Tag Archives: direct mail

Consumers differ to marketers in attitudes to social media

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Marketers are disconnected from the attitudes of the consumers they are tasked with reaching, claims new survey data, with almost 60% of consumers having ceased engagement with multiple brands because of poorly targeted communications.

The data, from information services firm Experian, is the result of a survey of 1000 consumers and 330 Australian marketing professionals from the retail, financial services, government, technology, digital and travel industries.

Giveaways and incentives topped the list of consumers’ most preferred way to engage with brands, with 70% placing this method in their top three preferred ways to receive information from brands.

Marketers and consumers were in agreement regarding brand websites, with 91% and 85%, respectively, naming them the most important source of information on products and brands.

However, a disconnect was found in attitudes to print and social media. Consumers value print media (70%) and direct mail (60%) more highly than social media, but marketers apparently see print media as one of the least important sources of information, with only 28% naming it an important channel for communicating.

The survey also looked into consumer trust of marketing channels, and found consumers are east trustful of newer channels such as social media and SMS for communicating with brands. Almost 30% of consumers put social media in their bottom three trusted channels, while only 4% said it was the channel they trusted most.

Matt Glasner, general manager of Experian Marketing Solutions believes this can be attributed to the relative infancy of social media’s use in marketing, as well as the fact that while 89% of Australian marketers now use a customer segmentation strategy in general, this strategy may not be applied to newer communication channels such as social media.

But Glasner points out that this is comparable to where email and EDM marketing was at five years ago: “The challenges uncovered by the research are similar to the barriers we saw five or so years ago when customers lacked trust in emails and EDMs. Yet, for many brands, these are now common place communication channels which are highly valued by customers.”

Over the next year, however, most marketers are planning to increase investment in social media advertising and developing the channel.

“Marketers are working hard to ensure their messages are heard. However, our research highlights that there is still a huge opportunity for marketers to further understand how and when consumers want to engage across all channels, including social media,” says Glasner.

Glasner believes opportunity lies in bringing the level of consumer segmentation seen in traditional channels to social media campaigns, and warns that the era of multichannel marketing brings the challenge of information overload to the fore, and that marketers must be more selective than ever in their choices of communication.

Moments with marketers: Sal Farrow

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Marketingmag.com.au chats to Sal Farrow – founder of New Media Marketing and freelance consultant. If you would like to see a certain
marketer profiled, please email your suggestion to Sean Greaney on sean.greaney@niche.com.au.

What do you do?

I set up my own marketing consultancy this year, New Media Marketing, after 10 years as a corporate warrior for the likes of NRMA, Optus, AMP, technology and online agencies and various pay TV channels. I still occasionally moonlight as a marketing consultant in the CBD for various corporates also.

I recently moved to the beautiful Southern Highlands of NSW and now gain much inspiration working from a home office looking out across our own park-like backyard completed by trees exploding with blossoms.

What was your first job?

Working at the local bakery in highschool and subsequently recruiting my two closest friends to come and work there…I figured if I had to work, I would make it as fun as possible!

My first professional job was for World Movies, a pay TV channel, in a small tightknit team where everyone pitched in and was exposed to all facets of the business. Being a niche TV channel with a small but loyal customer base, I fell in love with the power of customer loyalty. From there I knew that marketing was that elusive ‘thing’ I wanted to do with my career.

What did you study?

Graphic design then moved into a fine arts degree – painting, drawing, photography and digital media. It was fun, but I worked out pretty quickly by my marks, that I was far better at being conceptually creative, than I was at manually creating fine art.

Describe a typical day?

6-8am – Wake and rumble with the kids, get kid’s breakfast and dressed, make poached eggs and double shot espresso to kick start the day. 

8.30am – Head upstairs to home office and discuss joint ventures or meetings scheduled that day with husband who runs a graphic design business from home office also. Check emails, read industry news and indulge the crazy inner Virgo by writing a prioritised list of the days work activities ahead.

8.30-12.30pm – Client meetings, often at a picturesque vineyard or one of a myriad of groovy little cafés around Bowral. Check through campaign data, clean up client lists and put together stats from various campaigns.  Ghost write client Twitter and Facebook feeds, update their websites and draft a press release or two.

Lunchtime – Get some fresh air outside with the kids for a while before they head off for a nap.

Afternoons – Design HTML email templates (yep, studying graphic design at uni did come in handy), write a set of variable campaign messages for upcoming campaigns and finish off all the top priority items on the list.

5.30pm – Head downstairs for some crazy games and run around the garden with the kids, collect kindling ready to set the open fire. Discover to our horror that we have run out of wine -– make a quick dash into town and grab some, then remember to buy milk on the way home.

7pm – Dinner, bath and bed for the kids, then crack open a bottle of red for a few glasses by the open fire.

Hang out with hubby solving the world’s problems, discussing business ideas, laughing at how funny the kids have been, sneak in a bit of TV or head back to the office for a few hours work to get ahead for the next day.

Big cup of tea and congratulate myself if it is before 12pm that I hop into bed…

What is on the agenda for the next year?

Continue to build my client base, grow the businesses of my current clients, help friends and family get businesses up and running and possibly squeeze in a long overdue trip to the USA to see friends.

What brand do you love the most? Dislike the most? Why?

I believe simplicity is the key to a good brand, so Apple would have to be the class leader in that field at the moment. They have a simple colour palette, simple advertisements, a simple operating system, simple plug and play products – all of which mask very complex technology. I love the concept that once something is simple for a user find ways to make it simpler again.

As a parent, I would sadly have to say that [the brand I dislike most] is The Wiggles (sorry guys). Must they bombard every aisle of the supermarket with their products!

What do you believe has been the most significant moment in the history of marketing?

I would have to say the development of email as a DM delivery mechanism. Plus it has certainly saved a lot of trees from the fate of being formed into an intricately crafted DM Pack with sliding panels and spot varnish!

Where can people find you?

Direct marketers told to lift their game

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Mark Buckman, CMO of the Commonwealth Bank, has taken aim at the direct marketing industry.

Buckman criticised the industry view that a 2% response rate was a great result, pointing out a recent Commonwealth Bank direct marketing campaign had enjoyed a 20% response rate. He said a 98% non-response rate was not good enough for the Commonwealth Bank and it shouldn’t be good enough for other clients.

According to the Commercial Economic Advisory Service of Australia, marketers spent approximately $3.2 billion on direct mail, catalogues and promotional letters in 2007. The Commonwealth Bank alone spends about $30 million annually on direct mail.

Buckman continued saying, “Most direct marketing is junk. It’s dumb because it’s lazy marketing, it’s void of data insights and has no clear targeting, no clear offer, and no real reason for customers to take those offers up because often it doesn’t reflect what the brand stands for.”

He also quoted statistics stating an average of only 2.8% of direct mail produces a result, meaning direct marketers send out 36 pieces of mail for every response. Buckman told the audience that if data and targeting aren’t embraced, many will not be sitting at ADMA 2013.

Agreeing with his sentiments, head of Euro RSCG, Paul Bennett said, There is quite a lot of inertia in clients and the current recession is highlighting the need to be more measurable. Lets face it, in an environment of plenty measurability was important but not crucial.”

New Nissan campaign mixes direct mail with AR

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WhybinTBWATEQUILA has released a campaign for automotive giant Nissan, combing direct mail and augmented reality (AR) for the launch of the companys new 370Z.

To celebrate the 40th anniversary of Nissan’s Z range the agency has sent a steering wheel via the post, inviting existing and potential customers to take the 370Z for a virtual ‘3D spin’ using the relative new AR technology that allows the user to hold the wheel up to a webcam (or some mobile handsets) and see a 3D model of the 370Z appear on their screen.

“There is nothing unusual about directing audiences to a website from a direct mail pack. ‘Take the Wheel’, however, takes it a step beyond, integrating the two channels to provide a bigger, more involving customer experience. The user is invited to participate in a ‘virtual’ sense before making a decision to book a ‘real-world’ test drive,” said Tim Knight, managing director of TEQUILA Australia.

The technology means that when users turn the steering wheel, the 370Z turns, and can operate the driving light.

The agency believes that linking direct mail with the latest digital technologies offers Nissan customers a ‘new, fun and different way to virtually experience the 370Z’.

Users who haven’t received the wheel can download and print a page with the AR code from the Nissan website.

“Not only with the 370Z but with all Nissan products, everyone at Nissan, along with our Agency partners, are focussed on making our campaigns as integrated, innovative and hard-working as possible. The 370Z is a marquee car for us and this is a marquee campaign,” said Damon Paull, Nissan Australia product and marketing manager.

TaguchiMail: not a Japanese fad!

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No, it’s not mail sent by tiny interactive kids toys. I assure you that this is completely different.

According to this company, the shotgun approach to email marketing could become obsolete due to the new software developed by Melburnian Ben Dyer.

Learning to paint on the family Mac Plus computer before he could walk, 23-year-old Dyer developed a core optimisation algorithm that powers TaguchiMail, software that ‘dynamically optimises email marketing campaigns in real-time’.

As TaguchiMail’s chief technology officer, Dyer asserts that the software enables clients to improve the effectiveness of their email campaigns throughout the broadcast cycle.

This allows subscribers to receive the email they’re interested in, at a frequency that suits them, so they’re more likely to click-through and convert.

“If consumers receive unwanted or useless emails, they mark it as spam and this can do severe damage to your brand. TaguchiMail does multivariate testing in real time with different subject lines, headlines and calls-to-action to determine the email messages that subscribers receive,” Dyer explains.

So rather than sending one message to 100,000 people, and engaging five percent of them, the system sends 100 different messages to 100,000 people and engages a much larger proportion.

If you’re worried that your emails are being swatted away as rubbish, this software could give you the opportunity to hit your target more often.

ADMA distances itself from pornographic mailshot

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And who says DM isnt sexy?

CEO of the Australian Direct Marketing Association (ADMA), Mr Rob Edwards, said recently that ADMA in no way endorses a pornographic catalogue that has been mailed to a large number of consumers.

“We do not endorse this material, to the contrary it is extremely offensive and we will be doing our utmost to protect ADMA’s strong brand by taking appropriate legal action against the publishers,” Mr Edwards said.

“Further, we have referred the material to the relevant authorities, including the Classification Board, and we would hope that they take urgent and appropriate action.”

The National Classification Code under the Federal Classification (Publications, Films and Computer Games) Act 1995 contains the general principles which form the basis of the Classification Guidelines and states the following.

“Classification decisions are to give effect, as far as possible, to the following principles:

  • (a) adults should be able to read, hear and see what they want;

  • (b) minors should be protected from material likely to harm or disturb them;

  • (c) everyone should be protected from exposure to unsolicited material that they find offensive;

  • (d) the need to take account of community concerns about:

  •                (i) depictions that condone or incite violence, particularly sexual violence; and

  •                (ii) the portrayal of persons in a demeaning manner.”

“The unsolicited catalogue in question has not been produced by an ADMA member. It is not endorsed by ADMA and it is totally irresponsible marketing,” Mr Edwards said.

“Ultimately the Classification Board may decide just how offensive this catalogue is but in ADMA’s view this kind of unsolicited material is totally unacceptable.”

We can sell anything but ourselves: Australia Post respond to Open Up To Mail critique

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In the August 08 issue of Marketing magazine, Andy Pontin, CEO of Clemenger Proximity, argues that Australia Posts recent print campaign Open Up To Mail spends too much time apologising for the industry and not enough time encouraging. To read Andys article from the August issue, click the icon below:

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In response to Andys piece, Australia Posts Mark Roberts, manager, mail marketing has written his own short post, so read it below and make your own mind up about the Open Up To Mail campaign:

The campaign is targeted at non-users of mail who dont have mail on their channel-planning radar, often because of some negative perceptions about its creativity and effectiveness, especially in light of the growth of digital. Andy is a passionate direct marketer – not the target market for this campaign. Its about the people who dont even realise direct mail is a legitimate marketing channel. The people who have been caught up in the digital wave and think that anything paper-based is old fashioned and ineffective.

Andy has awarded the campaign an A for awareness, however the F for desire is unfair given he hasnt received the direct mail pieces (arguably the most important element of the whole campaign – but not sent to him as that would be preaching to the converted). The press element is all about getting awareness, with a creative concept that jolts people out of their traditional channel-planning haze and gets them to reconsider mail. The direct mail component demonstrates the benefits raised in the press – by showing people what they can do with mail were encouraging them to imagine and see the possibilities for their own products. Its also unclear if Andy has visited the campaign website (openuptomail.com.au), which expands on the key elements introduced through the press and direct mail – so in short, hes not seeing the whole integrated campaign.

As far as waving the white flag with our creative concept, perhaps Andy has been caught up in the notion of doing something thats cool, rather than what works. Rather than being apologetic, this campaign idea reveals a truth about direct mail based on the audience we are trying to reach. Once we have the attention of the reader the body copy clearly goes into sales mode and provides key reasons to consider mail. Given the target audience and the weight of other media channel campaigns recently in the market, we needed something that would stand out, and make people stop and rethink their attitude to mail. We didnt want to go out with a campaign that was obvious, or that made people think well of course youd say that – we needed to challenge.

And by all accounts, were starting to do just that. Despite Andys concerns, this campaign has a large number of supporters across the direct mail industry, who have joined with us to wave the flag for direct mail – and in our eyes and theirs, its certainly not a white one.

So what do you think? Do you agree with Andy or Mark? What do you think of the Open Up To Mail print campaign?

Permission to Personalise

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As I write this entry, Im travelling at 831kph at 12,002m above sea level, balancing my oversized laptop on my legs while trapped between two armrests that obviously werent designed to let people use computers on planes. OK, its a Virgin Blue flight, so I guess I really shouldnt be surprised. But what did surprise me were the greetings I received on boarding.

Time travel

The first greeting was in form of a decal, plastered to the side of the aircraft door, that proudly announced Welcome aboard the best on-time airline in Australia. The irony was that the flight was already 39 minutes late, and this off-time departure seems to be a consistent pattern across my interstate lue travels over the past few weeks.

Permission to call you by your first name, sir?

The second, and rather more significant greeting was the friendly air stewardess who, on presentation of my boarding pass greeted me with Hello Eliot, your seat is down there on the right. Now wait a minute, have we met before? Am I some famous celebrity? I dont believe so. And when did I give you permission to address me by my first name? Alas, it seems all Virgin Blue crew are programmed to greet passengers in this way.

Addressing someone verbally by their first name who youve never met before and dont have an existing relationship with can feel intimidating, intrusive and somewhat offensive. But we manage to get away with it in other forms of communication. Take direct mail, for example. If I receive a personalised mail piece addressed Dear Eliot… and I dont have an existing relationship with the sender, I dont perceive this communication to be intrusive or offensive. Even if my name is incorporated in a printed image, to produce the effect that Eliot is written in sand, clouds or in other scenery doesnt upset me in the slightest. In fact, it grabs my attention and creates a relationship.

Theres a time and a place

Personalisation can be highly effective when used across the right communication mediums. Visual media such as print, e-mail and even Web pages are all acceptable mediums for addressing audiences at a personal level, without requiring their prior permission. But thats really where personalised communication should stop for non-celebrities, like us.

If you liked this post, check out the Related Articles over in the sidebar. You might also consider reading some of Eliots other posts.

Business Card DM

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Business cards are an annoyance to many of us. We feel under
obligation to take these little cards in exchange for ours. But we
dont know what to do with them. They collect themselves into little
untidy piles on the corner of our desks that are eventually filed or
thrown away.

Many of us regard business cards as just another piece of
pre-printed office stationery. Its true, business cards are
stationery, but they can be more than that. Much more. Behind every
business card is an opportunity for direct marketing waiting to jump
out.

Business cards can be a very effective method of communicating your
brand, but can they be used in direct marketing? Absolutely. You cant
get more direct than actually handing your card to
your prospect or customer. These cards include your contact information
and response can easily be measured.

But unfortunately business cards generally arent inspiring direct
marketing pieces. But what if your card could cut-through others? What
if you had a business card that was so effective that your audience
would feel affection for your card, treating it as a higly coveted
trading card and even showing it off to others?

Well, there are many examples of effective marketing in business
cards. With a little effort, you can transform your card into an
effective mini-DM piece that cuts through and generates interest.

Check out the images and links below to some really inspiring
business card designs and start thinking differently about the most
portable form of DM going.

Uni fails to make the grade

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I picked up a story in the SMH recently that reported how Sydney Uni had failed to make the grade with their latest DM campaign. The mail piece targeted alumni with realistic transcripts of academic records marked Fail. The campaign also invited the unlucky graduates to a mock banquet of tap water, white bread and baked beans or two minute noodles.

Calls from concerned graduates started flooding in thinking they had actually been issued a fail grade. It turns out that the mail piece was nothing more than a fundraising campaign, with the objective of informing alumni that current students often fail to make their grades as employment demands prevent them from attending classes. They encouraged alumni to respond by donating to the Student Relief Fund.

Judging from the level of complaints, the creative was obviously convincing for some – some naive alumni, that is. How someone can really believe theyve suddenly failed uni, having walked at their graduation and have the certificate somewhere to prove it, stumps me. Also, surely the accompanying DM letter would quickly make recipients realise that this is actually a fundraising campaign, not a real transcript and banquet invitation. Actually, the copywriting in the supporting letter is quite strong — its clear and holds interest.

Theres no doubt that the piece had impact, although maybe the creative was somewhat on the risky side. Quite funny though. Sydney Uni apologised and promised rigorous testing before future alumni mailings. Im not sure why they didnt think of testing in the first place.

One thing is for certain, through the exposure in a major broadsheet paper which has a weekday readership of 995,000 (source: Roy Morgan) its definitely gained public awareness of this growing student employment issue.

Fenders, fruit flies and pickled onions: the power of catalogues

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Its official. I think I’m turning into a 55yr+ female.

Its not just the grey hair – but last week I purchased a fruit bowl with matching fly screen and a tea bag squeezer from the Home Care catalogue. Whats weird is I dont have a particular problem with fruit flies or tea bags. I just love catalogues. Always have done. At the tender age of 14 I ordered a Fender Stratocaster from a popular catalogue, and used it for one gig before sending it back within the fortnight for a full refund (yes my band was that bad).

How is it that those glossy sirens can have you reaching for your credit card before you can say Long Handled Pickled Onion Fork? Its not glamorous but the copywriters have me seriously doubting my own dexterity with a standard kitchen utensil.

Just why does everything in a catalogue sound so appealing? Are there genuine gaps in the market for so many gadgets and appliances, or is it little more than clever copy that has us buying into this promise of an easier life in the kitchen?

Doing it Digital

Online shopping may be a wave of the future. But by dropping everything to go digital, arent we neglecting an entire sales channel? By and large, the uptake of the internet in the over 60s is relatively slow and low. There are exceptions to the rule, but I find it hard to picture an army of pensioners with PCs burning up bandwidth as they surf the latest from Lasoo.com.au or Cataloguecentral.com.au.

At a time when we profess to admire all things green, 50-odd pages through the letterbox might not appear to be very eco-friendly – especially if duplicates are received. However, it has been my experience that mail order direct marketers are some of the best data planners in Australia, and its worth noting that the percentage of overall waste paper generated by mail order is not particularly large.

People today tend to have shorter attention spans, so the question of whether they form a strong brand association with mail order catalogues is up for debate. But if out of sight is out of mind, closing your internet browser and powering down may leave your mind wandering while the dog-eared pages of a catalogue can keep tempting you from the prime position of the corner of the coffee table.

Trash or Treasure?

Even many consumers who claim to hate junk mail cant resist the guilty pleasure of a quick flick through a good catalogue. Theres a certain kind of anticipation that comes from turning a crisp and colourful page thats reminiscent of Christmas coming. And its not just the oldies. How many kids around Australia flick through the weekly Kmart and Target mini catalogues that tease them and unnerve their parents with the lastest monster toy sale?

Whats more, you can window shop without leaving the house and take your credit card for a work out from your own comfy lounge. And mail order is a quick fix for an impulse purchaser, with the built-in safety net of a 90 day return policy for buyers remorse.

Once you succumb its difficult to kick the habit, and it starts to affect your work life as well. Ive caught myself reading the recent Officeworks catalogue, and anti-fatigue mats and pre-inked rubber stamps are seriously working their way up the list of must-have office accessories.

Perhaps I am getting old(er) but if youre feeling jaded you could do a lot worse than taking some time out with a good, old fashioned catalogue and observe the masters at work. Go on treat yourself – who knows what you might decide you need.

Do catalogues have the same effect on you as they do on me?

RIP direct mail

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I love to collect direct mail, like a bizarre obsession. Over the years Ive built up a personal collection of the good, bad and very ugly DM pieces worthy of a home in my office drawer. One of my prize pieces is exactly that; a prize letter.

It wasnt sent to me but addressed to the previous occupant of our unit, so naturally I opened it. It was one of those catalogue mail DM pieces with the all too familar unclaimed sweepstake call to action. I remember first seeing these offers 20 years ago and theyre still flooding letterboxes today.

20 years on and I really cant believe that theres an audience out there stupid enough to fall for this offer. While Im guessing the target audience is probably little 80 year old ladies figuring out how to best spend their kids inheritance, surely theyre tuned in to what can only be a misleading scam.

The piece arrived in my mailbox in an envelope marked PRIORITY DEADLINE. I guessed it must be important. But wait, there was also a tracking number printed on the envelope. Now, any untrained eye can spot that this tracking number was anything but unique – it had been printed using the same process as the rest of the envelope. Also, if it really was a priority tracked letter, then why did it land in my mailbox? Shouldnt I have signed for it? As a finishing touch, the envelope included a sender details label, printed in a handwriting font, stating that my prize notification letter is waiting for me inside. If there really was a prize notification inisde, wouldnt this be the last thing to appear on the envelope? Do banks regularly send out PIN numbers and credit cards in envelopes which state their sensitive content?

But if this really is a compelling enough reason for the recipient to open the envelope, then inside theyll discover a two-page letter, which includes an official looking $100K voucher for an unclaimed sweepstake prize The prize amount on the voucher is printed using a cheque-style MICR font and even features a printed red seal just for added authenticity.

One thing that confuses me about the letter (and other DM letters I regulalry receive) is that the typeface is set in Courier. Please can someone tell me why marketers still choose to send out direct mail using Courier? If you can give me a valid answer, then Ill add you to my draw for the $100K sweepstake prize. It appears the United States Postal Service has an answer, in fact, they encourage marketers to use Courier for direct mail on their Web site, which explains:

You might want to consider formatting the entire letter in the Courier font. Its the most commonly used and because it looks like a typewriter made it, it gives the feeling that the letter was written specifically for that consumer.

Now hang on a minute, a typewriter made it? I dont know about the US, but the rest of the world stopped using typewriters soon after computers came along. No one uses a typewriter today, and certainly not for direct marketing. Secondly, are you trying to tell me that a consumer is naive or stupid enough to believe that the letter was personally typed for them on a typewriter?

Courier is hardly a readable typeface either. For a document of any significant length, you really should pick an serif typeface. My eyes get sore just from looking at Couriers ascenders and descenders. But wait, this isnt any typewritten letter, its personalised to the recipient – highly personalised in fact, with the recipents name appearing no less than five times scattered throughout the copy.

My final gripe with this piece is that it includes a prize claim ticket which the recipent can cut out and attach to the enclosed reply form. Ive never understood the logic behind this. Dont you want to make it as easy as possible for the recipent to respond? Why not include the lucky claim ticket on the reply form in the first place? Even if the recipient is deliberately misled into thinking this is a real claim ticket, surely its an added inconvience for them to cut it out and stick it on another piece of paper, right?

While these types of mail pieces are obviously targeting a specific audience and they must be effective to a point (which is why theyre still used today), I think the specific audience (almost exclusively pensioners) is being exploited in getting them to take an action and ultimately a purchasing decision to buy products that they probably dont need or want – all based on a misleading offer. These types of offers surely raise some ethical concerns in todays culture and its this very type of direct marketing that is raising the attention of the Australian Law Reform Commission (ALRC) and is causing them to recommend changes to the Privacy Act (see my earlier forum posting).

My final point is that this is a very poor use of personalisation. The sender has fallen into the classic pitfall of using personalisation for the sake of it–just because you can do it, doesnt mean you should. Personalisation is all about relevance. Dont get me wrong, Im a big supporter of using recipient information in direct marketing, but it should be used responsibly to add relevance to the piece. This type of personalisation just adds noise to the copy and de-values personalisation as an effective marketing tool. It adds noise to the mailbox and makes it harder to distinguish between what are relevant direct mail pieces.

Im wondering how much longer this DM will continue to exist. Surely the target audience will completely die off (literally speaking) in the very near future. When they do, hopefully this will also be the grave for this type of direct mail.

RIP. No flowers, please. Donations, if desired, to the Australian Direct Marketing Association.