the value of mail: what planners and marketers need to know

Tuesday 29 SeptemberThe Royal Society of Chemistry

@DMA_UK #dmaadmail

The value of mail: what planners and marketers need to know

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Welcome from the Chair

Charles Ping, Chief Executive, Fuel

@Charles_Ping @FuelUK

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Mike Colling and Company Ltd30 Gresse Street, London W1T 1QRTel 020 7307 6100 Fax 020 7307 6111www.mcand.co.uk

Mail in the media mix: Rethinking the rules of execution

Author: Jamie CreganDate: 27th SeptemberContact: jamie@mcand.co.uk / 020 7307

6108

TODAY – RETHINKING THE RULES FOR MAIL EXECUTION

• The value of time and place

• The value of great creative

• The value of integration 48

49

50

51

IN THE LAST FEW YEARS RM HAVE TAKEN US ON A JOURNEY

52

What value does a media channel offer consumers?

What commercial value does a media

channel offer business?

The rules for execution

TODAY TO CREATE SUSTAINABLE GROWTH WE HAVE TO UNDERSTAND HOW TO CREATE VALUE FOR BOTH ADVERTISERS AND CONSUMERS IN THIS NEW WORLD

53

Value

OUR STARTING POINT IS TO UNDERSTAND THAT OFTEN THE MOST VALUABLE JOURNEYS START AND FINISH OFFLINE

54

IT IS IN THE OFFLINE WORLD PEOPLE ARE MOST LIKELY START A RELATIONSHIP WITH YOU

55

83% of media consumption is

offline

Source: Touchpoints 2014 * Media consumption defined as TV, Radio, Cinema or Press consumption, Social networking, YouTube excludes Outdoor media

AND IT IS OFFLINE THEY ARE MOST LIKELY TO PURCHASE YOU

56Source: http://www.retailresearch.org/onlineretailing.php

57

A TECHNOLOGY NOT JUST A MEDIUMA network

CreateReachSell

Listen

THE OPPORTUNITY NOW

58

What value does a media channel offer consumers?

What commercial value does a media

channel offer business?

Re-thinking the rules for execution?

IN A DATA RICH WORLD…

13

THE VALUE OF TIME AND PLACE

60

TIME MATTERS

61

168 hours3,500+

commercial

messages/ day

SO DOES PLACE - IT IS IN THE HOME THEY ARE MOST LIKELY TO RESEARCH YOU

62

77% of time researching products online

is in the home and only 20% of this is

done alone

TIME AND PLACE FUNDAMENTALLY SHAPE CONSUMER BEHAVIOUR

45% of everyday behaviours are repeated in the same location almost every day

63

MAIL GIVES US BRILLIANT ACCESS TO TIME AND PLACE

64

Moment in day

Pre-purchase

Post-purchaseLife stage

Day of the week = Message

relevance

A RECENT EXAMPLE CLOSE TO HOME USING CLASSIC TACTICS

65

AND AN AREA RIPE FOR EXPERIMENTATION

£

Level of content engagement

determines re-contact investment and messaging

Offline and online media drive people to

the website

Profiling of audience type from website source determines

re-contact investment and

messaging

Cost per contact media are selected on basis of investment

potential – we can match cookie to address and so mail the most valuable prospects and donors

The journeys created can have multiple outcome goals

66

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THE VALUE OF GREAT CREATIVE

68

GREAT CREATIVE CAN DEFINE A BRAND AND DOMINATE A CHANNEL

69

GIVING YOU COMMERCIAL ADVANTAGE

70 Source: Les Binet, Peter Field ‘The Long and Short of it” (IPA/ThinkBox)

IT’S THE SAME FOR MAIL Invest in quality mail production and reciprocate commercial value

71

Media

cost

Produ

ction

cost

Total

cost

Respon

se rat

eInc

ome ROI

£0 £20 £40 £60 £80

£100 £120

Control pack Small pack

THE VALUE OF INTEGRATION

72

AT PRESENT ITS NOT GOOD ENOUGH

73

THE RM RESEARCH SHOWS THE POTENTIAL IMPACT OF GREAT INTEGRATION

74

WHEN TIMED RIGHT MAIL ACTIVATES CAMPAIGN MESSAGES

Source: Royal Mail Neuro-Insight 2013

AN EXAMPLE: THE SALVATION ARMY

76

2007 2012 -

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

£-

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

Cold Mail volume

Cold mail income

(Vol

ume

000)

£

Revenue growth maintained with volume growth

Source: MC&C / Salvation Army 2014

+

AN EXAMPLE: GROWTH FROM MAIL AND TV

77

2008 2009 2010 2011 20120

50000100000150000200000250000

From 100k to 217k donations from cold activity

(Don

atio

ns)

Source: MC&C / Salvation Army 2014

+

MAIL IN THE MEDIA MIX –

RETHINKING THE RULES

78

THE OPPORTUNITY

79

Realise the value of time and place

Harness the value of integration

Create great creative

THE POWER OF

Jonathan HarmanManaging Director, Royal Mail MarketReach

MAIL IN THEDIGITAL AGE

29 September 2015

80

OUR BELIEFS

81

POWER OF 1 TO 1

MARKETING

WE ONLY WINWHEN MAILUSERS WIN

VALUE INPARTNERSHIP

INSIGHT PROGRAMME

82

MAIL & EMAIL

PRIVATE LIFE OF

MAILWANT TO

TALK TO ME?

THIS TIME IT’S PERSONAL

TRANSACTIONALMAIL

THE FUTURE OF MAIL

PLANNING TOOLS

83

SKILLS

84

SME GUIDES

INCENTIVES

85

FIRST TIME USER

TESTING AND INNOVATION

INCENTIVE FOR

GROWTH

WHAT NEXT?

86

MEASURING IMPACT OF

DIRECT MAIL

PROGRAMMATIC

NEW PRODUCT

PRICING FOR CATALOGUES

MAILSHOTS ONLINE

MORE INSIGHT CATALOGUE CRITIQUE

WORKING WITH ROYAL MAIL

87

PLANNING DATA

INSIGHT INNOVATION

MARKETREACH

MEDIASPECIALISTS

OUR NEW MAILMEN

88

THANK YOU

89

07979 000 887

jonathan.harman@royalmail.com

Freepost MarketReach

@jonathanharman

Panel discussion

Gavin Hilton, Strategy Partner, VCCPme@gavinhilton @VCCPme

Jamie Cregan, Research & Planning Director, MC&C@MCandC

Jonathan Harman, Managing Director, Royal Mail MarketReach@jonathanharman @MarketReachUK

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Closing comments

Charles Ping, Chief Executive, Fuel

@Charles_Ping @FuelUK

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