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Utilities sector deck (Private Life of Mail)

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MAIL’S EVOLVING ROLE IN TODAY’S UTILITIES MARKETPLACE Date Audience
Transcript
Page 1: Utilities sector deck (Private Life of Mail)

MAIL’S EVOLVING ROLE

IN TODAY’S

UTILITIES MARKETPLACE

Date

Audience

Page 2: Utilities sector deck (Private Life of Mail)

The utilities 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 TODAY

2

Page 3: Utilities sector deck (Private Life of Mail)

UTILITIES AND

THE ROLE OF MAIL

3

Page 4: Utilities sector deck (Private Life of Mail)

THE UK ENERGY MARKET IS IN A STATE OF FLUX

WITH DEREGULATION AND NEW ENTRANTS

STARTING TO AFFECT THE DOMINANCE

OF THE “BIG SIX”

Over the last 4 years, the dynamics of the gas and electricity

market have changed dramatically

• The number of energy companies has more than trebled

since 2010

Source: Annual Energy Statement 2014, DECC, October 2014

Increased Government, regulatory and media scrutiny of energy

suppliers has led to a loss of public trust

• According to Ofgem, 43% of energy customers said that

they didn't trust energy suppliers

New entrants are changing the market dynamics

• 3.8 million households (15%) have switched supplier

away from the big 6

The price of domestic energy has risen by nearly 50% in the last

5 years and the average household now spends over £1,200 on

their annual energy bill

Source: 'Big six' energy firms lose further market share , BBC Business, 8 September 2014

Source: Guardian, 26 June 2014

4

Page 5: Utilities sector deck (Private Life of Mail)

THE BIG SIX STILL DOMINATE BUT THE

NEW ENTRANTS ARE STARTING TO MAKE AN IMPACT

Added together, the large suppliers now have

92.4% of the market, down from 99.8% five years

ago

In other words, independent suppliers have

increased their share from just 0.2% to 7.6% over

the same period

The largest independent, First Utility, has grown

ten-fold in just three years, and now has more than

a million customer accounts

Figures from independent research group Cornwall

Energy, show that customers have 3.8m accounts

with the smaller suppliers, and 45.9m with the Big

Six

Source: Energy UK Report October, Cornwall Energy, 2014

Centrica, 30%

E.ON, 14%

EDF, 10%

npower, 12%

Scottish Power, 9%

SSE, 17%

Other, 8%

Market Share (Revenue)

Source: GMI / Mintel, Market Share of Domestic Gas and Electricity Revenue in 2012, November 2013

5

Page 6: Utilities sector deck (Private Life of Mail)

Changed supplier,

20%

Same supplier,

New tariff, 23%

No change,

55%

Don't Know, 2%

ALTHOUGH PEOPLE SAY THEY DO NOT TRUST

OR ARE UNHAPPY WITH THEIR SUPPLIER, ONLY 20%

OF HOUSEHOLDS SWITCHED SUPPLIER LAST YEAR

A recent Ofgem survey (April 2014),

showed that 50% of energy consumers

responding have never switched supplier

Of those that do switch, the over-55s are

more likely to stick with the same supplier

but negotiate new tariffs, mainly fixed

Younger consumers are more inclined to

switch suppliers

And the wealthiest consumers are more

likely than average to switch since they are

more confident and savvy about financial

decisions

Base: 1,664 internet users, bill

payers, aged 16+ who are with an

electricity supplier

1,003.77

1,699.89

1,422.001,423.34

1,072.89

1,292.58

0

500

1,000

1,500

2,000

15-24 25-34 35-44 45-54 55-64 65+

By Age Group

2,3822,105

1,5611,867

0

500

1,000

1,500

2,000

2,500

3,000

AB C1 C2 DE

By Social Class

Source: GMI / Mintel , Change of

electricity supplier in the last 12

months, September 2013

Source: TGI, Kantar Media, April to June 2014

6

Page 7: Utilities sector deck (Private Life of Mail)

SWITCHING IS BECOMING EASIER

WHICH MAY LEAD TO A PEAK IN SWITCHING

90% of people who switched last

year found it easy and with easier

switching being rolled out starting

November 2014 we expect to see

even more people switching

Most switch to a new supplier due

to price deals or introductory

offers. Many stay with same

supplier but switch to a better

tariff.

Poor service is what drives away

15% of switchers

20% of switchers state moving

house as the trigger to switch

Therefore there is an opportunity

for highly targeted personalised

offers to reinforce relationships

and keep existing customers,

especially as switching becomes

easier

Reasons for switching

Bill payers, aged 16+ who have changed gas or electricity supplier in the last 12 months

Source: GMI / Mintel, September 2013

“How easy or difficult was it to change gas supplier? If switched more

than once – please think about the last time.” 2013

4%

6%

26%

64%

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

Very difficult

Fairly difficult

Fairly easy

Very easy

Total

5%

7%

8%

8%

8%

15%

17%

17%

24%

0% 5% 10% 15% 20% 25% 30%

I changed to get 'greener' energy

Direct contact via email

Recommended by a friend

Saw / read about advantages

Doorstep / phone selling

Poor service from old supplier

To get an introductory offer or bonus

For same-supplier discount

I saw a cheaper deal advertised

Total

Source: GMI / Mintel, September 2013

7

Page 8: Utilities sector deck (Private Life of Mail)

KEY CUSTOMER FOCUSED TRENDS IN THE

More innovation and differentiation PLUS increased customer control

• SMART meters, digital thermostats such as Hive and Nest,

bundled offers with energy services

Service quality will be a key differentiator and energy utility companies

will use ever more sophisticated systems to ensure that their customers

are able to contact them using a wide variety of media

• Live web chats, increased social media

Extras are also going to be a new battleground with companies adding

layers to rewards and loyalty discounts to build relationships with their

customers

Brand building schemes such as charitable support and green initiatives

will be key to creating the best image to attract customers

Greater database segmentation and targeted offers will play bigger

roles

ENERGY SECTOR

8

Page 9: Utilities sector deck (Private Life of Mail)

MAIL REMAINS A STRONG CHANNEL WITH ALL THESE

COMPANIES INCREASING MAIL SPEND LAST YEAR

Source: Nielsen Ad Dynamix, November 2014

9

Page 10: Utilities sector deck (Private Life of Mail)

MEDIA SHARE OF UTILITY ADVERTISING SPEND

Utility companies tend to use an integrated approach to media

Direct Mail accounted for 19% of all Utility advertising between November 2013 and October 2014, and door

drops 2%

Source: Nielsen Ad Dynamix, October 2014

Cinema1%

Direct Mail19%

Door Drops2%

Internet7%

Outdoor8%Press

13%

Radio19%

TV31%

Utilities media spend November 13 to October 14

10

Page 11: Utilities sector deck (Private Life of Mail)

MAIL PLAYS AN IMPORTANT PART IN THE MARKETING

5 out of the Big Six suppliers use mail as

an important part of their media mix (over

9% of their budget)

Some focus more on acquisition but all

are growing their loyalty/retention

strategies

The new entrants use a range of channels

to build their brands. Mail has been used

most frequently by Sainsbury’s and the

Co-op.

As switching becomes more common all

companies will need to invest in loyalty

and retention and the role of targeted 121

communications will become increasingly

important

MIX FOR THE BIGGER SUPPLIERS, NEW ENTRANTS

ARE YET TO FULLY UTILISE THE POTENTIAL OF MAIL

Source: Nielsen Ad Dynamix, October 2014

0

20

40

60

80

100

Top 6 utilities % by media

TV

Radio

Press

Outdoor

Internet

Door Drops

Direct Mail

0

20

40

60

80

100

Ovo Energy First Utility SainsburysSupermarkets

Ltd

CooperativeGrp

New entrants % by media

TV

Radio

Press

Outdoor

Internet

Door Drops

Direct Mail

Cinema

Source: Nielsen Ad Dynamix, October 2014

11

Page 12: Utilities sector deck (Private Life of Mail)

THERE ARE STRONG SEASONAL PATTERNS TO D2D

Door drops tend to peak

around February to March,

May and September to

October

Mail follows more of a

traditional peak around

November / December and

then March

AND MAIL USAGE WITHIN THE ENERGY SECTOR

Source: Nielsen Ad Dynamix, October 2014

3.80.2

3.3

14.3 12.6

5.8

24.2

2.1 3.10.0

19.6

10.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Door Drops % Volumes November 2013 to October 2014

18.3

36.8

2.36.0

12.0

3.6 4.01.8 1.2 1.5 2.6

9.9

0.05.0

10.015.020.025.030.035.040.0

Direct Mail % Volumes November 2013 to October 2014

Source: Nielsen Ad Dynamix, October 2014

12

Page 13: Utilities sector deck (Private Life of Mail)

PEOPLE WHO SWITCH ENERGY SUPPLIER ARE VERY

MAIL RESPONSIVE

79% tend to open all

their post

64% have

responded to

direct mail in the

past year

18% more likely to

respond to mail than

the average adult

81% like to

receive money

off coupons,

vouchers or

discounts by

post

81% keep all

statements and bills

40% used a

coupon as a

result of receiving

mail

68% welcome mail

if its purpose is to

reward their loyalty

Source: TGI, Kantar Media, January to March 2014

13

Page 14: Utilities sector deck (Private Life of Mail)

MAIL / D2D HAS A STRONG ROLE TO PLAY IN

Both addressed and unaddressed

mail can have a strong influence

on brand image for retention and

switching

Addressed mail has a direct

impact on brand perception and is

complementary to other channels

– especially TV and online

SWITCHING AND RETENTION FOR UTILITY SUPPLIERS

Source: TGI, Kantar Media, July 2013 to June 2014

Behaviours of individuals who have changed energy supplier (both gas and electricity) in the last 12 months

122

127

131

136

136

142

197

0 50 100 150 200

Subscribed/switched to a newservice as a result of unaddressed

mail

Passed a mail item to someone else

Bought or ordered something as aresult of addressed mail

Renewed an existing service as aresult of addressed mail

Kept and referred back to a mailitem

Did further research on a productor service as a result of addressed

mail

Subscribed/switched to a newservice as a result of addressed mail

Index of 100 versus GB population

14

Page 15: Utilities sector deck (Private Life of Mail)

THE MARKET DYNAMICS AND TARGETING

STRATEGIES OF ACQUISITION MAIL ARE REFLECTED

IN THE DIFFERENT MESSAGING APPROACHES

Source: Ebiquity, October 2014

Mail is used in acquisition, loyalty and cross / upsell. There has been definite growth of mail in loyalty & value added services.

Energy Services / Value AddedAcquisition Retention / Loyalty

15

Page 16: Utilities sector deck (Private Life of Mail)

INTERESTING TRENDS IN MORE DETAIL

Safety / Energy Advice

Charity Affiliations Listening / Customer Charters

Source: Ebiquity, October 201416

Page 17: Utilities sector deck (Private Life of Mail)

NEW ENTRANTS USE A MIX OF DIFFERENT

CHANNELS AND STRONG, BOLD ADVERTISING

MESSAGING TO STAND OUT

Source: Ebiquity, October 201417

Page 18: Utilities sector deck (Private Life of Mail)

CASE STUDIES SHOWING THE

EFFECTIVENESS OF MAIL AND

DOOR DROP IN THE MARKETING MIX

18

Page 19: Utilities sector deck (Private Life of Mail)

THE SCOTTISH GOVERNMENT ACHIEVED LONG-TERM

SAVINGS WITH HIGHLY TARGETED DIRECT MAIL

Background:

The Scottish Government needed to promote its free energy

savings service to a difficult to reach target audience - lower

income retired people who may be entitled to grants.

Solution:

Use mail to target these hard to reach, lower income, older

households who need to save energy but are wary of responding

due to suspicion of being mis-sold something.

Results:

The 9,264 responses equated to a 4.4% response rate: a 47% rise

on the 3% target.

Over 1,600 households passed the full eligibility criteria for EAP

assistance.

Source: DMA, Silver Winner, The Scottish Government, 2013

19

Page 20: Utilities sector deck (Private Life of Mail)

E.ON PRIMED EXISTING CUSTOMERS WITH A SMART

Background:

The UK government wants energy companies to install smart meters in

all households by 2019. E.ON wanted to trial communications to

ensure they understood the customer experience in order to ensure a

customer-centric roll-out.

Solution:

A direct mailing to existing residential customers to create interest and

get 50,000 meters installed. A question and answer approach was

used, clarifying, for example, the difference between a smart meter and

an energy monitor.

Results:

Mail achieved a 24% response rate and as a result, 55,000 meters

were installed. 76% reported being pleased to have received the

communication.

METER MAILING, TESTING KEY AREAS FOR ROLL-OUT

Source: Design Effectiveness Awards, E.ON, 2013

20

Page 21: Utilities sector deck (Private Life of Mail)

SCOTTISHPOWER COMBINE THE POWER OF

Background:

ScottishPower wanted to reduce customer attrition during

the critical first 90 day period and create an exceptional first

impression with a high level of customer service.

Solution:

A mail campaign to welcome and on-board customers was

created. Communications were tailored to the individual

customer with a media mix of print and personalised URLs.

Result:

Up to 50% of URL visitors completed feedback surveys,

demonstrating improved satisfaction levels and achieved a

39% reduction in attrition.

PERSONALISED MAIL AND ONLINE TO REDUCE CHURN

Source: DMA, Bronze Winner, ScottishPower, 2010

21

Page 22: Utilities sector deck (Private Life of Mail)

AN INTEGRATED CAMPAIGN TO PUT BRITISH GAS

Background:

Following privatisation, British Gas was pronounced Britain's

most popular brand. Twenty years later it was just another

energy company, losing 40,000 accounts every month.

Solution:

Insight revealed that people did not understand the breadth of

what British Gas could do for customers and their homes.

‘Looking after your world’ was launched in an integrated

campaign with TV, direct mail and print being the main channels

to market.

Results:

Generated £82.7m profit from a £45.5m investment giving a ROI

profit of £1.82m.

BACK ON THE MAP AFTER YEARS OF DECLINE

Source: British Gas, IPA Effectiveness Award Winner, Gold, 2012

22

Page 23: Utilities sector deck (Private Life of Mail)

CESPA USED MAIL TO GET THEIR BRAND FRONT OF

Background:

CEPSA wanted to reach out to customers in a memorable

way to secure their first winter fuel order.

Solution:

To highlight the benefits of enjoying winter thanks to CEPSA

heating products, customers received a flat-pack shoe box. A

website helped them customise a pair of slippers to fill the

box and showcased the company's products. The

personalised slippers were then mailed to customers.

Results:

CEPSA increased sales of central heating oil by 22% (1st

order) amongst clients and potential clients. More than 2.5K

customers received their personalised slippers at home.

MIND FOR FIRST FUEL ORDERS OF THE SEASON

Source: DMA, Bronze Winner, CESPA, 2011

23

Page 24: Utilities sector deck (Private Life of Mail)

EDF USED SEGMENTATION AND AN INTEGRATED

BRAND CAMPAIGN TO TARGET MAIL

AND DOOR DROP ACQUISITION

Background:

When EDF Energy stopped face-to-face selling, they lost their

largest acquisition channel. They needed to maximise the potential

of other channels.

Solution:

They wanted to target people who had not switched from their

competitors and shake them up. The breakthrough was category

changing brand messaging featuring ‘Zingy’, delivered via targeted

mail and door drop.

Results:

Sales delivered 30% higher than target, and cost per sale came in

23% lower than forecast. The data strategy worked as well, with 55%

of sales coming from customers who had never switched before.

Source: EDF, IPA Effectiveness Award Winner, Bronze, 2014

24

Page 25: Utilities sector deck (Private Life of Mail)

It’s 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

25

Page 26: Utilities sector deck (Private Life of Mail)

THE PRIVATE LIFE OF MAIL

MAIL IN THE HOME,

HEART AND HEAD

Page 27: Utilities sector deck (Private Life of Mail)

27

Page 28: Utilities sector deck (Private Life of Mail)

12 Ethnography households

14 Focus groups

99 Depth interviews

213 Neuroscience / biometric participants

401 BrandScience’s ‘Results Vault’ cases

416 IPA Effectiveness Databank cases

1,000+ Academic articles reviewed

9,504 Respondents across our telephone and online quantitative surveys

18 MONTHS OF RESEARCH

28

Page 29: Utilities 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 & 2

Neuroscience

ROI/Effectiveness metrics

29

Page 30: Utilities sector deck (Private Life of Mail)

MAIL IN THE HOME

LIFE BEYOND THE LETTERBOX

30

Page 31: Utilities sector deck (Private Life of Mail)

31

Page 32: Utilities sector deck (Private Life of Mail)

MAIL GETS OPENED – AT HIGH RATES

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

Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 32

Page 33: Utilities sector deck (Private Life of Mail)

MAIL’S JOURNEY ISN’T OVER WHEN

Adults read their mail on average for 22 minutes a day.

IT HITS THE DOORMAT

1.15PM: Collects mail and brings it into the

home with other bags and belongings

1.30PM: Opens mail whilst doing other jobs

2.15PM: Opens parcel

2.30PM: Uses laptop to get details on a piece

of mail received

5.30PM: Uses laptop again to get further

details on the piece of mail from earlier

8.30PM: Brings catalogue into lounge to read

Source: IPA Touchpoints 5 (Data based on Monday – Saturday morning)

Royal Mail MarketReach, Media Moments, Trinity McQueen, 2013 33

Page 34: Utilities 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 34

Page 35: Utilities sector deck (Private Life of Mail)

AND SPACE

80% of adults kept some mail that

companies had sent them in the last four

weeks.

‘The Holding area’ where it is kept

before being dealt with

‘The Pile’ for mail that has been read

and will be revisited

‘The Display area’ 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 35

Page 36: Utilities 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 36

Page 37: Utilities 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 – about a product/service they don’t have

Brochure from a company not ordered from before

Leaflet without an address about a promotion/offer

Letter – 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 37

Page 38: Utilities sector deck (Private Life of Mail)

MAIL OFFERS A LESS CLUTTERED

ENVIRONMENT THAN DIGITAL

70%

“I feel that I

receive too

many

emails”*

*Source: Royal Mail MarketReach, Mail and

Digital Part 1, Quadrangle, 2013

**Source: Litmus Email Analytics, 2013Source: Royal Mail MarketReach, Mail and Digital Part 1, Quadrangle, 2013

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**

38

Page 39: Utilities sector deck (Private Life of Mail)

INCREASINGLY MAIL IS DRIVING PEOPLE’S

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

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)

DIGITAL BEHAVIOUR

As a direct

result of

receiving

mail

39

Page 40: Utilities sector deck (Private Life of Mail)

MAIL IN THE HEART

CREATING AN EMOTIONAL

RESPONSE

40

Page 41: Utilities sector deck (Private Life of Mail)

41

Page 42: Utilities sector deck (Private Life of Mail)

42

Page 43: Utilities 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%

2.75 2.73

3.36 3.38

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 43

Page 44: Utilities 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, 2013 44

Page 45: Utilities sector deck (Private Life of Mail)

MAIL IN THE HEAD

HOW MAIL IMPACTS THE BRAIN

45

Page 46: Utilities sector deck (Private Life of Mail)

46

Page 47: Utilities sector deck (Private Life of Mail)

47

Page 48: Utilities 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

48

Page 49: Utilities 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

49

Page 50: Utilities sector deck (Private Life of Mail)

MAIL IN THE WALLET

HOW MAIL MAKES MONEY

50

Page 51: Utilities 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

£

RROI (Revenue ROI)

51

Page 52: Utilities 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.

4.22

4.63

5…

4.734.93

6.31

1

2

3

4

5

6

7

Total Comms TV Print

RR

OI

RROI-NO MAIL RROI-WITH MAIL

52

Page 53: Utilities 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, 2013 53

Page 54: Utilities 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

54

Page 55: Utilities 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.

2.9xMarket share growth

for all clients

3.4x 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 55

Page 56: Utilities sector deck (Private Life of Mail)

MAIL IN ACTION

EDF

56

Page 57: Utilities sector deck (Private Life of Mail)

EDF USED TARGETING AND CHARM TO

MAKE CONSUMERS FEEL ZINGY ABOUT ENERGY

Background:

EDF Energy was facing many challenges. Operating in a low interest commodity

category, the industry had the lowest amount of switching since records began. When

EDF Energy stopped face to face selling, they lost their largest acquisition channel. They

therefore needed to maximise the potential of other channels.

Solution:

EDF wanted to reach people who had not switched from their competitors and shake

them up. But a new angle was required to engage the audiences.

EDF had launched a new ATL brand positioning ‘Feel Better Energy’ with the brand

character ‘Zingy’. This offered the perfect opportunity for a radical change in direct

marketing.

Launching its biggest ever direct campaign, EDF used Zingy to persuade people to open

and engage with the new brand messages. Direct mail , door drops, inserts and direct

response print were deployed to convert awareness into action.

Sources: AIS London, IPA Effectiveness Bronze Award 2014, Marketing Week Engage Award Gold 2013,

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Page 58: Utilities sector deck (Private Life of Mail)

EDF REACHED KEY AUDIENCES AND

Results:

This was the most successful campaign EDF Energy had ever run, giving

them a new route to a previously unresponsive audience.

EDF reached their 2012 year-end sales objective three months early. The

campaign achieved a record breaking 43,000 calls and19,500 direct sales,

exceeding sales targets by 30%.

Short term incremental gross profit showed that every £1 spent on the

campaign generated £2.36. Cost of sale was 23% lower than target,

making direct marketing a feasible acquisition channel for the first time.

EDF won c.25% of all market switchers making EDF the fastest growing

B2C energy supplier in the UK. 55% of sales came from customers who

had never switched before. 73% of consumers who responded to the

direct campaign said they wouldn’t have switched if they hadn’t received

the direct marketing.

The long life of mail was proved by the fact the it was still generating calls

three months later.

CHANGED BEHAVIOUR

Sources: AIS London, IPA Effectiveness Bronze Award 2014, Marketing Week Engage Award Gold 2013,

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Page 59: Utilities sector deck (Private Life of Mail)

IN SUMMARY

Mail brings a brand into the home where it is kept, displayed, and/or 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

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Page 60: Utilities sector deck (Private Life of Mail)

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Page 61: Utilities 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

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Page 62: Utilities sector deck (Private Life of Mail)

ADVANCES IN TECHNOLOGY MEANS

USB film content

Augmented Reality: Online / offline

integration

VideoPaks

Sensory Mailings: Taste & smell

increases tangibility

Interactive print

Digital templating: cheaper, faster

& more personalised

QUICKER, CHEAPER & MORE IMMERSIVE MAILINGS

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Page 63: Utilities 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

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Page 64: Utilities sector deck (Private Life of Mail)

WHAT WE COULD DO FOR YOU

Work with you to increase the performance of your DR channels

• Best case for mail

• Test matrix

• ROI

• Contextualise within

the media mix

• 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.

• Acquisition

• Loyalty

• Retention

Understand the key

issue

Sector experts gather

insight Recommendation

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Page 65: Utilities sector deck (Private Life of Mail)

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

Royal Mail Group Ltd 2014. Registered Office: 100 Victoria Embankment, London EC4Y 0HQ.© Royal Mail Group Ltd 2014. All rights reserved.

THANK YOU

65


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