Thought I'd share this - I found it very interesting...
Admail, is it the answer?
A new decade is upon us, and with that has come a renewed sense of optimism. Marketers may not know exactly what’s in store for the economy this year or beyond (we’ll leave the predictions to the economists), but many do have a better understanding of how to leverage their media mix to drive greater ROI. That’s because—and if there’s a silver lining to the recession, this is it—marketers have had to scrutinize and justify every marketing dollar spent. That has led to some aha moments for many direct marketers. Take the Web, for example. There was a time, not all that long ago, when many companies believed email—and other digital communications like mobile—would mean the end of direct mail. Yet, when we look at what’s happening today, nothing could be further from the truth.
In some instances, email is, in fact, the right communication tactic, and in others, direct mail (particularly those with a brand building objective). But what has surprised many marketers is that often times they work best in partnership, delivering a much stronger ROI together than they ever could apart.
The Great Email Vs Direct Mail Debate
DM has played second fiddle to email in recent years and the consequence is empty mailboxes. When study participants were asked about how they treat DM, 40% said that they opened them all the time, 27% said they opened them occasionally, while only 33% said they never open them. DM is tangible, and, when done right, makes a lasting impression.
DM is a non-intrusive channel that appeals to consumers’ five senses, evoking emotional reactions that drive purchase behaviours, explains Nadia Fiore, former marketing manager at Canada Post.
“When you think about the consumer, it makes a lot of sense,” says Fiore. “When they receive a direct mail piece and then a similar promotional email message or vice versa, the recall component comes into play. That recall is very influential in terms of purchasing behaviour.”
According to a 2009 Canada Post study, capitalizing the best of both tools, in the right circumstances, can attain a 300% lift in purchasing intent.
This finding is supported by a 2008 Belgium post office survey that showed combined email and DM lifted purchasing activity by 255%, and reduced cost per response by 25%.
Combining email and DM gets better results in the B2B arena, as well, according to OgilvyOne’s Stevenson. “It has a halo effect on email. DM is tangible and it can quickly raise the core value proposition to make one more predisposed to email, which makes quick click-through responses more likely.” Stevenson adds that permission-based email prospects are incredible catches. “If someone gives you their email at an early stage in the prospecting relationship, their close rate increases by up to 45%. This is because giving you an email address is a careful consideration, it’s a value exchange.”
Fiore points out that it’s important to keep in mind that consumers prefer to receive certain types of message one way or the other. For example, evidence shows that email is preferred for invitation to a webinar, newsletters and confirmation of purchases, while addressed mail is preferred to communicate special offers, information about new products, while also building customer relationships and strengthening your brand. And therein lies the fundamental fact to keep in mind when choosing the right media, for the right consumer, at the right time. “What’s the number one mega trend we’ve seen the last five years?” asks Stevenson.
“The consumer is in control.” They want a level of customized control, such as the choice between receiving a personalized paper communication in the mail or a digital file delivered through email, based on their preferences. So at the end of the day, reaching your consumer still involves a basic rule of thumb it would appear…“Know thy customer.”
