The Life Stages of Mail · People of all life stages read, engage with, share, appreciate and...

THELIFE STAGES OF MAILSUMMARY REPORTJUNE 2016

1

CONTENTS

INTRODUCTION 2

THE BIG PICTURE 4

FLEDGLINGS 7

SHARERS 11

COUPLES 15

YOUNG FAMILIES 19

OLDER FAMILIES 23

EMPTY NESTERS 27

OLDER RETIREES 31

CONCLUSIONS 35

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INTRODUCTION

WHAT’S IT ALL ABOUT?

We set out to understand how people of different ages engage with mail in order to help advertisers get the best from it.

We also wanted to find out how heavy users of digital devices such as smartphones and tablets – primarily, but not exclusively, younger people – view and interact with mail.

In previous research, MarketReach has examined how consumers think, feel, interact and respond to mail and door drops, including the relationship between mail and email.

WHAT WE DID

We explored both the quantitative and qualitative evidence using both an age and a life stage approach. The latter proved the best way to gain useful insight about people’s attitudes and behaviours. The seven groups we looked at in depth were:

■■ Fledglings: young adults living in their parent(s) home.

■■ Sharers: adults living in shared accommodation.

■■ Couples: adults living only with their partners.

■■ Young Families: living with child(ren) below the age of secondary school.

■■ Older Families: living with at least one child at secondary school or further education.

■■ Empty Nesters: no children at home and at least one of the adults still working.

■■ Older Retirees: either one or two adults living as partners and dependent on income from pensions.

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We chose the seven life stage groups model for two principal reasons: first, because our initial research showed us that the way people interacted with mail was driven less by age than by factors such as whether they lived with family, friends, partners and children; and second, the life stage model covers a large majority – 87% – of the UK population. This meant that we could be both inclusive and sensitive to differences, but also look at the way in-home dynamics had a bearing on the consumption of, and response to, mail. Of course, there are some groups who do not fit neatly into the life stage models, including those who live alone or those who live in a multi-generation household.

Our research used a range of independent subscription research and intelligence tools, including TGI, Touchpoints, Nielsen, Ebiquity and others. In addition we have the findings from independent research we have commissioned and published over the past three years.

We also commissioned new qualitative research (using a combination of approaches including home interviews, diaries, and cameras). Details of the desk research sources and the methodology for the qualitative research are available in our full report, ‘The Life Stages of Mail’.

WHAT WE FOUND

The research showed conclusively that:

■■ People of all life stages read, engage with, share, appreciate and respond to mail – regardless of their digital usage.

■■ How they engage with it – what they appreciate, what they don’t, and in particular the channels they use to respond to it – varies by life stage.

There are significant opportunities that arise from this analysis. They include targeting younger people, who will respond to mail but who are being sent very little; refining the creative approach when addressing different life stages; and improving measurement of a campaign by understanding the range of response media used by mail recipients.

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THE BIG PICTURE

Using the findings from TGI, TouchPoints and research we had previously commissioned, we were able to look at the responses to a wide range of attitudinal and behavioural questions. These covered everything from how much mail was received, read, saved, shared, displayed and responded to, as well as how people felt about mail generally and in relation to other media.

Initial studies by age groups showed surprisingly similar responses.

To better understand the differences between age groups, we used a life stage approach. This approach also helped us generate insights that advertisers can use to improve their response rates.

Of all the positive effects mail can create, driving sales is often the most measured. The chart opposite shows that – while there are differences and trends – all life stages respond to mail, with little significant differences in the levels of response.

Thus we see that, across all age groups, the average response rate to mail (buying or ordering from addressed mail in the last 12 months) was 26.7%. If we index the results (taking the average across all age groups as 100), all groups were within 20 index points of the average1.

As we might expect, the older retired population is the highest responding group at 31.8%. But the findings also contradict the beliefs of some marketers that younger people – Millennials included – don’t respond to mail. They do – even though they get a lot less of it than the older groups.

1 In this report, we use index figures to show differences by life stage groups in behaviour and attitude from the average across all groups. For example, an index of “140” means the group was 40% more likely to respond in the manner described than the sample as a whole, while an index of “60” means the group was 40% less likely to respond that way than the sample as a whole.

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Addressed mail generates response

By life stage, all groups cluster close to the average

26.7%BOUGHT OR ORDERED FROM DIRECT MAIL IN THE LAST 12 MONTHS*

23.3%

21.7%

26%

29.6%

26.9%

25.8%

31.7%

FLEDGLINGS

SHARERS

COUPLES

YOUNG FAMILIES

OLDER FAMILIES

EMPTY NESTERS

OLDER RETIREES

*Source: TouchPoints 6

Clearly, however, there are differences between the groups. For direct response marketers, perhaps the most important is in the channel they used to respond.

Response channel varies

Respondents to TouchPoints who said they bought or ordered something as a result of receiving mail were asked how they responded – by post, phone, online via PC, online via tablet or smartphone, SMS, or in a shop.

They could choose more than one channel, as they may have responded to more than one item and/or have used a number of channels in response to one item.

Please see the chart overleaf for details.

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Purchases from mail by life stage and channel

Overall, we can see that all life stage groups use multiple response channels, albeit with certain biases.

Unsurprisingly, the older groups were more likely to say they responded by post or phone, but not exclusively so – almost as many respond online via a PC.

But the people most likely to use digital channels to respond were in the Young Families group – not the younger ‘digital natives’.

There are two clear implications.

First, since response can come via a variety of channels, mailers need to ensure that, regardless of channel or life stage target group, they make the journey to respond as seamless as possible. However, mail sent to specific groups can be improved by highlighting the channel(s) they are more likely to use.

The second is that the real response rate – and ultimately value – of any mail campaign, has to be measured across a width of channels, not just one or two.

In the following sections we describe some of the characteristics of each group and offer some tips that may help guide better targeted and more effective executions.

Online via tablet/smartphone

9%10%

10%

10%

3%

3%7%

7%

7%

6%

7%

6%

5%5%

5%

10%10%

11%

9%9%

9%

8%

16%

5%6%

14%14%

14%

15%23% 21%23% 26%

30% 30%

Online via PC Shop

Phone

Post

SMS

OlderRetirees

EmptyNesters

OlderFamilies

YoungFamilies

CouplesSharersFledglings

+32%*

MORE LIKELY TO TRUST INFORMATION IN PRINT MORE THAN INFORMATION ON THE INTERNET

+56%*

MORE LIKELY TO AGREE MONEY IS THE BEST MEASURE OF SUCCESS

2×*

MORE LIKELY TO LIKE GOING TO TRENDY PLACES TO EAT AND DRINK

ATTITUDES

23%BOUGHT OR ORDERED SOMETHING AS A RESULT OF RECEIVING ADDRESSED DIRECT MAIL IN THE LAST 12 MONTHS

38%AGREE THEY ARE MORE LIKELY TO LOOK AT MAIL PRINTED ON HIGH QUALITY MATERIALS

MAIL AND ME

52%AGE 18-24

17%PLAN TO MOVE OUT OF THEIR PARENTS HOME IN THE NEXT 12 MONTHS

ABOUT ME

7

FLEDGLINGS

* = index percentageSource: TGI, TouchPoints 2015

c. 3 million in GB

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Fledglings are young adults living at home with their parents. There are around 3 million of them in GB today, and – given the rising cost of housing in many areas – this number could grow in the near future.

While their circumstances may be different – some will have chosen to live at home, others returned after completing their education – many will benefit from not having to bear the full cost of housing, utilities or household shopping.

As a group they are quite young; 52% of them are between the ages of 18 and 24.

Combining their age and living circumstances, we can build a clear sense of their sensibilities.

Fledglings seek social status

People in this group are searching for their ‘fit’ within society. They are exploring how they see themselves, how others see them and what they want to be. Accordingly, Fledglings are more likely than the norm to agree to statements such as “I like to go to trendy places to eat and drink”, “I am more influenced by my friends these days” and “I feel the need to check social networking sites everyday”.

They are also sensitive to the signals a brand is sending out through its mail; they are more likely than others to say “The quality of printing and material in a piece of mail tells me something about the organisation that has sent it.” And 38% of them (index 116) agreed with the statement “I am more likely to look at mail that is printed on high quality materials”.

Do Fledglings want mail?

It’s easy to assume that because digital natives are engrossed in social activities, Fledglings don’t engage with mail. But the findings show that is not true.

Fledglings are highly positive about mail. Not only to do they respond to it, but they also appreciate it. For example, they are more likely than the population as a whole to welcome it – 21.4% agreed with this (index 118) – and to find it memorable.

Moreover more than a quarter (25.2%/index 123) agreed that they trust the mail/post they receive through the door, and 21.4% (index 132) agree they are “more likely to trust mail more than information they find on the internet”.

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Our qualitative research also highlighted that when they receive mail they value, Fledglings discuss or share it with others, creating incremental channel reach.

Where digital savviness does impact on mail, is in how they respond. Fledglings may use a digital channel to respond to an item of mail, whether ordering from it or searching for more information about the company or product.

They are not, however, radically different from the majority of the sample in their use of smartphones to respond to mail. Only 8.7% of Fledglings responded to direct mail online via a smartphone or tablet, an index score of 116: high, but not as high as other groups.

The respondent below, for example, finds mail more convenient than his smartphone to store and reference information relevant to his lifestyle.

I have started getting stuff through the post since I got a bank account and running a sports team. It actually helps to have stuff to refer to so I don’t have to keep looking at my phone

and using data.Daniel, Fledgling

The opportunity

As young people with few long term relationships with companies, Fledglings don’t receive much mail at all, let alone advertising mail.

They may be absent from all but the most up-to-date lists, and many advertisers assume they neither want mail nor are likely to respond.

Ebiquity figures from 2015 show 16-24s – a significant part of the Fledgling life stage bracket – receive less mail than other age groups.

This means that advertisers who do use mail to target this group have the opportunity to stand out. Unlike other media, they may have little or no competition from other advertisers messages.

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TIPS FOR FLEDGLINGS

Make it clear that this item is for them, not their parents

Since Fledglings aren’t expecting mail, items that are highly personalised, and use an age-appropriate style and tone of voice, are more likely to be opened and appreciated.

Make it clear what to do next and how

Since Fledglings are relatively inexperienced with mail, they are less confident about what they need to do with it. Without being patronising, make the call to action clear. Make explicit what they need to do and when they need to do it by.

Make it shareworthy

For Fledglings, sharing is particularly important because it is linked to social status. They like sharing interesting material, particularly if it reflects well on them. Make sure that the design, tone and style of mail encourage this.

Make it easy to respond to by all channels

Ease of digital response is critical to Fledglings. Highlight the digital channel, but offer other options as well, particularly if the product or service is complicated, has high perceived risk or reward, or is one that they have (probably) not bought before.

Make the mail tangible and tactile

Fledglings are responsive to image and brand. Imagery (including brand imagery) that is stimulating and easily assimilated is more likely to be savoured and shared. Use the tangibility and tactility of mail to help deliver a more satisfying experience.

51%AGE 18-24

ABOUT ME

22%BOUGHT OR ORDERED SOMETHING AS A RESULT OF RECEIVING DIRECT MAIL IN THE LAST 12 MONTHS

+45%*

MORE LIKELY TO FIND MAIL MEMORABLE

+75%*

MORE LIKELY TO BUY OR ORDER SOMETHING AS A RESULT OF DOOR DROPS

+49%*

MORE LIKELY TO FEEL REASSURED ABOUT THE SENDER’S SERVICE OR PRODUCT AS A RESULT OF MAIL

2×*

MORE LIKELY TO HAVE PROVIDED PERSONAL OR HOUSEHOLD INFORMATION TO A COMPANY AS A RESULT OF A DOOR DROP+24%*

MORE LIKELY TO HAVE TALKED TO PEOPLE IN THEIR HOUSEHOLD ABOUT AN UNADDRESSED ITEM OF MAIL (THEY RECEIVED)

MAIL AND ME

2×*

MORE LIKELY TO BE MORE INFLUENCED BY THEIR FRIENDS THESE DAYS

ATTITUDES

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SHARERS


c. 1.9 million in GB

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Sharers are living with other adults, sharing the costs involved. For many, it is a typical first step when starting tertiary education or a first job. There are circa 1.9 million Sharers in GB; like Fledglings, they are young: 51% are 18-24.

Their perspective on life is broadly similar too in areas such as social identity. For example, 57.1% of them (index 187) agree with the statement “I often compare what I do with others in my social circle”.

Like Fledglings, they look for social signals and cues from brands they come into contact with to help them define their identity.

They [Hershel Supply Company] sent a really nice glossy visuals catalogue that I kept since I liked the photography and ethos of the company…it was nice to see a company taking so

much care and attention to detail in promoting their brand.Mark, Sharer

But in one aspect they are different to Fledglings - money. Almost a third (30%) say they find it difficult or very difficult on their present income. Students and first jobbers have to manage on loans or lower salaries, while overall Sharers may be contributing to outgoings they were previously protected from: rent, utilities, council tax and so on.

Mail? What mail…?

As noted, this age group (18-24) doesn’t get much addressed mail. In the case of Sharers this may be exacerbated by mail still being sent to their parents’ home, and collected only intermittently.

Typically one person in the shared accommodation is responsible for the subscription services (rent, utilities, etc.), and they often collect mail items and leave it in piles for the others to pick up. But for the most part, Sharers are neither expecting nor familiar with addressed mail.

Given this (and their income), it makes sense that their purchase/order response to addressed mail items is the lowest of any life stage at 21.7%.

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…Door drops? Now you’re talking

Sharers’ low response to addressed mail might seem to imply they’re not interested in the medium. In fact, like Fledglings, they are more likely than average to find mail memorable and trust printed material more than the internet.

Their response to door drops demonstrates this clearly. With 8.2% of them saying they bought or ordered something as a result of receiving unaddressed mail, they index at 175 and 4.4% provided personal or household information to a company or service provider (index 209).

So the relatively low response rates to addressed mail are countered by a comparatively high response rate to unaddressed mail.

Mail moves out

In our qualitative research we again noted that mail was taken out of the home; not just to share, but to deal with.

Noel, a respondent from Brighton, commuted to Gatwick to work. He told us:

My letter and newsletter from Plan charity came three weeks ago. I didn’t open for a week as was too busy. Then it was in my work bag for a few days then I opened it on the train the next day, and then have kept it in my bedroom by the side of

the bed.Noel, Sharer

The opportunity

Sharers will respond to – and form impressions of brands from – items of mail. Door drops offer a great opportunity to reach this audience both to drive sales, and to gain contact details and permission to re-contact and market to them.

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TIPS FOR SHARERS

Create personalisation that stands out on the doormat

Sharers are mindful of their own identities, yet live in multi occupant accommodation. When using addressed mail, highly personalised and creative mail is most likely to stand out and be opened.

Reflect the life they want to live

Sharers are more conscious of social status than average and want to share experiences that reflect well on them. Creative, well designed mail that matches these characteristics is more likely to cut through and build brand equity as well as be shared with others.

Value is a powerful message for them

Sharers like to spend money on clothes and going out. Although they are not above average users of coupons, mail that offers them value on things they aspire to is likely to be well received. The value proposition is important, but only if they really want what you are offering.

Make mail easy to take out of the home

Mail that is easy to take out of the home and deal with – including clear digital response cues – is likely to be effective.

Consider door drops

As young adults, Sharers are only beginning to show up on databases. But they respond to unaddressed mail, which can be used effectively for multi person households and, if it has a response mechanism, to build profiles.

26%BOUGHT OR ORDERED SOMETHING

13%TRIED A NEW PRODUCT OR SERVICE

16%REQUESTED MORE INFORMATION ONLINE

14%PASSED ON AN ITEM OF MAIL TO SOMEONE ELSE

22%VISITED A STORE AS A RESULT OF RECEIVING ADDRESSED MAIL IN THE LAST 12 MONTHS

MAIL AND ME

36%AGE 18-34

47%AGE 35-54

ABOUT MECOUPLES SPAN A WIDE

RANGE OF AGES

15

COUPLES

Source: TGI, TouchPoints 2015

c. 6.4 million in GB

16

Couples are two people living together as partners with no children or other people in the accommodation. They are more or less evenly distributed across the age ranges 18-54 and incorporate people in all levels of relationship and commitment. It’s a large and disparate group: there are circa 6.4 million people living like this today.

Some 26% of our Couples sample reported making a purchase in response to direct mail in the previous 12 months – more than Sharers or Fledglings, but marginally below the 26.7% average for the whole group.

Across most of the mail focused questions covered in TouchPoints, the responses of this group were close to the norm. They receive a middling amount, spend a middling amount of time on it, and – particularly in response to addressed mail – respond in proportions very similar to the average of the sample. This ‘average’ level even extends to the channels they use to respond.

The Inbetweeners

As a group, Couples bridge the gap between the socially focused Fledglings and Sharers and the family focused Young Families.

Social status matters, but the nature of their relationship means they are more likely to think of themselves as a unit with responsibilities to each other.

They are also likely to be developing a longer term view of their wants and needs, for example in creating a ‘home’.

And they are more likely to be taking personal responsibility for managing the mail than Fledglings or Sharers, discussing it specifically with partners.

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In our qualitative research, one Couples respondent – Danielle – brought many of these factors to life, as reported by a researcher.

Danielle’s approach is quite organised. Mail is brought directly to the coffee table in the lounge, examined and dealt with immediately – discarded if irrelevant and stored briefly on a bottom shelf if it needs to be dealt with.

Financial statements and insurance schedules were quickly filed in the home office; there was little on display. Their house was immaculate, and in the relatively small space, they chose to live in an uncluttered environment. It felt as if in deciding to live together, they had chosen to begin to take their living space very seriously by keeping it uncluttered.

But this ‘adultness’ did not mean that they had lost all youthful traits. Like other younger people, Danielle was happy to admit that while the channel through which she received advertising didn’t matter, its relevance and look still did.

Danielle herself said:

If something sparkly and new catches my eye, I’m automatically drawn to it regardless of whether it is a TV ad,

an ad on Facebook or something through the post.Danielle, Couples respondent

Door drops bring Couples into the community

Many couples are beginning to set down roots and invest more in their homes and community. In one case, for example, an established couple mentioned that leaflets had recently stimulated them to buy a new home in a local development; buy flooring from a local company after going online to make a price comparison; and to trial a car valeting service.

Mail goes mobile

As with other groups, the respondents in the Couples research also mentioned that some of the mail they receive goes on the move. Some of this may be simply to use the opportunity of ‘down time’ while commuting to work, but in other cases it can be shared with colleagues. The respondent who was inspired to buy a new house as a result of receiving a door drop later went on to show mail he received from the developer to friends, some of whom also purchased properties.

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TIPS FOR COUPLES

Couples are socially focused but leading more grown-up lives

Mail should address the Couples mindset: they are socially active and yet focused on their relationship. Mail should reflect that they aspire to build lives and enjoy new experiences together rather than as individuals.

Mail is starting to have a place in their home

Adult responsibilities to homes and partners mean mail requires more serious, shared and structured management. As they engage with their home and consider new products and services, unaddressed mail can have a significant impact.

Compact living accommodation may influence how Couples treat mail

Couples may live in smaller premises. Mail may therefore take a shorter journey around the home. Possible shortages of filing or storage space means the physical impact of mail needs to be strong to demand attention. It also means mail may be dealt with outside the home, so digital response mechanisms should be included.

Be clear about what the mail is for and what needs to be done with it

Lack of living space means mail is dealt with promptly. Clarity of message on the envelope and inside will help drive attention and action, especially with the inclusion of digital response channels. Value matters to Couples and value messages should be clearly signalled.

Door drops can play a role for local amenities and businesses

Couples are not only engaging with their home but also their local area. Door drops by local businesses or localised operations of larger companies are likely to resonate.


+23%*

MORE LIKELY TO HAVE REFERRED TO MAIL WHILST ONLINE

+37%*

MORE LIKELY TO AGREE THAT RELEVANT MAIL CAN CHANGE THEIR OPINION OF A COMPANY OR BRAND

62%*

HAVE A SPECIFIC PLACE IN THEIR HOUSE WHERE THEY KEEP LETTERS AND VOUCHERS

+92%*

MORE LIKELY TO HAVE USED A MOBILE PHONE OR TABLET TO RESPOND TO MAIL

+24%*

MORE LIKELY TO GO ONLINE TO MAKE AN ENQUIRY/REQUEST FOR MORE INFORMATION AS A RESULT OF RECEIVING MAIL

MAIL AND ME 69%AGE 25-44

ABOUT ME

19

YOUNG FAMILIESc. 8.5 million in GB


KEEP LETTERS AND VOUCHERS

+MORE LIKELY TO HAVE USED A MOBILE PHONE OR TABLET TO RESPOND TO MAIL

20

Young Families are partners living with one or more children, none of whom are above primary school level. 69% in this group are between the ages of 25 and 44 and there are circa 8.5 million of them in GB.

Young Families are enthusiastic about mail. They are not only the second most responsive life stage (29.6% bought or ordered in response to addressed mail), but also more positive in their attitudes towards and engagement with it generally.

Family focused, enthusiastic, and open to the new

The life changing responsibilities of parenthood require people to learn new things, buy new brands, products and services, and most importantly to see life from a different perspective.

Their focus becomes their family. Together these factors mean not only that value of mail increases, but also that what they appreciate in mail changes as well.

Mail content rather than social utility becomes most important. Young Families begin to value more both the information that mail conveys and the companies that send it to them.

They appreciate that mail alerts them to new products (24.6%/index 118) agree “The mail/post I receive often alerts me to new products and services”; they like post that rewards customer loyalty (62.4%/index 116); and feel reassured about the product or service the sender provides (for addressed mail 8.8%, indexing at 115). They are also more likely to agree that “Addressed mail can positively influence my opinion of a company or brand” and that “Relevant direct mail can change my opinion of a company or service”.

Money can be tight: time definitely is

But all this new learning has to happen at the same time that they are facing new challenges.

Young Families report that they are often faced with financial pressures (as costs rise but income may not) and time poverty. Almost seven out of ten respondents in this group (69.7%/index 122) agreed with the statement “There are not enough hours in the day to do the things I want to do”.

So they want communications that get to the point quickly, offer simple, relevant and valuable information or offers, and that chime with their new self-definition.

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Referring to a Boots mailing, one new mother explained its value:

These were sent to me by Boots in an envelope referring to my daughter’s upcoming 1st birthday so I decided to open it. It

contained a voucher for a free photo book, which I have been on to the Boots website and used to order the book. I have

kept the items below because I think they will be very useful as they contain information regarding child nutrition and food ideas for my one year old. I will place them inside of one of my

cupboards in the kitchen for easy reference.Leanne, mother of one

Financial incentives are particularly appreciated: 52.7% of Young Families used a voucher delivered by mail in the last 12 months, the highest proportion in any group.

And once a relationship with a new company is created, mail can help deliver engagement.

If we’ve already a pre-established interest in a brand I don’t mind being on their mailing list. By sending news of offers by post they are fulfilling the job I’ve asked them to do in keeping me updated. Email just wouldn’t come close to doing the same

job because it’s so easily ignored.Neil, father of two

Mail and ‘me time’

In between all the hustle and bustle, parents of young families manage to find a little bit of ‘me time’. In our qualitative research, we found that mail had a significant role to play again. Catalogues provided not only inspiration for purchases that could help make the house more of a home (e.g. Laura Ashley brochure) but also a moment just to relax.

It’s [Lakeland catalogue] an association. It means a cup of tea and 10 minutes for me. Flicking through something that’s

pretty to look at.Sarah, mother of three

The Smartphone is indispensable

This group integrates digital technology and mail more than any other. Just under half (45%) say they could not live without the internet on their mobile phone (index 152).

And Young Families use smartphones to respond to mail more than any other group. From our sample, 14.4% of Young Families have responded to direct mail using the internet on a mobile or tablet (index 192) and 20.8% have used a PC or laptop (index 126).

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TIPS FOR YOUNG FAMILIES

Appeal to them in their family roles

As parents, Young Family couples want to do the best for their children. They are especially focused on areas like health, nutrition, early years' development, as well as finding value for money.

Reflect their positive energy and optimism

Young Families are enthused by their new status and strive to be positive about their developing family lives. Mail that aligns with their frame of mind is more likely to be considered than that which disrupts it or does not take it into account.

Time is precious

Young Families are often time poor. Mail that simply and clearly expresses benefits and response mechanisms is likely to be well regarded, as is that which rewards them or helps them relax.

Young Families value the companies that send valued mail

Relevant mail that helps Young Families is valued, and the sentiment is transferred to the company or organisation that sends it. They are practical and focused on their parental roles, so content is likely to be more important than design.

Make digital the key response channel

Young Families are digitally focused. Clear digital response mechanisms make it easy for them and allow multi-tasking. The exception is vouchers: because they are sometimes tight for money and allow immediate redemption, Young Families appreciate them.


39%HAVE KEPT MAIL THEY RECEIVED IN THE LAST 12 MONTHS

52%USED A VOUCHER THEY RECEIVED IN THE MAIL IN THE LAST 12 MONTHS

MAIL AND ME

63%AGE 35-54

ABOUT ME

25%SAY THEY ARE FINDING IT DIFFICULT TO LIVE/COPE ON THEIR PRESENT INCOME

39%SAY THEY BUDGET FOR EVERY PENNY WHEN DOING THE HOUSEHOLD SHOPPING

+30%*

MORE LIKELY TO SAY THAT ADVERTISING HELPS THEM CHOOSE WHAT THEY BUY

ATTITUDES

23

OLDER FAMILIESc. 3.7 million in GB


24

Older Families are those with at least one child in secondary school. Some 63% of them are between the ages of 35 and 54. They number approximately 3.7 million. Their income is similar to that of Younger Families, but they are the group most likely to be finding it difficult or very difficult on their current income (39% say they budget for every penny when doing the household shopping).

In terms of responsiveness to mail, 26.9% of them said they have bought or ordered something as a result of addressed mail in the last 12 months – a figure very similar to the sample average.

Older Families ‘get’ mail

Older Families receive more mail than the younger groups and they know what to do with it. It’s part of their daily routine. Their way of managing mail is formed by habit and tends to be quite organised. Their familiarity means they quickly decide which items get acted upon, filed, displayed, shared or discarded.

And they like it too. They over-index in terms of positive associations with mail, including finding it welcome, useful, memorable and informative. They are also marginally more likely to find mail helps them find new products and services, and to appreciate being rewarded by their existing suppliers. For example:

■■ 59.4% say they like mail from companies that reward customer loyalty (index 111).

■■ 23.4% agree that mail often alerts them to new products and services (index 112).

■■ 9.3% agreed that after receiving an item of addressed mail they felt “more reassured about the service or product the sender provides” (index 122).

Mail can even offer a unique opportunity to claim their attention. As one of our Older Families respondents said:

I work in IT so am used to looking everything up online. To be honest, I am glad to have something in my hand.

I often take stuff to work to look at on the train.Paul, father of two children in school

Mail as a communal experience

This life stage seems to be among the most communal of all the different groups. Older children are more able to share in the life of the household rather than simply be its focus.

25

Choices about activities, products and services are more likely to be discussed with partners and children rather than the partner alone. The manner in which this group engages with their mail reflects this.

Steve, for example, consults an outdoors clothing and equipment catalogue with his children.

Go Outdoors is a really good shop. Kids are into camping and Scouts. We’ve bought clothes from there on a number of occasions; we’ve got a card for it... We’ll go in twice a year

and buy something... (Re the catalogue) I tend to have a flick through (but) it’s more about the lads. It’s handy to have

something like this, you can have a flick through to see what’s there and then we’ll go online before going in (store).

Steve, father, Older Families

Older kids are expensive too

As mentioned, a relatively high proportion of this group feel under financial pressure. We can assume older children have more expensive activities, cost more to take on holiday, and may incur secondary or tertiary education funding.

Mail which delivers relevant discounts, vouchers or other financial value is therefore likely to be appreciated. More than half (52%) of respondents in this group said they used a voucher delivered by mail in the last 12 months – only marginally less than the Young Families.

Digitally driven response

Like Younger Families, Older Families are also more likely than most to use digital channels to respond to mail than the sample average. Of those who responded, 30.4% did so online via a PC or laptop (index 129) and 9.7% (again index 129) went online using a mobile or tablet.

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TIPS FOR SHARERS

Recognise the role of the family

Adults in Older Families may be as family centric in their perspective as those with Younger Families. They may have more experience and are better informed, but they still make decisions in the context of how it affects the family – not just themselves. Content and design should consider how the proposition and benefit can be seen in this context.

Older Families may be financially hard pressed

Value messages and offers are likely to resonate with this group, as long as the offer is relevant. Given their financial restrictions, they are more likely than others to buy products and services as a result of considered, rather than impulse purchases, so discounts on luxury or unnecessary services may have little response.

Mail is used to evaluate – and evangelise – brands

In households with older children, some family decisions may be more democratic. Mail designed for parents may also be seen and noticed by their children. As a result, mail is more ‘communal’ and can be shared, displayed, or discussed by the family as a whole. This means that beyond the immediate response, advertisers have an opportunity to create brand salience amongst a younger audience by sending mail that is inclusive and acknowledges the role of children in older families.

Mail informs and drives digital response and action

Older Families over-index on digital response channels, so mail that highlights easy-to-use digital response mechanisms is likely to be preferred. Parents in Older Families may also deal with mail out of the home.

26%BOUGHT OR ORDERED SOMETHING AS A RESULT OF RECEIVING DIRECT MAIL IN THE LAST 12 MONTHS

18 MINSARE SPENT READING MAIL EVERY DAY

32%RENEWED A SUBSCRIPTION TO A PRODUCT OR SERVICE AS A RESULT OF RECEIVING MAIL

MAIL AND ME

67%AGE 55-74

ABOUT ME

29%REPORT RELYING ON NEWSPAPERS TO KEEP THEM INFORMED

63%BELIEVE IT IS IMPORTANT TO BE WELL INSURED FOR EVERYTHING

74%AGREE YOU MUST TAKE RESPONSIBILITY FOR YOUR OWN FINANCIAL SECURITY AFTER RETIREMENT

68%BELIEVE THEY ARE VERY GOOD AT MANAGING MONEY

ATTITUDES

32%

29%

27

EMPTY NESTERSc. 10 million in GB


28

Empty Nesters are couples whose child(ren) have left home and where at least one partner is still economically active. They form a very large group: circa 10 million. More than two thirds are aged between 55 and 74.

They appear to be under less financial duress than other groups: two in five (39%) say they are ‘comfortable’ on their present income. Compared to the Older Families group in particular, they are also less stressed: 29.7% (index 69) of Empty Nesters agreed with the statement “I am feeling more stressed these days”, versus 48.4% (index 112) for Older Families.

They are marginally below average purchasers in response to addressed mail (25.8%) but more likely than any previous group to have, as a result of receiving mail, renewed a subscription to a product or service.

Living the dream, battening down the hatches – or both?

For some, this life stage offers the opportunity to “live the dream”. Without the costs and responsibilities of dependent children they have the money, time and energy to reward themselves. According to TouchPoints, they are more likely than the norm to agree with the statements “I am optimistic about life” (71.2%/index 107); “I like to get out of the country when I can” (74.6%/index 114) and “I can afford to splash out on luxury goods sometimes” (58.7%/index 111).

For other Empty Nesters, however, this can be a time of consolidation or even down-sizing. They know that retirement is coming and want to be sure that they have enough money put away to live comfortably. They may become more cautious. Only 34%/index 89 agreed with the statement “I am willing to spend money to save time” and 73.7%/index 126 agree that “financial security after retirement is your own responsibility”.

Print and mail are respected, but…

Empty Nesters are the group most likely to read a newspaper every day and rely on newspapers to keep them informed. Mail (as another print medium) has benefits too: 64.2%/index 117 agree they “would feel less in control of their lives if they didn’t have printed copies of important documents”.

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But Empty Nesters’ perceptions of mail are very close to the sample average. They get a lot of it, spend a lot of time reading it, understand it, and deal with it efficiently. If it is relevant, they are more likely to leave it out and re-read it. If it isn’t, they discard it quickly. Together, this suggests Empty Nesters have become more selective than other groups: their life experience has taught them how to deal with it effectively and efficiently.

Anything that comes up has got to have an interest to it…or it has to have value, and it tells you what’s coming up promotion

wise for the following week.Ronald, Empty Nester

Digital is the less favoured response channel…for now

While Older Families indexed highly in responding to an item of mail online (129), Empty Nesters are less likely than average to use digital channels, indexing 90 for using a PC or laptop and 46 for using a smart phone or tablet.

Conversely Empty Nesters are much more likely to respond by phone or post than the norm, indexing at 156 (14.5%) and 136 (10.5%) respectively.

Empty Nesters can share – and even ‘redirect’ - mail

Until their children have updated their personal details, much addressed mail destined for them is sent to their parents' homes; in some cases, therefore, Empty Nesters end up passing it on to their children.

But we also saw in the qualitative research evidence of Empty Nesters assessing their mail in terms of its relevance and utility for family and friends.

One respondent, for example, retrieved an item from the bin that, while not relevant for him, was for his father-in-law; another passed on a flyer from a local builder to a friend who was a member of her dog walking group; and one used brochures from a travel company to show and discuss various options with her family when she visited them.

30

TIPS FOR EMPTY NESTERS

Empty Nesters are comfortable with print and respect mail

If it’s relevant, Empty Nesters like longer form copy and make the time to read it – often more than once.

Empty Nesters take pride in their experience of life

Empty Nesters have considerable experience of mail and dealing with life situations. Many are still working.

This means they can be more sensitive to, sceptical of, and quick to reject exaggerated marketing claims that they might see as condescending. They should be addressed in a manner that is personal and transparent and which acknowledges that they lead active lives.

Show you understand their feelings about the future

Empty Nesters are both excited about “living the dream” and apprehensive they may face future health and money concerns. Consider your message in terms of either the inspiration or reassurance it offers.

Empty Nesters are Baby Boomers: the original teenagers. Give them choice.

Mail that treats Empty Nesters as individuals and empowers their ability to make choices is likely to be well received. The idea of choice extends to response channels, so it is helpful to provide digital mechanisms as well as analogue ones, including phone/voice.

They are experienced, not old

Their children may not live at home, but Empty Nesters may feel a sense of responsibility for other adults, including relatives from the previous generation. They often act as conduits for others, passing on tips or content from relevant mail.

43%KEEP MAIL FOR REFERENCE

32%SAY THEY RESPONDED TO MAIL IN THE LAST YEAR

18%USED THE PHONE TO ASK FOR MORE INFORMATION AFTER RECEIVING AN ITEM OF MAIL

MAIL AND ME

66%AGE 65+

ABOUT ME

34%AGREE IT’S MORE IMPORTANT TO DO YOUR DUTY THAN LIVE FOR YOUR OWN ENJOYMENT

72%SAY THEY LIKE RECEIVING MAIL IF IT IS RELEVANT TO THEM

54%AGREE THAT UNADDRESSED MAIL IS A GOOD WAY FOR A LOCAL AUTHORITY TO TELL THEM WHAT’S GOING ON IN THEIR AREA

ATTITUDES

31

OLDER RETIREESc. 6 million in GB


32

Older Retirees are either living by themselves or couples whose only income is from pensions and or savings/investments. They may live in households managed by one person. 66% of the 6 million people in this group are 65 or older. Unlike Empty Nesters, they are more likely to say they are “coping” rather than comfortable on their income. Attitudinally, they index highly when asked questions relating to the importance of areas like religion, conservation and patriotism.

This group is the most responsive to mail; 32% of them bought or ordered in response to an item of addressed mail in the last 12 months. And 72% agreed that they liked receiving mail if it is relevant to them.

Older Retirees and mail: familiarity breeds contentment

For this group, print is a familiar and comfortable medium that many have been engaged with for decades. It’s part of the fabric of their lives. Almost 75% agree that they would feel less in control of their life if they didn’t have printed copies of important documents.

In many areas their perceptions of mail are above those of the sample as a whole, sometimes significantly. They like receiving mail if it is relevant and believe it is acceptable for companies they have used before to send them information on other goods and services. People in this group spend an average of 21 minutes a day reading and managing it, longer than any other group.

They are comfortable with unaddressed mail as well: 37.4% (index 111) agreed that it is a good way for local traders to let them know about their services and 53.5% (index 115) saw it as a good way for a local authority to communicate.

Mail is for sharing

Human instincts to share and show, cross age boundaries. Older Retirees may not use digital social networking as much as younger groups, but they enjoy interacting with friends.

Mail can be saved to show others, or even to provide inspiration for gifts.

33

Here’s one Older Retiree talking about why she likes cruise brochures and their shareability:

To see where they’re going... And then I did go on their web site to look into it from that. But actually having it in the

catalogue, it’s easy to show anyone I want to show it to – where I’m thinking of going.

Dorothy, Older Retiree

They also keep mail.

I will go through all the brochures eventually and decide if there’s anything there and if there isn’t they get thrown away. There’s an item in one of the older ones I really like, a possible wedding present. I’m keeping it because they

haven’t got married and I like the item – I haven’t seen them anywhere else. It’s a reminder.

Valerie, Older Retiree

Does ‘Return by post’ finally have relevance?

Older Retirees are the group most likely to say that they responded to an item of direct mail by post. Even so, only 14% of them used this channel; 16% said they responded by telephone, and 15% said they used a PC or laptop. So while postal response should be made easy, it should not be the only response channel offered.

34

TIPS FOR OLDER RETIREES

Build on their comfort and respect for printed materials

Older Retirees appreciate longer copy and have the time to read it. If testing shows that it continues to generate more response from people in this group than shorter material, it should still be used. But it is just as important to use traditional rules of grammar and spelling; anecdotally complaints regarding modern language usage come from people in this group.

Values – as well as good value – are important to them

Older Retirees tend to live off a fixed income, so mail that offers value and/or discounts on relevant products or services – not impulse or luxury items – will be appreciated and used. But mail executions should also understand the traditional social and personal values that appeal to them and align with their world view.

Remember that many are alone – and not all by choice

Many Older Retirees may live alone, either through bereavement or the ill-health of their partner. It is important to be highly sensitive to this possibility.

Relevant mail can be saved, savoured and shared with both friends and younger relatives

As with Empty Nesters, Older Retirees are often a conduit for mail to reach others, including those from younger generations. Their mail experience may influence others. Like all life stages, those in this group share and display mail. It’s worth considering the development of material for this life stage that can also include others.

Post is a favoured response mechanism

Older Retirees are more likely to respond by post than other groups, but it is not their only or even primary channel. Use a Business Reply Envelope, but also make sure to offer them a choice of channels, including phone and digital.

35

The aim of this project was to explore how mail was seen, engaged with and used by consumers at different points in their lives.

Consumers of all ages and all levels of digital use engage with mail; they open, share, display, file and respond to mail, both addressed and unaddressed. There are variances, but these are relatively minor and appear to be at least partially due to the volume and type of mail they receive.

Age is a conventional framework marketers use to differentiate different groups of people. But it can sometimes be a blunt tool. An individual aged 18–24 who lives at home is not the same as one who lives in shared accommodation or one who is part of a couple.

For this project therefore, we found that life stage was a more sensitive way to look at mail consumers. It allowed us to include factors like accommodation, co-habitation and family responsibilities, all of which have a significant bearing on how people receive, use and respond to mail.

The differences between different life stages reflect different levels of experience and confidence. Those who have received the least amount of mail need more clarity about how to use and respond to it, while those with more experience do not. The most digital savvy individuals respond to mail just like those who are not: but they may use a digital channel to do so.

As people move between life stages, the role and benefits of mail change. Those who are facing new challenges in life, like parents bringing up children, use mail to help them understand and respond to activities they lack experience of; while those who have passed through these stages tend to use it more to help consolidate their lives, or to provide more leisurely inspiration. For all of these life stage groups, however, mail is a reassuring medium that can help organise, reassure, and direct them.

By considering the details of each life stage and fine tuning their targeting, creative expression and calls to action, advertisers can optimise their direct marketing campaigns.

CONCLUSIONS

36

WHAT OTHERS SAIDABOUT OUR FULLRESEARCH REPORT

“It’s easy to assume that because a brand’s customers are highly digitally active that digital channels are the way to reach them, but this report tells us that mail can really stand out for this audience since they don’t get much. Mailing Fledglings could give a competitive advantage and this is something I’m keen to explore with my clients.

And then we see other clients in the FMCG sector with products historically aimed at older audiences, wanting to reposition themselves for younger audiences. This report tells me that there’s a great opportunity to do this with mail, which they will see as innovative. It’s also a great way to make a product tangible.

I think this insight will really help us in conversations with clients. Yes, we live in a digital world, and digital channels are great but they can work much harder when mail is included in the mix and especially when that mail is highly targeted and personal. Thinking about audiences by life stage is really helpful.”

Marius Bartsch – Integrated Partner

37

“Anyone who stereotyped mail as only for older or affluent audiences will see their thinking changed. Mail has relevance across all life stages. In fact, if you have a letterbox mail can have purpose – it’s just a question of identifying the most relevant point in the journey for a personal, tactile experience.

I especially identified with the behaviour of the sharers taking mail out of the home to deal with on the train or work. So true!”

Nick Myers – Planning Director

“I found the report really useful. Us marketers often obsess about paper weight, colour and format forgetting there are more important factors, and these factors will vary by life stage.

Also of interest was how the young and digitally savvy respond to mail and the opportunities this presents. Also how the older groups use mail and integrate technology into their lives in their response to it.”

Liz Curry – Business Planning & Processes Manager

38

“In mail we have a channel that carries massive strengths across all ages. ‘Personal, formal, informative and believable’ – these are strong positives regardless of age.

However, in Fledglings mail is massively powerful as their world is predominantly fast paced and fairly disposable. Think Snapchat, Twitter, Groupon. What standout you can achieve with messages to this audience! It contrasts to the majority of their interactions and the right messages can carry real weight in this environment for them.”

Victoria Fox – CEO

“This report serves as a great reminder and refresher for many of the behaviours we recognise and understand but is substantiated in fact and new insight.

Examining by life stage can help add another layer to thinking behind data, planning and messaging.”

Laura Ramsell – Head of Tesco Clubcard Brand and Proposition

39

“I found this a fascinating read as to how the different life stages consume mail. Some of it was counterintuitive and surprising.

It puts mail in context – how it’s consumed and how it sits with other channels. Everyone assumes it’s all about digital but everything is maturing and consumers are multichannel so it’s not ‘either/or’ but often ‘and’.

It’s also interesting to apply some of these insights to other channels too. Since the report reminds us about proper storytelling, attention and relevance – the industry at times can be obsessed with what it wants to tell consumers and not what they want to hear.

I’ll definitely be showing this to the rest of the agency and build relevant insights into client presentations – even those who have not thought about mail.”

Ian Haworth – Global ECD

40

WE CAN HELP YOUGET MORE FROM YOURINVESTMENT IN MAIL

At Royal Mail MarketReach we have a dedicated team of media specialists, planning professionals and data experts ready to share their knowledge and expertise.

With a deep understanding of direct mail in all industry sectors, they’re ideally placed to apply their insights to your business and to your particular briefs.

To talk to us about how we can help, please call our team on 0800 996 1656.

For a deeper look at the power of mail, you can download our full series of research reports, case studies and learn more about our incentives at mailmen.co.uk

IT’S ALL ABOUTMAIL AND EMAIL

We have a team of media experts and data planners ready to apply these learnings to your business.

To discuss how we can help you, call us on 0800 633 5350 or visit mailmen.co.uk for more information and to download this report online.

Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd.

© Royal Mail Group Ltd 2014. All rights reserved.

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THEPRIVATELIFEOF MAIL

We have a team of media experts and data planners ready to apply these learnings to your business.

To discuss how we can help you, call us on 0800 633 5350 or visit mailmen.co.uk for more information and to download this report online.

Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd. Royal Mail Group Ltd 2014. Registered Of� ce: 100 Victoria Embankment, London EC4Y 0HQ. © Royal Mail Group Ltd 2014. All rights reserved.

MAIL IN THE HOME,HEART AND HEAD.

THIS TIME IT’S PERSONALDISCOVER HOW VALUED MAIL CAN DRIVE VALUE FOR ADVERTISERS

SEPTEMBER 2015

Royal Mail, the cruciform and all marks indicated with ® are registered trade marks of Royal Mail Group Ltd. Royal Mail Group Ltd 2015. Registered Office: 100 Victoria Embankment, London EC4Y 0HQ. © Royal Mail Group Ltd 2015. All rights reserved.

We have a team of media experts and data planners ready to apply these learnings to your organisation.

To discuss how we can help you, call us on 0800 032 1018 or visit www.mailmen.co.uk


WANT TO TALK TOME?WHAT CUSTOMERS WANT IN EXCHANGE FOR THEIR PERSONAL INFORMATION

APRIL 2015


To discuss how we can help you, call us on 0800 032 4880 or visit www.talktome.com to download reports by market sector.

How consumers want brands to use mail and email together.

18 months of research into how mail enters the homes, heads, hearts and wallets of consumers.

Consumers explain what the mail they value helps them know, think, feel and do.

Consumer attitudes to data privacy and giving permission.



To discuss how we can help you, call us on 0800 996 1656 or visit www.mailmen.co.uk

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