Tag: direct mail

USPS wants quality over quantity

After years of managing volume, the U.S. Postal Service wants to instead manage mail quality, according to Hamilton Davison, Executive Director of the American Catalog Mailers Association.

Davison’s information stems from discussions with Postmaster General John E. Potter during ACMA’s National Catalog Advocacy & Strategy Forum last month. Potter suggested then that the USPS may soon become a much smaller organization that would not longer be handling more than 200 billion pieces a year, including 50 billion flats.

A big concern for catalogers remains the threats of do-not-mail legislation, as laws have been proposed in several states. Davison said Potter indicated that the responsibility will be in the hands of the mailer to clean up its lists. And that’s especially going to be a wake-up call for business-to-business mailers who have a harder time tracking career moves than consumer catalogers do residential change of addresses.

“I think do-not-mail has a spillover into the b-to-b community, though it’s really in the hearts and minds of the consumer,” Davison said. “Whether the consumer is in the home or the office, if it gets the message that catalogs are bad, that’s a real problem for us. We need to be proactive and do the right thing, and be on the right side of that issue.”

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Catalogers debate the value of mail preference services at ACMA forum

Cataloger Crate & Barrel’s John Seebeck, direct marketing business director, said industry self-regulation is the best approach to the potential threat of do-not-mail legislation during the American Catalog Mailers Association (ACMA) forum in Washington, DC on June 26.

Seebeck was joined by representatives from Gardener’s Supply Company, US Postal Service, the Direct Marketing Association (DMA) and nonprofit opt-out service Catalog Choice.

Do-not-mail legislation is one of the leading threats to the USPS’s business, said Marie Therese Dominguez, VP of government relations and public policy for the USPS.

The legislation is being pushed by consumer’s environmental concerns, as well as general annoyance with the amount of direct mail received, added Jerry Cerasale, SVP of Government Affairs for the DMA. For that reason, it’s important for marketers to listen to their customers regarding their mail preferences, he said.

The DMA, which has provided a mail preference service for more than 35 years, does not want to be a middleman, Cerasale said. It’s better if the customer and mailer communicate with each other directly, he added.

The mail industry has already been hit hard with last year’s rate increase, in addition to the current economic climate and the rising cost of paper. These factors have made Crate & Barrel a better marketer, Seebeck said. The company has cut circulation and the page count of its catalogs, and changed its contact strategies, he added.

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Royal Mail launches dedicated production helpline (UK)

Royal Mail is continuing to demonstrate its commitment to the direct marketing industry by launching a dedicated production helpline for production managers.

The initiative, manned by experienced production specialists, will offer over the phone support to agencies requiring immediate answers to production issues, including:

• Quick problem solving – effective solutions for postage weight issues, difficult formats and how to save money on P&P

• Instant technical advice – over the phone answers on pricing of items, Freepost artwork approval, PPI etc

• Extra mailing services – help with campaign management, Sameday service and approval for mail campaigns

Tim Hamill of Royal Mail said: “We are launching this new helpline in response to the feedback we have received from direct marketing agencies over the last few months. Print production is a tough job requiring answers to niggling questions on an ongoing basis. Through the helpline we want to relieve some of this pressure and really add value to our client relationships.”

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Advertising mail at record levels (U.S)

New figures from advertising authority Robert Coen show that advertisers used mail at record levels in 2007.

Mail spending rose 4.0 percent in 2007 to USD 60.998 billion, according to Coen, senior vice president, director of forecasting with Universal McCann, one of the largest advertising agencies in the world,

In the December 2007 issue of his “Insider’s Report,” Coen said that advertisers spent USD 283.88 billion on all media in 2007, a .07 percent increase over 2006. In effect, mail continues to represent one of every five dollars spent by U.S. advertisers.

Coen said Internet advertising increased 20 percent in 2007 to USD 10.92 billion — about one-sixth of the dollars spent with the mailstream. Newspapers took in USD 42.94 billion, down substantially from the USD 47.71 billion spent in 2006.

For 2008 Coen estimates that total ad spending will grow by 3.7 percent to USD 294.38 billion. expenditures for ad mail will grow at an even stronger pace. Coen predicts that for 2008 advertisers will spend USD 63.73 billion advertising through the mailstream, up 4.5 percent over 2007.

The fact is that advertisers will spend more money on direct mail than on promotions through radio, newspapers, magazines, network television, cable TV or the Internet.

According to the Postal Service consumers read 78 percent of the advertising mail they receive, nearly 10 percent respond to offers, and 21 percent bring coupons and ad mail with them when they shop.

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Marketers must invest in multichannel approach

Generating high levels of response, conversion or brand engagement is never easy in direct marketing. Unquestionably, it is vital to pick the right mix of channels. However, as channels have proliferated — mail, email, SMS, telemarketing— settling on the appropriate ones and giving them the optimum weighting is becoming more problematic.

“Consumers have preferences for different channels at different times of the day,” says Direct Marketing Association (DMA) director of media channel development, Robert Keitch. “No one channel is going to do it for you — end of story. The days of having a simplistic mix are gone.

It comes down to understanding who the customer is.”Consumer habits are evolving; for example, people now spend more time interacting with the web or their mobiles than sitting passively in front of the TV. Richard Higginbotham , head of marketing at marketing services provider CDMS, believes many marketers have as yet failed to exploit this shift.

“Once the customer has been identified, successful multi-channel implementation allows the marketer to actually contact the customer through the channel they prefer,” he says. “Ensuring customers are receiving communications through a medium to which they are responsive is key to producing customer satisfaction and improving ROI.”

There is plenty of evidence that a multichannel approach to direct marketing tends to deliver far better results than concentration on a single touchpoint. Research from Royal Mail, for instance, has found that integrating digital advertising with direct mail campaigns can increase customer spend by almost 25%, while 55% of ‘confident web users’ prefer to be contacted by a combination of direct mail and online .Anthony Miller, head of media development at Royal Mail, says this shows that consumers recognise the benefits of online, email and direct mail for different types of communications — and how well they work together.

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