Posts Tagged ‘direct mail’

July 30th, 2010

Data planning and market research - mind the gap

I once attended a research debrief to report the results of a survey into the communication effects of a direct mail campaign. The survey asked if the target group had received the direct mail piece and what they thought of it. The survey results were not good. According to the research, hardly any of the respondents could recall seeing the DM pack and even fewer claimed to have responded. There was disappointment; it was a big mailing and a strong offer, surely someone must have seen it and been motivated to respond. But all was not lost. In reality, away from the results of the survey, the campaign had in fact been very successful. I knew that the campaign was in the process of beating all its response, conversion and sign-up targets.  From a hard data point of view this campaign was on track to become one of the most successful DM campaigns ever run by the client.

So why was the recall in the research so low and the actual response so high? I can think of three explanations:

First, we were targeting a large group of the population. It was possible that even though the hard data results were good, we were drawing our DM response from portions of the population that simply hadn’t been included in the sample.   If we had a 25% response then that was a record-breaker from a DM planning point of view, but it still meant that the vast majority of the target - 75% - hadn’t responded. Those that had engaged with the mailing were far more likely to recall it than those who had not. So if our sample happened to comprise of 85% or 90% of those who did not responsd, then the recall results would be much lower than the response actually experienced.

The second explanation is more intriguing. Could it be that even though 1 in 4 of the target had responded, those that did respond had failed to make the connection between the what they’d actually done and what the research was asking them? In this scenario the sample is accurate and reaching our 1 in 4 respondents, but those who had responded forgot that they had done so when asked in research. Had they failed to connect the research question to the campaign and to their response behaviour?

The third explanation is that some of the respondents deliberately disconnected their actual behaviour from the answers they gave in the research. In other words, they did respond, but they didn’t want to say so.  They were using the research as a communication channel to share a point of view along the lines of ‘I’m not going to tell you exactly what I did. What I am going to tell you is that I didn’t like being perceived to be in your target audience, or perceived to be the sort of person who would buy the sort of product you were offering’.

Whatever the explanation, this taught me an important lesson; market research and behavioural data can say very different things. Asking people what they did, or think they did, can be very different to what they actually did. If market research tells you something, take it as an indicator not a fact. If it’s something big, do more digging around the research before you act on it.  But if hard data tells you something, whether it’s good or bad, whether you like it or not, you can be sure that it reflects changes in actual behaviour, the ultimate measure of marketing success or failure.

January 3rd, 2008

Is this the Mother of All Direct Mail packs?

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Whilst this year’s Reader’s Digest prize draw direct mail pack may not win the ‘Most Creative Direct Mail Pack of the Year’ award, what you are looking at here could be the Mother of All DM packs.

The folks over at Reader’s Digest are masters of direct marketing. They’ve been doing direct mail for years; testing, refining, testing and refining, year in and year out. They analyse performance to the nth degree, looking at sales value, customer value, response data files, segment results and ROI from almost every imaginable perspective. They work out what delivers and do more, and they work out what doesn’t and do less.

So, what you see here is not down to chance. It’s based on knowledge. The envelope size, colour, markings of priority and response deadlines you see here are all devices that have earned the right to be there, they are all devices that work to generate the highest possible sales per £ spent.

Given its lack of creative credentials, this pack throws open the doors to the debate about creativity versus performance. Whilst most agency creatives want to win awards to stack on their office shelves, the business managers who are their clients want results. And it looks as though the masters of DM think this is the right route to the best ROI result.

One of the challenges facing direct marketers in the digital age is to think more responsibly about the environment. A core part of this responsibility will be to ensure that where a medium like direct mail is used, it is used as efficiently as possible. If your business needs 1,000 responses, it’s much better to generate that from 5,000 packs as opposed to 50,000 packs. That means improving response rates.

So here’s a question for all marketers buying direct mail creative: How many of the direct mail packs your agency have presented recently look anything like this?

February 27th, 2007

Dodo’s, Direct Mail and Extinction


Have you seen the kids movie Ice Age? In it, the Dodo’s, on the eve of extinction, run around in a broken circle of dead ends, lame excuses and half baked ideas, arguing that they’re the best thing since sliced bread as the world progresses beyond their stagnanting ideals. Of course we all know what happened in the end.

The DM industry behaves in much the same way and in the process has made itself a sitting dodo for environmentalists. It runs an ongoing drip campaign to remind almost every UK household of its very ungreen credentials - by delivering on average 13.4 items per household per month (DMIS). The maths are shocking; 643,000 tonnes of direct mail per year of which around 95% is wasted; 611,000 tonnes - straight in the bin. The campaign bursts come in the form of the huge pile of poorly targeted white envelopes that litter our doorsteps after a week away - the annual total according to DMIS is 5.1 billion items a year. Like the Dodo’s, I doubt the DM industry will ever get real about the impending demise of direct mail.

Is there a future? Well yes, of course. There is for all species, but only if they successfully change to meet the demands of their new environment. The DM industry should be thinking much more strategically about where 1-1 communication is going and what they can offer. They are in the 1-1 communication business. They understand it; the fine tuning, the detail, the nuances, the customer behaviour and the regulatory framework (even if they don’t always abide by it). They could export these skills into the web arena and build powerful customer communication businesses. OK, so they’d have to sell their printing presses, close down their print shops and move out of paper. But if they spend their money now, to build strategic positions in 1-1 communications, they could avoid the extinction that otherwise awaits many of them.