Traditional printed circulars have proven to be significantly more popular and effective among today’s shoppers than electronic-based direct marketing materials, according to a new Nielsen survey.

The market research company’s Evolution of Circulars survey, published last month, found that printed marketing materials such as direct mail, newspaper inserts, and in-store catalogues were the most popular of all retail-related direct marketing materials, with roughly 60 per cent of consumers looking at them once a week.

Additionally, the survey unearthed a surprise finding that direct mail is marginally more effective on the ‘Millenial’ generation than on the older Generation-X shoppers, confounding the common belief that the future of marketing will be solely online.

Taking in a sample number of 11,000 shoppers, the Nielsen poll also found that a whopping 90 per cent of shoppers surveyed wished to continue receiving paper-based marketing materials at home or in-store, while only 70 per cent expressed the desire for electronic messaging delivery.

One of the trends picked up in the survey was the shift of in-store marketing materials to mobile devices, with 18 per cent of shoppers using a mobile phone to see what’s available in-store and 33 per cent using a tablet device, with almost two-thirds of shoppers researching that information from home computers.

What the direct marketing industry can take away from this survey is the knowledge that, while digital and mobile marketing channels are well and truly on the rise, it will not be to the detriment of traditional channels, but in addition to printed marketing materials.

Source: Directmag

Koreans are the second most hardest working people in the world. For them going grocery shopping once a week is seen as a dreaded task.

Tesco (now known in South Korea as Home plus) decided to make shopping easier for Koreans by setting up virtual stores in locations such as subway stations walls using large printed backlit displays. People could then purchase items seen on the wall by scanning QR Codes with their mobile phones, adding each item to their shopping carts. Couriers would then deliver the goods to their homes.

Not only did Tesco investigate their market and provide a solution to a problem, they also increased their online sales by 130%.

Facebook and Google have both been reaching out to prospects recently, using direct mail and print as part of their marketing effort.

Yep, that’s right. The two biggest companies in the worlds of online marketing and social media are using a channel that many marketers continue to shy away from.

In both cases, Google and Facebook are reaching out to people to promote their advertising platforms (Google AdWords and Facebook Ads, respectively).

If you are a marketer, then this may be worth paying attention to the next time you contemplate cutting direct mail or print out of your marketing budget.

If Google and Facebook are using direct mail and print to make an impact on their target audience, then you probably should too. Call us at CQ. We can do the same for you.

In a classic Seinfeld episode, the comedian joked, “There’s good naked and bad naked.” So it is with personalization. There’s good personalization and bad personalization.

The goal of personalized communication, whether it’s in print or email, is to create a message that is relevant to the recipient and engages the recipient in a relationship with the marketer. While some may think that more personalization is  better, that’s not always the case. You have to be careful what and how you personalize.

I got a personalized contact today that unnerved me out and made me want to immediately end my relationship with the sender. If it had been from a marketer rather than a potential client, I would have.

The sender is a someone who, as part of his ministry, is beginning to send out daily inspirational emails.

The first contact was a welcome email, addressing me by name. Nicely done. Although adding names to emails is easy these days, I appreciated the extra effort.

The next day, I received my first daily email, which could be accessed using an email link. Clearly, he was tracking responses. So far, so good.

The next day, I received my next daily email. I didn’t have time to read it, so I left it unopened.

Today, I received the daily email and gasped.

Dear, Heidi.

You haven’t read your last lesson so this is a reminder to login and read your latest lesson below.

Agh! Personalization gone amuck.

First, there had only been 24 hours between the initial email and the reminder. Then there was the issue of the wording. I am tracking you—watching you from afar—so I know you haven’t opened the email yet. You signed up to read these, Heidi, and since I’m monitoring you, I’ve noticed that you are slacking. Get on the stick, girl!

That may not be what he intended, but that’s what he wrote.

It drives home just how important it is to think through how, when, and why you (and your clients) contact customers and prospects with personalized information. How is this personalization being used? How will it be received by the target? Will it be welcomed as a relevant, helpful communication? Or will it make them feel invaded?

Remember that personalization, on its own, does little. Done wrong, it actually can be harmful. Personalization is simply a tool. Be careful how you use it.

Though businesses now have more communication channels to reach consumers than ever before, marketing expert David Jackson recently argued on Promotion World that direct mail marketing is still an effective way to generate sales.

Jackson asserts that a properly executed direct mail campaign still provides a "solid return on investment." Citing a recent study conducted by the Direct Marketing Association, he says that direct mail marketing expenditures are expected to increase by more than $1 billion during 2010.

Consumers are also eagerly welcoming the influx of mailers. Referring to the same study, Jackson claims 79 percent of U.S. households either completely read or skim through direct mail messages sent to their homes. Meanwhile, a survey conducted by postal automation firm Pitney Bowes found that consumers still prefer physical mail over digital communication channels, relays the source.

Consumers are especially accepting of postal messages containing confidential statements or new product announcements. Jackson writes that

• 73 percent of respondents prefer direct mail to receive information about new items,
• while 86 percent would rather receive private communications through postal mail.
• In both cases, consumers reveal a strong preference for postal messages over digital mail.

Pitney Bowes’ survey also indicates that

• 31 percent of mail recipients tend not to throw away unopened postal messages, ranging from brochures to envelopes,
• whereas 53 percent are likely to delete unopened email messages.

Additionally, many consumers find direct mail to be less intrusive than unsolicited emails and phone calls.

• Nearly half of respondents (43.2 percent) said direct mail was more convenient,
• while 30.2 percent indicated the sales environment was less high pressured.
• This translated into greater responses overall, with 12 percent claiming direct mail was more persuasive.

"If you haven’t considered trying direct mail, maybe you should. A properly executed direct mail campaign combined with online marketing methods could be an unbeatable combination," Jackson wrote.

The effectiveness of direct mail marketing has caused many businesses to adopt the channel. According to a recent report from the Global Insight Analysts, direct mail expenditures are expected to hit $25.45 billion globally by 2015. The firm cites direct mail’s physical presence as its biggest selling point, especially in comparison to digital channels.

While many businesses are increasingly adopting digital marketing practices, new research conducted by Global Industry Analysts indicates that companies are also boosting their ad spend on direct mail marketing materials.

As Global Industry Analysts notes, direct mail has numerous advantages over other advertising mediums.

• The platform has the unique ability to affect consumers’ sense of touch,
• and mailers are also often personalized, maximizing the impact pieces can have on consumers.
• Additionally, the source claims that customers treat postal mail with higher regard in comparison to other marketing channels.

According to the report, the direct mail industry is gaining steady momentum in today’s digital world. Global Industry Analysts predicts that global marketing expenditures for postal mail will reach $25.45 billion in the immediate and near future.

The growth of the platform is largely buoyed by the effectiveness of the channel to reach consumers regardless of their income. Whereas online, television and other platforms depend on potential customers subscribing to a service to receive a message, anyone with a home can be contacted through direct mail.

In an effort to stave off advances by other platforms, companies are beginning to innovate the way they design creative pieces. For example,

• multidimensional mailers can help entrepreneurs create lasting impressions on consumer.
• Global Industry Analysts predicts that, as a result, the market for creative direct mail development will reach $200 million before 2012 in the United States.

Additionally, direct mail can be used to bolster the effects of digital marketing campaigns. For instance, using tracking technology, businesses could send consumers an email message on the same day a direct mail piece is set to arrive or they could use QR codes to drive recipients online to their retail websites.

"The direct mail advertising market will also stand to benefit from the growing importance of one-to-one interactive marketing and its role in effectively engaging thousands of prospective customers on a personal level," says the source.

Global Industry Analysts’ report echoes recent research conducted by MagnaGlobal. According to the marketing insights firm, direct mail will account for $19.17 billion ad spend worldwide during 2010, making it the top channel globally. MagnaGlobal expects direct mail to be used primarily by large corporations, though small and mid-size business owners will similarly be able to effectively integrate it into their marketing initiatives.

One way to increase the ROI of a direct mail marketing campaign is to include a promotional offer, exclusive to recipients of the mailing.

For example, a restaurant that wants to send out postcards to recruit new customers and retain existing ones should feature

• high-quality and attention-grabbing graphics of the decor and food
• a sample of menu items
• contact details
• and even a small map showing customers how to find the restaurant.

Yet in addition to all of these features, the restaurant should offer some kind of discount or promotion to the postcard recipients, such as a free appetizer or dessert, or a two-for-one meal.

Though some businesses may get the impression that doing so makes them look less professional or classy, the realities of the recession have overridden any potential negative connotations with coupons and discounts.

In fact, a recent survey from Nielsen found that affluent consumers are actually among the most frequent coupon users – 39 percent of consumers who earn more than $70,000 are classified as "super heavy" coupon users, while 42 percent fall into the category of "coupon enthusiasts."

Therefore, even high-end businesses should not shy away from using coupons in their direct mailings, as any incentive or discount will likely boost sales.

This is especially the case now that competition can be fierce  – and coupons may make the difference for a customer choosing between one business and another.

A study released this week regarding online retail coupons captured the make-or-break nature of promotions in today’s economic environment, showing that 30 percent of online adults will not make a purchase at an online store if they cannot find a coupon for that store – marking a 3 percent increase from 2008 – while 22 percent of online adults will go to a different store to make that purchase.

One way to measure the effectiveness of a coupon-focused direct mailing campaign is to require that the recipient brings the coupon into the store or business in order to receive the discount. Doing so can allow the business to compare the number of people who received the mailing with the number that brought the coupon in for use, guiding any changes to the campaign such as the mailing list or the offer itself.

Sometimes it’s fun – and profitable – to use a marketing gimmick, by introducing an intentional error into your direct mail campaign.

Not long ago, Jeff Kaller mailed a mountain of postcards driving people to call – the wrong number. Followed by mailings apologizing for and correcting the mistake.

And getting better than ever response.

In another case a sales letter and registration form was sent out for a very pricey event with the dates, place and price missing. Nearly 70% called to inform the sender of the mistakes: some irritated, some trying to be helpful. This put 70% on the phone with his three telemarketers, who closed half during the calls; net 35% registration vs. best ever prior sign-up rate from same customers for comparable events, 15%.

Joe Sugarman gave discounts and rewards to people who found the most mistakes in his ads. The technical term for this is: involvement.

Intentional errors… are they gimmicks, or are they ‘hooks’?

You’ll know once the responses start coming in!

One of the findings of a recent (June 2009) social media survey of U.S. marketing executives is that direct marketing is expected by far to have the greatest impact on the success of companies and brands in the new year.

When marketers were asked, “Which of the following will have the most impact on the success of your company or brand over the next years?” nearly half gave the nod to direct marketing.

Despite the firm belief in direct marketing’s on company and brand success, the survey finds that in companies where funds are being shifted for expansion of social media, 40% is coming from direct marketing, 48% from advertising, 29% from media planning and buying, and 18% from public relations.

About: The 2009 PRWeek/MS&L Social Media survey was conducted by PRWeek and CA Walker.

Wall Street Journal, 12 January 2010

Looking to cut costs amid the recession, Alicia Settle initially thought it would be a good idea to eliminate her company’s annual direct mailing.

Spending about $20,000 on the personally signed letters, which offered customers a discount on early orders, seemed indulgent for Per Annum Inc., which sells city diaries, albums, and planners in the struggling corporate gift market. But after swapping snail mail for email last year, Ms. Settle saw a 25% drop in early orders compared with the same period the previous year.

"We realized we had made a huge mistake," says Ms. Settle, president of the New York firm.

The affordability of e-marketing, along with the explosion of social media and the desire to trim costs in the recession, has prompted many small companies like Per Annum to slash traditional direct-mail budgets. U.S. consumers received about 5.2 billion pieces of direct mail in the third quarter of 2009, a 27% decline compared with 7.1 billion in the same period a year earlier, according to Mintel Comperemedia, a research firm that tracks direct-mail marketing.

However, some entrepreneurs who were quick to write off direct mail as too pricey or passé are finding it’s not so easy to dismiss.

Ms. Settle says that at first she blamed the economy for the dropoff, until she "started hearing from customers that they never got their ‘reminder’ in the mail." Ms. Settle quickly sent a postcard mailing in June, which recouped the 25% loss, she says.

Costs are still taken into account. Many entrepreneurs find that the boiler-plate methods of the past—such as purchasing mailing lists and sending fliers or coupons to a mass audience—often aren’t cost-effective. Instead, business owners are creating personalized mailings, which may include special offers or other valuable information, and sending them to a hand-picked list of current and prospective customers.

The idea is to send something that’s more appealing than "junk" mail and potentially more noticeable than an email message, says Eric Anderson, a professor of marketing at Northwestern University’s Kellogg School of Management. That allows business owners "to offer a personal touch the larger firms may not be able to have," he says.

To save money, Peter Taffae, founder of ExecutivePerils, a Los Angeles wholesale insurance broker, stopped his small firm’s humorous postcard mailings last year. The colorful marketing pieces showcase the insurance broker’s offerings through satirical movie themes, such as "Full Metal Policy," a parody of "Full Metal Jacket" and "Singin’ in the Renewal," from the classic film "Singin’ in the Rain." About 2,000 current and potential clients received the postcards, which cost the company $4,000 to send out every four to six weeks.

Customers complained when ExecutivePerils dropped its humorous postcards.

"We would visit some clients and notice they were hanging the postcards on the wall, collecting them," says Mr. Taffae, who says he secured $270,000 from a new client who chose to do business with the firm in late 2008 after receiving the postcards.

"After two or three months [of no postcards], we got a lot of emails and phone calls asking us, ‘Did you take me off your list?’ I figured if even 1% complained, then a much larger percentage were thinking about it," says Mr. Taffae, who restarted the postcard mailings in November.

William Kapas, president of J.C. Kapas Real Estate Co. in Rochelle Park, N.J., says he has secured clients as a result of his high-gloss, four-color monthly mailings that list who has bought or sold restaurant properties though the firm.

"Our clients look forward to knowing, and it’s a little bit of gossip, too," says Mr. Kapas, who exclusively uses traditional mail to reach clients. "I think it’s easier to delete the electronic junk mail without taking a second look."

Mr. Kapas spends about $1 a piece for the monthly mailings, sent to about 2,200 current and prospective customers.

Prof. Anderson says other business owners are trying to figure out how to integrate Web marketing—such as email campaigns, banner ads and social-networking sites—with direct mail. "The introduction of new media has forced [business owners] to go back and revisit the whole playbook on what’s the best way to communicate with customers," Mr. Anderson says.

Ms. Settle, for instance, plans to use e-marketing to complement the hand-signed direct-mail piece, not replace it.

Meanwhile, Mr. Taffae is starting to take his satirical marketing approach to YouTube; he’s created a parody of F Troop, the 1960s sitcom, to promote his firm online.