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Volumes in direct mail are continuing to fall in Britain with more than 5 billion items sent in 2006 – a dip of 2.1 percent, according to Royal Mail.

Figures from Royal Mail published earlier this month also showed that expenditure dropped by 2.1 percent to USD 4.55 billion from USD 4.66 billion. In addition, business-to-consumer direct mail volume was down 1.6 percent to just below 4 billion items. Business-to-business volume was down 3.6 percent to more than 1 billion items. Royal Mail remains bullish despite the results.

“This is the result of companies across all sectors improving their targeting to create even more relevant and personal offers for their customers and prospects,” said Leonora Corden, head of market development at Royal Mail.

The postal service said it experienced a decrease in mail volume of 4.6 percent during the last quarter of 2006 (October to December) with 958.69 million items sent compared with 1 billion mail pieces during the same period in 2005.

Despite this, several industries have increased their use of direct mail in Q4 2006. Building societies, for example, have increased use of DM by 18.8 percent. Building societies are British financial institutions that are owned by members and offer banking and other financial services.

A total of 15.92 million mailings were sent by building societies in the last quarter of 2006, up from 13.4 million in the same period in 2005, Royal Mail said. These strong results illustrate the importance of direct mail to the financial sector for driving sales and boosting customer retention. This growth can be attributed to the number of new product launches and services, along with the growing need to treat customers fairly and communicate the impact of interest rate rises on mortgages, savings and loans.

The insurance sector also experienced a small increase in direct mail volumes for the October to December period from 83.44 million items in 2005 to 83.87 million in 2006.

Direct marketing figures in the UK declined last year, according to Royal Mail, as direct mail volumes fell by 2.1 per cent.

This was despite sector growth, particularly from building societies, which boosted their direct mail volumes by more than 18 per cent.

A separate study by the postal service also revealed that consumers are receptive to discounts and offers received via doordrops and direct mail.

Some seven in ten people surveyed by TNS for Royal Mail used a free sample received as direct mail and 37.6 per cent used a discount voucher, while 15 per cent sought more information and 36 per cent at least read the mail before binning it.

Falling volumes despite a continued consumer engagement with direct mail could be attributed to a shift to online direct marketing. The Royal Mail study revealed a rise in direct mail targeting the 55- to 64-year-old age group – traditionally a less web-savvy demographic.

But a recent report from Axa found that so-called silver surfers are on the increase, something that can´t have escaped the online direct marketing community.

The survey revealed that 41 per cent of retired people preferred surfing the internet to other more traditional hobbies such as gardening and DIY