relationships.

“The use of Direct Mail as part of a multi-channel campaign

significantly boosts the short-term effectiveness and efficiency

of campaigns”

Peter Field, 2013

RESEARCH SOURCES

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Compete, Millward Brown Digital

DMA, National Email Benchmarking Report, 2013

Facebook User Stats, 2009

IAB/PwC Digital Adspend Study, 2014

IPA Touchpoints 5, 2014

IPA Databank meta-analysis conducted by Peter Field, 2013

Litmus Email Analytics, 2013

Ofcom, The International Communications Market, 2007

Ofcom, Communications Market Report, 2012

Ofcom, Communications Market Report, 2013

Royal Mail MarketReach, D loves E, Quadrangle, 2007

Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

Royal Mail MarketReach, Media Moments Ethnographic Quant, Trinity

McQueen, 2014

Royal Mail MarketReach, Print Catalogues in a Digital World, Illuminas, 2013

TGI, Kantar Media, 2013

Twitter.com, May 2014

Our insights are based on the findings from a number of sources

APPENDIX I

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Mail and Digital Part 1

We used an online survey to ask a panel of 1,000 individuals about the way they perceived

mail and email, and how they preferred companies to use the two media to communicate with

them. The results are representative of the UK population as a whole.

Mail and Digital Part 2

We used an online survey to ask a panel of 2,375 individuals a series of questions about their

digital activity, their attitudes to different media, the way they preferred different kinds of

organisation to communicate with them at different times, and the things they have done

online in response to mail. The results are representative of the UK population as a whole.

Print Catalogues in a Digital World

We used an online survey to ask a panel of 1,000 individuals about the way they interacted

with catalogues and how it affected the way they browsed and ordered online. The results are

representative of the UK population as a whole.

Meta-Analysis of IPA Effectiveness Database

We gained access to the database of campaign results submitted to the IPA for its

effectiveness awards. We analysed 416 such campaigns, comparing those that used direct

mail (97) with those that did not (319), comparing them on a wide variety of reported metrics.

For each metric, only campaigns with directly comparable data were selected.

APPENDIX II

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Media Moments Ethnography Quantitative

We asked a panel of 1,312 individuals a series of questions online about their actions around

mail, looking specifically at behaviours observed in the qualitative stage of the research.

Knowing that actual and stated behaviours differed, we made sure we were asking about the

former by instructing respondents to think about the mail they had in the house at the time of

answering – either mail from that day’s delivery or items that had been kept in the house for

some time. We asked them what they had done, or intended to do, with that specific day’s

mail. The results are representative of the UK population as a whole.

DMA, From letterbox to inbox: Building customer relationships, fast.MAP 2013

fast.MAP asked a panel of 1,232 UK consumers 28 questions about their attitudes to

different media via an online questionnaire. The results are representative of the UK

population as a whole.

Litmus Email Analytics 2013

Litmus are a monitoring company offering tracking and analytic services for users of email

marketing. They periodically collate the statistics generated from their clients in this way into

general reports.

THANK YOU

NAME

Email / contact details

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