PRINT DAY’10 - 22 APRILJacques BRUYNEEL – La Poste / De Post

2

How true are these How true are these 5 beliefs in your 5 beliefs in your opinion?opinion?

3

BELIEF 1

“PAPER COMMUNICATION IS NOT THE MAIN DRIVER FOR FUTURE BUSINESS.”

4

BELIEF 2

“PAPER IS THE DIRECT MARKETING MEDIUM OF THE PAST.”

5

“E-MAIL IS THE NEW DIRECT MARKETING MEDIUM BUT WITH A LOWER COST.”

BELIEF 3

6

“CONSUMERS AND B2B COMPANIES PREFER INCREASINGLY ELECTRONIC INVOICING.”

BELIEF 4

7

“PAPER MARKETING HAS MORE IMPACT ON THE ENVIRONMENT THAN E-MARKETING.”

BELIEF 5

8

Some answers Some answers based on facts and based on facts and figuresfigures

9

Update on facts and figures of four business issues

Communication impact of paper:“Why paper remains an important communication pillar”

Impact of e-communication on paper:“Why The Post considers electronic an ally of paper”

Environmental impact of paper:“Why paper does have a limited impact on the environmentif it is managed in a responsible way”

Economical impact of paper:

“Why paper communication is a driver for your business”

10

““WHY PAPER COMMUNICATION WHY PAPER COMMUNICATION IS A DRIVER FOR YOUR IS A DRIVER FOR YOUR BUSINESS”BUSINESS”

FACT : 60 billions of sales are directly related to Direct Mail

colruyt

Source: BDMA – Size of the direct marketing market in Belgium (2009)

Direct Mail drives business

Brand perception

Sales activation

Boosting of ROI

Loyalty building

DM is a strong sales activator

Integrated with other media DM increases the ROI of your campaigns with at least 20%

DM builds strong long term relations with your customer

DM improves brand perception

High recall rate

DM gets high recall rates even of complex messages

1 2 3 4

5

FACT : Integrated with other media DM increases the ROI of your campaigns with at least 20%

15% to 200% extra sales >25% more

loyal customers

Source:Post – 15 DM pilot surveys N: > 25.000

2 to 20 times better recall

>50% of brand

attributes improved

Consumers are strongly being activated by Direct Mail

13

230 clients

360 results

253 results

for Direct Mailing

107 resultsDoor to door

FACT: Our database of test results

14

Response rates by sector

% Internal % External

Retail 8,22% 6,69%

Services 10,48% 4,08%

Catalogues 6,72% 4,33%

Press 5,07% 4,82%

Direct Mailings works

15

““WHY PAPER REMAINS AN WHY PAPER REMAINS AN IMPORTANT COMMUNICATION IMPORTANT COMMUNICATION PILLAR.”PILLAR.”

Addressed Direct Mail represents 10% of gross media spendings

3169

349,1

3169TV; 39,3%

Daillies; 23,0%

Radio; 11,3%

Poster; 8,9%

Free press; 4,8%

Internet; 4,0%

Magazines; 7,8%

Cinema; 0,8%

Mass Media(CIM MDB)

Direct Mail(Pige DM)

Sources (03/02/2010): CIM-MDB, Mediaxim (Mass Media); DM Pige Mediaxim-Post (Direct Mail)

9,9%

Gross Media investments 2009 (in mio eur)

Direct Mail and Email Marketing gain popularity

97% opens

mailbox every day

… but receives only 2

DM/ week

78% is

opened

Consumersspend

1’52’’ per mail

… and behind every letterbox

is a unique person

you can target

The strength of direct mail, the MAIL MOMENT…

E-Mailbox Potential Reach*

67

38

33 33

21

8

57%

No

Yes

Total

Daily

Weekly

Less often

Frequency

Frequency of consulting e-mail is less intensive than paper mail

*Source: TNS 2007

**Source: MAS 2005

Letterbox Reach**

100 97

0

97%

No

Yes

Total

Daily

3% Weekly

Frequency

20

67% of the Belgian population has access to email

& 100% could be reached by paper Available e mails due to opt-in rules ?

& +90% adresses available (Robinson list / no pub)

Spam, fishing, virus…into e mails

& You are the manager of your post

Source Insites Consulting (2009)

FACT : Not everyone has email, not everyone reads their emails

Direct mail reaches more consumers than email

67% potential reach by e mail, about 1/3 email users have more than one private email address

7

51

61

42

22

45 22 2 2 1

Mean = 1.4 Mean = 0.58

Private Professional

1 2 3 4 5 6 1 2 3 4 5 6

%

00

OPT - IN !

22

“Do you feel you receive too many Direct Mail?”

82% say no, only 18% say yes

Only a few do not want free unadressed publicity in their mailbox.

FACT : Consumers ask for more paper communication

People like paper as medium

13,6%

23

Direct mail is the number 1 information medium across all industries

FACT : DM scores as the preferredinformative communication channelWhich channel do you prefer to receive advertising messages? »

29%

34%

36%

38%

43%

9%

13%

10%

5%

7%

10%

8%

14%

7%

11%

19%

13%

13%

22%

8%

10%

15%

13%

12%

13%

0% 20% 40% 60% 80% 100%

Hifi, video, cell phone, computer (n=144)

Telecom, internet, TV operators (n=184)

Automotive (n=158)

Home equipment: furniture, DIY, garden (n=127)

Beauty products (n=120)

DME-mail

Print

D2D

TV

Radio

Internet

Other

Source: étude E loves P. La Poste - TNS Dimarso; n=1150, 2007

24

“Via which channel a company should inform you as a loyal customer?”

- Base = all respondents (n = 1168)

FACT : Consumers feel valorized when approached by Direct Mail

Direct Mail makes a relation personal

DM: 57%

@: 14%

25

18% would be angry at their supplier, if they were forced to switch to electronic invoices. 31% of people interested in e-invoicing still want a paper copy by The Post and 10% would print their invoice themselves. 51% of the current e-invoice users print their invoices.

Source: Invoice survey – N=1.000 – 2009 – Ask

Paper remains a tangible asset procuring a sense of reliability

FACT: For invoices, the power of paper is so strong that…

26

FACT : New generation color printed invoices have a 30% faster payment term

Today, physical invoices are more than figures and account numbers

Source: www.primenet.com/files/0507

Color increases the understandabilitywith 73%. Readability increases with 14% when high-lighted colors are used instead of bolds. Reduce inbound calls with 73% Customers are 2,5% more willing to pay the full amount if color print is used.

Digital printing support also Direct Mailings

28

““WHY THE POST WHY THE POST CONSIDERS ELECTRONIC CONSIDERS ELECTRONIC AN ALLY OF PAPER”AN ALLY OF PAPER”

<< Back to overview

FACT: Site visits increases where mail is introduced to the mix

51%63% 68% 72%

35%

30%27% 23%

14%7% 4% 5%

Have Not ReceivedCatalogue

Received CatalogueWithin Past 12 months

Received CatalogueWithin Past 6 months

Received CatalogueWithin Past 3 months

“How often have you visited the web site in the past 12 months?”

+12%+5%

+4%

Between Once A Month And Once Every 6 Months

Less Than Once Every 6 Months

Greater ThanOnce a Month

Source: Quadrangle: DM & Email 2007. DM & Online 2007

Paper support also web sales

How DM support e business (tested)

Source: UNITED STATES POSTAL SERVICE

• % of orders on the Website supported by catalogues

• % of orders on the Website with e mails

• % of orders on the Website supported by

a flyer

15%

13%

8%

31Source: Market research on 1800 customers, utility sector case

Received DM/Email

Recall DM/Email

Read DM/Email

Correct recall content

Paper mail 100% 49 49 55 27 81 22%

E-mail 100% 28 28 57 16 75 12%

Direct mail is more effective throughout the media funnel leading to an

83% higher content recall rate compared to email

FACT : Paper Mailing generates a better content recall than e-mail

Paper mail has by far more effect on the long run

E-mail has a much stronger impact when combined with a physical mail

DM + E-mail

E-mail only 100 30 13 930 42

•Media recall Clicked Intentions OpenedReceived

70

100 34 21 2334 60 93

+ 255%113% 161%

__________________________

Source: DMix survey Mail order (2007)

33

Adding DM to email multiplies by 2,5the number of final orders

Adding DM to email reduces by 25%the cost / response

FACT : Email has a much stronger impact when combined with a physical mail

Email and Direct Mailing are complementary

E mail lovers are also paper lovers…

Despite the attention paid to online and e-mail advertising, households with Internet access receive more advertising mail than those without access. This is reflective of household characteristics such as income and education -- Internet access is closely tied to income and education.  Households with broadband access average 18.4 pieces of direct mail a week; dial-up households average 15.8 pieces a week, and homes without Internet access average 11.1 pieces of direct mail per week.

The Household Diary Study: Mail Use & Attitudes in FY 2008 at USPS.

35

““WHY CAN PAPER HAVE LIMITED WHY CAN PAPER HAVE LIMITED IMPACT ON THE ENVIRONMENT”IMPACT ON THE ENVIRONMENT”

36

FACT : When customers talk about green, there is a paradox

Of all customers 85% prefer paper for admin mail and/or commercial offers

45% perceive paperas polluting

while 51% of all emails and e-invoices are being printed

Companies and consumers will have to solve this paradox together

37

Other59%

Industry41%

29,2% Combustion installations

3,6% Cement, clinker, lime

2,8% Production of pig iron orsteel3% Mineral refineries

0,6% Pulp and paper

0,4% Coke ovens

0,4% Manufacture of glass

0,4% Metal ore roasting, sintering

0,3% Manufacture of ceramic

0% Other activityPulp and paper 0,6%

Source of greenhouse gas emissions in Europe

FACT : In Europe the pulp and paper industry contributes to only 0,6% of greenhouse gas emissions

0,6% is 3 times less than the contribution of the IT sector (2%)

The Carbon meter and the life Cycle of a DM

DM Carbon Meter: purpose

Calculate carbon (CO2-equivalent) emissions of a standard mailing

Propose low-carbon alternatives

Collect easy comparative benchmarks

Enable continuous improvement

Inputs Screen

Results Screen

Example of a DM Campaign: diagnostic

How to go to low-carbon ?

• Recycled paper:

from FSC to 50% Post-consumer

• Weight of paper:

from 170 g/m² to 115 g/m²

• Type of envelope:

from no label to FSC

• Surface covered by ink:

from 80% to 50%

From 227 to 135 g CO2 per mail. Gain 41% !

Postal distribution is far from being the

predominant C02 source

Distribution = 7,7%

46

Summary

• Paper has a strong impact on the performance of businesses due to its proven communication qualities:

• Excellent reach via the mailbox• Willingness to read and respond

• Paper in combination with electronic communications reinforces your ROI

• Paper does not have the environmental impact as generally stated

• It is comparable or often less than the impact generated by the IT industry

Jacques.bruyneel@post.be

0476.42.05.39

Thank you

Presentation available on www. dmplaza .be